American Airlines Group Inc. (NASDAQ:AAL) Q1 2018 Earnings Conference Call - Final Transcript
Apr 26, 2018 • 08:30 am ET
Good morning, and welcome to the American Airlines Group First Quarter 2018 Earnings Call. Today's conference is being recorded. (Operator Instructions)
And now I would like to turn the conference over to your moderator, Managing Director of Investor Relations, Mr. Dan Cravens.
Thank you. Good morning, everyone, and welcome to the American Airlines Group First Quarter 2018 Earnings Call. In the room with us or joining us on the call this morning is: Doug Parker, our Chairman and CEO; Robert Isom, our President; and Derek Kerr, our Chief Financial Officer. Also in the room for the question-and-answer session is Elise Eberwein, our EVP of People and Communications; Maya Leibman, Chief Information Officer; Steve Johnson, our EVP of Corporate Affairs; and Don Casey, our Senior Vice President of Revenue Management.
We're going to start the call today with Doug, and he will provide an overview of our financial results. Derek will then walk us through the details on the first quarter and provide some additional information on our guidance for the remainder of the year. Robert will then follow with the commentary on the operational performance and revenue environment. And then after we hear from those comments, we'll open the call for analysts' questions and, lastly, questions from the media. (Operator Instructions)
(Forward-Looking Cautionary Statements)
In addition, we will be discussing certain non-GAAP financial measures this morning, such as pretax profit and CASM, excluding unusual items. A reconciliation of those numbers to the GAAP financial measures is included in the earnings press release, and that can be found on our website at aa.com. The webcast of this call will also be archived on our website. The information that we're giving you on the call is as of today's date, and we undertake no obligation to update the information subsequently.
Thanks, again, for joining us. At this point, I would like to turn the call over to our Chairman and CEO, Doug Parker.
Thanks, Dan, and thanks, everybody, for being with us. We recorded this morning first quarter results of $357 million of income excluding net special items. That's $0.75 per share. Thanks to the hard working people of American Airlines, who are doing a phenomenal job in taking care of our teams and keeping us on track with all of our strategic initiatives. We feel very good about where we are. Those earnings, of course, are down year-over-year. That's driven by an increase in fuel year-over-year, which Derek will talk about. And indeed that fuel prices have increased yet again just in the last -- since we closed the quarter. So we've adjusted our full year earnings estimate accordingly.
Excluding the fuel price increase, as I was saying though, everything else feels very good at American. We continue to work against our strategic objectives and had made really nice progress in each of those. First, in creating a world-class customer experience, we continue to bring in new aircraft and retire older airplanes and what is the most aggressive modernization of an aircraft