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American Airlines Reports Second-Quarter 2022 Financial Results

FORT WORTH, Texas, July 21, 2022 (GLOBE NEWSWIRE) — American Airlines Group Inc. (NASDAQ: AAL) today reported its second-quarter 2022 financial results, including:

  • Second-quarter net income of $476 million, or $0.68 per diluted share. Excluding net special items1, second-quarter net income of $533 million, or $0.76 per diluted share.
  • Record second-quarter revenue of $13.4 billion, which represents a 12.2% increase over the same period in 2019, despite flying 8.5% less capacity.
  • Ended the second quarter with $15.6 billion of total available liquidity.
  • Company continues to execute on its plan to pay down approximately $15 billion of total debt2 by the end of 2025.

“We are very pleased to report a quarterly profit, excluding net special items, for the first time since the start of the pandemic, driven by the strong demand environment and the hard work of our team,” said American’s CEO Robert Isom. “The American Airlines team has stepped up to meet the surge in demand for air travel while running a reliable operation in very challenging conditions. We are encouraged by the trends we’re seeing across the business, and we remain well-positioned for the continued recovery.”

Running a reliable operation
In the second quarter, American flew a schedule that was more than 25% larger than its closest competitor as measured by total departures. American and its regional partners operated more than 500,000 flights in the quarter, an 8% increase over the second quarter of 2021, with an average load factor of 87%, which is 10 points higher than the second quarter of 2021. Despite a challenging operating environment in June, American’s on-time departure rate, on-time arrival rate and completion factor for the second quarter of 2022 were each improved versus the second quarter of 2019.

American is proud to offer customers the youngest fleet among U.S. network carriers and the largest network of any U.S. airline, with an expected average of more than 5,400 daily departures for the remainder of the summer.

Returning to profitability
American produced revenues of $13.4 billion in the second quarter, a 12.2% increase versus 2019 and a record for any quarter in company history. This record revenue was achieved while flying 8.5% less capacity than the same period in 2019, and there remains significant revenue potential going forward to the extent business and international travel improve further.

Domestic leisure travel remains very strong and surpassed 2019 levels in the second quarter and American also saw improvements in corporate and government revenue in the quarter. Demand for international travel also improved steadily during the second quarter and the company expects this to continue following the lifting of the COVID-19 testing requirement for inbound travel to the U.S.

Liquidity and balance sheet
American ended the second quarter with $15.6 billion of total available liquidity. Total debt reduction continues to be a top priority and the company remains on track to reduce overall debt levels by $15 billion by the end of 2025.

In the second quarter, the company made $1.0 billion in scheduled debt and finance lease payments, including paying off the remaining $433 million outstanding balance of its $750 million unsecured senior notes that matured in June. To date, American has reduced its overall debt by $5.2 billion from peak levels in the second quarter of 2021.

Guidance and investor update
American will continue to match its forward capacity with the resources required to support its operation. Based on current trends, the company expects its third-quarter total revenue to be 10% to 12% higher versus the third quarter of 2019 on 8% to 10% lower capacity. Based on these demand trends and the current fuel price forecast, the company expects to be profitable in the third quarter.

For additional financial forecasting detail, please refer to the company’s investor update, filed with this press release with the SEC on Form 8-K. This filing will also be available at aa.com/investorrelations.

Conference call and webcast details
The company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CDT today. The call will be available to the public on a listen-only basis at aa.com/investorrelations. An archive of the webcast will be available on the website through Aug. 21.

Notes
See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information.

  1. The company recognized $84 million of pre-tax net special items in the second quarter of 2022, which principally included mark-to-market net unrealized losses associated with certain equity investments.
  2. Total debt includes debt, finance leases, operating lease liability and pension obligations.

About American Airlines Group
To Care for People on Life’s Journey®. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.

Cautionary statement regarding forward-looking statements and information

Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about the company’s plans, objectives, expectations, intentions, estimates and strategies for the future, the continuing availability of borrowings under revolving lines of credit, and other statements that are not historical facts. These forward-looking statements are based on the company’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth herein as well as in the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (especially in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors), and other risks and uncertainties listed from time to time in the company’s other filings with the Securities and Exchange Commission. In particular, the consequences of the coronavirus outbreak to economic conditions and the travel industry in general and the financial position and operating results of the company in particular have been material, are changing rapidly, and cannot be predicted. Additionally, there may be other factors of which the company is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement.

American Airlines Group Inc.
Condensed Consolidated Statements of Operations
(In millions, except share and per share amounts)
(Unaudited)
                         
    3 Months Ended
June 30,
  Percent
Increase
  6 Months Ended
June 30,
  Percent
Increase
      2022       2021     (Decrease)     2022       2021     (Decrease)
                         
Operating revenues:                        
Passenger   $ 12,223     $ 6,545     86.8     $ 20,041     $ 9,724     nm  
Cargo     328       326     0.5       692       641     7.8  
Other     871       607     43.5       1,588       1,121     41.7  
Total operating revenues     13,422       7,478     79.5       22,321       11,486     94.3  
                                             
Operating expenses:                                            
Aircraft fuel and related taxes     4,020       1,611     nm   (1)   6,522       2,644     nm  
Salaries, wages and benefits     3,235       2,862     13.0       6,389       5,593     14.2  
Regional expenses:                                            
Regional operating expenses     992       558     77.5       1,964       1,102     78.1  
Regional depreciation and amortization     80       77     3.4       160       159     0.7  
Maintenance, materials and repairs     647       459     40.9       1,264       835     51.3  
Other rent and landing fees     694       686     1.2       1,372       1,256     9.2  
Aircraft rent     345       356     (2.9 )     698       706     (1.1 )
Selling expenses     504       277     82.2       836       427     95.8  
Depreciation and amortization     504       481     4.8       995       959     3.8  
Special items, net     (5 )     (1,288 )   (99.6 )     152       (2,996 )   nm  
Other     1,389       958     45.0       2,675       1,675     59.8  
Total operating expenses     12,405       7,037     76.3       23,027       12,360     86.3  
                                             
Operating income (loss)     1,017       441     nm       (706 )     (874 )   (19.2 )
                                             
Nonoperating income (expense):                                            
Interest income     29       5     nm       37       8     nm  
Interest expense, net     (468 )     (486 )   (3.7 )     (932 )     (856 )   8.8  
Other income, net     25       49     (50.4 )     118       158     (25.7 )
Total nonoperating expense, net     (414 )     (432 )   (4.0 )     (777 )     (690 )   12.6  
                                             
Income (loss) before income taxes     603       9     nm       (1,483 )     (1,564 )   (5.2 )
                                             
Income tax provision (benefit)     127       (10 )   nm       (324 )     (333 )   (2.8 )
                                             
Net income (loss)   $ 476     $ 19     nm     $ (1,159 )   $ (1,231 )   (5.8 )
                                             
                                             
Earnings (loss) per common share:                                            
Basic   $ 0.73     $ 0.03           $ (1.78 )   $ (1.92 )      
Diluted   $ 0.68     $ 0.03           $ (1.78 )   $ (1.92 )      
                                             
Weighted average shares outstanding (in thousands):                                            
Basic     650,346       644,123             649,925       639,366        
Diluted     718,532       656,372             649,925       639,366        
                         
                         
Note: Percent change may not recalculate due to rounding.
                         
(1) Not meaningful or greater than 100% change.
                         

American Airlines Group Inc.
Consolidated Operating Statistics (1)
(Unaudited)
                                     
    3 Months Ended
June 30,
  Increase     6 Months Ended
June 30,
  Increase  
    2022     2021     (Decrease)     2022     2021     (Decrease)  
                                     
Revenue passenger miles (millions)   57,516     42,022     36.9   %   101,806     64,486     57.9   %
Available seat miles (ASM) (millions)   66,163     54,555     21.3   %   125,697     92,319     36.2   %
Passenger load factor (percent)   86.9     77.0     9.9   pts   81.0     69.9     11.1   pts
Yield (cents)   21.25     15.57     36.4   %   19.69     15.08     30.5   %
Passenger revenue per ASM (cents)   18.47     12.00     54.0   %   15.94     10.53     51.4   %
Total revenue per ASM (cents)   20.29     13.71     48.0   %   17.76     12.44     42.7   %
Cargo ton miles (millions)   500     555     (9.8 ) %   1,036     1,087     (4.7 ) %
Cargo yield per ton mile (cents)   65.58     58.86     11.4   %   66.74     59.02     13.1   %
                                         
Fuel consumption (gallons in millions)   997     844     18.1   %   1,891     1,452     30.2   %
Average aircraft fuel price including related taxes (dollars per gallon)   4.03     1.91     nm       3.45     1.82     89.4   %
                                         
Operating cost per ASM (cents)   18.75     12.90     45.3   %   18.32     13.39     36.8   %
Operating cost per ASM excluding net special items (cents)   18.76     15.57     20.5   %   18.20     17.05     6.8   %
Operating cost per ASM excluding net special items and fuel (cents)   12.68     12.61     0.5   %   13.01     14.18     (8.3 ) %
                                         
Passenger enplanements (thousands)   53,068     44,019     20.6   %   95,790     68,256     40.3   %
Departures (thousands):                                        
Mainline   260     220     18.1   %   501     372     34.5   %
Regional   243     247     (1.6 ) %   474     433     9.5   %
Total   503     467     7.7   %   975     805     21.1   %
Average stage length (miles):                                        
Mainline   1,181     1,172     0.8   %   1,170     1,186     (1.3 ) %
Regional   478     483     (1.0 ) %   481     492     (2.4 ) %
Total   841     808     4.2   %   835     813     2.7   %
Aircraft at end of period:                                        
Mainline (2)   895     854     4.8   %   895     854     4.8   %
Regional (3)   576     559     3.0   %   576     559     3.0   %
Total   1,471     1,413     4.1   %   1,471     1,413     4.1   %
Full-time equivalent employees at end of period:                                        
Mainline   102,100     91,100     12.1   %   102,100     91,100     12.1   %
Regional (4)   27,100     26,300     3.0   %   27,100     26,300     3.0   %
Total   129,200     117,400     10.1   %   129,200     117,400     10.1   %
                                     
                                     
Note: Amounts may not recalculate due to rounding.                                    
                                     
(1) Unless otherwise noted, operating statistics include mainline and regional operations. Regional includes wholly-owned regional airline subsidiaries and operating results from capacity purchase carriers.
(2) Excludes 20 Boeing 737-800 mainline aircraft that are in temporary storage at June 30, 2022.
(3) Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excludes 15 Embraer 145 and four Embraer 170 regional aircraft that are in temporary storage at June 30, 2022.
(4) Regional full-time equivalent employees only include our wholly-owned regional airline subsidiaries.
                                     

American Airlines Group Inc.
Consolidated Revenue Statistics by Region
(Unaudited)
                                     
    3 Months Ended
June 30,
  Increase     6 Months Ended
June 30,
  Increase  
    2022     2021     (Decrease)     2022     2021     (Decrease)  
                                     
Domestic (1)                                    
Revenue passenger miles (millions)   39,488     34,871     13.2   %   72,120     53,408     35.0   %
Available seat miles (ASM) (millions)   43,948     41,037     7.1   %   85,821     68,989     24.4   %
Passenger load factor (percent)   89.9     85.0     4.9   pts   84.0     77.4     6.6   pts
Passenger revenue (dollars in millions)   9,120     5,444     67.5   %   15,180     8,099     87.4   %
Yield (cents)   23.10     15.61     47.9   %   21.05     15.16     38.8   %
Passenger revenue per ASM (cents)   20.75     13.27     56.4   %   17.69     11.74     50.7   %
                                         
Latin America (2)                                        
Revenue passenger miles (millions)   8,424     5,970     41.1   %   16,077     9,546     68.4   %
Available seat miles (millions)   9,801     8,461     15.8   %   20,112     16,326     23.2   %
Passenger load factor (percent)   86.0     70.6     15.4   pts   79.9     58.5     21.4   pts
Passenger revenue (dollars in millions)   1,534     936     63.9   %   2,761     1,417     94.8   %
Yield (cents)   18.21     15.68     16.1   %   17.17     14.85     15.6   %
Passenger revenue per ASM (cents)   15.65     11.06     41.5   %   13.73     8.68     58.1   %
                                         
Atlantic                                        
Revenue passenger miles (millions)   9,045     939     nm   %   12,649     1,139     nm   %
Available seat miles (millions)   11,630     4,035     nm   %   18,010     5,186     nm   %
Passenger load factor (percent)   77.8     23.3     54.5   pts   70.2     22.0     48.2   pts
Passenger revenue (dollars in millions)   1,481     125     nm   %   1,947     147     nm   %
Yield (cents)   16.37     13.26     23.5   %   15.39     12.88     19.5   %
Passenger revenue per ASM (cents)   12.73     3.09     nm   %   10.81     2.83     nm   %
                                         
Pacific                                        
Revenue passenger miles (millions)   559     242     nm   %   960     393     nm   %
Available seat miles (millions)   784     1,022     (23.2 ) %   1,754     1,818     (3.5 ) %
Passenger load factor (percent)   71.2     23.7     47.5   pts   54.7     21.6     33.1   pts
Passenger revenue (dollars in millions)   88     40     nm   %   153     61     nm   %
Yield (cents)   15.81     16.71     (5.4 ) %   15.94     15.49     2.9   %
Passenger revenue per ASM (cents)   11.26     3.96     nm   %   8.72     3.35     nm   %
                                         
Total International                                        
Revenue passenger miles (millions)   18,028     7,151     nm   %   29,686     11,078     nm   %
Available seat miles (millions)   22,215     13,518     64.3   %   39,876     23,330     70.9   %
Passenger load factor (percent)   81.2     52.9     28.3   pts   74.4     47.5     26.9   pts
Passenger revenue (dollars in millions)   3,103     1,101     nm   %   4,861     1,625     nm   %
Yield (cents)   17.21     15.39     11.8   %   16.38     14.67     11.6   %
Passenger revenue per ASM (cents)   13.97     8.14     71.5   %   12.19     6.97     75.0   %
                                     
Note: Amounts may not recalculate due to rounding.                              
                                     
(1) Domestic results include Canada, Puerto Rico and U.S. Virgin Islands.  
(2) Latin America results include the Caribbean.  
                                     

Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
                           
American Airlines Group Inc. (the Company) sometimes uses financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordance with GAAP to understand and evaluate its current operating performance and to allow for period-to-period comparisons. The Company believes these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. The Company is providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.

The tables below present the reconciliations of the following GAAP measures to their non-GAAP measures:

– Pre-Tax Income (Loss) (GAAP measure) to Pre-Tax Income (Loss) Excluding Net Special Items (non-GAAP measure)
– Pre-Tax Margin (GAAP measure) to Pre-Tax Margin Excluding Net Special Items (non-GAAP measure)
– Net Income (Loss) (GAAP measure) to Net Income (Loss) Excluding Net Special Items (non-GAAP measure)
– Basic and Diluted Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items (non-GAAP measure)
– Operating Income (Loss) (GAAP measure) to Operating Income (Loss) Excluding Net Special Items (non-GAAP measure)

Management uses these non-GAAP financial measures to evaluate the Company’s current operating performance and to allow for period-to-period comparisons. As net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items allows management an additional tool to understand the Company’s core operating performance.

Additionally, the tables below present the reconciliations of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non-GAAP measure) and total operating costs per ASM (CASM) to CASM excluding net special items and fuel. Management uses total operating costs excluding net special items and fuel and CASM excluding net special items and fuel to evaluate the Company’s current operating performance and for period-to-period comparisons. The price of fuel, over which the Company has no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude fuel and net special items allows management an additional tool to understand and analyze the Company’s non-fuel costs and core operating performance.

                           
      3 Months Ended
June 30,
  Percent
Increase
  6 Months Ended
June 30,
Percent
Increase
  Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items     2022       2021     (Decrease)     2022       2021     (Decrease)
      (in millions, except share and per share amounts)       (in millions, except share and per share amounts)    
                           
  Pre-tax income (loss) as reported   $ 603     $ 9         $ (1,483 )   $ (1,564 )    
  Pre-tax net special items:                        
  Mainline operating special items, net (1)     (5 )     (1,288 )         152       (2,996 )    
  Regional operating special items, net (2)           (167 )               (381 )    
  Nonoperating special items, net (3)     89       37           92       13      
  Total pre-tax net special items     84       (1,418 )         244       (3,364 )    
                           
  Pre-tax income (loss) excluding net special items   $ 687     $ (1,409 )   nm   $ (1,239 )   $ (4,928 )   (74.8%)
                           
                           
  Calculation of Pre-Tax Margin                        
                           
  Pre-tax income (loss) as reported   $ 603     $ 9         $ (1,483 )   $ (1,564 )    
                           
  Total operating revenues as reported   $ 13,422     $ 7,478         $ 22,321     $ 11,486      
                           
  Pre-tax margin     4.5%       0.1%           (6.6% )     (13.6% )    
                           
                           
  Calculation of Pre-Tax Margin Excluding Net Special Items                        
                           
  Pre-tax income (loss) excluding net special items   $ 687     $ (1,409 )       $ (1,239 )   $ (4,928 )    
                           
  Total operating revenues as reported   $ 13,422     $ 7,478         $ 22,321     $ 11,486      
                           
  Pre-tax margin excluding net special items     5.1%       (18.8% )         (5.6% )     (42.9% )    
                           
                           
  Reconciliation of Net Income (Loss) Excluding Net Special Items                        
                           
  Net income (loss) as reported   $ 476     $ 19         $ (1,159 )   $ (1,231 )    
  Net special items:                        
  Total pre-tax net special items (1), (2), (3)     84       (1,418 )         244       (3,364 )    
  Income tax special items, net     (9 )               (9 )          
  Net tax effect of net special items     (18 )     309           (53 )     762      
  Net income (loss) excluding net special items   $ 533     $ (1,090 )   nm   $ (977 )   $ (3,833 )   (74.5%)
                           
                           
  Reconciliation of Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items                        
                           
  Net income (loss) excluding net special items   $ 533     $ (1,090 )       $ (977 )   $ (3,833 )    
                           
  Shares used for computation (in thousands):                        
  Basic     650,346       644,123           649,925       639,366      
  Diluted     718,532       644,123           649,925       639,366      
                           
  Earnings (loss) per share excluding net special items:                        
  Basic   $ 0.82     $ (1.69 )       $ (1.50 )   $ (6.00 )    
  Diluted   $ 0.76     $ (1.69 )       $ (1.50 )   $ (6.00 )    
                           
      3 Months Ended
June 30,
      6 Months Ended
June 30,
 
  Reconciliation of Operating Income (Loss) Excluding Net Special Items     2022       2021           2022       2021      
      (in millions)       (in millions)  
                           
  Operating income (loss) as reported   $ 1,017     $ 441         $ (706 )   $ (874 )    
                           
  Operating net special items:                        
  Mainline operating special items, net (1)     (5 )     (1,288 )         152       (2,996 )    
  Regional operating special items, net (2)           (167 )               (381 )    
  Operating income (loss) excluding net special items   $ 1,012     $ (1,014 )       $ (554 )   $ (4,251 )    
                           
                           
  Reconciliation of Total Operating Cost per ASM Excluding Net Special Items and Fuel                        
                           
  Total operating expenses as reported   $ 12,405     $ 7,037         $ 23,027     $ 12,360      
                           
  Operating net special items:                        
  Mainline operating special items, net (1)     5       1,288           (152 )     2,996      
  Regional operating special items, net (2)           167                 381      
  Total operating expenses excluding net special items     12,410       8,492           22,875       15,737      
                           
  Aircraft fuel and related taxes     (4,020 )     (1,611 )         (6,522 )     (2,644 )    
  Total operating expenses excluding net special items and fuel   $ 8,390     $ 6,881         $ 16,353     $ 13,093      
                           
      (in cents)       (in cents)  
                           
  Total operating expenses per ASM as reported     18.75       12.90           18.32       13.39      
                           
  Operating net special items per ASM:                        
  Mainline operating special items, net (1)     0.01       2.36           (0.12 )     3.25      
  Regional operating special items, net (2)           0.31                 0.41      
  Total operating expenses per ASM excluding net special items     18.76       15.57           18.20       17.05      
                           
  Aircraft fuel and related taxes per ASM     (6.08 )     (2.95 )         (5.19 )     (2.86 )    
  Total operating expenses per ASM excluding net special items and fuel     12.68       12.61           13.01       14.18      
                           
  Note: Amounts may not recalculate due to rounding.                        
                           
  FOOTNOTES:                        
                           
(1) The 2022 six month period mainline operating special items, net principally included a non-cash impairment charge to write down the carrying value of the Company’s retired Airbus A330 fleet to the estimated fair value due to current market conditions for certain used aircraft.The Company retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

The 2021 second quarter mainline operating special items, net principally included $1.3 billion of Payroll Support Program (PSP) financial assistance. The 2021 six month period mainline operating special items, net principally included $3.2 billion of PSP financial assistance, offset in part by $168 million of salary and medical costs associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to the Company’s operation due to the COVID-19 pandemic.

                           
(2) The 2021 second quarter regional operating special items, net principally included $167 million of PSP financial assistance. The 2021 six month period regional operating special items, net principally included $410 million of PSP financial assistance, offset in part by a $27 million non-cash impairment charge to write down regional aircraft resulting from the retirement of the remaining Embraer 140 fleet earlier than planned.
                           
(3) Principally included mark-to-market net unrealized gains and losses associated with certain equity and other investments as well as non-cash charges associated with debt refinancings and extinguishments.
   

 

American Airlines Group Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)(Unaudited)
         
    6 Months Ended
June 30,
      2022       2021  
         
  Net cash provided by operating activities $ 2,924     $ 3,644  
  Cash flows from investing activities:      
  Capital expenditures, net of aircraft purchase deposit returns   (1,405 )     118  
  Airport construction projects, net of reimbursements   (156 )     (77 )
  Proceeds from sale of property and equipment   19       161  
  Proceeds from sale-leaseback transactions         163  
  Sales of short-term investments   10,135       2,837  
  Purchases of short-term investments   (10,083 )     (13,840 )
  Increase in restricted short-term investments   (10 )     (404 )
  Purchase of equity investment   (200 )      
  Other investing activities         6  
  Net cash used in investing activities   (1,700 )     (11,036 )
  Cash flows from financing activities:      
  Payments on long-term debt and finance leases   (1,659 )     (5,040 )
  Proceeds from issuance of long-term debt   574       12,096  
  Shares withheld for taxes pursuant to employee stock plans   (16 )     (13 )
  Proceeds from issuance of equity         460  
  Deferred financing costs         (166 )
  Other financing activities   6       121  
  Net cash provided by (used in) financing activities   (1,095 )     7,458  
  Net increase in cash and restricted cash   129       66  
  Cash and restricted cash at beginning of period   408       399  
(1) Cash and restricted cash at end of period $ 537     $ 465  
         
________________________      
(1) The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:
         
  Cash $ 401     $ 325  
  Restricted cash included in restricted cash and short-term investments   136       140  
  Total cash and restricted cash $ 537     $ 465  
         

       
American Airlines Group Inc.
Condensed Consolidated Balance Sheets
(In millions, except shares)
       
  June 30, 2022   December 31, 2021
  (unaudited)    
Assets      
       
Current assets      
Cash $ 401     $ 273  
Short-term investments   12,121       12,158  
Restricted cash and short-term investments   997       990  
Accounts receivable, net   1,835       1,505  
Aircraft fuel, spare parts and supplies, net   2,273       1,795  
Prepaid expenses and other   898       615  
Total current assets   18,525       17,336  
       
Operating property and equipment      
Flight equipment   38,754       37,856  
Ground property and equipment   9,595       9,335  
Equipment purchase deposits   617       517  
Total property and equipment, at cost   48,966       47,708  
Less accumulated depreciation and amortization   (18,972 )     (18,171 )
Total property and equipment, net   29,994       29,537  
       
Operating lease right-of-use assets   7,510       7,850  
       
Other assets      
Goodwill   4,091       4,091  
Intangibles, net   2,079       1,988  
Deferred tax asset   3,858       3,556  
Other assets   1,906       2,109  
Total other assets   11,934       11,744  
       
Total assets $ 67,963     $ 66,467  
       
Liabilities and Stockholders’ Equity (Deficit)      
       
Current liabilities      
Current maturities of long-term debt and finance leases $ 2,106     $ 2,489  
Accounts payable   2,733       1,772  
Accrued salaries and wages   1,505       1,489  
Air traffic liability   8,969       6,087  
Loyalty program liability   3,065       2,896  
Operating lease liabilities   1,483       1,507  
Other accrued liabilities   2,909       2,766  
Total current liabilities   22,770       19,006  
       
Noncurrent liabilities      
Long-term debt and finance leases, net of current maturities   34,963       35,571  
Pension and postretirement benefits   4,755       5,053  
Loyalty program liability   6,189       6,239  
Operating lease liabilities   6,313       6,610  
Other liabilities   1,395       1,328  
Total noncurrent liabilities   53,615       54,801  
       
Stockholders’ equity (deficit)      
Common stock, 649,779,361 shares outstanding at June 30, 2022   6       6  
Additional paid-in capital   7,259       7,234  
Accumulated other comprehensive loss   (5,890 )     (5,942 )
Retained deficit   (9,797 )     (8,638 )
Total stockholders’ deficit   (8,422 )     (7,340 )
       
Total liabilities and stockholders’ equity (deficit) $ 67,963     $ 66,467  
       

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