Stock Analysis on Net
Stock Analysis on Net

American Airlines Group Inc. (NASDAQ:AAL)

This company has been moved to the archive! The financial data has not been updated since February 21, 2024.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

American Airlines Group Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
State and local — (6) — — 2
Foreign — — — — 8
Current income tax provision (benefit) — (6) — — 10
Federal 268 59 (508) (2,335) 498
State and local 31 6 (47) (233) 62
Deferred income tax provision (benefit) 299 65 (555) (2,568) 560
Income tax provision (benefit) 299 59 (555) (2,568) 570

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).

Item Description The company
Current income tax provision (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.
Deferred income tax provision (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. American Airlines Group Inc. deferred income tax provision (benefit) increased from 2021 to 2022 and from 2022 to 2023.
Income tax provision (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. American Airlines Group Inc. income tax provision (benefit) increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

American Airlines Group Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 26.67% 31.72% 21.78% 22.42% 25.27%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. American Airlines Group Inc. effective income tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Components of Deferred Tax Assets and Liabilities

American Airlines Group Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net operating loss and other carryforwards 4,238 4,679 4,612 4,027 2,103
Loyalty program liability 1,774 1,809 1,903 1,977 1,755
Leases 1,758 1,819 1,833 1,913 2,077
Pension benefits 434 474 941 1,405 1,229
Postretirement benefits other than pension benefits 274 179 214 203 145
Rent expense 84 130 92 96 126
Alternative minimum tax (AMT) credit carryforwards — — — — 90
Other 902 742 784 875 643
Deferred tax assets 9,464 9,832 10,379 10,496 8,168
Valuation allowance (22) (19) (34) (34) (34)
Net deferred tax assets 9,442 9,813 10,345 10,462 8,134
Accelerated depreciation and amortization (4,503) (4,630) (4,747) (5,028) (5,196)
Leases (1,798) (1,832) (1,767) (1,818) (1,979)
Other (262) (262) (284) (386) (343)
Deferred tax liabilities (6,563) (6,724) (6,798) (7,232) (7,518)
Net deferred tax asset (liability) 2,879 3,089 3,547 3,230 616

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. American Airlines Group Inc. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. American Airlines Group Inc. net deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. American Airlines Group Inc. net deferred tax asset (liability) decreased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

American Airlines Group Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 2,888 3,099 3,556 3,239 645
Deferred tax liabilities 9 10 9 9 29

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. American Airlines Group Inc. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.

Adjustments to Financial Statements: Removal of Deferred Taxes

American Airlines Group Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 63,058 64,716 66,467 62,008 59,995
Less: Noncurrent deferred tax assets, net 2,888 3,099 3,556 3,239 645
Total assets (adjusted) 60,170 61,617 62,911 58,769 59,350
Adjustment to Total Liabilities
Total liabilities (as reported) 68,260 70,515 73,807 68,875 60,113
Less: Noncurrent deferred tax liabilities, net 9 10 9 9 29
Total liabilities (adjusted) 68,251 70,505 73,798 68,866 60,084
Adjustment to Stockholders’ Deficit
Stockholders’ deficit (as reported) (5,202) (5,799) (7,340) (6,867) (118)
Less: Net deferred tax assets (liabilities) 2,879 3,089 3,547 3,230 616
Stockholders’ deficit (adjusted) (8,081) (8,888) (10,887) (10,097) (734)
Adjustment to Net Income (loss)
Net income (loss) (as reported) 822 127 (1,993) (8,885) 1,686
Add: Deferred income tax expense (benefit) 299 65 (555) (2,568) 560
Net income (loss) (adjusted) 1,121 192 (2,548) (11,453) 2,246

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).

American Airlines Group Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

American Airlines Group Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 1.56% 0.26% -6.67% -51.25% 3.68%
Adjusted net profit margin 2.12% 0.39% -8.53% -66.06% 4.91%
Total Asset Turnover
Reported total asset turnover 0.84 0.76 0.45 0.28 0.76
Adjusted total asset turnover 0.88 0.79 0.47 0.30 0.77
Financial Leverage
Reported financial leverage — — — — —
Adjusted financial leverage — — — — —
Return on Equity (ROE)
Reported ROE — — — — —
Adjusted ROE — — — — —
Return on Assets (ROA)
Reported ROA 1.30% 0.20% -3.00% -14.33% 2.81%
Adjusted ROA 1.86% 0.31% -4.05% -19.49% 3.78%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. American Airlines Group Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. American Airlines Group Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. American Airlines Group Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

American Airlines Group Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 822 127 (1,993) (8,885) 1,686
Operating revenues 52,788 48,971 29,882 17,337 45,768
Profitability Ratio
Net profit margin1 1.56% 0.26% -6.67% -51.25% 3.68%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 1,121 192 (2,548) (11,453) 2,246
Operating revenues 52,788 48,971 29,882 17,337 45,768
Profitability Ratio
Adjusted net profit margin2 2.12% 0.39% -8.53% -66.06% 4.91%

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).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Operating revenues
= 100 × 822 ÷ 52,788 = 1.56%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Operating revenues
= 100 × 1,121 ÷ 52,788 = 2.12%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. American Airlines Group Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Operating revenues 52,788 48,971 29,882 17,337 45,768
Total assets 63,058 64,716 66,467 62,008 59,995
Activity Ratio
Total asset turnover1 0.84 0.76 0.45 0.28 0.76
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Operating revenues 52,788 48,971 29,882 17,337 45,768
Adjusted total assets 60,170 61,617 62,911 58,769 59,350
Activity Ratio
Adjusted total asset turnover2 0.88 0.79 0.47 0.30 0.77

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).

2023 Calculations

1 Total asset turnover = Operating revenues ÷ Total assets
= 52,788 ÷ 63,058 = 0.84

2 Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 52,788 ÷ 60,170 = 0.88

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. American Airlines Group Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 63,058 64,716 66,467 62,008 59,995
Stockholders’ deficit (5,202) (5,799) (7,340) (6,867) (118)
Solvency Ratio
Financial leverage1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 60,170 61,617 62,911 58,769 59,350
Adjusted stockholders’ deficit (8,081) (8,888) (10,887) (10,097) (734)
Solvency Ratio
Adjusted financial leverage2 — — — — —

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).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ deficit
= 63,058 ÷ -5,202 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ deficit
= 60,170 ÷ -8,081 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 822 127 (1,993) (8,885) 1,686
Stockholders’ deficit (5,202) (5,799) (7,340) (6,867) (118)
Profitability Ratio
ROE1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 1,121 192 (2,548) (11,453) 2,246
Adjusted stockholders’ deficit (8,081) (8,888) (10,887) (10,097) (734)
Profitability Ratio
Adjusted ROE2 — — — — —

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).

2023 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ deficit
= 100 × 822 ÷ -5,202 = —

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ deficit
= 100 × 1,121 ÷ -8,081 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 822 127 (1,993) (8,885) 1,686
Total assets 63,058 64,716 66,467 62,008 59,995
Profitability Ratio
ROA1 1.30% 0.20% -3.00% -14.33% 2.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 1,121 192 (2,548) (11,453) 2,246
Adjusted total assets 60,170 61,617 62,911 58,769 59,350
Profitability Ratio
Adjusted ROA2 1.86% 0.31% -4.05% -19.49% 3.78%

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).

2023 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 822 ÷ 63,058 = 1.30%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 1,121 ÷ 60,170 = 1.86%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. American Airlines Group Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.