EX-99.1 2 a8kerexhibit991q4-23.htm EX-99.1 Document


Exhibit 99.1
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Corporate Communications
  mediarelations@aa.com
Investor Relations
investor.relations@aa.com

FOR RELEASE: Thursday, Jan. 25, 2024
AMERICAN AIRLINES REPORTS FOURTH-QUARTER AND FULL-YEAR 2023 FINANCIAL RESULTS
FORT WORTH, Texas –– American Airlines Group Inc. (NASDAQ: AAL) today reported its fourth-quarter and full-year 2023 financial results, including:
•Record full-year revenue of approximately $53 billion.
•GAAP fourth-quarter and full-year net income of $19 million and $822 million, or $0.03 and $1.21 per diluted share, respectively.
•Excluding net special items1, fourth-quarter and full-year net income of $192 million and $1.9 billion, or $0.29 and $2.65 per diluted share, respectively.
•Achieved best-ever fourth-quarter and full-year completion factor.
•Generated GAAP operating cash flow of $3.8 billion and the airline’s highest full-year free cash flow2 of $1.8 billion.
•Reduced total debt3 by $3.2 billion in 2023. The company is more than 75% of the way to its 2025 total debt reduction goal.
“The American Airlines team produced an exceptionally strong performance in 2023,” said American’s CEO Robert Isom. “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.”
Operational reliability
American and its regional partners operated nearly 2 million flights in 2023, with an average load factor of 83.5%. The company produced its best-ever fourth-quarter and full-year completion factor, with the lowest number of cancellations annually since the merger in 2013.
The airline’s strong operational momentum continued through the holiday travel period. American achieved its best-ever completion factor and on-time departures as well as its lowest mishandled baggage rate over the holidays.
Financial performance
For the full year, American produced record revenue of nearly $53 billion. In the fourth quarter, the company generated revenue of more than $13 billion and an operating margin of 5.0% on a GAAP basis. Excluding the impact of net special items1, American produced an operating margin of 5.1% in the fourth quarter, exceeding the high end of the company’s prior guidance. These results were driven by continued strong demand for American’s product, record revenue from its travel rewards program, strong operational performance and effective cost control.

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 2

Liquidity and balance sheet
Strengthening the balance sheet remains a top priority for the company. American reduced total debt3 by more than $500 million in the fourth quarter and by approximately $3.2 billion in 2023. The company is more than 75% of the way to its goal of reducing total debt3 by $15 billion by the end of 2025. As of Dec. 31, 2023, American had reduced its total debt3 by approximately $11.4 billion from peak levels in mid-2021.
The company ended the year with approximately $10.4 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.
Guidance and investor update
Based on present demand trends and the current fuel price forecast and excluding the impact of special items4, the company expects its first-quarter 2024 adjusted loss per diluted share4 to be between ($0.15) and ($0.35). American expects its full-year 2024 adjusted earnings per diluted share4 to be between $2.25 and $3.25.
For additional financial forecasting detail, please refer to the company’s investor update, furnished 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. CT 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 Feb. 25.
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, including the calculation of free cash flow.
1.The company recognized $173 million of net special items in the fourth quarter after the effect of taxes, which principally included $216 million of nonoperating net special items for charges associated with debt extinguishments and mark-to-market net unrealized losses on certain equity investments. The company recognized $1.0 billion of net special items in 2023 after the effect of taxes, which included operating net special items of $979 million principally related to one-time charges resulting from the ratification of a new collective bargaining agreement with American’s mainline pilots, as well as nonoperating net special items of $362 million for charges associated with debt extinguishments and mark-to-market net unrealized losses on certain equity investments.
2.Please see the accompanying notes for the company’s definition of free cash flow, a non-GAAP measure.
3.All references to total debt include debt, finance and operating lease liabilities and pension obligations.
4.Adjusted earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking information to GAAP as the nature or amount of net special items cannot be determined at this time.

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 3

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 @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, 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 September 30, 2023 (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. 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 Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 4

American Airlines Group Inc.
Condensed Consolidated Statements of Operations
(In millions, except share and per share amounts)
(Unaudited) 
 3 Months Ended
December 31,		Percent
Increase
(Decrease)		12 Months Ended
December 31,		Percent
Increase
(Decrease)
 2023202220232022
Operating revenues:
Passenger$12,010 $12,131 (1.0)$48,512 $44,568 8.8 
Cargo199 263 (24.2)812 1,233 (34.1)
Other853 795 7.2 3,464 3,170 9.3 
Total operating revenues13,062 13,189 (1.0)52,788 48,971 7.8 
Operating expenses:
Aircraft fuel and related taxes3,159 3,421 (7.7)12,257 13,791 (11.1)
Salaries, wages and benefits3,689 3,199 15.3 14,580 12,972 12.4 
Regional expenses:
Regional operating expenses1,101 1,006 9.3 4,325 4,064 6.4 
Regional depreciation and amortization79 81 (1.8)318 321 (0.8)
Maintenance, materials and repairs875 735 19.1 3,265 2,684 21.6 
Other rent and landing fees714 649 10.0 2,928 2,730 7.3 
Aircraft rent338 350 (3.2)1,369 1,395 (1.9)
Selling expenses443 484 (8.5)1,799 1,815 (0.9)
Depreciation and amortization480 492 (2.3)1,936 1,977 (2.1)
Special items, net9 4  nm
(1)
971 193  nm
Other1,519 1,385 9.7 6,006 5,422 10.8 
Total operating expenses12,406 11,806 5.1 49,754 47,364 5.0 
Operating income656 1,383 (52.5)3,034 1,607 88.8 
Nonoperating income (expense):
Interest income136 110 24.1 591 216  nm
Interest expense, net(519)(532)(2.3)(2,145)(1,962)9.3 
Other income (expense), net(241)50  nm (359)325  nm
Total nonoperating expense, net(624)(372)67.9 (1,913)(1,421)34.6 
Income before income taxes32 1,011 (96.8)1,121 186  nm
Income tax provision13 208 (93.6)299 59  nm
Net income$19 $803 (97.6)$822 $127  nm
Earnings per common share:
Basic$0.03 $1.23 $1.26 $0.20 
Diluted$0.03 $1.14 $1.21 $0.19 
Weighted average shares outstanding (in thousands):
Basic654,725 650,944 653,612 650,345 
Diluted657,079 716,070 719,669 655,122 
Note: Percent change may not recalculate due to rounding.
(1)Not meaningful or greater than 100% change.


American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 5

American Airlines Group Inc.
Consolidated Operating Statistics (1)
(Unaudited)
 3 Months Ended
December 31,		Increase
(Decrease)		12 Months Ended
December 31,		Increase
(Decrease)
 2023202220232022
Revenue passenger miles (millions)58,33155,3205.4 %231,926215,6247.6 %
Available seat miles (ASM) (millions)69,77365,9625.8 %277,723260,2266.7 %
Passenger load factor (percent)83.683.9(0.3) pts83.582.90.6 pts
Yield (cents)20.5921.93(6.1) %20.9220.671.2 %
Passenger revenue per ASM (cents)17.2118.39(6.4) %17.4717.132.0 %
Total revenue per ASM (cents)18.7219.99(6.4) %19.0118.821.0 %
Cargo ton miles (millions)5014589.5 %1,8401,972(6.7) %
Cargo yield per ton mile (cents)39.7457.39(30.8) %44.1362.52(29.4) %
Fuel consumption (gallons in millions)1,0339795.5 %4,1403,9016.1 %
Average aircraft fuel price including related taxes (dollars per gallon)3.063.50(12.5) %2.963.54(16.3) %
Operating cost per ASM (cents)17.7817.90(0.7) %17.9218.20(1.6) %
Operating cost per ASM excluding net special items (cents)17.7717.89(0.7) %17.5618.13(3.1) %
Operating cost per ASM excluding net special items and fuel (cents)13.2412.704.2 %13.1512.832.5 %
Passenger enplanements (thousands)53,56750,9345.2 %210,692199,2885.7 %
Departures (thousands):
Mainline2852772.9 %1,1451,0528.9 %
Regional22220110.3 %855903(5.3) %
Total5074786.0 %2,0001,9552.3 %
Average stage length (miles):
Mainline1,1571,1322.3 %1,1471,161(1.2) %
Regional458469(2.3) %463477(3.0) %
Total851853(0.2) %8558451.1 %
Aircraft at end of period:
Mainline9659254.3 %9659254.3 %
Regional (2)
5565363.7 %5565363.7 %
Total1,5211,4614.1 %1,5211,4614.1 %
Full-time equivalent employees at end of period:
Mainline103,200102,0001.2 %103,200102,0001.2 %
Regional (3)
28,90027,7004.3 %28,90027,7004.3 %
Total132,100129,7001.9 %132,100129,7001.9 %
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)Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above are 77 regional aircraft that were in temporary storage as of December 31, 2023 as follows: 57 Embraer 145, 11 Bombardier CRJ 700, six Bombardier CRJ 900, and three Embraer 170.
(3)Regional full-time equivalent employees only include our wholly-owned regional airline subsidiaries.

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 6

American Airlines Group Inc.
Consolidated Revenue Statistics by Region
(Unaudited)
 3 Months Ended
December 31,		Increase
(Decrease)		12 Months Ended
December 31,		Increase
(Decrease)
 2023202220232022
Domestic (1)
Revenue passenger miles (millions)39,610 38,065 4.1 %155,374 149,410 4.0 %
Available seat miles (ASM) (millions)46,805 44,939 4.2 %185,206 176,447 5.0 %
Passenger load factor (percent)84.6 84.7 (0.1) pts83.9 84.7 (0.8) pts
Passenger revenue (dollars in millions)8,744 8,945 (2.2) %34,592 32,911 5.1 %
Yield (cents)22.08 23.50 (6.1) %22.26 22.03 1.1 %
Passenger revenue per ASM (cents)18.68 19.90 (6.1) %18.68 18.65 0.1 %
Latin America (2)
Revenue passenger miles (millions)8,570 8,379 2.3 %33,337 32,467 2.7 %
Available seat miles (millions)9,950 9,853 1.0 %38,531 39,131 (1.5) %
Passenger load factor (percent)86.1 85.0 1.1 pts86.5 83.0 3.5 pts
Passenger revenue (dollars in millions)1,674 1,793 (6.6) %6,719 6,150 9.2 %
Yield (cents)19.53 21.40 (8.7) %20.16 18.94 6.4 %
Passenger revenue per ASM (cents)16.82 18.20 (7.6) %17.44 15.72 10.9 %
Atlantic
Revenue passenger miles (millions)8,307 7,676 8.2 %36,581 30,949 18.2 %
Available seat miles (millions)10,728 9,725 10.3 %46,056 40,679 13.2 %
Passenger load factor (percent)77.4 78.9 (1.5) pts79.4 76.1 3.3 pts
Passenger revenue (dollars in millions)1,330 1,222 8.9 %6,205 5,070 22.4 %
Yield (cents)16.02 15.92 0.6 %16.96 16.38 3.5 %
Passenger revenue per ASM (cents)12.40 12.57 (1.3) %13.47 12.46 8.1 %
Pacific
Revenue passenger miles (millions)1,844 1,200 53.6 %6,634 2,798  nm
Available seat miles (millions)2,290 1,445 58.5 %7,930 3,969 99.8 %
Passenger load factor (percent)80.5 83.1 (2.6) pts83.7 70.5 13.2 pts
Passenger revenue (dollars in millions)262 171 53.1 %996 437  nm
Yield (cents)14.19 14.23 (0.3) %15.00 15.62 (3.9) %
Passenger revenue per ASM (cents)11.43 11.82 (3.4) %12.55 11.01 14.0 %
Total International
Revenue passenger miles (millions)18,721 17,255 8.5 %76,552 66,214 15.6 %
Available seat miles (millions)22,968 21,023 9.3 %92,517 83,779 10.4 %
Passenger load factor (percent)81.5 82.1 (0.6) pts82.7 79.0 3.7 pts
Passenger revenue (dollars in millions)3,266 3,186 2.5 %13,920 11,657 19.4 %
Yield (cents)17.45 18.46 (5.5) %18.18 17.61 3.3 %
Passenger revenue per ASM (cents)14.22 15.15 (6.2) %15.05 13.91 8.1 %
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.

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 7

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:
–Operating Income (GAAP measure) to Operating Income Excluding Net Special Items (non-GAAP measure)
–Operating Margin (GAAP measure) to Operating Margin Excluding Net Special Items (non-GAAP measure)
–Pre-Tax Income (GAAP measure) to Pre-Tax Income 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 (GAAP measure) to Net Income Excluding Net Special Items (non-GAAP measure)
–Basic and Diluted Earnings Per Share (GAAP measure) to Basic and Diluted Earnings Per Share 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.
Reconciliation of Operating Income Excluding Net Special Items3 Months Ended
December 31,		Percent
Increase
(Decrease)		12 Months Ended
December 31,		Percent
Increase
(Decrease)
2023202220232022
 (in millions) (in millions) 
Operating income as reported$656 $1,383 $3,034 $1,607 
Operating net special items:
   Mainline operating special items, net (1)
9 4 971 193 
   Regional operating special items, net— 2 8 5 
Operating income excluding net special items$665 $1,389 (52.1%)$4,013 $1,805 nm
Calculation of Operating Margin      
Operating income as reported$656 $1,383 $3,034 $1,607 
Total operating revenues as reported$13,062 $13,189 $52,788 $48,971 
Operating margin5.0 %10.5 %5.7 %3.3 %
Calculation of Operating Margin Excluding Net Special Items      
Operating income excluding net special items$665 $1,389 $4,013 $1,805 
Total operating revenues as reported$13,062 $13,189 $52,788 $48,971 
Operating margin excluding net special items5.1 %10.5 %7.6 %3.7 %
Reconciliation of Pre-Tax Income Excluding Net Special Items      
Pre-tax income as reported$32 $1,011 $1,121 $186 
Pre-tax net special items:
   Mainline operating special items, net (1)
9 4 971 193 
   Regional operating special items, net— 2 8 5 
   Nonoperating special items, net (2)
216 40 362 74 
Total pre-tax net special items225 46 1,341 272 
Pre-tax income excluding net special items$257 $1,057 (75.7%)$2,462 $458 nm
Calculation of Pre-Tax Margin
Pre-tax income as reported$32 $1,011 $1,121 $186 
Total operating revenues as reported$13,062 $13,189 $52,788 $48,971 
Pre-tax margin0.2 %7.7 %2.1 %0.4 %
Calculation of Pre-Tax Margin Excluding Net Special Items
Pre-tax income excluding net special items$257 $1,057 $2,462 $458 
Total operating revenues as reported$13,062 $13,189 $52,788 $48,971 
Pre-tax margin excluding net special items2.0 %8.0 %4.7 %0.9 %

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 8

Reconciliation of Net Income Excluding Net Special Items3 Months Ended
December 31,		Percent
Increase
(Decrease)		12 Months Ended
December 31,		Percent
Increase
(Decrease)
2023202220232022
 (in millions, except share and per share amounts)(in millions, except share and per share amounts)
Net income as reported$19 $803 $822 $127 
Net special items:
   Total pre-tax net special items (1), (2)
225 46 1,341 272 
   Income tax special items, net— — — (9)
   Net tax effect of net special items(52)(22)(304)(62)
Net income excluding net special items$192 $827 (76.8%)$1,859 $328 nm
Reconciliation of Basic and Diluted Earnings Per Share Excluding Net Special Items
Net income excluding net special items$192 $827 $1,859 $328 
Shares used for computation (in thousands):
   Basic654,725 650,944 653,612 650,345 
   Diluted718,807 716,070 719,669 655,122 
Earnings per share excluding net special items:
   Basic$0.29 $1.27 $2.84 $0.50 
   Diluted (3)
$0.29 $1.17 $2.65 $0.50 
Reconciliation of Total Operating Costs per ASM Excluding Net Special Items and Fuel
Total operating expenses as reported$12,406 $11,806 $49,754 $47,364 
Operating net special items:
   Mainline operating special items, net (1)
(9)(4)(971)(193)
   Regional operating special items, net — (2)(8)(5)
Total operating expenses excluding net special items12,397 11,800 48,775 47,166 
Aircraft fuel and related taxes(3,159)(3,421)(12,257)(13,791)
Total operating expenses excluding net special items and fuel $9,238 $8,379 $36,518 $33,375 
 (in cents)(in cents)
Total operating expenses per ASM as reported17.78 17.90 17.92 18.20 
Operating net special items per ASM:
   Mainline operating special items, net (1)
(0.01)(0.01)(0.35)(0.07)
   Regional operating special items, net — — — — 
Total operating expenses per ASM excluding net special items17.77 17.89 17.56 18.13 
Aircraft fuel and related taxes per ASM(4.53)(5.19)(4.41)(5.30)
Total operating expenses per ASM excluding net special items and fuel13.24 12.70 13.15 12.83 
Note: Amounts may not recalculate due to rounding.
FOOTNOTES: 
(1)The 2023 twelve month period mainline operating special items, net principally included $989 million of one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline pilots, including a one-time payment of $754 million as well as adjustments to other benefit-related items of $235 million.
The 2022 twelve 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 the 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.
(2)Principally included charges associated with debt refinancings and extinguishments as well as mark-to-market net unrealized gains and losses associated with certain equity investments.
(3)The 2023 three and twelve month period diluted earnings per share gives effect to, among other things, the Company's outstanding 6.5% senior convertible notes by (a) adding back to earnings $13 million and $47 million of interest expense, respectively, related to such convertible notes, net of estimated profit sharing, short-term incentive and tax effects and (b) including in the diluted shares outstanding, 61.7 million shares issuable in respect to such convertible notes.
The 2022 three month period diluted earnings per share gives effect to, among other things, the Company's outstanding 6.5% senior convertible notes by (a) adding back to earnings $11 million of interest expense related to such convertible notes, net of estimated profit sharing, short-term incentive and tax effects and (b) including in the diluted shares outstanding, 61.7 million shares issuable in respect to such convertible notes.

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
Page 9

American Airlines Group Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)(Unaudited)
 Year Ended
December 31,
 20232022
Net cash provided by operating activities$3,803 $2,173 
Cash flows from investing activities:
Capital expenditures, net of aircraft purchase deposit returns(2,596)(2,546)
Proceeds from sale of property and equipment and sale-leaseback transactions230 147 
Sales of short-term investments8,861 14,972 
Purchases of short-term investments(7,323)(11,257)
Decrease in restricted short-term investments51 1 
Purchase of equity investments— (321)
Other investing activities275 (360)
Net cash provided by (used in) investing activities(502)636 
Cash flows from financing activities:
Payments on long-term debt and finance leases(7,718)(3,752)
Proceeds from issuance of long-term debt4,822 1,069 
Other financing activities(310)52 
Net cash used in financing activities(3,206)(2,631)
Net increase in cash and restricted cash95 178 
Cash and restricted cash at beginning of year586 408 
Cash and restricted cash at end of year (1)
$681 $586 
(1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:
Cash$578 $440 
Restricted cash included in restricted cash and short-term investments103 146 
Total cash and restricted cash$681 $586 


American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
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Free Cash Flow
The Company's free cash flow summary is presented in the table below, which is a non-GAAP measure that management believes is useful information to investors and others in evaluating the Company's ability to generate cash from its core operating performance that is available for use to reinvest in the business or to reduce debt. The Company defines free cash flows as net cash provided by operating activities less net cash used in investing activities, adjusted for (1) net sales of short-term investments and (2) change in restricted cash. We believe that calculating free cash flow as adjusted for these items is more useful for investors because short-term investment activity and restricted cash are not representative of activity core to our operations.
This non-GAAP measure 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. Our calculation of free cash flow is not intended, and should not be used, to measure the residual cash flow available for discretionary expenditures because, among other things, it excludes mandatory debt service requirements and certain other non-discretionary expenditures.
 Year Ended
December 31, 2023
 
(in millions)
Net cash provided by operating activities$3,803 
Adjusted net cash used in investing activities (1)
(1,997)
Free cash flow$1,806 
(1)The following table provides a reconciliation of adjusted net cash used in investing activities for the year ended December 31, 2023 (in millions):
Net cash used in investing activities$(502)
Adjustments:
Net sales of short-term investments(1,538)
Decrease in restricted cash43 
Adjusted net cash used in investing activities$(1,997)

American Airlines Reports Fourth-Quarter and Full-Year 2023 Financial Results
Jan. 25, 2024
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American Airlines Group Inc.
Condensed Consolidated Balance Sheets
(In millions, except shares) 
December 31, 2023December 31, 2022
 (unaudited) 
Assets
Current assets
Cash$578 $440 
Short-term investments7,000 8,525 
Restricted cash and short-term investments910 995 
Accounts receivable, net2,026 2,138 
Aircraft fuel, spare parts and supplies, net2,400 2,279 
Prepaid expenses and other658 892 
Total current assets13,572 15,269 
Operating property and equipment
Flight equipment41,794 39,703 
Ground property and equipment10,307 9,913 
Equipment purchase deposits760 613 
Total property and equipment, at cost52,861 50,229 
Less accumulated depreciation and amortization(22,097)(20,029)
Total property and equipment, net30,764 30,200 
Operating lease right-of-use assets 7,939 8,094 
Other assets
Goodwill4,091 4,091 
Intangibles, net 2,051 2,059 
Deferred tax asset2,888 3,099 
Other assets1,753 1,904 
Total other assets10,783 11,153 
Total assets$63,058 $64,716 
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities
Current maturities of long-term debt and finance leases$3,632 $3,274 
Accounts payable2,353 2,149 
Accrued salaries and wages2,377 1,713 
Air traffic liability6,200 6,745 
Loyalty program liability3,453 3,169 
Operating lease liabilities 1,309 1,465 
Other accrued liabilities2,738 2,981 
Total current liabilities22,062 21,496 
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities29,270 32,389 
Pension and postretirement benefits3,044 2,837 
Loyalty program liability5,874 5,976 
Operating lease liabilities 6,452 6,559 
Other liabilities1,558 1,258 
Total noncurrent liabilities46,198 49,019 
Stockholders’ equity (deficit)
Common stock, 654,273,192 shares outstanding at December 31, 2023
7 6 
Additional paid-in capital7,374 7,291 
Accumulated other comprehensive loss(4,894)(4,585)
Retained deficit(7,689)(8,511)
Total stockholders’ deficit(5,202)(5,799)
Total liabilities and stockholders’ equity (deficit)$63,058 $64,716