Analysis of Debt
Total Debt (Carrying Amount)
American Airlines Group Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Current maturities of long-term debt and finance leases
-
The current maturities of long-term debt and finance leases declined from US$2,861 million in 2019 to US$2,489 million in 2021. However, there was a notable increase in the following years, reaching US$3,274 million in 2022 and further rising to US$3,632 million in 2023. This trend indicates a shift towards higher short-term debt obligations in the most recent periods.
- Long-term debt and finance leases, net of current maturities
-
Net long-term debt, excluding current maturities, showed a significant increase from US$21,454 million in 2019 to a peak of US$35,571 million in 2021. This was followed by a gradual reduction in the subsequent years, dropping to US$32,389 million in 2022 and further decreasing to US$29,270 million in 2023. The pattern reflects a buildup of long-term liabilities up to 2021, after which the company began to reduce its non-current debt levels.
- Total long-term debt and finance lease liabilities, including current maturities
-
The total long-term debt including current maturities increased steadily from US$24,315 million in 2019 to a peak of US$38,060 million in 2021. After 2021, total debt levels decreased consistently, reaching US$35,663 million in 2022 and further to US$32,902 million in 2023. Despite the decline post-2021, the total debt remains substantially higher than the levels at the end of 2019, indicating an overall increase in leverage compared to the pre-2020 period.
- Overall analysis
-
The data reflects an overall trend of increased leverage through 2021, with both short-term maturities and long-term debt rising sharply. Beginning in 2022, there is a clear attempt to reduce long-term liabilities, although current maturities continue to rise, suggesting a shifting profile of debt towards near-term obligations. The increased current maturities might imply pressure on liquidity or upcoming refinancing requirements. The reduction in long-term debt net of current maturities post-2021 is indicative of some deleveraging efforts. However, total liabilities remain elevated compared to the 2019 baseline, pointing to sustained high debt levels in the most recent periods.
Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt, including current maturities | 32,310) |
| Finance lease liabilities | 506) |
| Total long-term debt and finance lease liabilities, including current maturities (fair value) | 32,816) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.00 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt and finance lease liabilities: 6.47%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 8.60% | 990) | 85) | |
| 7.32% | 1,183) | 87) | |
| 8.87% | 1,100) | 98) | |
| 10.75% | 1,000) | 108) | |
| 10.75% | 200) | 22) | |
| 7.25% | 750) | 54) | |
| 8.50% | 1,000) | 85) | |
| 5.50% | 2,917) | 160) | |
| 5.75% | 3,000) | 173) | |
| 10.43% | 3,150) | 329) | |
| 3.70% | 7,657) | 283) | |
| 6.98% | 3,612) | 252) | |
| 5.38% | 967) | 52) | |
| 7.00% | 1,000) | 70) | |
| 3.75% | 487) | 18) | |
| 7.20% | 506) | 36) | |
| Total | 29,519) | 1,911) | |
| 6.47% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,911 ÷ 29,519 = 6.47%