American Airlines Group (AAG) knows America's spacious skies -- and lots of others. After merging with US Airways in late 2013, AAG is one of the largest airlines in the world. The combined airline, together with its third-party regional carriers including Air Wisconsin, Chautauqua, ExpressJet, Mesa, Republic, and SkyWest operate nearly 6,700 daily flights to roughly 340 destinations in more than 50 countries. American and US Airways operate 980 mainline jets, and regional subsidiaries and third-party regional carriers operate nearly 565 regional jets. AAG extends its geographic reach through code-sharing arrangements and is part of the oneworld Alliance.
Change of Company Type
In late 2013 AMR merged with rival US Airways in a deal worth $11 billion. The milestone transaction created the world's largest airline. The combined entity kept the American Airlines name and is led by former US Airways CEO Doug Parker.
AAG has primary hubs in Charlotte, North Carolina; Chicago, Dallas/Fort Worth; Los Angeles; Miami; New York; Philadelphia; Phoenix; and Washington, DC. It provides international service to Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America, and Asia. Revenues from foreign operations (flights serving international destinations) were approximately 33% of American’s total operating revenues and approximately 24% of US Airways’ total operating revenues for 2014. The US accounted for about 67% of AAG's revenue in 2014.
Following the truism that you have to spend money to make money, AMR ordered 460 single-aisle jets -- 200 Boeing 737s and 260 Airbus A320s for delivery between 2013 and 2022; it is the largest aircraft order in history. The new aircraft are designed for fuel efficiency and should save in operating costs. (During 2014, the company took delivery of 82 mainline aircraft and retired 69 older legacy mainline aircraft.)
In 2015 AAG received the delivery of its first Boeing 787 Dreamliner. The company has placed firm orders for 42 Boeing 787 aircraft, with the right to acquire an additional 58.
Due primarily to its merger with US Airways, AAG has achieved extraordinary growth over the last few years. Revenues soared 59% from $26.7 billion in 2013 to peak at a record-shattering $42.7 billion in 2014. After suffering six straight years of net losses (mostly due to restructuring charges associated with its US Airways merger), AAG posted $2.9 billion in profits during 2014 due to the additional revenue coupled with the absence of those extra charges.
The historic revenue growth for 2014 was driven by a 52% bump in mainline passenger revenues as the air travel industry experienced higher demand and additional revenue from the sale of frequent flyer mileage credits. AAG also experienced significant rises from its regional (102%), cargo (28%), and "other" (72%) segments. Domestic revenues skyrocketed by 86%, while revenue from its Atlantic region jumped 50% during 2014.
The company’s operating cash flow has fluctuated over the last five years. In 2014, cash flow increased by over 350% to $3.08 billion, due to the increased profits and increased inflows from accounts payable.
AAG is adding new aircraft and new service into markets which cater to a wide breadth of industries – entertainment, banking and finance, energy, technology and manufacturing. This includes direct service to all of American's hubs with the most nonstop flights from LAX to New York (JFK); Dallas/Fort Worth; Miami; Philadelphia; Washington, DC (DCA); Phoenix; and Charlotte, North Carolina.