American Airways Group Inc. (AAL) Presents at Bernstein forty second Annual Strategic Selections Convention Transcript

David Vernon
Bernstein Institutional Providers LLC, Analysis Division

Okay. I feel we’re on. All proper. Thanks, everybody, for becoming a member of us. My identify is David Vernon. I cowl airfreight/floor transportation, U.S. Airways. We’re happy to have American Airways with us at present. Robert Isom, CEO; Devin Might, the CFO; and Neil Russell from Investor Relations are with us at present.

So that you guys ought to know the drill by now. When you’ve got questions, you need to stand up into the queue right here for Pigeonhole, you are able to do it electronically. I will attempt to work these into the dialog. We’re delighted to have you ever again for the convention right here. Thanks very a lot for the assist.

Something you need to kick off with when it comes to ready remarks? Do you need to simply dig proper into the Q&A?

Robert Isom
CEO, President & Director

Effectively, David, I simply — thanks for having us right here, proper? Loads happening within the trade at present. However I would identical to to start out with this. American is about up rather well for the long run. We kicked off the primary quarter and produced year-over-year income efficiency of up 10%, 11%, actually felt assured about the place the 12 months is headed, particularly from a income perspective.

Look, oil costs, gas costs are up significantly. First quarter, $400 million. With out that, we’d have been worthwhile — anticipated profitability, returned to stable profitability for the 12 months. And — however for gas costs that we’re now estimating at $4 billion to $5 billion for the 12 months, we’d have been solidly worthwhile.