Special Items - Net non-operating

  
CONSOLIDATED STATEMENTS OF OPERATIONS

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year Ended December 31 (in millions, except per share amounts) | 2021 |  | 2020 |  | 2019 |
| Operating Revenues |   |  |   |  |   |
| Passenger revenue | $ | 5,499  |  |  | $ | 3,019  |  |  | $ | 8,095  |  |
| Mileage Plan other revenue | 461  |  |  | 374  |  |  | 465  |  |
| Cargo and other | 216  |  |  | 173  |  |  | 221  |  |
| Total Operating Revenues | 6,176  |  |  | 3,566  |  |  | 8,781  |  |
|  |  |  |  |  |  |
| Operating Expenses |   |  |   |  |   |
| Wages and benefits | 2,218  |  |  | 2,053  |  |  | 2,370  |  |
| Variable incentive pay | 151  |  |  | 130  |  |  | 163  |  |
| Payroll Support Program wage offset | (914) |  |  | (782) |  |  | —  |  |
| Aircraft fuel, including hedging gains and losses | 1,279  |  |  | 723  |  |  | 1,878  |  |
| Aircraft maintenance | 364  |  |  | 321  |  |  | 437  |  |
| Aircraft rent | 254  |  |  | 299  |  |  | 331  |  |
| Landing fees and other rentals | 555  |  |  | 417  |  |  | 531  |  |
| Contracted services | 235  |  |  | 181  |  |  | 289  |  |
| Selling expense | 173  |  |  | 101  |  |  | 313  |  |
| Depreciation and amortization | 394  |  |  | 420  |  |  | 423  |  |
| Food and beverage service | 139  |  |  | 90  |  |  | 214  |  |
| Third-party regional carrier expense | 147  |  |  | 128  |  |  | 166  |  |
| Other | 507  |  |  | 407  |  |  | 559  |  |
| Special items - impairment charges and other | (1) |  |  | 627  |  |  | —  |  |
| Special items - restructuring charges  | (10) |  |  | 220  |  |  | —  |  |
| Special items - merger-related costs | —  |  |  | 6  |  |  | 44  |  |
|  |  |  |  |  |  |
| Total Operating Expenses | 5,491  |  |  | 5,341  |  |  | 7,718  |  |
| Operating Income (Loss) | 685  |  |  | (1,775) |  |  | 1,063  |  |
|  |  |  |  |  |  |
| Non-operating Income (Expense) |   |  |   |  |   |
| Interest income | 25  |  |  | 31  |  |  | 42  |  |
| Interest expense | (128) |  |  | (98) |  |  | (78) |  |
| Interest capitalized | 11  |  |  | 11  |  |  | 15  |  |
| Special charges - net non-operating | —  |  |  | (26) |  |  | —  |  |
| Other - net | 36  |  |  | 17  |  |  | (26) |  |
| Total Non-operating Expense | (56) |  |  | (65) |  |  | (47) |  |
| Income (Loss) Before Income Tax | 629  |  |  | (1,840) |  |  | 1,016  |  |
| Income tax (benefit) expense | 151  |  |  | (516) |  |  | 247  |  |
| Net Income (Loss) | $ | 478  |  |  | $ | (1,324) |  |  | $ | 769  |  |
|  |  |  |  |  |  |
| Basic Earnings (Loss) Per Share | $ | 3.82  |  |  | $ | (10.72) |  |  | $ | 6.24  |  |
| Diluted Earnings (Loss) Per Share | $ | 3.77  |  |  | $ | (10.72) |  |  | $ | 6.19  |  |
| Shares used for computation: |  |  |   |  |   |
| Basic | 125.063  |  |  | 123.450  |  |  | 123.279  |  |
| Diluted | 126.775  |  |  | 123.450  |  |  | 124.289  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |

  
See accompanying notes to consolidated financial statements.53
