This document contains a presentation by Beverly Goulet, Vice President of Corporate Development and Treasurer of an unnamed company. The presentation includes slides on the company's 3Q08 results showing a net loss compared to earnings in the prior year. Additional slides provide details on oil prices, the company's hedging strategy, total debt levels, planned 2009 capacity reductions, new and modified fees, investments in the future, and alliances. The presentation contains forward-looking statements and refers readers to SEC filings and a webcast for further information.
2. Safe Harbor
• Please note that many of our statements, including
any comments on matters related to our outlook for
revenue and earnings, cost estimates, and forecasts
of capacity, traffic, load factor, fuel costs and other
matters will constitute forward-looking statements.
These matters are subject to a number of factors
that could cause actual results to differ from our
expectations. These factors include domestic and
international economic conditions, commodity prices,
general competitive factors including, but not limited
to, government regulations, uncertainty in domestic
or international operations, acts of war or terrorism,
our ability to access the capital markets and
changes in the Company's business strategy, any of
which could affect our actual results.
2
3. Safe Harbor (cont.)
• Additional information concerning these and other
factors is contained in our Securities and Exchange
Commission filings, including but not limited to our
Form 10-K for the year ended Dec. 31, 2007.
• Additionally, please refer to the slide presentation
accompanying today’s webcast at www.aa.com for
reconciliation of any non-GAAP financial
measurement we may discuss to what we think is
the most appropriate GAAP measurement.
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5. 3Q08 Results
Net Earnings
(Ex-Special Items)
(Ex-Special Items)
400
400
($ MILLIONS)
200
200 215
215
-
-
(200 )
(200 )
(360)
(360)
(400 )
( )
2008
2007 2008
2007
1/ Excludes gain of $432 million from the sale of American Beacon Advisors and $27 million in special charges related to aircraft
impairment and severance costs 5
6. Oil Price
$140
$120
1/
1/
l
e
r $100
r
a
B
/
$ $80
1/3/07 - $58.32
$60
11/26/08 - $54.44
$40
1/2007 4/2007 7/2007 10/2007 1/2008 4/2008 7/2008 10/2008
1/ WTI Spot Prices 6
7. Hedging
• AMR employs a systematic approach to hedging
– Calls and collars layered in over a 18-36 months
– To remain in line with the industry, historically AMR has
targeted 30-45% of the prompt quarter’s consumption
• For 4Q08, 38% of consumption is hedged with average
crude equivalent floors of $92 per barrel
• For 2009, we currently have hedged 34% of 2009
consumption
– Collars have average crude equivalent caps of $99 and floors
of $71
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9. Total Debt
25
20.8
20.8
20
15.4
15.4
15
10
5
0
12/31/2002 9/30/2008
1/ Includes current and long-term debt, current and long-term capital lease obligations, principal amount of certain airport facility tax-
exempt bonds and the present value of aircraft operating lease obligations 9
11. 2009 Capacity
Consolidated System ~ (6%)
Mainline Domestic ~ (8.5%)
Mainline International ~ (1%)
Note: Versus FY2008 expected values; as announced on 3Q08 conference call (10/15/2008) 11
13. New and Modified Fees
1st Checked Bag Fee
2nd Checked Bag Fee
Several
Domestic Change Fee
Hundreds of
Confirmed Flight Charge
Millions of
Int’l Change Fee
Dollars
Res Service Fee
Liquor and Food for Sale
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