Latest: Q3 2013 · from the cash-flow statements filed with the SEC
Free cash flow−$659M in Q3 2013 · −$1.7B over twelve months
Operating cash flow−$67.0M
Capital spending−$592M
Free cash flow−$659M
Cash / net income-0.2×
Analysis
In Q3 2013, American Airlines generated −$67.0M of operating cash flow and spent $592M on capital projects, leaving free cash flow of −$659M. That is $54.0M less than in Q3 2012 (−$605M).
Over the twelve months to Sep 30, 2013, operating cash flow was $1.4B; the largest uses were capital spending ($3.1B), other investing ($2.4B), other financing ($140M); besides operations, cash came from net borrowing (+) / repaid (−) ($4.3B), asset & business sales ($89.0M); the cash balance rose by $208M.
Operating cash flow was −$67.0M against net income of $290M — -0.2× profit, less cash than reported earnings, worth checking against working capital. The largest differences: depreciation & amortization +$242M.
Free cash flow
Operating cash flow less capital spending.Latest (Q3 2013): Operating cash flow −$67.0M, Capital spending $592M.
Capital allocation, year by year
Over these 4 years operating cash flow totalled $3.5B; the largest uses were capital spending ($6.4B) and net borrowing ($703M). Cash-flow statements as filed.
Cash runway and the debt wall
Cash & investments$6.8B
Debt$8.2B
Net debt$1.4B
Due within a year$1.5B
Cash runway2.6 years
American Airlines is burning cash: its operations consume cash, a free cash flow of −$2.6B a year at the current rate against $6.8B of cash and investments: a runway of about 2.6 years; $1.5B of debt also comes due within a year, which the cash covers before any new financing.
Principal due in each year as disclosed in the annual report, against $6.8B of cash and investments now.
Where the cash came from and went
From profit to cash
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
Every quarter
Quarter
Operating cash flow
Capital spending
Net borrowing (+) / repaid (−)
Cash drawn (+) / kept (−)
Free cash flow
Q3 2013
−$67.0M
−$592M
$2.4B
−$113M
−$659M
Q2 2013
$1.1B
−$917M
$1.5B
—
$229M
Q1 2013
$679M
−$882M
$161M
−$125M
−$203M
Q4 2012
−$316M
−$725M
$268M
$30.0M
−$1.0B
Q3 2012
−$188M
−$417M
—
−$137M
−$605M
Q2 2012
$627M
−$492M
—
$4.0M
$135M
Q1 2012
$1.0B
−$236M
−$314M
−$91.0M
$789M
Q4 2011
$462M
−$377M
−$223M
$21.0M
$85.0M
American Airlines: income statement and cash flow
American Airlines, Q1 2025: revenue $12.6B (-0.2% year over year), operating margin -2.2%. The chart follows the revenue to costs, profit and cash.
Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.