INTEGRATED REPORT FINAL PROJECT

NOVEMBER 26, 2022

JEREMIAH TUMBLESON

ASU OGL 260

INTEGRATED REPORT

AMERICAN
AIRLINES

Athens, Greece. Logo of American Airlines,

a major American airline headquartered in
Fort Worth, Texas. at Athens International
Airport By J. Ossorio Castillo

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Contents
About (Purpose) ………………………………………………………………………………………

Corporate and Governance …………………………………………………………

Who is American Airlines? ………………………………………….……………………………

Value Crea on Process ……………………………………….………………………

Resources ………………………………………………………………………………...…

Stakeholders & Accountability………………………………………………...…

Risk and Externali es …………………………………………………………………

Recommenda ons ……………………………………………….……………………

References …………………………………………………………………………………

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American Airlines Airbus A320 airplanes Phoenix Sky Harbor airport By Markus Mainka

INTEGRATED
REPORT
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T he following report displays the vital output and direction of American

Airlines and its stance on values, relationships, direction and the vital
connection with stakeholders, such as customers, organizations like the FAA,
government, and world wide partners with economic representation.

CORPORATE & GOVERNANCE

American Airlines is company of pro it with available public trade through
"NASDAQ AAL" (1). American Airlines is a "network air carrier, providing scheduled
air transportation for passengers and cargo through our hubs in
Charlotte,Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia,
Phoenix and Washington,D.C. and partner gateways, including in London, Madrid,
Seattle/Tacoma, Sydney and Tokyo (among others)."(2)

STANDARDS & ASSURANCE PROVIDER

American Airlines Standards and assurance provider is under the services of the
"U. S. Securities and Exchange Commission (SEC)" (3) in accordance and
formatted through a 10-K form. This is evident in the 2021 American Airlines
published Integrated report. "The Company’s inancial statements are complete
and accurate or are in accordance with generally accepted accounting principles
(“GAAP”)." (4)

GOVERNANCE
Evident by American Airlines 2021 annual report, as of January 22, 2020, there is a
team of executive o icers and directors. The Executive O icers consists of the
following: W. Douglas Parker Chairman and Chief Executive O icer (Principal
Executive O icer),(5) Derek J. Kerr Chief Financial O icer (Principal Financial and
Accounting O icer)(6); The following are the Non-Employee Directors: James F.
Albaugh (Director), Je rey D. Benjamin (Director), Adriane M. Brown (Director),
John T. Cahill (Director), Michael J. Embler (Director), Matthew J. Hart (Director),

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Susan D. Kronick (Director), Martin H. Nesbitt (Director), Denise M. O’Leary

(Director), Ray M. Robinson (Director), Gregory D. Smith (Director), Douglas M.
Steenland (Director).

WHO IS AMERICAN AIRLINES?

“OUR MISSION: COMMITTED TO PROVIDE EVERY CITIZEN OF THE WORLD WITH
THE BEST SERVICE OF THE AIR TRAVEL TO THE EXTENSIVE SELECTION OF
DESTINATION POSSIBLE.”(2022 JOBSAGE)

American Airlines traces its roots back to 1926 when the company formed under Charles
Lindbergh who lew initially to be carrier of mail and in the 1930's lead the transformation
to passengers (7). With its 100 year history American Airlines has become on of the
worlds largest and leading airlines in operation to this day. American Airlines is dedicated
to the service of its passengers world wide, provided bene its to those who return and to
those who are on their irst air journey (8). With competitors rising to the level of
operation that American Airlines sets innovation is key to their success, not only in
technological advancements, but in their culture as well (9). Throughout their brilliant
partners there is a force that is unlike anything els. With world class pilots and attendants
your safety is to never be questioned and through greater safety comes better relaxation.
American Airlines employees work together -(reference Member and Customer
Flywheels).

incpas.org. (2022.). Retrieved

November 21, 2022, https://

VALUE www.incpas.org/docs/default-
source/utility/integrated-
report.pdf?

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CREATION PROCESS

American Airlines serves its customer base with the upmost travel experience for
its category. With destinations all over the globe it is certain you can gain a seat to
you destination and in a timely manner. With American's investment in
technological advancements and their contribution in sta training they are sure
to get you where you are going safely. The dedication and performance of
American Airlines is one to be of a great relationship as the services doesn’t stop
after the cabin door opens.

Business Model Canvas – Designed for American Airlines Provided by Instructor

KEY ACTIVITIES ✅ VALUE PROPOSITIONS 🎁 CUSTOMER RELATIONSHIPS

KEY PARTNERS🔑
♥

Umbrella over *Operation of a network *Best services in air *Destination satisfaction

OneWorld Partners of air carriers travel around the world
*Alaska Airlines *Service accuracy
*British Airways *Providing scheduled Air *Extensive destination
*Cathay Paci ic transportation for choices *Error Correction (hotel
*Fin Air passengers and cargo comp.)
*Envoy *Open and Inclusive
*etc *Flight services culture *Self service & customer
services
Suppliers: Transworld *In light purchases *Safety
*Fuel Companies *Safety
*Aircraft manufacture *Credit lines *Convenience
(Boeing, Airbus) *Quality
*Labor *Daily lights

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KEY ACTIVITIES ✅ VALUE PROPOSITIONS 🎁 CUSTOMER RELATIONSHIPS

KEY PARTNERS🔑
♥

*Airspace Ancillary travle *Loyalty and rewards

services available
Key Partners
*Supply customers *Hotels *Lower cost
*Bene its to associates
*Inclusive travel *Car rentals
opportunities
*Food services
Key Concerns
*Safety
*Training
*Delivery
*Satisfaction
*Competitive prices
*Comfort

Legislative and
regulatory agencies
- AIrports /FAA

CUSTOMER SEGMENTS 👥 KEY RESOURCES 🏗 CHANNELS 🚚

*World wide customer HUMAN AWARENESS

* *

🛩
satisfaction Employee Assistance Exterior Ads and
motion picture
*All encompassing * Prescription services broadcast
customer outreach
regardless of any geo * 24 hour health EVALUATION
political or geographical hotlines * In person surveys and
di erences open hotlines

* Community

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CUSTOMER SEGMENTS 👥 KEY RESOURCES 🏗 CHANNELS 🚚

🛩
*World wide all * Community
encompassing service involvement PURCHASE
with safety * 1ST Person and 3RD
PHYSICAL person sales
* Fleet of aircraft * Brick and mortar
* Ground facilities
* Real estate POST SALE
* Investments * Hotline, email, socials,
customer services,
applications

COST STRUCTURE 🏷 REVENUE STREAMS 💰

*Airline seats (customers will-trade down) *In air sales

*Aircraft purchase *Partnerships

*Airport fees *Credit lines

*FAA fees *Government contracts

*Maintenance fees

*New aircraft purchase

*Labor

*Empty seats

*Fuel

Design inspired by: Business Model

Foundry AG

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RESOURCES
FINANCIAL
American Airlines has a variety of streams in which it pulls revenue from, the main
categories of focus however, are cargo services, passenger services, and a mix of
a few others. The expense of an airline to function at its highest capacity is evident
to be a challenge for any to remain a loat, however there is great support for the
aviation community and as viewed up in the chart depicted American Airlines is
able to capture its income revenue and out going expenses. American goes about
inancial presentations in a accumulation of quarterly data. For example the 3Q of
2022 the GAAP net income was totaled at $483M with a total operating revenue of
$13.5B and total operating expense at $12.5B leaving a marginal window of $930M
to ensure other issuance like taxes are covered. (10)

https://s21.q4cdn.com/616071541/ iles/
doc_news/2022/10/3Q22-Financial-Results-
Fact-Sheet.pdf

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MANUFACTURE / NATURAL

AmericanAirlines has hubs around the nation in Charlotte,Chicago, Dallas/Fort

Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington,D.C.
and partner gateways, including in London, Madrid, Seattle/Tacoma, Sydney and
Tokyo (among others)."(2) and invest in operations for the development of
environmentally friendly fuels and new technologies to advance the ways in which
the industry will move forward.

HUMAN / RELATION

Based on greater analysis American Airlines draws to the communities around it

and plays a vital role in many programs which lend a hand in education and
outreach. With its investment there is a vital role in the upbringing of future
generations and the return the company can expect from their a ect on
communities. There is a culture to American Airlines that is inclusive and
welcoming to a workforce from a diverse background.

SYMBOLIC

American Airlines symbolic capital is evident in its technological advancements

and the avionics in which its continuously updates throughout its leet, integrating
global positioning advancements and AI technologies. With Americans dedication
there is relationship with its loyal customers and team members that draws to its
symbolic capital even more so than some of its competitors.

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STRUCTURAL

Through the countless hubs the greatest asset for a traveling business it its
employees and for American Airlines to run seamlessly there is a demand for
health. With this there are a variety of resources available to aid in the wellness of
employees regardless of where they are at or where they are going. Ensuring the
strength of its overall structural capital.

STAKEHOLDERS & ACCOUNTABILITY

STAKEHOLDERS

American Airlines partners with its customers, employees and aviation related
partners. It also connects with those who play a role within their stock investing.
The greatest value the stake holders have within American airlines is that of which
they are the main blood supply to the heart of the company and their role is vital.
The community as a whole is the stakeholder.

ACCOUNTABILITY

American airlines plays a major role in the accountably for its employees,
customers, and community. The safety and seamless operation of American
Airlines is essential to those all around them and the integrity in which operations
takes place is not that of which they take lightly.

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RISKS & EXTERNALITIES

RISK & EXTERNALITIES

The success of American Airlines lays with the global economy and the way in which it
luctuates drastically drives the changes in which the company see. For example when
the global pandemic COVID-19 came through the industry as a whole say the walls of
which their deaths were written upon as the company had no way to produce income.
The other issue is competitiveness within the market and the reality of empty seats
sinking the company. With its remainder funds sitting at $930M it is no doubt that the
industry can see crippling e ects without its ability to serve its customers and partners to
ensure that the means of $14B is made to continue the breath of American Airlines. With
the ever changing price of natural resources like fuel there is a challenge to be met here
as this can greatly e ect operational cost and the price of which its customers face. This
carries over to the mechanical and supply world as well. However with the driving force
of American’s investment in new technologies there is a corrective action that can
decrease the factors listed above that are outside the realm of their direct control, not
mention the domino e ect these challenges have on the community as a whole.

RECOMMENDATIONS

As American Airlines continues its progress towards the future of aviation I think
that there needs to be an economical director set to change the motion of its
current expense as there is vary little room for error with the margins presented. I
think that in order to present a solution there needs to be an expansion into other
industries that can provide greater sources of income during economical crisis to
at the bare minimum insure the company remains a loat. American Airlines can see
the regional airline industry picking up quickly as they continue to expand and
decrease pricing making competition di icult, however, there needs to be a focus
on the quality and not so much on the quantity as safety will always be the
determining factor of air travel and with a greater increase in leet there is more

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room for error and this can be far more devastating to a airline over fewer seats
being sold.

RESOURCES

American Airlines. (2022, November 26). History of American Airlines . Retrieved

from aa.com: h ps://www.aa.com/i18n/customer-service/about-us/
history-of-american-airlines.jsp (1,2,9,5)

AMERICAN AIRLINES GROUP INC. (2020, January 2). AMERICAN AIRLINES GROUP
INC. AUDIT COMMITTEE CHARTER . Retrieved from aa.com: h ps://
www.aa.com/content/images/customer-service/about-us/corporate-
governance/aag-audit-commi ee-charter.pdf (10,2,7,8)

American Airlines Reports Third-Quarter 2022 Financial Results . (2022, October

20). Retrieved from News.AA: h ps://news.aa.com/news/news-details/
2022/American-Airlines-Reports-Third-Quarter-2022-Financial-Results-
CORP-FI-10/default.aspx (3,4,5)

INCPA. (2022). 2022 Integrated Report. Retrieved from h ps://www.incpas.org/

docs/default-source/u lity/integrated-report.pdf?sfvrsn=4b42f21b_2 (1,6)

SEC. (2017, December 31). UNITED STATES SECURITIES AND EXCHANGE

COMMISSION. Retrieved from SEC.gov: h ps://www.sec.gov/Archives/
edgar/data/4515/000000620118000009/a10k123117.htm (2,7)

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SINGH, J. (2022, September 22). Making The World's Largest Airline: The History
Of American Airlines . Retrieved from Simple Flying: h ps://
simple ying.com/history-american-airlines/

UNITED STATES SECURITIES AND EXCHANGE COMMISSION. (2021, December 31).

202 nnual report on form 10-K. Retrieved from Annual Report: h ps://
www.annualreports.com/HostedData/AnnualReports/PDF/
NASDAQ_AAL_2021.pdf

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