American Airlines Unveils Strategic Outlook at 2024 Investor Day in New York

Monday, March 4, 2024

Today, American Airlines Group is excited to announce the hosting of its Investor Day for 2024 at 1 p.m. ET in New York City. The event will feature American Airlines’ CEO, Robert Isom, alongside other key executives, who will share updates on the airline’s achievements and outline its strategy for sustained value growth.

CEO Robert Isom expressed his enthusiasm about the company’s progress, stating, “Over the last two years, we have transformed American into a more robust, focused entity, ideally positioned to tap into our maximum potential. With critical strategies now operational, we are set to offer consistent service to our customers and achieve steady earnings growth over time. We look forward to the journey ahead, confident in our plan to enhance shareholder value through our business initiatives and ongoing efforts.”

The meeting will shed light on American’s financial objectives for the years 2024 to 2026 and onwards, including:

• Adjusted EBITDAR margins expected to be around 14% in 2024, increasing to 14%-16% in 2025, and reaching 15%-18% by 2026.
• Projected free cash flow starting at approximately $2 billion in 2024, exceeding $2 billion in 2025, and surpassing $3 billion thereafter.
• Total debt forecasts show a reduction from around $41 billion in 2024 to approximately $39 billion in 2025, with a goal of falling below $35 billion post-2026.

Discussions will also cover key factors contributing to American’s potential for value creation, such as:

• Operating a modernized fleet that emphasizes youth, simplification, and efficiency.
• Achieving operational excellence by leveraging technology and ongoing improvements.
• Utilizing its strategically adaptable network to gain competitive edges in response to evolving consumer preferences.
• Engaging and retaining customers through the AAdvantage® program, a leading travel rewards scheme.
• Streamlining business operations for efficient expansion and enhanced productivity.
• Securing robust financial health through increased margins and the generation of free cash flow.

The presentation, including a live webcast, will be held today at 1 p.m. ET and can be accessed at aa.com/investorrelations. Additionally, the presentation slides will be available on the American Airlines Investor Relations webpage.

Note on financial measures: The presentation will include non-GAAP financial measures such as adjusted EBITDAR and free cash flow, alongside GAAP measures. These non-GAAP metrics, aimed at providing a clearer understanding of American’s performance and financial outlook, may not directly compare to similar measures from other entities. The guidance provided excludes certain items not fully determinable at this time, and as such, cannot be fully reconciled with GAAP measures.

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