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American Airlines cash flow, quarter by quarter

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

American Airlines: free cash flow by quarterAmerican Airlines: free cash flow by quarter$85.0MQ4 2011$789MQ1 2012$135MQ2 2012−$605MQ3 2012−$1.0BQ4 2012−$203MQ1 2013$229MQ2 2013−$659MQ3 2013
Operating cash flow less capital spending.
American Airlines: operating cash flow against capital spendingAmerican Airlines: operating cash flow against capital spendingOperating cash flowCapital spending$462M$377MQ4 2011$1.0B$236MQ1 2012$627M$492MQ2 2012−$188M$417MQ3 2012−$316M$725MQ4 2012$679M$882MQ1 2013$1.1B$917MQ2 2013−$67.0M$592MQ3 2013
Latest (Q3 2013): Operating cash flow −$67.0M, Capital spending $592M.

Capital allocation, year by year

American Airlines: where the cash came from (up) and went (down), by fiscal yearAmerican Airlines: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingAsset salesCapital spendingFY2009: Operating cash flow $643MFY2009: Net borrowing $653MFY2009: Asset sales $69.0MFY2009: Capital spending −$1.5B$1.4BFY2009FY2010: Operating cash flow $1.1BFY2010: Net borrowing −$703MFY2010: Asset sales −$14.0MFY2010: Capital spending −$1.6B$1.1BFY2010FY2011: Operating cash flow $697MFY2011: Net borrowing $142MFY2011: Asset sales −$4.0MFY2011: Capital spending −$1.4B$839MFY2011FY2012: Operating cash flow $1.1BFY2012: Net borrowing $268MFY2012: Asset sales $124MFY2012: Capital spending −$1.9B$1.5BFY2012
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.

American Airlines: debt maturities by year (FY2012)American Airlines: debt maturities by year (FY2012)$1.5BYear 1$1.0BYear 2$764MYear 3$1.8BYear 4$534MYear 5
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

American Airlines: sources (+) and uses (−) of cash, Q3 2013American Airlines: sources (+) and uses (−) of cash, Q3 2013Net borrowing (+) / repaid (−)$2.4BOther financing−$1.1BCapital spending−$592MOther investing−$511MCash drawn (+) / kept (−)−$113MOperating cash flow−$67.0M
American Airlines: sources (+) and uses (−) of cash, TTM to Q3 2013American Airlines: sources (+) and uses (−) of cash, TTM to Q3 2013Net borrowing (+) / repaid (−)$4.3BCapital spending−$3.1BOther investing−$2.4BOperating cash flow$1.4BCash drawn (+) / kept (−)−$208MOther financing−$140MAsset & business sales$89.0M

From profit to cash

American Airlines: net income to operating cash flow, Q3 2013American Airlines: net income to operating cash flow, Q3 2013Net income$290MDepreciation & amortization$242MOperating cash flow−$67.0M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingNet 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.

American Airlines: every quarter, Q/Q and Y/Y → Open in the app

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.