| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
N/A | ||||||||
| (Former name or former address if changed since last report.) | ||||||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Emerging growth company | |||||
| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. | ||||
| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. | ||||
| (d) Exhibits. | ||||||||
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104.1 | Cover page interactive data file (embedded within the Inline XBRL document). | |||||||
AMERICAN AIRLINES GROUP INC. | |||||||||||
| Date: July 13, 2021 | By: | /s/ Derek J. Kerr | |||||||||
| Derek J. Kerr | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
AMERICAN AIRLINES, INC. | |||||||||||
| Date: July 13, 2021 | By: | /s/ Derek J. Kerr | |||||||||
| Derek J. Kerr | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||

| ● | Capacity: During the second quarter of 2021, the Company flew 54.6 billion total available seat miles, down 24.6% versus the second quarter of 2019 and at the lower end of its prior guidance of down 20% to 25% versus the second quarter of 2019. The Company's second quarter completion factor was 98.6% and on-time arrivals rate (A14) was 82.1%. This was the Company's best-ever performance on both metrics in a second quarter, despite a challenging month of June. | ||||
| ● | Revenue: The Company expects its second quarter total revenue to be down approximately 37.5% versus the second quarter of 2019. This is an improvement compared to the Company’s prior guidance of down approximately 40%. | ||||
| ● | CASM1: The Company expects its second quarter CASM to be up between 11% and 12% compared to the second quarter of 2019 versus its previous guidance of up between 13% and 17%. This improvement is due to the effectiveness of cost efficiency measures put in place. | ||||
| ● | Fuel: The Company paid $1.91 per gallon of jet fuel and consumed 844 million gallons during the second quarter of 2021. | ||||
| ● | Pretax Margin: The Company expects to report a slight second quarter 2021 pretax profit. Excluding net special items, the Company expects to report pretax margin of approximately -19% to -20% versus its previous guidance of -27% to -30%. This change versus previous guidance is due to the improvement in revenue and effectiveness of cost efficiency measures put in place. See “Net Special Credits” and “GAAP to Non-GAAP Reconciliation” below. | ||||
| ● | Net Profit/Loss: The Company expects to report between a net loss of $35 million and a net profit of $25 million in the second quarter of 2021. Excluding the effect of net special items, the Company expects to report a net loss of between $1.1 billion and $1.2 billion. The Company expects to record an income tax benefit at an effective tax rate of 22%. Notably, the Company was profitable excluding net special items for the month of June, the first month since December 2019. See “Net Special Credits” and “GAAP to Non-GAAP Reconciliation” below. | ||||
| ● | Shares Outstanding: The Company’s basic and diluted weighted average shares outstanding for financial reporting purposes was 644.1 and 656.4 million shares, respectively, for the second quarter. When net special credits are excluded, the Company’s basic and diluted weighted average shares outstanding was 644.1 million shares. | ||||
| ● | Net Special Credits: The Company expects to report net special credits of approximately $1.4 billion in the second quarter before the effect of taxes. Net special credits principally relate to financial assistance provided by the United States Treasury under the Payroll Support Program Extension Agreement. | ||||
| ● | Liquidity: The Company expects to end the second quarter with approximately $21.3 billion in total available liquidity. This is approximately $1.3 billion higher than prior guidance due to the continued improvements in revenue production, forward bookings and approximately $145 million in shares issued under the Company’s at-the-market (ATM) facility (approximately $650 million of the ATM authorization remains available). In addition, the Company now expects its average daily cash build2 rate for the second quarter to be approximately $1 million per day, the first positive quarter since the beginning of the pandemic. | ||||

2nd Quarter 20211,2 | ||||||||||||||
| Previous Guidance | Current Guidance 7/13/2021 | |||||||||||||
| Total revenue | ~ -40% (vs 2Q19) | ~ -37.5% (vs 2Q19) | ||||||||||||
| Available seat miles (ASMs) (bil) | ~ -20% to -25% (vs 2Q19) | ~ -24.6% (vs 2Q19) to ~54.6 bil ASMs | ||||||||||||
| CASM excluding fuel and net special items | ~ +13% to +17% (vs 2Q19) | ~ +11% to +12% (vs 2Q19) | ||||||||||||
| Average fuel price (incl. taxes) ($/gal) | ~$1.84 to $1.89 | ~$1.91 | ||||||||||||
| Fuel gallons consumed (mil) | ~873 | ~844 | ||||||||||||
| Other nonoperating expense ($ mil) | ~ 385 | ~ 395 | ||||||||||||
| Pretax margin excluding net special items | ~ -27% to -30% | ~ -19% to -20% | ||||||||||||
| Net loss per share excluding net special credits | — | ~($1.67) to ($1.76) | ||||||||||||
| 1. | Includes guidance on certain non-GAAP measures, which exclude, among other things, net special items. Please see the GAAP to non-GAAP reconciliation at the end of this document. | ||||
| 2. | Numbers may not recalculate due to rounding. | ||||

| GAAP to Non-GAAP Reconciliation of Pretax Income (Loss) | ||||||||||||||
| ($ mil except share and per share amounts) | ||||||||||||||
| 2Q21 Range | ||||||||||||||
| Low | High | |||||||||||||
| Total revenue | $ | 7,475 | $ | 7,475 | ||||||||||
| Pretax income (loss) | $ | (45) | $ | 15 | ||||||||||
| Pretax margin | -1 | % | 0 | % | ||||||||||
| Net special credits | (1,420) | (1,420) | ||||||||||||
| Pretax loss excluding net special credits | $ | (1,465) | $ | (1,405) | ||||||||||
| Pretax margin excluding net special credits | -20 | % | -19 | % | ||||||||||
| Net income (loss) | $ | (35) | $ | 25 | ||||||||||
| Net special credits, net of tax | (1,100) | (1,100) | ||||||||||||
| Net loss excluding net special credits | $ | (1,135) | $ | (1,075) | ||||||||||
| Shares outstanding for computing earnings (loss) per share | 644.1 | 656.4 | ||||||||||||
| Shares outstanding for computing loss per share excluding net special credits | 644.1 | 644.1 | ||||||||||||
| Net income (loss) per share | $ | (0.05) | $ | 0.04 | ||||||||||
| Net loss per share excluding net special credits | $ | (1.76) | $ | (1.67) | ||||||||||
Note: Amounts may not recalculate due to rounding. | ||||||||||||||

| GAAP to Non-GAAP Reconciliation of Total Operating Costs and CASM | ||||||||||||||
| ($ mil except ASM and CASM data) | ||||||||||||||
| 2Q21 Range | ||||||||||||||
| Low | High | |||||||||||||
| Total operating expenses | $ | 7,030 | $ | 7,092 | ||||||||||
| Less fuel expense | 1,612 | 1,612 | ||||||||||||
| Less operating net special credits | (1,455) | (1,455) | ||||||||||||
| Total operating expense excluding fuel and net special credits | $ | 6,873 | $ | 6,935 | ||||||||||
| Total CASM (cts) | 12.88 | 12.99 | ||||||||||||
| Total CASM excluding fuel and net special credits (cts) | 12.59 | 12.70 | ||||||||||||
| Percentage Change compared to 2Q 2019 (%) | 11 | % | 12 | % | ||||||||||
| Total ASMs (bil) | 54.6 | 54.6 | ||||||||||||
Note: Amounts may not recalculate due to rounding. | ||||||||||||||

| 3 Months Ended June 30, 2021 | ||||||||
| (in billions except days in period and average daily cash build) | ||||||||
| Estimated net cash provided by operating activities | $ | 3.4 | ||||||
| Estimated net cash used in investing activities | (3.9) | |||||||
| Estimated net cash provided by financing activities | 0.4 | |||||||
| Estimated adjustments: | ||||||||
| Payroll Support Program financial assistance | (2.6) | |||||||
| Net purchases of short-term investments and restricted short-term investments | 4.1 | |||||||
| Proceeds from issuance of non-aircraft long-term debt, net of deferred financing costs | (1.2) | |||||||
| Proceeds from issuance of equity under ATM | (0.1) | |||||||
| Prepayments of long-term debt | — | |||||||
| Other | — | |||||||
Estimated total cash build (1) | $ | 0.1 | ||||||
| Days in period | 91 | |||||||
| Estimated average daily cash build (in millions) | $ | 1 | ||||||

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