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American Airlines Group Inc. logo

American Airlines Group Inc.

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2019 Vault Rankings

About American Airlines Group Inc.

American Airlines Group (AAG) is the largest airline in the US and one of the largest in the world. The company's mainline carriers provide scheduled air transportation along with its group of regional subsidiaries and third-party regional carriers operating as American Eagle. It also offers freight and mail services through its cargo division. In all, American operates an average of 6,800 flights daily to more than 365 destinations in more than 60 countries. It operates more than 940 mainline aircraft and approximately 605 regional aircraft. American Airlines Group is also a founding member of oneworld alliance, where member carriers share airport lounge facilities and offer interconnected loyalty programs. About quarter of passenger sales of American Airlines Group is generated from the US.

Operations

American Airlines Group are managed as a single business unit that provides scheduled air transportation for passenger and cargo through its mainline carrier network as well as through regional carriers. Its passenger segment accounts for more than 90% of total sales and operates more than 940 aircraft. Regional operations provide services under the "American Eagle" brand. American Eagle carriers include wholly-owned subsidiaries Envoy, PSA, and Piedmont. Third-party regional carriers including Republic, Mesa, Compass, and SkyWest.

The company's Cargo segment (accounts for more than 1% of total sales) also provides a wide range of freight and mail services with facilities and interline connections available across the globe.

Other operating revenue associated with American Airlines Group airport clubs and loyalty program generate more than 5% of sales.

Geographic Reach

Headquartered in Fort Worth, TX, American Airlines Group flies to more than 365 destinations in more than 60 countries. Its hubs are located in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington DC, with international services to Canada, Central and South America, Asia, Europe, Australia, and New Zealand. About 75% of sales on passenger sales are generated in the US. More than 10% are generated in Latin America, exceeding 10% are generated in Atlantic and about 5% in the Pacific.

Sales and Marketing

American Airlines Group sells its tickets through several distribution channels including its website (www.aa.com), reservations centers, and third-party distribution channels. Its loyalty program offers rewards to travelers for their continued patronage. Advertising expense was $129 million, $128 million and $135 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Financial Performance

Except in 2016, American Airline's revenue has been soaring higher every year. 2019 revenue is 12% higher than 2015.

In 2019, the company's revenue rose 3% ($1.2 billion) from $44.5 billion to $45.8 billion. This was primarily due to the $1.3 billion increase in passenger segment which was offset by the cargo segment.

Net income rose from $1.4 billion in 2018 to $1.78 billion in 2019.

Cash at the end of fiscal 2019 was $290 million, an increase of $4 million from the prior year. Cash from operations contributed $3.8 billion to the coffers, while investing activities used $2.2 billion, mainly for capital expenditures. Financing activities used another $1.6 billion for dividends to stockholders and the company's stock repurchase program.

Strategy

An important part of our strategy to expand our network has been to expand our commercial relationships with other airlines, such as by entering into global alliance, joint business and codeshare relationships, and, in one recent instance involving China Southern Airlines Company Limited (China Southern Airlines), by making a significant equity investment in another airline in connection with initiating such a commercial relationship. We may explore similar non-controlling investments in, and joint ventures and strategic alliances with, other carriers as part of our global business strategy.

Company Background

In 2011, American Airlines' parent company, AMR Corporation, filed for bankruptcy. It emerged from Chapter 11 in late 2013 and at the same time merged with rival US Airways in a mega deal worth $11 billion. The milestone transaction created the world's largest airline. The combined entity formed the American Airlines Group and is led by former US Airways CEO Doug Parker.

American Airlines Group Inc.

1 Skyview Dr
Fort Worth, TX 76155-1801
Phone: 1 (817) 963-1234

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: AAL
Stock Exchange: , NASDAQ
President: Robert D. Isom
EVP and CFO: Derek J. Kerr
Chairman and CEO: W. Douglas Parker
Employees (This Location): 201
Employees (All Locations): 114,700

Major Office Locations

Fort Worth, TX

Other Locations

Huntsville, AL
Mobile, AL
Bentonville, AR
Fort Smith, AR
Little Rock, AR
Phoenix, AZ
Tempe, AZ
Tucson, AZ
Burbank, CA
Camarillo, CA
El Segundo, CA
Fresno, CA
Long Beach, CA
Los Angeles, CA
Monterey, CA
Oxnard, CA
Palm Springs, CA
Perris, CA
San Diego, CA
San Francisco, CA
San Jose, CA
Santa Ana, CA
Denver, CO
Gunnison, CO
New Haven, CT
Windsor Locks, CT
Washington, DC
Altamonte Springs, FL
Coral Gables, FL
Fort Lauderdale, FL
Fort Myers, FL
Gainesville, FL
Jacksonville, FL
Key West, FL
Miami, FL
Orlando, FL
Pensacola, FL
Tallahassee, FL
Tampa, FL
West Palm Beach, FL
Atlanta, GA
Brookhaven, GA
Columbus, GA
Savannah, GA
Honolulu, HI
Cedar Rapids, IA
Des Moines, IA
Chicago, IL
Evansville, IN
Fort Wayne, IN
Indianapolis, IN
Florence, KY
Lexington, KY
Louisville, KY
Boston, MA
Baltimore, MD
Portland, ME
Grand Rapids, MI
Gwinn, MI
Lansing, MI
Manistee, MI
Portage, MI
Saint Paul, MN
Kansas City, MO
Saint Louis, MO
Springfield, MO
Cary, NC
Charlotte, NC
Cornelius, NC
Fletcher, NC
Greensboro, NC
Greenville, NC
Morrisville, NC
Raleigh, NC
Wilmington, NC
Winston Salem, NC
Omaha, NE
Newark, NJ
Albuquerque, NM
Roswell, NM
Santa Fe, NM
Las Vegas, NV
Reno, NV
Albany, NY
Buffalo, NY
Dexter, NY
Flushing, NY
Jamaica, NY
New Windsor, NY
New York, NY
Rochester, NY
White Plains, NY
Canton, OH
Cleveland, OH
Columbus, OH
Swanton, OH
Vandalia, OH
Oklahoma City, OK
Tulsa, OK
Portland, OR
Avoca, PA
Middletown, PA
Montoursville, PA
Philadelphia, PA
Pittsburgh, PA
Warwick, RI
Hilton Head Island, SC
Blountville, TN
Chattanooga, TN
Memphis, TN
Nashville, TN
Abilene, TX
Amarillo, TX
Austin, TX
Dallas, TX
El Paso, TX
Fort Worth, TX
Houston, TX
Irving, TX
Killeen, TX
San Angelo, TX
San Antonio, TX
Southlake, TX
Waco, TX
Wichita Falls, TX
Charlottesville, VA
Lynchburg, VA
Newport News, VA
Norfolk, VA
Richmond, VA
Roanoke, VA
Burlington, VT
Seatac, WA
Green Bay, WI
Charleston, WV
Santiago, Chile
Beijing, China
Brasilia, Brazil
Confins, Brazil
Manaus, Brazil
Porto Alegre, Brazil
Recife, Brazil
Rio De Janeiro, Brazil
Salvador, Brazil
Sao Jose Dos Pinhais, Brazil
Sao Paulo, Brazil
Calgary, Canada
Dorval, Canada
Mississauga, Canada
Richmond, Canada
Ciudad De Mexico, Mexico
Domodedovo, Russia
Moscow, Russia
Freeport, Bahamas
La Paz, Bolivia
Quito, Ecuador
Horley, England
Hounslow, England
Manchester, England
Frankfurt Am Main, Germany
Rionegro, Colombia
Ciudad De Buenos Aires, Argentina
Tsim Sha Tsui, Hong Kong
Zürich, Switzerland
Boca Chica, Dominican Republic
Punta Cana, Dominican Republic
Santo Domingo, Dominican Republic