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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Estimated Useful Lives of Principal Property and Equipment

The estimated useful lives for the principal property and equipment classifications are as follows:



Principal Property and Equipment Classification	Estimated Useful Life
Aircraft, engines and related rotable parts	20 – 30 years
Buildings and improvements	5 – 30 years
Furniture, fixtures and other equipment	3 – 10 years
Capitalized software	5 – 10 years

Schedule of Amortizable Intangible Assets

The following table provides information relating to our amortizable intangible assets as of December 31, 2019 and 2018 (in millions):



	December 31,
	2019			2018
Domestic airport slots	$	365		$	365
Customer relationships	300			300
Marketing agreements	105			105
Tradenames	35			35
Airport gate leasehold rights	137			137
Accumulated amortization	(704		)	(663		)
Total	$	238		$	279

Schedule of Future Amortization Expense

We expect to record annual amortization expense for these intangible assets as follows (in millions):



2020	$	41
2021	41
2022	41
2023	7
2024	7
2025 and thereafter	101
Total	$	238

Disaggregation of Revenue

The following are the significant categories comprising our reported operating revenues (in millions):



	Year Ended December 31,
	2019		2018		2017
Passenger revenue:
Passenger travel	$	38,831	$	37,457	$	36,152
Loyalty revenue - travel ⁽¹⁾	3,179		3,219		2,979
Total passenger revenue	42,010		40,676		39,131
Cargo	863		1,013		890
Other:
Loyalty revenue - marketing services	2,361		2,352		2,124
Other revenue	534		500		477
Total other revenue	2,895		2,852		2,601
Total operating revenues	$	45,768	$	44,541	$	42,622


⁽¹⁾	Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions earned through travel or from co-branded credit card and other partners. See “Loyalty Revenue” below for further discussion on these mileage credits.

The following is our total passenger revenue by geographic region (in millions):



	Year Ended December 31,
	2019		2018		2017
Domestic	$	30,881	$	29,573	$	28,749
Latin America	5,047		5,125		4,840
Atlantic	4,624		4,376		4,028
Pacific	1,458		1,602		1,514
Total passenger revenue	$	42,010	$	40,676	$	39,131

Schedule of Contract Balances

Changes in loyalty program liability are as follows (in millions):



Balance at December 31, 2018	$	8,539
Deferral of revenue	3,438
Recognition of revenue ⁽¹⁾	(3,362		)
Balance at December 31, 2019 ⁽²⁾	$	8,615

⁽¹⁾

Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period.

⁽²⁾

Mileage credits can be redeemed at any time and do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As of December 31, 2019, our current loyalty program liability was $3.2 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.



	December 31,
	2019		2018
	(in millions)
Loyalty program liability	$	8,615	$	8,539
Air traffic liability	4,808		4,339
Total	$	13,423	$	12,878

Components of Regional Expenses

Regional expenses consist of the following (in millions):



	Year Ended December 31,
	2019		2018		2017
Aircraft fuel and related taxes	$	1,869	$	1,843	$	1,382
Salaries, wages and benefits	1,781		1,591		1,452
Capacity purchases from third-party regional carriers ⁽¹⁾	1,398		1,431		1,581
Maintenance, materials and repairs	403		340		281
Other rent and landing fees	651		610		625
Aircraft rent	29		32		35
Selling expenses	402		369		361
Depreciation and amortization	336		318		315
Special items, net	6		6		22
Other	626		593		492
Total regional expenses	$	7,501	$	7,133	$	6,546

⁽¹⁾

In 2019, 2018, and 2017, we recognized $590 million, $565 million and $544 million, respectively, of expense under our capacity purchase agreement with Republic Airline Inc. (Republic). We hold a 25% equity interest in Republic Airways Holdings Inc. (Republic Holdings), the parent company of Republic.

American Airlines, Inc. [Member]

Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Estimated Useful Lives of Principal Property and Equipment

The estimated useful lives for the principal property and equipment classifications are as follows:



Principal Property and Equipment Classification	Estimated Useful Life
Aircraft, engines and related rotable parts	20 – 30 years
Buildings and improvements	5 – 30 years
Furniture, fixtures and other equipment	3 – 10 years
Capitalized software	5 – 10 years

Schedule of Amortizable Intangible Assets

The following table provides information relating to American’s amortizable intangible assets as of December 31, 2019 and 2018 (in millions):



	December 31,
	2019			2018
Domestic airport slots	$	365		$	365
Customer relationships	300			300
Marketing agreements	105			105
Tradenames	35			35
Airport gate leasehold rights	137			137
Accumulated amortization	(704		)	(663		)
Total	$	238		$	279

Schedule of Future Amortization Expense

American expects to record annual amortization expense for these intangible assets as follows (in millions):



2020	$	41
2021	41
2022	41
2023	7
2024	7
2025 and thereafter	101
Total	$	238

Disaggregation of Revenue

The following are the significant categories comprising American’s reported operating revenues (in millions):



	Year Ended December 31,
	2019		2018		2017
Passenger revenue:
Passenger travel	$	38,831	$	37,457	$	36,152
Loyalty revenue - travel ⁽¹⁾	3,179		3,219		2,979
Total passenger revenue	42,010		40,676		39,131
Cargo	863		1,013		890
Other:
Loyalty revenue - marketing services	2,361		2,352		2,124
Other revenue	527		489		465
Total other revenue	2,888		2,841		2,589
Total operating revenues	$	45,761	$	44,530	$	42,610


⁽¹⁾	Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions earned through travel or from co-branded credit card and other partners. See “Loyalty Revenue” below for further discussion on these mileage credits.

The following is American’s total passenger revenue by geographic region (in millions):



	Year Ended December 31,
	2019		2018		2017
Domestic	$	30,881	$	29,573	$	28,749
Latin America	5,047		5,125		4,840
Atlantic	4,624		4,376		4,028
Pacific	1,458		1,602		1,514
Total passenger revenue	$	42,010	$	40,676	$	39,131

Schedule of Contract Balances

Changes in loyalty program liability are as follows (in millions):



Balance at December 31, 2018	$	8,539
Deferral of revenue	3,438
Recognition of revenue ⁽¹⁾	(3,362		)
Balance at December 31, 2019 ⁽²⁾	$	8,615

⁽¹⁾

⁽²⁾

Mileage credits can be redeemed at any time and do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As of December 31, 2019, American’s current loyalty program liability was $3.2 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.



	December 31,
	2019		2018
	(in millions)
Loyalty program liability	$	8,615	$	8,539
Air traffic liability	4,808		4,339
Total	$	13,423	$	12,878

Components of Regional Expenses

Regional expenses consist of the following (in millions):



	Year Ended December 31,
	2019		2018		2017
Aircraft fuel and related taxes	$	1,869	$	1,843	$	1,382
Salaries, wages and benefits	325		338		356
Capacity purchases from third-party regional carriers ⁽¹⁾	3,562		3,267		3,283
Maintenance, materials and repairs	30		8		7
Other rent and landing fees	621		583		602
Aircraft rent	29		27		27
Selling expenses	402		369		361
Depreciation and amortization	286		267		262
Special items, net	—		—		3
Other	394		362		289
Total regional expenses	$	7,518	$	7,064	$	6,572

⁽¹⁾

In 2019, 2018, and 2017, American recognized $590 million, $565 million and $544 million, respectively, of expense under its capacity purchase agreement with Republic Airline Inc. (Republic). American holds a 25% equity interest in Republic Airways Holdings Inc. (Republic Holdings), the parent company of Republic.