AAL 4Q 2015 Earnings Call

Discussion in 'American Airlines | AAdvantage' started by Pizzaman, Jan 29, 2016.  |  Print Topic

  1. Pizzaman
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    Listening to hold music for the moment.
     
  2. Pizzaman
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    Doug recapping, $4.2B profit in 2014. 2015 was $6.3B

    Q4 was $1.3B versus $1.1B same Q last year.
     
  3. Pizzaman
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    65 billion ASMs in Q4. 58.1 billion ASMs mainline, up 1%
     
  4. Pizzaman
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    Plan to spend $5.3B on new aircraft in 2016.
     
  5. Pizzaman
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    In 2015, the airline took on 75 new mainline aircraft and retired 112.

    They took on 52 new regional, removed 31 from fleet.
     
  6. Pizzaman
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    2016 will see 55 new mainline aircraft and 49 new regional aircraft. At that point, fleet will be under 10 years old on average, leading their peers.

    Plan is to remove 92 mainline and 49 regional aircraft.
     
  7. Pizzaman
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    Negotiated a deal with Airbus to defer the delivery of 2 A350 to 2020, still plan to take 4 next year as the US launch customer.
     
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  8. Pizzaman
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    Total RASM was 14.71, down 5%.
     
  9. Pizzaman
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    Significant savings on fuel in Q4, $1.50 gallon, 40% decline YOY. Wow!
     
  10. Pizzaman
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    Operating expenses down 8%, almost all fuel.
     
  11. Pizzaman
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    2nd half of the year for basic economy and premium economy to BEGIN rolling out.
     
  12. Pizzaman
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    "Transformative may be too strong a word, but basic economy and premium economy may be as impactful as ancillary revenue in 2008. Will be 2017 before we see improvement."
     
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  13. Pizzaman
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    Cargo revenue down 17.3%. 15% decline in yields.
     
  14. Pizzaman
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    Scott says AA had highest profit margin in 2015 amongst their peers.
     
  15. Pizzaman
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    At merger, Brazil was 6% of total revenue, down to 2%.
     
  16. Pizzaman
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    No new credit card deal comes up again from Scott for why the airline isn't making more profit.
     
  17. Pizzaman
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    CASM up 5% based almost solely on contractual labor.
     
  18. Pizzaman
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    Analyst asked why AA can't perform like Delta. Doug says that's because AA was running 2 airlines in 2015.
     
  19. Pizzaman
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    Ops says weather inordinately hit AA v Delta.
     
  20. Pizzaman
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    EBIDTA to peak in 2016, start dropping after that.
     
  21. Wandering Aramean
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    Maybe true, maybe not, but seems like they're making excuses more than taking ownership of the issue and suggesting solutions.
     
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  22. Pizzaman
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    AA plans to grow capacity 3% in 2016. 2% domestically, 6% internationally, mostly in Pacific.
     
  23. Pizzaman
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    Agreed. Not sure the benefit of bringing it up again, other than managing "to the quarter".
     
  24. Pizzaman
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    PRASM down 5%. Domestically down 3%. Charlotte was strongest for PRASM, DFW second. Miami was dead last, mostly due to connecting traffic in South America.
     
  25. Pizzaman
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    PRASM down 10% in Pacific, 17% in Latin America.
     

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