Day and night, rain or shine, American’s team of system customer service managers (SCSM) has a sharp focus on our customers, helping to ensure their journeys go smoothly. Though they’re based at American’s Integrated Operations Center (IOC) in Fort Worth, Texas, the SCSMs have their eye on every customer, looking for operational solutions to get customers on their way.

Daniel Schiff, the IOC’s Senior Manager of Network Ops Strategy, recently sat down with System Customer Service Manager Kim Burrell for a discussion about their roles at the IOC.

Daniel: Let’s start with the basics: what is American’s Integrated Operations Center?

Kim: We call it the IOC, and it’s the nerve center of our airline. In this large facility, more than 20 workgroups — and 1,700 team members — come together to help run our airline 24 hours a day, seven days a week, 365 days a year. We work collaboratively to solve challenges that come our way, from weather to anything else.

American’s Integrated Operations Center.

Daniel: Our strategy is our customers, and the SCSMs ensure our customers get where they want to go smoothly. The team is always thinking ahead to minimize disruptions.

Kim: That’s exactly right. A day in the life for me is busy and full of twists and turns. When I get in, I’m assigned to a unit, which is broken down by the types of aircraft we operate and hubs that we fly into. The unit is led by an Operations Coordinator, who works in tandem with team members overseeing our fleet, our crew members and, in the case of SCSMs, our customers.

Daniel: SCSMs have a key role in caring for group travel. We have large groups —sometimes really large groups with hundreds of customers — who travel throughout our network. It’s critically important they have a seamless journey when traveling with us. If one of these groups were to misconnect, it might be harder to reaccommodate them as there likely wouldn’t be enough available seats on the next flight, unlike when we have individual travelers and smaller parties to reaccommodate. The first order of business is alerting our airport teams that these groups are coming through to make sure we have a plan for them. Sometimes we’ll hold their connecting flight, and we’ve even found back-up aircraft for these groups because they’re such a big part of our operation.

Kim: Military service members are also incredibly important to us. We work to ensure that our service members have as easy and smooth a journey as possible. We look at markets that have military bases or are close to them — we have many of them — and keep an especially close eye on those markets, going out of our way to ensure there are crew and aircraft to support the operation there. We develop a plan B as well. I’m glad the SCSM team gets to play a role with caring for our troops.

Daniel: SCSMs play a key role in the recovery of our network during what we call irregular operations — severe weather or any other type of event that disrupts the airline. We’re responsible for running a tool that helps reaccommodate our customers on alternate flights when their travel plans are impacted. American has gotten much faster at recovering, and I’m proud to say that the SCSM team plays an important role as we care for customers who are impacted.

I’m sure you have some incredible stories to tell about other ways we’ve helped our customers in the 17 years you’ve worked here.

Kim Burrell working in the IOC’s regional unit.

Kim: You bet! One time, we had a group of 40 customers who were originating in Knoxville, Tennessee, connecting through DFW on their way to Honduras, and I realized that they were going to misconnect. After I worked with the station and my colleagues in the IOC, we found a solution to use a larger aircraft for the next flight. The airport let me know that the customers were very excited that they were able to get to their destination within a reasonable amount of time. For me, it was a reminder of why I do this. I genuinely care about our customers and want to find solutions.

“It was a reminder of why I do this. I genuinely care about our customers and want to find solutions.”
Kim Burrell

Daniel: One of my favorite stories is when we had a high-volume connection, which means we have a large number of customers traveling between cities. This one was between Oklahoma City and Hanoi, Vietnam, with a connection in Chicago. When their initial flight was delayed, we found another aircraft from one of our regional partners to get this group to Chicago, where they connected to one of our oneworld® partners. The SCSM team coordinates within and outside of the IOC to ensure our customers are looked after, no matter who operates the flight. It felt great to help these customers out.

Kim: It’s really the best part of the job. And we do it every day because when you purchase a ticket on American, you place your trust in us to get you to your destination safely and as efficiently as possible.

Learn more about the people who help keep American’s operation on track.

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.

FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL) today reported its first-quarter 2024 financial results, including:

• Record first-quarter revenue of approximately $12.6 billion.
• First-quarter net loss of $312 million, or ($0.48) per diluted share. Excluding net special items¹, first-quarter net loss of $226 million, or ($0.34) per diluted share.
• Achieved best-ever first-quarter completion factor.
• Generated operating cash flow of $2.2 billion and free cash flow² of $1.4 billion in the first quarter.
• Reduced total debt³ by nearly $950 million in the first quarter. The company is now more than 80% of the way to its 2025 total debt reduction goal.

“The American Airlines team continues to build a reliable, efficient and resilient airline,” said American’s CEO Robert Isom. “While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet.”

Resources

Operational performance

American is running the best operation in its history because of a steadfast commitment to operational excellence and strong collaboration across the entire airline. The company produced its best-ever first-quarter completion factor and improved its mishandled baggage rate year over year. American achieved these results despite air traffic control challenges and significant weather events across its network during the quarter.

Financial performance

American produced results within previously guided ranges for each of its operating metrics despite a significant increase in the cost of fuel in the quarter. The company generated record first-quarter revenue of approximately $12.6 billion and a GAAP operating margin of 0.1%. Excluding the impact of net special items¹, American produced an operating margin of 0.6% in the first quarter.

Balance sheet

Strengthening the balance sheet remains a top priority for American. In the first quarter, the company reduced total debt³ by nearly $950 million and has now achieved more than $12 billion, or over 80%, of its goal of reducing total debt³ by $15 billion by the end of 2025.

Guidance and investor update

Based on present demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its second-quarter 2024 adjusted earnings per diluted share⁴ to be between $1.15 and $1.45. The company continues to expect its full-year 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 is also 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 through May 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 and the calculation of free cash flow.

1. The company recognized $86 million of net special items in the first quarter after the effect of taxes, which included operating net special items of $70 million, principally related to one-time charges resulting from the ratification of a new collective bargaining agreement for its passenger service team members represented by the CWA-IBT, as well as nonoperating net special items of $46 million for charges associated with 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, which is 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.

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 March 31, 2024 (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.

L to R: Evie Garces, American’s Vice President of Line Maintenance; AIM – Chicago scholarship recipients Faith Rono, Raul Cancino, Eddina Bills, Szymon Lysek, Jose Aqunio and Blake Simone; and Dr. Joel English, President – AIM.

L to R: Edgardo and Julio Sanchez Casillas.

CHICAGO — American Airlines continues to help students find their path from the classroom to the hangar through recent scholarship awards. The airline recently awarded eight scholarships to students at events last week, helping them achieve their dreams of becoming aviation maintenance technicians.

“Supporting and mentoring the next generation of aviation maintenance technicians is not only our honor, but our duty,” said Evie Garces, Vice President of Line Maintenance at American Airlines. “These scholarships not only provide access to educational opportunities, but they also open doors to lucrative careers. We’re proud to care for these talented students on their educational journeys and hope to see them in an American uniform after graduation.”

At a ceremony held at the Aviation Maintenance Institute (AIM) – Chicago campus, the airline awarded six $1,000 scholarships to students enrolled in the school’s Aviation Maintenance Technician program:

• Eddina Bills, Chicago
• Raul Cancino, Chicago
• Szymon Lysek, Saint John, Illinois
• Jose Aquino, Maywood, Illinois
• Faith Rono, Chicago
• Blake Simone, Chicago

American announced a partnership with AIM – Chicago in 2022 which provides students access to the airline’s maintenance facilities and aircraft maintenance professionals through engagement opportunities. For the past two years, aviation maintenance technicians from the carrier’s Chicago (ORD) hub have also mentored student teams from AIM – Chicago for the annual Aerospace Maintenance Council Competition (AMC), held this year in Chicago in conjunction with Aviation Week’s MRO Americas conference.

American also awarded scholarships to two brothers who attend the Puerto Rico Aviation Maintenance Institute in Fajardo, Puerto Rico, at the AMC awards ceremony. Julio and Edgardo Sanchez Casillas, both of Vega Alta, Puerto Rico, were each awarded $2,500 Phoebe Omlie scholarships, named after the first female to receive an aircraft mechanic license. Julio and Edgardo are students in the school’s aviation maintenance program.

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.