10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From                     to

Commission file number 1-8400

American Airlines Group Inc.

(Exact name of registrant as specified in its charter)

Delaware				75-1825172
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
1 Skyview Drive,	Fort Worth,	Texas	76155		(682)	278-9000
(Address of principal executive offices, including zip code)				(Registrant’s telephone number, including area code)

Commission file number 1-2691

American Airlines, Inc.

(Exact name of registrant as specified in its charter)

Delaware				13-1502798
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
1 Skyview Drive,	Fort Worth,	Texas	76155		(682)	278-9000
(Address of principal executive offices, including zip code)				(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	AAL	The Nasdaq Global Select Market
Preferred Stock Purchase Rights	—	(1)

(1) Attached to the Common Stock

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

American Airlines Group Inc.	☒	Yes	☐	No
American Airlines, Inc.	☒	Yes	☐	No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

American Airlines Group Inc.	☒	Yes	☐	No
American Airlines, Inc.	☒	Yes	☐	No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

American Airlines Group Inc.	☒	Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company
American Airlines, Inc.	☐	Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

American Airlines Group Inc.	☐
American Airlines, Inc.	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

American Airlines Group Inc.	☐	Yes	☒	No
American Airlines, Inc.	☐	Yes	☒	No

As of April 21, 2023, there were 652,862,508 shares of American Airlines Group Inc. common stock outstanding.

As of April 21, 2023, there were 1,000 shares of American Airlines, Inc. common stock outstanding, all of which were held by American Airlines Group Inc.

American Airlines Group Inc.

American Airlines, Inc.

Form 10-Q

Quarterly Period Ended March 31, 2023

Table of Contents

		Page
PART I: FINANCIAL INFORMATION
Item 1A.	Condensed Consolidated Financial Statements of American Airlines Group Inc.	6
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Income (Loss)	7
	Condensed Consolidated Balance Sheets	8
	Condensed Consolidated Statements of Cash Flows	9
	Condensed Consolidated Statements of Stockholders’ Deficit	10
	Notes to the Condensed Consolidated Financial Statements	11
Item 1B.	Condensed Consolidated Financial Statements of American Airlines, Inc.	23
	Condensed Consolidated Statements of Operations	23
	Condensed Consolidated Statements of Comprehensive Income (Loss)	24
	Condensed Consolidated Balance Sheets	25
	Condensed Consolidated Statements of Cash Flows	26
	Condensed Consolidated Statements of Stockholder’s Equity	27
	Notes to the Condensed Consolidated Financial Statements	28
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	52
PART II: OTHER INFORMATION
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 6.	Exhibits	83
SIGNATURES		84

1

General

This report is filed by American Airlines Group Inc. (AAG) and its wholly-owned subsidiary American Airlines, Inc. (American). References in this report to “we,” “us,” “our,” the “Company” and similar terms refer to AAG and its consolidated subsidiaries. References in this report to “mainline” refer to the operations of American only and exclude regional operations.

Note Concerning Forward-Looking Statements

Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended (the Securities Act), the Securities Exchange Act of 1934, as amended (the Exchange Act), and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about our plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on our current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those described below under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Part II, Item 1A. Risk Factors and other risks and uncertainties listed from time to time in our filings with the Securities and Exchange Commission (the SEC).

All of the forward-looking statements are qualified in their entirety by reference to the factors discussed in Part II, Item 1A. Risk Factors and elsewhere in this report. There may be other factors of which we are not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. We do not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such statements other than as required by law. Any forward-looking statements speak only as of the date of this report or as of the dates indicated in the statements.

2

Summary of Risk Factors

Our business is subject to a number of risks and uncertainties that may affect our business, results of operations and financial condition, or the trading price of our common stock or other securities. We caution the reader that these risk factors may not be exhaustive. We operate in a continually changing business environment, and new risks and uncertainties emerge from time to time. Management cannot predict such new risks and uncertainties, nor can it assess the extent to which any of the risk factors below or any such new risks and uncertainties, or any combination thereof, may impact our business. These risks are more fully described in Part II, Item 1A. Risk Factors. These risks include, among others, the following:

Risks Related to our Business and Industry

•Downturns in economic conditions could adversely affect our business.

•We will need to obtain sufficient financing or other capital to operate successfully.

•Our high level of debt and other obligations may limit our ability to fund general corporate requirements and obtain additional financing, may limit our flexibility in responding to competitive developments and may cause our business to be vulnerable to adverse economic and industry conditions.

•We have significant pension and other postretirement benefit funding obligations, which may adversely affect our liquidity, results of operations and financial condition.

•If our financial condition worsens, provisions in our credit card processing and other commercial agreements may adversely affect our liquidity.

•The loss of key personnel upon whom we depend to operate our business or the inability to attract and develop additional qualified personnel could adversely affect our business.

•Our business has been and will continue to be affected by many changing economic and other conditions beyond our control, including global events that affect travel behavior, and our results of operations could be volatile and fluctuate due to seasonality.

•Union disputes, employee strikes and other labor-related disruptions, or our inability to otherwise maintain labor costs at competitive levels and hire and retain a sufficient number of employees may adversely affect our operations and financial performance.

•If we encounter problems with any of our third-party regional operators or third-party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services.

•Any damage to our reputation or brand image could adversely affect our business or financial results.

•Changes to our business model that are designed to increase revenues may not be successful and may cause operational difficulties or decreased demand.

•Our intellectual property rights, particularly our branding rights, are valuable, and any inability to protect them may adversely affect our business and financial results.

•We may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity.

•Our ability to utilize our NOLs and other carryforwards may be limited.

3

•We have a significant amount of goodwill, which is assessed for impairment at least annually. In addition, we may never realize the full value of our intangible assets or long-lived assets, causing us to record material impairment charges.

•The airline industry is intensely competitive and dynamic.

•The commercial relationships that we have with other companies, including any related equity investments, may not produce the returns or results we expect.

•Our business is very dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity.

•Our business is subject to extensive government regulation, which may result in increases in our costs, disruptions to our operations, limits on our operating flexibility, reductions in the demand for air travel, and competitive disadvantages.

•We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control.

•We may be adversely affected by conflicts overseas or terrorist attacks; the travel industry continues to face ongoing security concerns.

•We are subject to risks associated with climate change, including increased regulation of our CO2 emissions, changing consumer preferences and the potential increased impacts of severe weather events on our operations and infrastructure.

•A shortage of pilots or other personnel has in the past and could continue to materially adversely affect our business.

•We depend on a limited number of suppliers for aircraft, aircraft engines and parts.

•Delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity, and failure of new aircraft to perform as expected, may adversely impact our business, results of operations and financial condition.

•We rely heavily on technology and automated systems to operate our business, and any failure of these technologies or systems could harm our business, results of operations and financial condition.

•Evolving data security and privacy requirements (in particular, compliance with applicable federal, state and foreign laws relating to handling of personal information about individuals) could increase our costs, and any significant data security or privacy incident could disrupt our operations, harm our reputation, expose us to legal risks and otherwise materially adversely affect our business, results of operations and financial condition.

•We rely on third-party distribution channels and must manage effectively the costs, rights and functionality of these channels.

•If we are unable to obtain and maintain adequate facilities and infrastructure throughout our system and, at some airports, adequate slots, we may be unable to operate our existing flight schedule and to expand or change our route network in the future, which may have a material adverse impact on our operations.

4

PART I: FINANCIAL INFORMATION

This report on Form 10-Q is filed by both AAG and American and includes the Condensed Consolidated Financial Statements of each company in Item 1A and Item 1B, respectively.

5

ITEM 1A. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share amounts)(Unaudited)

	Three Months Ended March 31,
	2023		2022
Operating revenues:
Passenger	$	11,103	$	7,818
Cargo	223		364
Other	863		717
Total operating revenues	12,189		8,899
Operating expenses:
Aircraft fuel and related taxes	3,167		2,502
Salaries, wages and benefits	3,281		3,154
Regional expenses	1,142		1,052
Maintenance, materials and repairs	712		617
Other rent and landing fees	708		678
Aircraft rent	344		353
Selling expenses	438		332
Depreciation and amortization	486		492
Special items, net	13		157
Other	1,460		1,285
Total operating expenses	11,751		10,622
Operating income (loss)	438		(1,723)
Nonoperating income (expense):
Interest income	125		8
Interest expense, net	(540)		(463)
Other income (expense), net	(6)		92
Total nonoperating expense, net	(421)		(363)
Income (loss) before income taxes	17		(2,086)
Income tax provision (benefit)	7		(451)
Net income (loss)	$	10	$	(1,635)
Earnings (loss) per common share:
Basic	$	0.02	$	(2.52)
Diluted	$	0.02	$	(2.52)
Weighted average shares outstanding (in thousands):
Basic	652,000		649,503
Diluted	656,707		649,503

See accompanying notes to condensed consolidated financial statements.

6

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)

	Three Months Ended March 31,
	2023		2022
Net income (loss)	$	10	$	(1,635)
Other comprehensive income (loss), net of tax:
Pension, retiree medical and other postretirement benefits	17		28
Investments	1		(2)
Total other comprehensive income, net of tax	18		26
Total comprehensive income (loss)	$	28	$	(1,609)

See accompanying notes to condensed consolidated financial statements.

7

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and par value amounts)

	March 31, 2023		December 31, 2022
	(Unaudited)
ASSETS
Current assets
Cash	$	452	$	440
Short-term investments	11,041		8,525
Restricted cash and short-term investments	955		995
Accounts receivable, net	1,989		2,138
Aircraft fuel, spare parts and supplies, net	2,308		2,279
Prepaid expenses and other	907		892
Total current assets	17,652		15,269
Operating property and equipment
Flight equipment	40,020		39,703
Ground property and equipment	10,030		9,913
Equipment purchase deposits	640		613
Total property and equipment, at cost	50,690		50,229
Less accumulated depreciation and amortization	(20,546)		(20,029)
Total property and equipment, net	30,144		30,200
Operating lease right-of-use assets	7,838		8,094
Other assets
Goodwill	4,091		4,091
Intangibles, net of accumulated amortization of $828 and $827, respectively	2,057		2,059
Deferred tax asset	3,088		3,099
Other assets	1,916		1,904
Total other assets	11,152		11,153
Total assets	$	66,786	$	64,716
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt and finance leases	$	3,579	$	3,274
Accounts payable	2,455		2,149
Accrued salaries and wages	1,809		1,713
Air traffic liability	9,053		6,745
Loyalty program liability	3,486		3,169
Operating lease liabilities	1,439		1,465
Other accrued liabilities	2,769		2,981
Total current liabilities	24,590		21,496
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	31,586		32,389
Pension and postretirement benefits	2,737		2,837
Loyalty program liability	5,881		5,976
Operating lease liabilities	6,325		6,559
Other liabilities	1,438		1,258
Total noncurrent liabilities	47,967		49,019
Commitments and contingencies
Stockholders’ equity (deficit)
Common stock, $0.01 par value; 1,750,000,000 shares authorized, 652,817,674 shares issued and outstanding at March 31, 2023; 650,642,461 shares issued and outstanding at December 31, 2022	7		6
Additional paid-in capital	7,290		7,291
Accumulated other comprehensive loss	(4,567)		(4,585)
Retained deficit	(8,501)		(8,511)
Total stockholders’ deficit	(5,771)		(5,799)
Total liabilities and stockholders’ equity (deficit)	$	66,786	$	64,716

See accompanying notes to condensed consolidated financial statements.

8

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)(Unaudited)

	Three Months Ended March 31,
	2023		2022
Net cash provided by operating activities	$	3,333	$	1,185
Cash flows from investing activities:
Capital expenditures, net of aircraft purchase deposit returns	(505)		(807)
Purchases of short-term investments	(5,131)		(7,035)
Sales of short-term investments	2,666		7,089
Decrease in restricted short-term investments	29		36
Other investing activities	145		(54)
Net cash used in investing activities	(2,796)		(771)
Cash flows from financing activities:
Payments on long-term debt and finance leases	(2,326)		(661)
Proceeds from issuance of long-term debt	1,824		367
Other financing activities	(37)		(16)
Net cash used in financing activities	(539)		(310)
Net increase (decrease) in cash and restricted cash	(2)		104
Cash and restricted cash at beginning of period	586		408
Cash and restricted cash at end of period (1)	$	584	$	512
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases	$	88	$	313
Finance leases converted to operating leases	14		—
Property and equipment acquired through finance leases	6		58
Supplemental information:
Interest paid, net	646		566
Income taxes paid	1		—

(1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:

Cash	$	452	$	376
Restricted cash included in restricted cash and short-term investments	132		136
Total cash and restricted cash	$	584	$	512

See accompanying notes to condensed consolidated financial statements.

9

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In millions, except share amounts)(Unaudited)

	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Deficit		Total
Balance at December 31, 2022	$	6	$	7,291	$	(4,585)	$	(8,511)	$	(5,799)
Net income	—		—		—		10		10
Other comprehensive income, net	—		—		18		—		18
Issuance of 2,175,213 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	1		(16)		—		—		(15)
Share-based compensation expense	—		15		—		—		15
Balance at March 31, 2023	$	7	$	7,290	$	(4,567)	$	(8,501)	$	(5,771)

	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Deficit		Total
Balance at December 31, 2021	$	6	$	7,234	$	(5,942)	$	(8,638)	$	(7,340)
Net loss	—		—		—		(1,635)		(1,635)
Other comprehensive income, net	—		—		26		—		26
Issuance of 1,770,173 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(14)		—		—		(14)
Share-based compensation expense	—		23		—		—		23
Balance at March 31, 2022	$	6	$	7,243	$	(5,916)	$	(10,273)	$	(8,940)

See accompanying notes to condensed consolidated financial statements.

10

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

2. Special Items, Net

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended March 31,
	2023		2022
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	13		157
Nonoperating special items, net (3)	15		3

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of our retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. We retired our Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

(3)Nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

11

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

3. Earnings (Loss) Per Common Share

The following table provides the computation of basic and diluted earnings (loss) per common share (EPS) (in millions, except share and per share amounts):

	Three Months Ended March 31,
	2023		2022
Basic EPS:
Net income (loss)	$	10	$	(1,635)
Weighted average common shares outstanding (in thousands)	652,000		649,503
Basic EPS	$	0.02	$	(2.52)
Diluted EPS:
Net income (loss) for purposes of computing diluted EPS	$	10	$	(1,635)
Share computation for diluted EPS (in thousands):
Basic weighted average common shares outstanding	652,000		649,503
Dilutive effect of restricted stock unit awards	1,064		—
Dilutive effect of certain PSP Warrants and Treasury Loan Warrants	3,643		—
Diluted weighted average common shares outstanding	656,707		649,503
Diluted EPS	$	0.02	$	(2.52)

The following were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive (in thousands):

	Three Months Ended March 31,
	2023	2022
6.50% convertible senior notes	61,728	61,728
Restricted stock unit awards	4,099	3,933

In addition, for the three months ended March 31, 2023 and 2022, excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive are certain shares underlying the warrants we issued to the U.S. Department of Treasury (Treasury) pursuant to (i) the payroll support program established under the Coronavirus Aid, Relief, and Economic Security Act (PSP1), (ii) the payroll support program established under the Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP2), (iii) the payroll support program established under the American Rescue Plan Act of 2021 (PSP3) (collectively, the PSP Warrants) and (iv) the Loan and Guarantee Agreement with Treasury (Treasury Loan Warrants).

The table below provides a summary of the PSP Warrants and the Treasury Loan Warrants:

Warrants	Warrants Issued (shares, in thousands)	Exercise Price		Expiration
PSP1 Warrants	14,048	$	12.51	April 2025 to September 2025
PSP2 Warrants	6,576	15.66		January 2026 to April 2026
PSP3 Warrants	4,407	21.75		April 2026 to June 2026
Treasury Loan Warrants	4,396	12.51		September 2025

12

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

4. Revenue Recognition

Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	141		121
Total other revenue	863		717
Total operating revenues	$	12,189	$	8,899

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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

	Three Months Ended March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

We attribute passenger revenue by geographic region based upon the origin and destination of each flight segment.

Contract Balances

Our significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future travel and other non-air travel awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

13

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, our current loyalty program liability was $3.5 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in our air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the three months ended March 31, 2023, $3.8 billion of revenue was recognized in passenger revenue that was included in our air traffic liability at December 31, 2022. Tickets issued in 2022 and thereafter are no longer subject to change fees which provides more flexibility for customers to change travel plans. Given this new flexibility offered to our customers, our estimate of revenue that will be recognized from the air traffic liability for future flown or unused tickets may be subject to variability and differ from historical experience.

14

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

5. Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	March 31, 2023		December 31, 2022
Secured
2013 Term Loan Facility, variable interest rate of 8.15%, installments through 2028	$	1,000	$	1,752
2014 Term Loan Facility, variable interest rate of 6.51%, installments through 2027	1,183		1,196
11.75% senior secured notes, interest only payments until due in July 2025	2,500		2,500
10.75% senior secured IP notes, interest only payments until due in February 2026	1,000		1,000
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	200		200
7.25% senior secured notes, interest only payments until due in February 2028	750		—
5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (1)	3,500		3,500
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
AAdvantage Term Loan Facility, variable interest rate of 9.56%, installments beginning in July 2023 through April 2028 (1)	3,500		3,500
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.13%, averaging 3.70%, maturing from 2023 to 2034	8,776		9,175
Equipment loans and other notes payable, fixed and variable interest rates ranging from 3.32% to 8.20%, averaging 6.37%, maturing from 2023 to 2035	3,150		3,170
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	1,050		1,050
	29,609		30,043
Unsecured
PSP1 Promissory Note, interest only payments until due in April 2030	1,757		1,757
PSP2 Promissory Note, interest only payments until due in January 2031	1,030		1,030
PSP3 Promissory Note, interest only payments until due in April 2031	959		959
6.50% convertible senior notes, interest only payments until due in July 2025	1,000		1,000
3.75% senior notes, interest only payments until due in March 2025	500		500
	5,246		5,246
Total long-term debt	34,855		35,289
Less: Total unamortized debt discount, premium and issuance costs	396		386
Less: Current maturities	3,370		3,059
Long-term debt, net of current maturities	$	31,089	$	31,844

(1)Collectively referred to as the AAdvantage Financing.

As of March 31, 2023, the maximum availability under our revolving credit and other facilities is as follows (in millions):

2013 Revolving Facility	$	736
2014 Revolving Facility	1,631
April 2016 Revolving Facility	446
Other short-term facilities	64
Total	$	2,877

15

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

American currently has $64 million of available borrowing base under a cargo receivables facility that is set to expire in December 2023. As a result of the below amendments to the 2013, 2014 and April 2016 Revolving Facilities, the aggregate commitments under these facilities will be $2.8 billion through October 11, 2024, and thereafter through October 13, 2026, such aggregate commitments will decrease to $2.2 billion.

Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.

6.50% Convertible Senior Notes

At March 31, 2023, the if-converted value of the 6.50% convertible senior notes due 2025 (the Convertible Notes) did not exceed the principal amount. The last reported sale price per share of our common stock (as defined in the indenture governing our Convertible Notes, the Convertible Notes Indenture) did not exceed 130% of the conversion price of the Convertible Notes for at least 20 of the 30 consecutive trading days ending on March 31, 2023. Accordingly, pursuant to the terms of the Convertible Notes Indenture, the holders of the Convertible Notes cannot convert at their option at any time during the quarter ending June 30, 2023. Each $1,000 principal amount of Convertible Notes is convertible at a rate of 61.7284 shares of our common stock, subject to adjustment as provided in the Convertible Notes Indenture. We may settle conversions by paying or delivering, as applicable, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election.

2023 Financing Activities

2013 Credit Facilities

In February 2023, American and AAG refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility (the 2013 Term Loan Facility Refinancing) through the combination of (i) the issuance of $750 million in aggregate principal amount of 7.25% senior secured notes due 2028 and (ii) the entry into the Seventh Amendment to the 2013 Credit Agreement, pursuant to which the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility was extended to February 2028 from June 2025. The Seventh Amendment also amended certain other terms of the 2013 Credit Agreement, including the interest rate and amortization schedule for the 2013 Term Loan Facility, the requirements for delivery of appraisals and certain covenants relating to dispositions of collateral. Additionally, the Seventh Amendment transitioned the benchmark interest rate from LIBOR to the Secured Overnight Financing Rate (SOFR). As a result, the 2013 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period and an applicable margin of 2.75%.

In March 2023, American and AAG entered into the Eighth Amendment to the 2013 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2013 Revolving Facility. The Eighth Amendment also amended certain other terms of the 2013 Credit Agreement, including certain covenants and transitioned the benchmark interest rate from LIBOR to SOFR. The 2013 Revolving Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 2.25%, 2.50% or 2.75%, depending on AAG’s public corporate rating, or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 3.25%, 3.50% or 3.75%, depending on AAG’s public corporate rating. Additionally, as a result of the Eighth Amendment, through October 11, 2024, the aggregate commitments under the 2013 Revolving Facility will be $736 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $563 million.

7.25% Senior Secured Notes

On February 15, 2023, as part of the 2013 Term Loan Facility Refinancing, American issued $750 million aggregate principal amount of 7.25% senior secured notes due 2028 (the 7.25% Senior Secured Notes) in a private offering. The 7.25% Senior Secured Notes were issued at par and bear interest at a rate of 7.25% per annum (subject to increase if the collateral coverage ratio described below is not met). Interest on the 7.25% Senior Secured Notes is payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2023. The 7.25% Senior Secured Notes will mature on February 15, 2028. The obligations of American under the 7.25% Senior Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by AAG. American used the proceeds from the offering of the 7.25% Senior Secured Notes, together with cash on hand, to repay a portion of the term loans then outstanding under the 2013 Term Loan Facility and to pay related fees and expenses.

16

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

The 7.25% Senior Secured Notes were issued pursuant to an indenture, dated as of February 15, 2023 (the 7.25% Senior Secured Notes Indenture), by and among American, AAG and Wilmington Trust, National Association, as trustee and collateral agent. The 7.25% Senior Secured Notes are American’s senior secured obligations and are secured on a first lien basis by security interests in certain assets, rights and properties that American uses to provide non-stop scheduled air carrier services between (a) certain airports in the United States and (b) airports in countries in South America (which comprises Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela but does not include territories subject to the sovereignty, control or jurisdiction of a country not otherwise listed herein) and New Zealand (collectively, the 7.25% Senior Secured Notes Collateral). The 7.25% Senior Secured Notes Collateral also secures, on a first lien, pari passu basis with the 7.25% Senior Secured Notes, the 2013 Credit Facilities under the 2013 Credit Agreement.

American may redeem the 7.25% Senior Secured Notes, in whole at any time or in part from time to time prior to February 15, 2025, at a redemption price equal to 100% of the principal amount of the 7.25% Senior Secured Notes to be redeemed, plus a “make-whole” premium, plus any accrued and unpaid interest thereon to but excluding the date of redemption. At any time on or after February 15, 2025, American may redeem all or any of the 7.25% Senior Secured Notes in whole at any time, or in part from time to time, at the redemption prices described in the 7.25% Senior Secured Notes Indenture, plus any accrued and unpaid interest thereon to but excluding the date of redemption. In addition, at any time prior to February 15, 2025, American may redeem up to 40% of the original aggregate principal amount of the 7.25% Senior Secured Notes (calculated after giving effect to any issuance of additional notes) with the net cash proceeds of certain equity offerings, at a redemption price equal to 107.250% of the aggregate principal amount of the 7.25% Senior Secured Notes to be redeemed, plus any accrued and unpaid interest thereon to but excluding the date of redemption.

Further, if certain change of control transactions occur, each holder of 7.25% Senior Secured Notes may require American to repurchase the 7.25% Senior Secured Notes in whole or in part at a repurchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to but not including the repurchase date.

Twice per year, American is required to deliver an appraisal of the 7.25% Senior Secured Notes Collateral and an officer’s certificate demonstrating the calculation of a collateral coverage ratio in relation to the 7.25% Senior Secured Notes Collateral (the 7.25% Senior Secured Notes Collateral Coverage Ratio) as of the date of delivery of the appraisal for the applicable period. If the 7.25% Senior Secured Notes Collateral Coverage Ratio is less than 1.6 to 1.0 as of the date of delivery of the appraisal for the applicable period, then, subject to a cure period in which additional collateral can be provided or debt repaid such that American meets the required 7.25% Senior Secured Notes Collateral Coverage Ratio, American will be required to pay special interest in an additional amount equal to 2.0% per annum of the principal amount of the 7.25% Senior Secured Notes until the 7.25% Senior Secured Notes Collateral Coverage Ratio is established to be at least 1.6 to 1.0.

2014 Credit Facilities

In March 2023, American and AAG entered into the Ninth Amendment to the 2014 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2014 Revolving Facility. The Ninth Amendment also amended certain other terms of the 2014 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the 2014 Revolving Facility and the 2014 Term Loan Facility from LIBOR to SOFR. The 2014 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” The 2014 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 0.75%. Additionally, as a result of the Ninth Amendment, through October 11, 2024, the aggregate commitments under the 2014 Revolving Facility will be $1.6 billion, and thereafter through October 13, 2026, such aggregate commitments will decrease to $1.2 billion.

April 2016 Revolving Facility

In March 2023, American and AAG entered into the Sixth Amendment to the April 2016 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the April 2016 Revolving Facility. The Sixth Amendment also amended certain other terms under the April 2016 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the April 2016 Revolving Facility from LIBOR to SOFR. The April 2016 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” Additionally, as a result of the

17

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

Sixth Amendment, through October 11, 2024, the aggregate commitments under the April 2016 Revolving Facility will be $446 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $342 million.

Equipment Loans and Other Notes Payable Issued in 2023

During the first three months of 2023, American entered into agreements under which it borrowed $94 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2035 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 7.04% as of March 31, 2023.

6. Income Taxes

At December 31, 2022, we had approximately $16.2 billion of gross federal net operating losses (NOLs) and $4.3 billion of other carryforwards available to reduce future federal taxable income, of which $5.9 billion will expire beginning in 2024 if unused and $14.6 billion can be carried forward indefinitely. We also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused.

Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs, when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. We consider all available positive and negative evidence and make certain assumptions in evaluating the realizability of our deferred tax assets. Many factors are considered that impact our assessment of future profitability, including conditions which are beyond our control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. We have determined that positive factors outweigh negative factors in the determination of the realizability of our deferred tax assets. There can be no assurance that an additional valuation allowance on our net deferred tax assets will not be required. Such valuation allowance could be material.

During the three months ended March 31, 2023 and 2022, we recorded an income tax provision of $7 million and an income tax benefit of $451 million, respectively.

7. Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

We utilize the market approach to measure the fair value of our financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Our short-term investments, restricted cash and restricted short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2023.

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of March 31, 2023
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	3,296	$	3,296	$	—	$	—
Corporate obligations	4,453		—		4,453		—
Bank notes/certificates of deposit/time deposits	2,442		—		2,442		—
Repurchase agreements	450		—		450		—
U.S. government and agency obligations	400		—		400		—
	11,041		3,296		7,745		—
Restricted cash and short-term investments (1), (3)	955		486		469		—
Long-term investments (4)	246		246		—		—
Total	$	12,242	$	4,028	$	8,214	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

18

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

(2)Our short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations and collateral associated with the payment of interest for the AAdvantage Financing.

(4)Long-term investments include our equity investments in China Southern Airlines Company Limited (China Southern Airlines), GOL Linhas Aéreas Inteligentes S.A. (GOL) and Vertical Aerospace Ltd. (Vertical). See Note 8 for further information on our equity investments.

Fair Value of Debt

The fair value of our long-term debt was estimated using quoted market prices or discounted cash flow analyses based on our current estimated incremental borrowing rates for similar types of borrowing arrangements. If our long-term debt was measured at fair value, it would have been classified as Level 2 except for $3.7 billion as of March 31, 2023 and December 31, 2022, which would have been classified as Level 3 in the fair value hierarchy. The fair value of the Convertible Notes, which would have been classified as Level 2, was $1.1 billion as of March 31, 2023 and December 31, 2022.

The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions):

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	34,459	$	33,573	$	34,903	$	32,569

8. Investments

To help expand our network and as part of our ongoing commitment to sustainability, we enter into various commercial relationships or other strategic partnerships, including equity investments, with other airlines and companies. Our equity investments are reflected in other assets on our condensed consolidated balance sheets. Our share of equity method investees’ financial results and changes in fair value are recorded in nonoperating other income, net on the condensed consolidated statements of operations.

Our equity investment ownership interests and carrying values were:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	228	$	222
China Southern Airlines	Fair Value	1.5	%	1.5	%	193		176
Other investments (1)	Various					201		212
Total						$	622	$	610

(1)Primarily includes our investment in JetSmart Airlines SpA, which is accounted for under the equity method, and our investments in GOL and Vertical, which are each accounted for at fair value.

19

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

9. Employee Benefit Plans

The following table provides the components of net periodic benefit income (in millions):

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
Three Months Ended March 31,	2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3
Interest cost	190		139		12		7
Expected return on assets	(229)		(285)		(3)		(3)
Amortization of:
Prior service cost (benefit)	7		7		(3)		(3)
Unrecognized net loss (gain)	27		38		(9)		(6)
Net periodic benefit income	$	(5)	$	(100)	$	—	$	(2)

Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen.

The service cost component of net periodic benefit income is included in operating expenses and the other components of net periodic benefit income are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.

During the three months ended March 31, 2023, we made required contributions of $67 million to our defined benefit pension plans.

10. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, Retiree Medical and Other Postretirement Benefits		Unrealized Gain (Loss) on Investments		Income Tax Provision (1)			Total
Balance at December 31, 2022	$	(2,978)	$	(6)	$	(1,601)		$	(4,585)
Other comprehensive income (loss) before reclassifications	—		2		(1)			1
Amounts reclassified from AOCI	22		—		(5)		(2)	17
Net current-period other comprehensive income (loss)	22		2		(6)			18
Balance at March 31, 2023	$	(2,956)	$	(4)	$	(1,607)		$	(4,567)

(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income (loss) until the obligations are fully extinguished.

(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision (benefit) on the condensed consolidated statements of operations.

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI				Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended March 31,
	2023		2022
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	Nonoperating other income (expense), net
Actuarial loss	14		25		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	17	$	28

20

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

11. Regional Expenses

Our regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include our wholly-owned regional carriers as well as third-party regional carriers. Our regional carrier arrangements are in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations.

Regional expenses for each of the three months ended March 31, 2023 and 2022 include $80 million of depreciation and amortization and $1 million of aircraft rent.

During the three months ended March 31, 2023 and 2022, we recognized $168 million and $150 million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). We hold a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

12. Legal Proceedings

Private Party Antitrust Action Related to the Merger. On August 6, 2013, a lawsuit captioned Carolyn Fjord, et al., v. AMR Corporation, et al., was filed in the U.S. Bankruptcy Court for the Southern District of New York (Bankruptcy Court). The complaint named as defendants US Airways Group, US Airways, Inc., AMR Corporation and American, alleged that the effect of the merger of US Airways Group and AMR Corporation (the Merger) may be to create a monopoly in violation of Section 7 of the Clayton Antitrust Act, and sought injunctive relief and/or divestiture. On November 27, 2013, the Bankruptcy Court denied plaintiffs’ motion to preliminarily enjoin the Merger. On August 29, 2018, the Bankruptcy Court denied in part defendants’ motion for summary judgment, and fully denied plaintiffs’ cross-motion for summary judgment. The parties’ evidentiary cases were presented before the Bankruptcy Court in a bench trial in March 2019 and the parties submitted proposed findings of fact and conclusions of law and made closing arguments in April 2019. On January 29, 2021, the Bankruptcy Court published its decision finding in our favor. On March 25, 2022, the U.S. District Court for the Southern District of New York entered judgment affirming the Bankruptcy Court’s decision. On April 21, 2022, plaintiffs appealed that decision to the U.S. Court of Appeals for the Second Circuit. On March 20, 2023, the Second Circuit affirmed in full the District Court’s decision. Plaintiffs did not file a petition for panel rehearing or rehearing en banc with the Second Circuit, and their current deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 20, 2023. We believe this lawsuit is without merit and intend to continue to vigorously defend against any further appeals by the plaintiffs.

Government Antitrust Action Related to the Northeast Alliance. On September 21, 2021, the United States Department of Justice (the DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue Airways Corporation (JetBlue) in the U.S. District Court for the District of Massachusetts alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed Northeast Alliance arrangement (NEA). The parties presented their respective cases in a bench trial that commenced on September 27, 2022. The parties presented closing arguments on November 18, 2022. A decision is expected in the second quarter of 2023.

Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and JetBlue in January 2021, at the conclusion of the DOT’s review of the NEA (DOT Agreement). The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to the DOJ to resolve the antitrust concerns that the DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. On September 30, 2022, the DOT issued a further statement referencing the prior Clarification Notice and, among other things, indicating its intention to continue working with the DOJ in its efforts to resolve the ongoing proceedings regarding the NEA.

21

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

Private Party Antitrust Actions Related to the Northeast Alliance. On December 5, 2022 and December 7, 2022, two private party plaintiffs filed putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the Eastern District of New York alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. American and JetBlue are currently seeking dismissal or transfer of the complaint filed in the U.S. District Court for the District of Massachusetts to the U.S. District Court for the Eastern District of New York. We believe these lawsuits are without merit and are defending against them vigorously.

General. In addition to the specifically identified legal proceedings, we and our subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within our control. Therefore, although we will vigorously defend ourselves in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on us are uncertain but could be material.

22

ITEM 1B. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions)(Unaudited)

	Three Months Ended March 31,
	2023		2022
Operating revenues:
Passenger	$	11,103	$	7,818
Cargo	223		364
Other	862		714
Total operating revenues	12,188		8,896
Operating expenses:
Aircraft fuel and related taxes	3,167		2,502
Salaries, wages and benefits	3,280		3,152
Regional expenses	1,143		1,023
Maintenance, materials and repairs	712		617
Other rent and landing fees	708		678
Aircraft rent	344		353
Selling expenses	438		332
Depreciation and amortization	484		492
Special items, net	13		157
Other	1,460		1,286
Total operating expenses	11,749		10,592
Operating income (loss)	439		(1,696)
Nonoperating income (expense):
Interest income	231		11
Interest expense, net	(550)		(424)
Other income (expense), net	(6)		95
Total nonoperating expense, net	(325)		(318)
Income (loss) before income taxes	114		(2,014)
Income tax provision (benefit)	29		(436)
Net income (loss)	$	85	$	(1,578)

See accompanying notes to condensed consolidated financial statements.

23

AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)

	Three Months Ended March 31,
	2023		2022
Net income (loss)	$	85	$	(1,578)
Other comprehensive income (loss), net of tax:
Pension, retiree medical and other postretirement benefits	17		28
Investments	1		(2)
Total other comprehensive income, net of tax	18		26
Total comprehensive income (loss)	$	103	$	(1,552)

See accompanying notes to condensed consolidated financial statements.

24

AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and par value amounts)

	March 31, 2023		December 31, 2022
	(Unaudited)
ASSETS
Current assets
Cash	$	443	$	429
Short-term investments	11,039		8,523
Restricted cash and short-term investments	955		995
Accounts receivable, net	1,966		2,117
Receivables from related parties, net	6,711		6,588
Aircraft fuel, spare parts and supplies, net	2,185		2,157
Prepaid expenses and other	812		798
Total current assets	24,111		21,607
Operating property and equipment
Flight equipment	39,672		39,359
Ground property and equipment	9,594		9,479
Equipment purchase deposits	640		613
Total property and equipment, at cost	49,906		49,451
Less accumulated depreciation and amortization	(20,073)		(19,569)
Total property and equipment, net	29,833		29,882
Operating lease right-of-use assets	7,776		8,033
Other assets
Goodwill	4,091		4,091
Intangibles, net of accumulated amortization of $828 and $827, respectively	2,057		2,059
Deferred tax asset	2,859		2,893
Other assets	1,771		1,759
Total other assets	10,778		10,802
Total assets	$	72,498	$	70,324
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities
Current maturities of long-term debt and finance leases	$	3,572	$	3,267
Accounts payable	2,373		2,071
Accrued salaries and wages	1,619		1,529
Air traffic liability	9,053		6,745
Loyalty program liability	3,486		3,169
Operating lease liabilities	1,422		1,449
Other accrued liabilities	2,667		2,852
Total current liabilities	24,192		21,082
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	26,352		27,155
Pension and postretirement benefits	2,712		2,811
Loyalty program liability	5,881		5,976
Operating lease liabilities	6,280		6,512
Other liabilities	1,371		1,195
Total noncurrent liabilities	42,596		43,649
Commitments and contingencies
Stockholder’s equity
Common stock, $1.00 par value; 1,000 shares authorized, issued and outstanding	—		—
Additional paid-in capital	17,244		17,230
Accumulated other comprehensive loss	(4,672)		(4,690)
Retained deficit	(6,862)		(6,947)
Total stockholder’s equity	5,710		5,593
Total liabilities and stockholder’s equity	$	72,498	$	70,324

See accompanying notes to condensed consolidated financial statements.

25

AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)(Unaudited)

	Three Months Ended March 31,
	2023		2022
Net cash provided by operating activities	$	3,306	$	810
Cash flows from investing activities:
Capital expenditures, net of aircraft purchase deposit returns	(494)		(790)
Purchases of short-term investments	(5,131)		(7,022)
Sales of short-term investments	2,666		7,089
Decrease in restricted short-term investments	29		36
Other investing activities	145		(54)
Net cash used in investing activities	(2,785)		(741)
Cash flows from financing activities:
Payments on long-term debt and finance leases	(2,324)		(339)
Proceeds from issuance of long-term debt	1,824		367
Other financing activities	(21)		—
Net cash provided by (used in) financing activities	(521)		28
Net increase in cash and restricted cash	—		97
Cash and restricted cash at beginning of period	575		400
Cash and restricted cash at end of period (1)	$	575	$	497
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases	$	84	$	284
Finance leases converted to operating leases	14		—
Property and equipment acquired through finance leases	6		58
Supplemental information:
Interest paid, net	585		502
Income taxes paid	1		—

(1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:

Cash	$	443	$	361
Restricted cash included in restricted cash and short-term investments	132		136
Total cash and restricted cash	$	575	$	497

See accompanying notes to condensed consolidated financial statements.

26

AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(In millions)(Unaudited)

	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Deficit		Total
Balance at December 31, 2022	$	—	$	17,230	$	(4,690)	$	(6,947)	$	5,593
Net income	—		—		—		85		85
Other comprehensive income, net	—		—		18		—		18
Share-based compensation expense	—		14		—		—		14
Balance at March 31, 2023	$	—	$	17,244	$	(4,672)	$	(6,862)	$	5,710

	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Deficit		Total
Balance at December 31, 2021	$	—	$	17,152	$	(6,041)	$	(7,285)	$	3,826
Net loss	—		—		—		(1,578)		(1,578)
Other comprehensive income, net	—		—		26		—		26
Share-based compensation expense	—		23		—		—		23
Balance at March 31, 2022	$	—	$	17,175	$	(6,015)	$	(8,863)	$	2,297

See accompanying notes to condensed consolidated financial statements.

27

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2022. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

2. Special Items, Net

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended March 31,
	2023		2022
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	13		157
Nonoperating special items, net (3)	15		3

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of American’s retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. American retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

(3)Nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

28

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

3. Revenue Recognition

Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	140		118
Total other revenue	862		714
Total operating revenues	$	12,188	$	8,896

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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

	Three Months Ended March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

American attributes passenger revenue by geographic region based upon the origin and destination of each flight segment.

Contract Balances

American’s significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future travel and other non-air travel awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

29

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, American’s current loyalty program liability was $3.5 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in American’s air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the three months ended March 31, 2023, $3.8 billion of revenue was recognized in passenger revenue that was included in American’s air traffic liability at December 31, 2022. Tickets issued in 2022 and thereafter are no longer subject to change fees which provides more flexibility for customers to change travel plans. Given this new flexibility offered to its customers, American’s estimate of revenue that will be recognized from the air traffic liability for future flown or unused tickets may be subject to variability and differ from historical experience.

30

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

4. Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	March 31, 2023		December 31, 2022
Secured
2013 Term Loan Facility, variable interest rate of 8.15%, installments through 2028	$	1,000	$	1,752
2014 Term Loan Facility, variable interest rate of 6.51%, installments through 2027	1,183		1,196
11.75% senior secured notes, interest only payments until due in July 2025	2,500		2,500
10.75% senior secured IP notes, interest only payments until due in February 2026	1,000		1,000
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	200		200
7.25% senior secured notes, interest only payments until due in February 2028	750		—
5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (1)	3,500		3,500
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
AAdvantage Term Loan Facility, variable interest rate of 9.56%, installments beginning in July 2023 through April 2028 (1)	3,500		3,500
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.13%, averaging 3.70%, maturing from 2023 to 2034	8,776		9,175
Equipment loans and other notes payable, fixed and variable interest rates ranging from 3.32% to 8.20%, averaging 6.37%, maturing from 2023 to 2035	3,150		3,170
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	1,050		1,050
Total long-term debt	29,609		30,043
Less: Total unamortized debt discount, premium and issuance costs	377		364
Less: Current maturities	3,370		3,059
Long-term debt, net of current maturities	$	25,862	$	26,620

(1)Collectively referred to as the AAdvantage Financing.

As of March 31, 2023, the maximum availability under American’s revolving credit and other facilities is as follows (in millions):

2013 Revolving Facility	$	736
2014 Revolving Facility	1,631
April 2016 Revolving Facility	446
Other short-term facilities	64
Total	$	2,877

American currently has $64 million of available borrowing base under a cargo receivables facility that is set to expire in December 2023. As a result of the below amendments to the 2013, 2014 and April 2016 Revolving Facilities, the aggregate commitments under these facilities will be $2.8 billion through October 11, 2024, and thereafter through October 13, 2026, such aggregate commitments will decrease to $2.2 billion.

Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.

31

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

2023 Financing Activities

2013 Credit Facilities

In February 2023, American and AAG refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility (the 2013 Term Loan Facility Refinancing) through the combination of (i) the issuance of $750 million in aggregate principal amount of 7.25% senior secured notes due 2028 and (ii) the entry into the Seventh Amendment to the 2013 Credit Agreement, pursuant to which the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility was extended to February 2028 from June 2025. The Seventh Amendment also amended certain other terms of the 2013 Credit Agreement, including the interest rate and amortization schedule for the 2013 Term Loan Facility, the requirements for delivery of appraisals and certain covenants relating to dispositions of collateral. Additionally, the Seventh Amendment transitioned the benchmark interest rate from LIBOR to the Secured Overnight Financing Rate (SOFR). As a result, the 2013 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period and an applicable margin of 2.75%.

In March 2023, American and AAG entered into the Eighth Amendment to the 2013 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2013 Revolving Facility. The Eighth Amendment also amended certain other terms of the 2013 Credit Agreement, including certain covenants and transitioned the benchmark interest rate from LIBOR to SOFR. The 2013 Revolving Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 2.25%, 2.50% or 2.75%, depending on AAG’s public corporate rating, or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 3.25%, 3.50% or 3.75%, depending on AAG’s public corporate rating. Additionally, as a result of the Eighth Amendment, through October 11, 2024, the aggregate commitments under the 2013 Revolving Facility will be $736 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $563 million.

7.25% Senior Secured Notes

On February 15, 2023, as part of the 2013 Term Loan Facility Refinancing, American issued $750 million aggregate principal amount of 7.25% senior secured notes due 2028 (the 7.25% Senior Secured Notes) in a private offering. The 7.25% Senior Secured Notes were issued at par and bear interest at a rate of 7.25% per annum (subject to increase if the collateral coverage ratio described below is not met). Interest on the 7.25% Senior Secured Notes is payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2023. The 7.25% Senior Secured Notes will mature on February 15, 2028. The obligations of American under the 7.25% Senior Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by AAG. American used the proceeds from the offering of the 7.25% Senior Secured Notes, together with cash on hand, to repay a portion of the term loans then outstanding under the 2013 Term Loan Facility and to pay related fees and expenses.

The 7.25% Senior Secured Notes were issued pursuant to an indenture, dated as of February 15, 2023 (the 7.25% Senior Secured Notes Indenture), by and among American, AAG and Wilmington Trust, National Association, as trustee and collateral agent. The 7.25% Senior Secured Notes are American’s senior secured obligations and are secured on a first lien basis by security interests in certain assets, rights and properties that American uses to provide non-stop scheduled air carrier services between (a) certain airports in the United States and (b) airports in countries in South America (which comprises Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela but does not include territories subject to the sovereignty, control or jurisdiction of a country not otherwise listed herein) and New Zealand (collectively, the 7.25% Senior Secured Notes Collateral). The 7.25% Senior Secured Notes Collateral also secures, on a first lien, pari passu basis with the 7.25% Senior Secured Notes, the 2013 Credit Facilities under the 2013 Credit Agreement.

American may redeem the 7.25% Senior Secured Notes, in whole at any time or in part from time to time prior to February 15, 2025, at a redemption price equal to 100% of the principal amount of the 7.25% Senior Secured Notes to be redeemed, plus a “make-whole” premium, plus any accrued and unpaid interest thereon to but excluding the date of redemption. At any time on or after February 15, 2025, American may redeem all or any of the 7.25% Senior Secured Notes in whole at any time, or in part from time to time, at the redemption prices described in the 7.25% Senior Secured Notes Indenture, plus any accrued and unpaid interest thereon to but excluding the date of redemption. In addition, at any time prior to February 15, 2025, American may redeem up to 40% of the original aggregate principal amount of the 7.25% Senior Secured Notes (calculated after giving effect to any issuance of additional notes) with the net cash proceeds of

32

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

certain equity offerings, at a redemption price equal to 107.250% of the aggregate principal amount of the 7.25% Senior Secured Notes to be redeemed, plus any accrued and unpaid interest thereon to but excluding the date of redemption.

Further, if certain change of control transactions occur, each holder of 7.25% Senior Secured Notes may require American to repurchase the 7.25% Senior Secured Notes in whole or in part at a repurchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to but not including the repurchase date.

Twice per year, American is required to deliver an appraisal of the 7.25% Senior Secured Notes Collateral and an officer’s certificate demonstrating the calculation of a collateral coverage ratio in relation to the 7.25% Senior Secured Notes Collateral (the 7.25% Senior Secured Notes Collateral Coverage Ratio) as of the date of delivery of the appraisal for the applicable period. If the 7.25% Senior Secured Notes Collateral Coverage Ratio is less than 1.6 to 1.0 as of the date of delivery of the appraisal for the applicable period, then, subject to a cure period in which additional collateral can be provided or debt repaid such that American meets the required 7.25% Senior Secured Notes Collateral Coverage Ratio, American will be required to pay special interest in an additional amount equal to 2.0% per annum of the principal amount of the 7.25% Senior Secured Notes until the 7.25% Senior Secured Notes Collateral Coverage Ratio is established to be at least 1.6 to 1.0.

2014 Credit Facilities

In March 2023, American and AAG entered into the Ninth Amendment to the 2014 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2014 Revolving Facility. The Ninth Amendment also amended certain other terms of the 2014 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the 2014 Revolving Facility and the 2014 Term Loan Facility from LIBOR to SOFR. The 2014 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” The 2014 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 0.75%. Additionally, as a result of the Ninth Amendment, through October 11, 2024, the aggregate commitments under the 2014 Revolving Facility will be $1.6 billion, and thereafter through October 13, 2026, such aggregate commitments will decrease to $1.2 billion.

April 2016 Revolving Facility

In March 2023, American and AAG entered into the Sixth Amendment to the April 2016 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the April 2016 Revolving Facility. The Sixth Amendment also amended certain other terms under the April 2016 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the April 2016 Revolving Facility from LIBOR to SOFR. The April 2016 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” Additionally, as a result of the Sixth Amendment, through October 11, 2024, the aggregate commitments under the April 2016 Revolving Facility will be $446 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $342 million.

Equipment Loans and Other Notes Payable Issued in 2023

During the first three months of 2023, American entered into agreements under which it borrowed $94 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2035 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 7.04% as of March 31, 2023.

5. Income Taxes

At December 31, 2022, American had approximately $16.1 billion of gross federal net operating losses (NOLs) and $3.5 billion of other carryforwards available to reduce future federal taxable income, of which $6.2 billion will expire beginning in 2024 if unused and $13.4 billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $5.9 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused.

33

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include the NOLs, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. American has determined that positive factors outweigh negative factors in the determination of the realizability of its deferred tax assets. There can be no assurance that an additional valuation allowance on American’s net deferred tax assets will not be required. Such valuation allowance could be material.

During the three months ended March 31, 2023 and 2022, American recorded an income tax provision of $29 million and an income tax benefit of $436 million, respectively.

6. Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

American utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. American’s short-term investments, restricted cash and restricted short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2023.

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of March 31, 2023
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	3,295	$	3,295	$	—	$	—
Corporate obligations	4,453		—		4,453		—
Bank notes/certificates of deposit/time deposits	2,441		—		2,441		—
Repurchase agreements	450		—		450		—
U.S. government and agency obligations	400		—		400		—
	11,039		3,295		7,744		—
Restricted cash and short-term investments (1), (3)	955		486		469		—
Long-term investments (4)	246		246		—		—
Total	$	12,240	$	4,027	$	8,213	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

(2)American’s short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations and collateral associated with the payment of interest for the AAdvantage Financing.

(4)Long-term investments include American’s equity investments in China Southern Airlines Company Limited (China Southern Airlines), GOL Linhas Aéreas Inteligentes S.A. (GOL) and Vertical Aerospace Ltd. (Vertical). See Note 7 for further information on American’s equity investments.

Fair Value of Debt

The fair value of American’s long-term debt was estimated using quoted market prices or discounted cash flow analyses based on American’s current estimated incremental borrowing rates for similar types of borrowing arrangements. If American’s long-term debt was measured at fair value, it would have been classified as Level 2.

34

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions):

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	29,232	$	28,814	$	29,679	$	28,453

7. Investments

To help expand American’s network and as part of its ongoing commitment to sustainability, American enters into various commercial relationships or other strategic partnerships, including equity investments, with other airlines and companies. American’s equity investments are reflected in other assets on its condensed consolidated balance sheets. American’s share of equity method investees’ financial results and changes in fair value are recorded in nonoperating other income, net on the condensed consolidated statements of operations.

American’s equity investment ownership interests and carrying values were:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	228	$	222
China Southern Airlines	Fair Value	1.5	%	1.5	%	193		176
Other investments (1)	Various					201		212
Total						$	622	$	610

(1)Primarily includes American’s investment in JetSmart Airlines SpA, which is accounted for under the equity method, and American’s investments in GOL and Vertical, which are each accounted for at fair value.

8. Employee Benefit Plans

The following table provides the components of net periodic benefit income (in millions):

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
Three Months Ended March 31,	2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3
Interest cost	189		138		12		7
Expected return on assets	(228)		(283)		(3)		(3)
Amortization of:
Prior service cost (benefit)	7		7		(3)		(3)
Unrecognized net loss (gain)	27		38		(9)		(6)
Net periodic benefit income	$	(5)	$	(99)	$	—	$	(2)

Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen.

The service cost component of net periodic benefit income is included in operating expenses and the other components of net periodic benefit income are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.

During the three months ended March 31, 2023, American made required contributions of $67 million to its defined benefit pension plans.

35

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

9. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, Retiree Medical and Other Postretirement Benefits		Unrealized Gain (Loss) on Investments		Income Tax Provision (1)			Total
Balance at December 31, 2022	$	(2,974)	$	(6)	$	(1,710)		$	(4,690)
Other comprehensive income (loss) before reclassifications	—		2		(1)			1
Amounts reclassified from AOCI	22		—		(5)		(2)	17
Net current-period other comprehensive income (loss)	22		2		(6)			18
Balance at March 31, 2023	$	(2,952)	$	(4)	$	(1,716)		$	(4,672)

(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income (loss) until the obligations are fully extinguished.

(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision (benefit) on the condensed consolidated statements of operations.

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI				Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended March 31,
	2023		2022
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	Nonoperating other income (expense), net
Actuarial loss	14		25		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	17	$	28

10. Regional Expenses

American’s regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include AAG’s wholly-owned regional carriers as well as third-party regional carriers. American’s regional carrier arrangements are in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations.

Regional expenses for the three months ended March 31, 2023 and 2022 include $68 million and $66 million of depreciation and amortization, respectively, and $1 million each of aircraft rent.

During the three months ended March 31, 2023 and 2022, American recognized $168 million and $150 million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). American holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

11. Transactions with Related Parties

The following represents the net receivables (payables) to related parties (in millions):

	March 31, 2023		December 31, 2022
AAG	$	8,837	$	8,692
AAG’s wholly-owned subsidiaries (1)	(2,126)		(2,104)
Total	$	6,711	$	6,588

(1)The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

12. Legal Proceedings

Private Party Antitrust Action Related to the Merger. On August 6, 2013, a lawsuit captioned Carolyn Fjord, et al., v. AMR Corporation, et al., was filed in the U.S. Bankruptcy Court for the Southern District of New York (Bankruptcy Court). The complaint named as defendants US Airways Group, US Airways, Inc., AMR Corporation and American, alleged that the effect of the merger of US Airways Group and AMR Corporation (the Merger) may be to create a monopoly in violation of Section 7 of the Clayton Antitrust Act, and sought injunctive relief and/or divestiture. On November 27, 2013, the Bankruptcy Court denied plaintiffs’ motion to preliminarily enjoin the Merger. On August 29, 2018, the Bankruptcy Court denied in part defendants’ motion for summary judgment, and fully denied plaintiffs’ cross-motion for summary judgment. The parties’ evidentiary cases were presented before the Bankruptcy Court in a bench trial in March 2019 and the parties submitted proposed findings of fact and conclusions of law and made closing arguments in April 2019. On January 29, 2021, the Bankruptcy Court published its decision finding in American’s favor. On March 25, 2022, the U.S. District Court for the Southern District of New York entered judgment affirming the Bankruptcy Court’s decision. On April 21, 2022, plaintiffs appealed that decision to the U.S. Court of Appeals for the Second Circuit. On March 20, 2023, the Second Circuit affirmed in full the District Court’s decision. Plaintiffs did not file a petition for panel rehearing or rehearing en banc with the Second Circuit, and their current deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 20, 2023. American believes this lawsuit is without merit and intends to continue to vigorously defend against any further appeals by the plaintiffs.

Government Antitrust Action Related to the Northeast Alliance. On September 21, 2021, the United States Department of Justice (the DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue Airways Corporation (JetBlue) in the U.S. District Court for the District of Massachusetts alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed Northeast Alliance arrangement (NEA). The parties presented their respective cases in a bench trial that commenced on September 27, 2022. The parties presented closing arguments on November 18, 2022. A decision is expected in the second quarter of 2023.

Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and JetBlue in January 2021, at the conclusion of the DOT’s review of the NEA (DOT Agreement). The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to the DOJ to resolve the antitrust concerns that the DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. On September 30, 2022, the DOT issued a further statement referencing the prior Clarification Notice and, among other things, indicating its intention to continue working with the DOJ in its efforts to resolve the ongoing proceedings regarding the NEA.

Private Party Antitrust Actions Related to the Northeast Alliance. On December 5, 2022 and December 7, 2022, two private party plaintiffs filed putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the Eastern District of New York alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. American and JetBlue are currently seeking dismissal or transfer of the complaint filed in the U.S. District Court for the District of Massachusetts to the U.S. District Court for the Eastern District of New York. American believes these lawsuits are without merit and is defending against them vigorously.

General. In addition to the specifically identified legal proceedings, American and its subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within American’s control. Therefore, although American will vigorously defend itself in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on American are uncertain but could be material.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Part I, Item 2 of this report should be read in conjunction with Part II, Item 7 of AAG’s and American’s Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Form 10-K). The information contained herein is not a comprehensive discussion and analysis of the financial condition and results of operations of AAG and American, but rather updates disclosures made in the 2022 Form 10-K.

Financial Overview

AAG’s First Quarter 2023 Results

The selected financial data presented below is derived from AAG’s unaudited condensed consolidated financial statements included in Part I, Item 1A of this report and should be read in conjunction with those financial statements and the related notes thereto.

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Passenger revenue	$	11,103	$	7,818	$	3,285	42.0
Cargo revenue	223		364		(141)		(38.7)
Other operating revenue	863		717		146		20.4
Total operating revenues	12,189		8,899		3,290		37.0
Aircraft fuel and related taxes	3,167		2,502		665		26.6
Salaries, wages and benefits	3,281		3,154		127		4.1
Total operating expenses	11,751		10,622		1,129		10.6
Operating income (loss)	438		(1,723)		2,161		nm (2)
Pre-tax income (loss)	17		(2,086)		2,103		nm
Income tax provision (benefit)	7		(451)		458		nm
Net income (loss)	10		(1,635)		1,645		nm
Pre-tax income (loss) – GAAP	$	17	$	(2,086)	$	2,103	nm
Adjusted for: pre-tax net special items (1)	28		160		(132)		(82.0)
Pre-tax income (loss) excluding net special items	$	45	$	(1,926)	$	1,971	nm

(1)See “Reconciliation of GAAP to Non-GAAP Financial Measures” below and Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for details on the components of net special items.

(2)Not meaningful or greater than 100% change.

Pre-Tax Income (Loss) and Net Income (Loss)

Pre-tax income and net income were $17 million and $10 million, respectively, in the first quarter of 2023. This compares to first quarter of 2022 pre-tax loss and net loss of $2.1 billion and $1.6 billion, respectively. Excluding the effects of pre-tax net special items, pre-tax income was $45 million in the first quarter of 2023 and pre-tax loss was $1.9 billion in the first quarter of 2022.

The quarter-over-quarter improvement in our pre-tax income, on both a GAAP basis and excluding pre-tax net special items, was driven by the continued strength in demand for air travel and a 9.2% increase in capacity as compared to the first quarter of 2022. This resulted in higher operating revenues, which was offset in part by higher aircraft fuel and related taxes due to a 17.3% increase in the average price per gallon of aircraft fuel as well as 7.9% more gallons consumed, as compared to the first quarter of 2022.

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Revenue

In the first quarter of 2023, we reported total operating revenues of $12.2 billion, an increase of $3.3 billion, or 37.0%, as compared to the first quarter of 2022. Passenger revenue was $11.1 billion in the first quarter of 2023, an increase of $3.3 billion, or 42.0%, as compared to the first quarter of 2022. The increase in passenger revenue in the first quarter of 2023 was primarily due to a 20.9% increase in passenger yield and a 17.4% increase in revenue passenger miles (RPMs), driven by the continued strength in demand for air travel, resulting in an 80.0% load factor in the first quarter of 2023.

Cargo revenue decreased $141 million, or 38.7%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a 22.2% decrease in cargo yield and a 21.2% decrease in cargo ton miles driven by lower demand.

Other operating revenue increased $146 million, or 20.4%, as compared to the first quarter of 2022, driven primarily by higher revenue associated with our loyalty program. During the first quarter of 2023 and 2022, cash payments from co-branded credit card and other partners were $1.6 billion and $1.4 billion, respectively.

Our total revenue per available seat mile (TRASM) was 18.75 cents in the first quarter of 2023, a 25.4% increase as compared to 14.95 cents in the first quarter of 2022, driven primarily by the increase in passenger revenue as described above.

Fuel

Aircraft fuel expense was $3.2 billion in the first quarter of 2023, which was $665 million, or 26.6%, higher as compared to the first quarter of 2022. This increase was primarily due to a 17.3% increase in the average price per gallon of aircraft fuel including related taxes to $3.28 in the first quarter of 2023 from $2.80 in the first quarter of 2022 and a 7.9% increase in gallons of fuel consumed due to increased capacity.

As of March 31, 2023, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption. Our current policy is not to enter into transactions to hedge our fuel consumption, although we review that policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices.

Other Costs

We remain committed to actively managing our cost structure, which we believe is necessary in an industry whose economic prospects are heavily dependent upon two variables we cannot control: general economic conditions and the price of fuel.

Our 2023 first quarter total operating cost per available seat mile (CASM) was 18.08 cents, an increase of 1.3%, from 17.84 cents in the first quarter of 2022.

Our 2023 first quarter CASM excluding net special items and fuel was 13.18 cents, a decrease of 1.4%, from 13.38 cents in the first quarter of 2022.

For a reconciliation of CASM to CASM excluding net special items and fuel, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Liquidity

As of March 31, 2023, we had $14.4 billion in total available liquidity, consisting of $11.5 billion in unrestricted cash and short-term investments, $2.9 billion in total undrawn capacity under revolving credit and other short-term facilities.

During the first quarter of 2023, we completed the following financing transactions (see Note 5 to AAG’s Condensed Consolidated Financial Statements in Part 1, Item 1A for further information):

•refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of 7.25% Senior Secured Notes;

•extended $2.2 billion of aggregate commitments under the 2013, 2014 and April 2016 Revolving Facilities through October 2026. The $2.8 billion of aggregate commitments currently under the 2013, 2014 and April 2016 Revolving Facilities will continue through October 2024; and

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•issued $94 million of equipment loans and other notes payable in connection with the financing of certain aircraft.

Reconciliation of GAAP to Non-GAAP Financial Measures

We sometimes use financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordance with accounting principles generally accepted in the U.S. (GAAP) to understand and evaluate our current operating performance and to allow for period-to-period comparisons. We believe these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. We are providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.

The following table presents the reconciliation of pre-tax income (loss) (GAAP measure) to pre-tax income (loss) excluding net special items (non-GAAP measure). Management uses this non-GAAP financial measure to evaluate our current operating performance and to allow for period-to-period comparisons. As net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items allows management an additional tool to understand our core operating performance.

	Three Months Ended March 31,
	2023		2022
	(In millions)
Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items:
Pre-tax income (loss) – GAAP	$	17	$	(2,086)
Pre-tax net special items (1):
Operating special items, net	13		157
Nonoperating special items, net	15		3
Total pre-tax net special items	28		160
Pre-tax income (loss) excluding net special items	$	45	$	(1,926)

(1)See Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on net special items.

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Additionally, the table below presents the reconciliation of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non-GAAP measure) and CASM to CASM excluding net special items and fuel. Management uses total operating costs excluding net special items and fuel and CASM excluding net special items and fuel to evaluate our current operating performance and for period-to-period comparisons. The price of fuel, over which we have no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude net special items and fuel allows management an additional tool to understand and analyze our non-fuel costs and core operating performance. Amounts may not recalculate due to rounding.

	Three Months Ended March 31,
	2023		2022
Reconciliation of CASM Excluding Net Special Items and Fuel:
(In millions)
Total operating expenses – GAAP	$	11,751	$	10,622
Operating net special items (1):
Mainline operating special items, net	(13)		(157)
Aircraft fuel and related taxes	(3,167)		(2,502)
Total operating expenses, excluding net special items and fuel	$	8,571	$	7,963
Total available seat miles (ASM)	65,006		59,533
(In cents)
CASM	18.08		17.84
Operating net special items per ASM (1):
Mainline operating special items, net	(0.02)		(0.26)
Aircraft fuel and related taxes per ASM	(4.87)		(4.20)
CASM, excluding net special items and fuel	13.18		13.38

(1)See Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on net special items.

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AAG’s Results of Operations

Operating Statistics

The table below sets forth selected operating data for the three months ended March 31, 2023 and 2022. Amounts may not recalculate due to rounding.

	Three Months Ended March 31,		Increase
	2023	2022
Revenue passenger miles (millions) (a)	52,014	44,290	17.4%
Available seat miles (millions) (b)	65,006	59,533	9.2%
Passenger load factor (percent) (c)	80.0	74.4	5.6pts
Yield (cents) (d)	21.35	17.65	20.9%
Passenger revenue per available seat mile (cents) (e)	17.08	13.13	30.1%
Total revenue per available seat mile (cents) (f)	18.75	14.95	25.4%
Fuel consumption (gallons in millions)	965	894	7.9%
Average aircraft fuel price including related taxes (dollars per gallon)	3.28	2.80	17.3%
Total operating cost per available seat mile (cents) (g)	18.08	17.84	1.3%
Aircraft at end of period (h)	1,464	1,453	0.8%
Full-time equivalent employees at end of period	130,800	127,000	3.0%

(a)Revenue passenger mile (RPM) – A basic measure of sales volume. One RPM represents one passenger flown one mile.

(b)Available seat mile (ASM) – A basic measure of production. One ASM represents one seat flown one mile.

(c)Passenger load factor – The percentage of available seats that are filled with revenue passengers.

(d)Yield – A measure of airline revenue derived by dividing passenger revenue by RPMs.

(e)Passenger revenue per available seat mile (PRASM) – Passenger revenue divided by ASMs.

(f)Total revenue per available seat mile (TRASM) – Total revenues divided by ASMs.

(g)Total operating cost per available seat mile (CASM) – Total operating expenses divided by ASMs.

(h)Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above are six mainline aircraft and 70 regional aircraft that are in temporary storage at March 31, 2023 as follows: six Boeing 737-800, 41 Embraer 145, 19 Bombardier CRJ 700, five Embraer 170, four Bombardier CRJ 900 and one Embraer 175.

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Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022

Operating Revenues

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Passenger	$	11,103	$	7,818	$	3,285	42.0
Cargo	223		364		(141)		(38.7)
Other	863		717		146		20.4
Total operating revenues	$	12,189	$	8,899	$	3,290	37.0

This table presents our passenger revenue and the quarter-over-quarter change in certain operating statistics:

			Increase vs. Three Months Ended March 31, 2022
	Three Months Ended March 31, 2023		RPMs	ASMs	Load Factor	Passenger Yield	PRASM
	(In millions)
Passenger revenue	$	11,103	17.4%	9.2%	5.6pts	20.9%	30.1%

Passenger revenue increased $3.3 billion, or 42.0%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a 20.9% increase in passenger yield and a 17.4% increase in RPMs, driven by the continued strength in demand for air travel, resulting in an 80.0% load factor in the first quarter of 2023.

Cargo revenue decreased $141 million, or 38.7%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a 22.2% decrease in cargo yield and a 21.2% decrease in cargo ton miles driven by lower demand.

Other operating revenue increased $146 million, or 20.4%, as compared to the first quarter of 2022, driven primarily by higher revenue associated with our loyalty program. During the first quarter of 2023 and 2022, cash payments from co-branded credit card and other partners were $1.6 billion and $1.4 billion, respectively.

Total operating revenues in the first quarter of 2023 increased $3.3 billion, or 37.0%, from the first quarter of 2022 and our TRASM increased 25.4% to 18.75 cents in the first quarter of 2023 from 14.95 cents in the first quarter of 2022, driven primarily by the increase in passenger revenue as described above.

Operating Expenses

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Aircraft fuel and related taxes	$	3,167	$	2,502	$	665	26.6
Salaries, wages and benefits	3,281		3,154		127		4.1
Regional expenses	1,142		1,052		90		8.6
Maintenance, materials and repairs	712		617		95		15.4
Other rent and landing fees	708		678		30		4.4
Aircraft rent	344		353		(9)		(2.5)
Selling expenses	438		332		106		31.8
Depreciation and amortization	486		492		(6)		(1.2)
Mainline operating special items, net	13		157		(144)		(91.4)
Other	1,460		1,285		175		13.5
Total operating expenses	$	11,751	$	10,622	$	1,129	10.6

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Significant changes in the components of our total operating expenses are as follows:

Aircraft fuel and related taxes increased $665 million, or 26.6%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a 17.3% increase in the average price per gallon of aircraft fuel including related taxes to $3.28 in the first quarter of 2023 from $2.80 in the first quarter of 2022, and a 7.9% increase in gallons of fuel consumed due to increased capacity.

Regional expenses increased $90 million, or 8.6%, in the first quarter of 2023 from the first quarter of 2022 primarily due to pay rate increases offered at our wholly-owned regional carriers effective subsequent to the first quarter of 2022.

Maintenance, materials and repairs increased $95 million, or 15.4%, in the first quarter of 2023 from the first quarter of 2022 primarily due to increased costs for engine overhauls and airframe heavy checks driven by higher volume and flight hours.

Selling expenses increased $106 million, or 31.8%, in the first quarter of 2023 from the first quarter of 2022 primarily due to higher credit card fees and commission expense driven by the overall increase in passenger revenues.

Other operating expenses increased $175 million, or 13.5%, in the first quarter of 2023 from the first quarter of 2022 primarily driven by the increase in flight operations, including increased costs for aircraft food and catering, crew travel, airport lounge operations and ground handling, as well as certain general and administrative expenses.

Operating Special Items, Net

	Three Months Ended March 31,
	2023		2022
	(In millions)
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	$	13	$	157

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of our retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. We retired our Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

Nonoperating Results

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Interest income	$	125	$	8	$	117	nm
Interest expense, net	(540)		(463)		(77)		16.6
Other income (expense), net	(6)		92		(98)		nm
Total nonoperating expense, net	$	(421)	$	(363)	$	(58)	16.0

Interest income increased in the first quarter of 2023 compared to the first quarter of 2022 primarily as a result of higher returns on our short-term investments. Interest expense, net increased in the first quarter of 2023 compared to the first quarter of 2022 primarily due to higher interest rates on our variable-rate debt instruments.

In the first quarter of 2023, other nonoperating expense, net primarily included $15 million of net special charges principally associated with debt refinancings and extinguishments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income.

In the first quarter of 2022, other nonoperating income, net primarily included $106 million of non-service related pension and other postretirement benefit plan income.

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The decrease in non-service related pension and other postretirement benefit plan income in the first quarter of 2023 as compared to the first quarter of 2022 is principally due to an increase in interest cost for the pension and other postretirement benefit obligations and a decrease in expected return on pension plan assets.

Income Taxes

In the first quarter of 2023, we recorded an income tax provision of $7 million. Substantially all of our income or loss before income taxes is attributable to the United States.

See Note 6 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for additional information on income taxes.

American’s Results of Operations

Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022

Operating Revenues 

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Passenger	$	11,103	$	7,818	$	3,285	42.0
Cargo	223		364		(141)		(38.7)
Other	862		714		148		20.8
Total operating revenues	$	12,188	$	8,896	$	3,292	37.0

Passenger revenue increased $3.3 billion, or 42.0%, in the first quarter of 2023 from the first quarter of 2022 primarily due to an increase in passenger yield and RPMs, driven by the continued strength in demand for air travel, resulting in an increased load factor in the first quarter of 2023.

Cargo revenue decreased $141 million, or 38.7%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a decrease in cargo yield and cargo ton miles driven by lower demand.

Other operating revenue increased $148 million, or 20.8%, as compared to the first quarter of 2022, driven primarily by higher revenue associated with American’s loyalty program. During the first quarter of 2023 and 2022, cash payments from co-branded credit card and other partners were $1.6 billion and $1.4 billion, respectively.

Total operating revenues in the first quarter of 2023 increased $3.3 billion, or 37.0%, from the first quarter of 2022 driven primarily by the increase in passenger revenue as described above.

Operating Expenses 

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Aircraft fuel and related taxes	$	3,167	$	2,502	$	665	26.6
Salaries, wages and benefits	3,280		3,152		128		4.0
Regional expenses	1,143		1,023		120		11.8
Maintenance, materials and repairs	712		617		95		15.4
Other rent and landing fees	708		678		30		4.4
Aircraft rent	344		353		(9)		(2.5)
Selling expenses	438		332		106		31.8
Depreciation and amortization	484		492		(8)		(1.5)
Mainline operating special items, net	13		157		(144)		(91.4)
Other	1,460		1,286		174		13.5
Total operating expenses	$	11,749	$	10,592	$	1,157	10.9

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Significant changes in the components of American’s total operating expenses are as follows:

Aircraft fuel and related taxes increased $665 million, or 26.6%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a 17.3% increase in the average price per gallon of aircraft fuel including related taxes to $3.28 in the first quarter of 2023 from $2.80 in the first quarter of 2022, and a 7.9% increase in gallons of fuel consumed due to increased capacity.

Regional expenses increased $120 million, or 11.8%, in the first quarter of 2023 from the first quarter of 2022 primarily due to contractual rate increases with American’s third-party regional carriers effective subsequent to the first quarter of 2022.

Maintenance, materials and repairs increased $95 million, or 15.4%, in the first quarter of 2023 from the first quarter of 2022 primarily due to increased costs for engine overhauls and airframe heavy checks driven by higher volume and flight hours.

Selling expenses increased $106 million, or 31.8%, in the first quarter of 2023 from the first quarter of 2022 primarily due to higher credit card fees and commission expense driven by the overall increase in passenger revenues.

Other operating expenses increased $174 million, or 13.5%, in the first quarter of 2023 from the first quarter of 2022 primarily driven by the increase in flight operations, including increased costs for aircraft food and catering, crew travel, airport lounge operations and ground handling, as well as certain general and administrative expenses.

Operating Special Items, Net

	Three Months Ended March 31,
	2023		2022
	(In millions)
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	$	13	$	157

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of American’s retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. American retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

Nonoperating Results

	Three Months Ended March 31,				Increase (Decrease)		Percent Increase (Decrease)
	2023		2022
	(In millions, except percentage changes)
Interest income	$	231	$	11	$	220	nm
Interest expense, net	(550)		(424)		(126)		29.7
Other income (expense), net	(6)		95		(101)		nm
Total nonoperating expense, net	$	(325)	$	(318)	$	(7)	1.9

Interest income increased in the first quarter of 2023 compared to the first quarter of 2022 primarily as a result of higher returns on American’s short-term investments. Interest expense, net increased in the first quarter of 2023 compared to the first quarter of 2022 primarily due to higher interest rates on American’s variable-rate debt instruments.

In the first quarter of 2023, other nonoperating expense, net primarily included $15 million of net special charges principally associated with debt refinancings and extinguishments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income.

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In the first quarter of 2022, other nonoperating income, net primarily included $105 million of non-service related pension and other postretirement benefit plan income.

The decrease in non-service related pension and other postretirement benefit plan income in the first quarter of 2023 as compared to the first quarter of 2022 is principally due to an increase in interest cost for the pension and other postretirement benefit obligations and a decrease in expected return on pension plan assets.

Income Taxes

American is a member of AAG’s consolidated federal and certain state income tax returns.

In the first quarter of 2023, American recorded an income tax provision of $29 million. Substantially all of American’s income or loss before income taxes is attributable to the United States.

See Note 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes.

Liquidity and Capital Resources

Liquidity

At March 31, 2023, AAG had $14.4 billion in total available liquidity and $955 million in restricted cash and short-term investments. Additional detail regarding our available liquidity is provided in the table below (in millions): 

	AAG				American
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Cash	$	452	$	440	$	443	$	429
Short-term investments	11,041		8,525		11,039		8,523
Undrawn facilities	2,877		3,033		2,877		3,033
Total available liquidity	$	14,370	$	11,998	$	14,359	$	11,985

In the ordinary course of our business, we or our affiliates may, at any time and from time to time, seek to prepay, retire or repurchase our outstanding debt through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, prepayments, retirements or exchanges, if any, will be conducted on such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, legal and contractual restrictions and other factors. The amounts involved may be material.

Certain Covenants

Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, may restrict the ability of us and our subsidiaries to incur additional indebtedness, pay dividends or repurchase stock. Our debt agreements also contain customary change of control provisions, which may require us to repay or redeem such indebtedness upon certain events constituting a change of control under the relevant agreement, in certain cases at a premium. Additionally, certain of our debt financing agreements (including our secured notes, term loans, revolving credit facilities and spare engine EETCs) contain loan to value (LTV), collateral coverage or peak debt service coverage ratio covenants and certain agreements require us to appraise the related collateral annually or semiannually. Pursuant to such agreements, if the applicable LTV, collateral coverage or peak debt service coverage ratio exceeds or falls below a specified threshold, as the case may be, we will be required, as applicable, to pledge additional qualifying collateral (which in some cases may include cash or investment securities), withhold additional cash in certain accounts, or pay down such financing, in whole or in part, or the interest rate for the relevant financing will be increased. As of the most recent applicable measurement dates, we were in compliance with each of the foregoing LTV, collateral coverage and peak debt service coverage tests. Additionally, a significant portion of our debt financing agreements contain covenants requiring us to maintain an aggregate of at least $2.0 billion of unrestricted cash and cash equivalents and amounts available to be drawn under revolving credit facilities, and our 5.50% senior secured notes due 2026, 5.75% senior secured notes due 2029 and $3.5 billion term loan facility (collectively, the AAdvantage Financing) contains a peak debt service coverage ratio, pursuant to which failure to comply with a certain threshold may result in early repayment, in whole or in part, of the AAdvantage Financing.

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Sources and Uses of Cash

AAG

Operating Activities

Our net cash provided by operating activities was $3.3 billion and $1.2 billion for the first quarter of 2023 and 2022, respectively, a $2.1 billion period-over-period increase primarily due to a return to profitability.

Investing Activities

Our net cash used in investing activities was $2.8 billion and $771 million for the first quarter of 2023 and 2022, respectively.

Our principal investing activities in the first quarter of 2023 included $2.5 billion in net purchases of short-term investments. Additionally, we had $505 million of capital expenditures, which primarily related to the purchase of two Airbus A321neo aircraft, two Embraer 175 aircraft and five spare engines.

Our principal investing activities in the first quarter of 2022 included $807 million of capital expenditures, which principally related to the purchase of nine Airbus A321neo aircraft.

Financing Activities

Our net cash used in financing activities was $539 million and $310 million for the first quarter of 2023 and 2022, respectively.

Our principal financing activities in the first quarter of 2023 included $502 million in net repayments of debt and finance lease obligations. We refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of the 7.25% Senior Secured Notes.

Our principal financing activities in the first quarter of 2022 included $661 million in debt repayments, including $344 million in scheduled debt repayments and the repurchase of $317 million of unsecured notes in the open market. These cash outflows were offset in part by $367 million of long-term debt proceeds from the issuance of equipment notes related to enhanced equipment trust certificates (EETCs).

American

Operating Activities

American’s net cash provided by operating activities was $3.3 billion and $810 million for the first quarter of 2023 and 2022, respectively, a $2.5 billion period-over-period increase primarily due to a return to profitability.

Investing Activities

American’s net cash used in investing activities was $2.8 billion and $741 million for the first quarter of 2023 and 2022, respectively.

American’s principal investing activities in the first quarter of 2023 included $2.5 billion in net purchases of short-term investments. Additionally, American had $494 million of capital expenditures, which primarily related to the purchase of two Airbus A321neo aircraft, two Embraer 175 aircraft and five spare engines.

American’s principal investing activities in the first quarter of 2022 included $790 million of capital expenditures, which principally related to the purchase of nine Airbus A321neo aircraft.

Financing Activities

American’s net cash used in financing activities was $521 million for the first quarter of 2023 as compared to net cash provided by financing activities of $28 million for the first quarter of 2022.

American’s principal financing activities in the first quarter of 2023 included $500 million in net repayments of debt and finance lease obligations. American refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of the 7.25% Senior Secured Notes.

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American’s principal financing activities in the first quarter of 2022 included $367 million of long-term debt proceeds from the issuance of equipment notes related to EETCs offset in part by $339 million in scheduled debt repayments.

Commitments

Significant Indebtedness

As of March 31, 2023, AAG had $34.9 billion in long-term debt, including current maturities of $3.4 billion. As of March 31, 2023, American had $29.6 billion in long-term debt, including current maturities of $3.4 billion. All material changes in our significant indebtedness since our 2022 Form 10-K are discussed in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A and Note 4 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B.

Aircraft and Engine Purchase Commitments

As of March 31, 2023, we had definitive purchase agreements for the acquisition of the following aircraft (1): 

	Remainder of 2023	2024	2025	2026	2027	Total
Airbus
A320neo Family	—	2	22	29	5	58
Boeing
737 MAX Family	17	22	28	21	—	88
787 Family	3	11	10	4	5	33
Total	20	35	60	54	10	179

(1)Delivery schedule represents our best estimate as of the date of this report as described in footnote (d) to the “Contractual Obligations” table below. Actual delivery dates are subject to change, which could be material, based on various potential factors including production delays by the manufacturer and regulatory concerns.

We also have agreements for 47 spare engines to be delivered in 2023 and beyond. In addition, as of March 31, 2023, we have committed to purchase four used Embraer 175 aircraft which are currently flown under a capacity purchase agreement with a third-party regional carrier and are already included in our aircraft count.

We currently have financing commitments in place for all aircraft on order and scheduled to be delivered in 2023 except for 10 Boeing 737 MAX Family aircraft. Our ability to draw on the financing commitments we have in place is subject to (1) the satisfaction of various terms and conditions including, in some cases, on our acquisition of the aircraft by a certain date and (2) the performance by the relevant financing counterparty of its obligations thereunder. We do not have financing commitments in place for any of the aircraft scheduled to be delivered in 2024 and beyond, except for five Boeing 787 Family aircraft scheduled to be delivered in 2024.

Off-Balance Sheet Arrangements

An off-balance sheet arrangement is any transaction, agreement or other contractual arrangement involving an unconsolidated entity under which a company has (1) made guarantees, (2) a retained or a contingent interest in transferred assets, (3) an obligation under derivative instruments classified as equity or (4) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or that engages in leasing, hedging or research and development arrangements with us.

There have been no material changes in our off-balance sheet arrangements as discussed in our 2022 Form 10-K.

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Contractual Obligations

The following table provides details of our estimated material cash requirements from contractual obligations as of March 31, 2023 (in millions). The table does not include commitments that are contingent on events or other factors that are uncertain or unknown at this time and is subject to other conventions as set forth in the applicable accompanying footnotes.

	Payments Due by Period
	Remainder of 2023		2024		2025		2026		2027		2028 and Thereafter		Total
American
Long-term debt:
Principal amount (a), (c)	$	2,529	$	3,532	$	6,119	$	4,497	$	4,532	$	8,400	$	29,609
Interest obligations (b), (c)	1,317		1,669		1,396		825		534		573		6,314
Finance lease obligations	197		201		137		113		71		93		812
Aircraft and engine purchase commitments (d)	1,242		2,516		4,219		3,245		1,008		65		12,295
Operating lease commitments (e)	1,479		1,728		1,434		1,169		979		4,544		11,333
Regional capacity purchase agreements (f)	1,579		2,136		2,036		1,406		1,031		1,647		9,835
Minimum pension obligations (g)	—		301		328		385		305		603		1,922
Retiree medical and other postretirement benefits	65		85		81		82		81		350		744
Other purchase obligations (h)	3,977		2,861		1,549		546		128		925		9,986
Total American Contractual Obligations	12,385		15,029		17,299		12,268		8,669		17,200		82,850
AAG Parent and Other AAG Subsidiaries
Long-term debt:
Principal amount (a)	—		—		1,500		—		—		3,746		5,246
Interest obligations (b)	61		121		143		147		176		544		1,192
Finance lease obligations	5		10		—		—		—		—		15
Operating lease commitments	16		15		11		10		5		29		86
Minimum pension obligations (g)	2		2		2		2		2		8		18
Total AAG Contractual Obligations	$	12,469	$	15,177	$	18,955	$	12,427	$	8,852	$	21,527	$	89,407

(a)Amounts represent contractual amounts due. Excludes $377 million and $19 million of unamortized debt discount, premium and issuance costs as of March 31, 2023 for American and AAG Parent, respectively. For additional information, see Note 5 and Note 4 to AAG’s and American’s Condensed Consolidated Financial Statements in Part I, Items 1A and 1B, respectively.

(b)For variable-rate debt, future interest obligations are estimated using the current forward rates at March 31, 2023.

(c)Includes $8.8 billion of future principal payments and $1.3 billion of future interest payments as of March 31, 2023, related to EETCs associated with mortgage financings of certain aircraft and spare engines.

(d)See “Aircraft and Engine Purchase Commitments” above for additional information about the firm commitment aircraft delivery schedule, in particular the footnote to the table thereunder as to potential changes to such delivery schedule. Due to uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent our most current estimate based on contractual delivery schedules adjusted for updates and revisions to such schedules communicated to management by the applicable equipment manufacturer. However, the actual delivery schedule may differ, potentially materially, based on various potential factors including production delays by the manufacturer and regulatory concerns. Additionally, the amounts in the table exclude three Boeing 787-8 aircraft scheduled to be delivered in 2023 and five Boeing 787-9 aircraft scheduled to be delivered in 2024, for which we have obtained committed lease financing. This financing is reflected in the operating lease commitments line above.

(e)Operating lease commitments include rental payments for four Embraer 175 aircraft which are currently flown under a capacity purchase agreement with a third-party regional carrier but which we have committed to purchase during

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2023, at which time the associated rental payments will be removed from the operating lease commitments line above.

(f)Represents minimum payments under capacity purchase agreements with third-party regional carriers. These commitments are estimates of costs based on assumed minimum levels of flying under the capacity purchase agreements and American’s actual payments could differ materially. Rental payments under operating leases for certain aircraft flown under these capacity purchase agreements are reflected in the operating lease commitments line above.

(g)Represents minimum pension contributions based on actuarially determined estimates as of December 31, 2022 and is based on estimated payments through 2032. During the first three months of 2023, we made required contributions of $67 million to our defined benefit pension plans.

(h)Includes purchase commitments for aircraft fuel, flight equipment maintenance, information technology support and construction projects and excludes obligations under certain fuel offtake agreements or other agreements for which the timing of the related expenditure is uncertain, or which are subject to material contingencies, such as the construction of a production facility.

Capital Raising Activity and Other Possible Actions

In light of our significant financial commitments related to, among other things, the servicing and amortization of existing debt and equipment leasing arrangements and new flight equipment, we and our subsidiaries will regularly consider, and enter into negotiations related to, capital raising and liability management activity, which may include the entry into leasing transactions and future issuances of, and transactions designed to manage the timing and amount of, secured or unsecured debt obligations or additional equity or equity-linked securities in public or private offerings or otherwise. The cash available from operations (if any) and these sources, however, may not be sufficient to cover our cash obligations because economic factors may reduce the amount of cash generated by operations or increase costs. For instance, an economic downturn or general global instability caused by military actions, terrorism, disease outbreaks (such as occurred during the COVID-19 pandemic), natural disasters or other causes could reduce the demand for air travel, which would reduce the amount of cash generated by operations. An increase in costs, either due to an increase in borrowing costs caused by a reduction in credit ratings or a general increase in interest rates, or due to an increase in the cost of fuel, maintenance, aircraft, aircraft engines or parts, could decrease the amount of cash available to cover cash contractual obligations. Moreover, certain of our financing arrangements contain significant minimum cash balance or similar liquidity requirements. As a result, we cannot use all of our available cash to fund operations, capital expenditures and cash obligations without violating these requirements. See Note 5 and Note 4 to AAG’s and American’s Condensed Consolidated Financial Statements in Part I, Items 1A and 1B, respectively.

In the past, we have from time to time refinanced, redeemed or repurchased our debt and taken other steps to reduce or otherwise manage the aggregate amount and cost of our debt, lease and other obligations or otherwise improve our balance sheet. Going forward, depending on market conditions, our cash position and other considerations, we may continue to take such actions.

Critical Accounting Policies and Estimates

For information regarding our critical accounting policies and estimates, see disclosures in the Consolidated Financial Statements and accompanying notes contained in our 2022 Form 10-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

AAG’s and American’s Market Risk Sensitive Instruments and Positions

Our primary market risk exposures include the price of aircraft fuel, foreign currency exchange rates and interest rate risk. Our exposure to these market risks has not changed materially from our exposure discussed in our 2022 Form 10-K except as updated below.

Aircraft Fuel

As of March 31, 2023, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption. Our current policy is not to enter into transactions to hedge our fuel consumption, although we review that policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices. Based on our 2023

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forecasted fuel consumption, we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2023 annual fuel expense by approximately $40 million.

Foreign Currency

We are exposed to the effect of foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated transactions. Our largest exposure comes from the Euro, British pound sterling, Canadian dollar and various Latin American currencies (primarily the Brazilian real). We do not currently have a foreign currency hedge program.

Generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by us and can significantly affect the value of our assets located outside the United States. These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect our business, results of operations and financial condition. See Part II, Item 1A. Risk Factors – “We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control” for additional discussion of this and other currency risks.

Interest

Our earnings and cash flow are affected by changes in interest rates due to the impact those changes have on our interest expense from variable-rate debt instruments and our interest income from short-term, interest-bearing investments. If annual interest rates increase 100 basis points, based on our March 31, 2023 variable-rate debt and short-term investments balances, annual interest expense on variable rate debt would increase by approximately $90 million and annual interest income on short-term investments would increase by approximately $115 million.

On July 27, 2017, the U.K. Financial Conduct Authority (the authority that regulates the London Interbank Offered Rate (LIBOR)) announced its intention to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month, and 12-month) was subsequently extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023. It is not possible to predict what rate or rates may become the predominant alternative to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments. While the U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, has chosen the Secured Overnight Financing Rate (SOFR), and specifically Term SOFR, as the recommended risk-free reference rate for the U.S. (calculated based on repurchase agreements backed by treasury securities), we cannot currently predict the extent to which this index will gain widespread acceptance as a replacement for LIBOR. It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United Kingdom, the United States or elsewhere.

As of March 31, 2023, we had $5.3 billion of borrowings with interest rates linked to LIBOR. We have commenced the process of amending our LIBOR-based financing agreements to transition them to successor reference rates in anticipation of LIBOR’s discontinuation, but we may not be able to reach agreements with all affected counterparties, or to do so on favorable terms. Additionally, the replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on our long-term debt to be different or higher than expected.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Evaluation of Disclosure Controls and Procedures

The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and is accumulated and communicated to the company’s management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of AAG’s and American’s disclosure controls and procedures as of March 31, 2023 was performed under the supervision and with the participation of AAG’s and American’s management, including AAG’s and American’s principal executive officer, the Chief Executive Officer (CEO), and principal financial officer, the Chief Financial Officer (CFO). Based on that evaluation, AAG’s and American’s management, including AAG’s and American’s CEO and CFO, concluded that AAG’s and American’s disclosure controls and procedures were effective as of March 31, 2023 at the reasonable assurance level.

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Changes in Internal Control over Financial Reporting

For the quarter ended March 31, 2023, there have been no changes in AAG’s or American’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, AAG’s and American’s internal control over financial reporting.

Limitation on the Effectiveness of Controls

We believe that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, and, as noted above, the CEO and CFO of AAG and American believe that our disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2023.

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PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part I, Item 1B, respectively, for information on legal proceedings.

ITEM 1A. RISK FACTORS

Below are certain risk factors that may affect our business, results of operations and financial condition, or the trading price of our common stock or other securities. We caution the reader that these risk factors may not be exhaustive. We operate in a continually changing business environment, and new risks and uncertainties emerge from time to time. Management cannot predict such new risks and uncertainties, nor can it assess the extent to which any of the risk factors below or any such new risks and uncertainties, or any combination thereof, may impact our business.

Risks Related to our Business and Industry

Downturns in economic conditions could adversely affect our business.

Due to the discretionary nature of business and leisure travel spending and the highly competitive nature of the airline industry, our revenues are heavily influenced by the condition of the U.S. economy and economies in other regions of the world. Unfavorable conditions in these broader economies have resulted, and may result in the future, in decreased passenger demand for air travel, changes in booking practices and related reactions by our competitors, all of which in turn have had, and may have in the future, a strong negative effect on our business. For example, the COVID-19 pandemic and associated decline in economic activity and increase in unemployment levels had a severe and prolonged effect on the global economy generally and, in turn, resulted in a prolonged period of depressed demand for air travel. In addition, a rapid economic expansion following the height of the COVID-19 pandemic resulted in significant inflationary pressures and volatility in certain currencies, which have increased our costs for aircraft fuel, wages and benefits and other goods and services we require to operate our business, as well as increasing the interest expense on our variable-rate indebtedness.

We will need to obtain sufficient financing or other capital to operate successfully.

Our business plan contemplates continued significant investments related to our fleet, improving the experience of our customers and updating our facilities. Significant capital resources will be required to execute this plan. We estimate that, based on our commitments as of March 31, 2023, our planned aggregate expenditures for aircraft purchase commitments and certain engines on a consolidated basis for the remainder of 2023 through 2027 would be approximately $12.2 billion. We may also require financing to refinance maturing obligations and to provide liquidity to fund other corporate requirements. Accordingly, we will need substantial liquidity, financing or other capital resources to finance such aircraft and engines and meet such other liquidity needs. If needed, it may be difficult for us to raise additional capital on acceptable terms, or at all, due to, among other factors: our substantial level of existing indebtedness, particularly following the additional liquidity transactions completed in response to the impact of the COVID-19 pandemic; our non-investment grade credit rating; volatile or otherwise unfavorable market conditions; and the availability of assets to use as collateral for loans or other indebtedness, which has been reduced significantly as a result of certain financing transactions we have undertaken since the beginning of 2020 and may be further reduced. If we are unable to arrange any such required financing at customary advance rates and on terms and conditions acceptable to us, we may need to use cash from operations or cash on hand to purchase aircraft and engines or fund our other corporate requirements, or may seek to negotiate deferrals for such aircraft and engines with the applicable manufacturers or otherwise defer corporate obligations. Depending on numerous factors applicable at the time we seek capital, many of which are out of our control, such as the state of the domestic and global economies, the capital and credit markets’ view of our prospects and the airline industry in general, and the general availability of debt and equity capital, the financing or other capital resources that we will need may not be available to us, or may be available only on onerous terms and conditions. Furthermore, we hold significant balances of cash and short-term investments, including as necessary to conduct our day-to-day operations, some of which are held in deposit accounts at commercial banks in excess of the government-provided deposit insurance. There can be no assurance that we will be successful in obtaining financing or other needed sources of capital to operate successfully or to fund our committed expenditures. An inability to obtain necessary financing on acceptable terms would limit our ability to execute necessary capital projects and would have a material adverse impact on our business, results of operations and financial condition.

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Our high level of debt and other obligations may limit our ability to fund general corporate requirements and obtain additional financing, may limit our flexibility in responding to competitive developments and may cause our business to be vulnerable to adverse economic and industry conditions.

We have significant amounts of indebtedness and other financial obligations, including pension obligations, obligations to make future payments on flight equipment and property leases related to airport and other facilities, and substantial non-cancelable obligations under aircraft and related spare engine purchase agreements. Moreover, currently a very significant portion of our assets are pledged to secure our indebtedness. Our substantial indebtedness and other obligations, which are generally greater than the indebtedness and other obligations of our competitors, could have important consequences. For example, they may:

•make it more difficult for us to satisfy our obligations under our indebtedness;

•limit our ability to obtain additional funding for working capital, capital expenditures, acquisitions, investments and general corporate purposes, and adversely affect the terms on which such funding can be obtained;

•require us to dedicate a substantial portion of our liquidity or cash flow from operations to payments on our indebtedness and other obligations, thereby reducing the funds available for other purposes;

•make us more vulnerable to economic downturns, industry conditions and catastrophic external events, particularly relative to competitors with lower relative levels of financial leverage;

•significantly constrain our ability to respond, or respond quickly, to unexpected disruptions in our own operations, the U.S. or global economies, or the businesses in which we operate, or to take advantage of opportunities that would improve our business, operations, or competitive position versus other airlines;

•limit our ability to withstand competitive pressures and reduce our flexibility in responding to changing business and economic conditions;

•bear interest at floating rates, subjecting us to volatility in interest expenses as interest rates fluctuate;

•contain covenants requiring us to maintain an aggregate of at least $2.0 billion of unrestricted cash and cash equivalents and amounts available to be drawn under revolving credit facilities and collateral coverage ratios and peak debt service coverage ratios; and

•contain restrictive covenants that could, among other things:

◦limit our ability to merge, consolidate, sell assets, incur additional indebtedness, issue preferred stock, make investments and pay dividends; and

◦if breached, result in an event of default under our indebtedness.

In addition, during the COVID-19 pandemic we were required to obtain a significant amount of additional financing from a variety of sources and we cannot guarantee that we will not need to obtain additional financing in the future. Such financing may include the issuance of additional unsecured or secured debt securities, equity securities and equity-linked securities as well as additional bilateral and syndicated secured and/or unsecured credit facilities, among other items. There can be no assurance as to the timing of any such financing transactions, which may be in the near term, or that we will be able to obtain such additional financing on favorable terms, or at all. Any such actions may be material in nature, could result in the incurrence and issuance of significant additional indebtedness or equity and could impose significant covenants and restrictions to which we are not currently subject. Moreover, as a result of the financing activities we undertook in response to the COVID-19 pandemic, the number of financings with respect to which such covenants and provisions apply has increased, thereby subjecting us to more substantial risk of cross-default and cross-acceleration in the event of breach, and additional covenants and provisions could become binding on us as we continue to seek additional liquidity.

The obligations discussed above, including those imposed as a result of any additional financings we may be required to undertake, could also impact our ability to obtain additional financing, if needed, and our flexibility in the conduct of our business, and could materially adversely affect our liquidity, results of operations and financial condition.

Further, a substantial amount of our long-term indebtedness bears interest at fluctuating interest rates, primarily based on LIBOR for deposits of U.S. dollars. LIBOR tends to fluctuate based on general short-term interest rates, rates set by

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the U.S. Federal Reserve and other central banks, the supply of and demand for credit in the London interbank market and general economic conditions. We have not hedged our interest rate exposure with respect to our floating rate debt. Accordingly, our interest expense for any particular period will fluctuate based on LIBOR and other variable interest rates. In 2022 and continuing into 2023, in response to rising inflation which coincided with a rapid rebound of economic activity as governments lifted restrictions and economies reopened following the COVID-19 pandemic, central banks around the world—including the U.S. Federal Reserve, the European Central Bank and the Bank of England—commenced a cycle of raising interest rates, which has consequently increased the interest we pay on our floating-rate indebtedness. To the extent the interest rates applicable to our floating rate debt increase, our interest expense will increase, in which event we may have difficulties making interest payments and funding our other fixed costs, and our available cash flow for general corporate requirements may be adversely affected.

On July 27, 2017, the U.K. Financial Conduct Authority (the authority that regulates LIBOR) announced its intention to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month and 12-month) was subsequently extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023. It is not possible to predict what rate or rates may become the predominant alternative to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments. While the U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, has chosen SOFR, and specifically Term SOFR, as the recommended risk-free reference rate for the U.S. (calculated based on repurchase agreements backed by treasury securities), we cannot currently predict the extent to which this index will gain widespread acceptance as a replacement for LIBOR. It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United Kingdom, the United States or elsewhere. See also the discussion of interest rate risk in Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk – “Interest.”

As of March 31, 2023, we had $5.3 billion of borrowings with interest rates linked to LIBOR. We have commenced the process of amending our LIBOR-based financing agreements to transition them to successor reference rates in anticipation of LIBOR’s discontinuation, but we may not be able to reach agreements with all affected counterparties, or to do so on favorable terms. Additionally, the replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on our long-term debt to be different or higher than expected.

We have significant pension and other postretirement benefit funding obligations, which may adversely affect our liquidity, results of operations and financial condition.

Our pension funding obligations are significant. The amount of our pension funding obligations will depend on the performance of investments held in trust by the pension plans, interest rates for determining liabilities and actuarial experience. We also have significant obligations for retiree medical and other postretirement benefits.

Additionally, we participate in the IAM National Pension Fund (the IAM Pension Fund). The funding status of the IAM Pension Fund is subject to the risk that other employers may not meet their obligations, which under certain circumstances could cause our obligations to increase. On March 29, 2019, the actuary for the IAM Pension Fund certified that the fund was in “endangered” status despite reporting a funded status of over 80%. Additionally, the IAM Pension Fund’s Board voluntarily elected to enter into “critical” status on April 17, 2019. Upon entry into critical status, the IAM Pension Fund was required by law to adopt a rehabilitation plan aimed at restoring the financial health of the pension plan and did so on April 17, 2019 (the Rehabilitation Plan). Under the Rehabilitation Plan, American was subject to an immaterial contribution surcharge, which ceased to apply June 14, 2019 upon American’s mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to its contribution rate. This contribution schedule will remain in effect through the earlier of December 31, 2031 or the date the IAM Pension Fund emerges from critical status. Furthermore, if we were to withdraw from the IAM Pension Fund, if the IAM Pension fund were to terminate, or if the IAM Pension Fund were to undergo a mass withdrawal, we could be subject to liability as imposed by law.

If our financial condition worsens, provisions in our credit card processing and other commercial agreements may adversely affect our liquidity.

We have agreements with companies that process customer credit card transactions for the sale of air travel and other services. These agreements allow these credit card processing companies, under certain conditions (including, with respect to certain agreements, our failure to maintain certain levels of liquidity), to hold an amount of our cash (referred to as a holdback) equal to some or all of the advance ticket sales that have been processed by that credit card processor, but for which we have not yet provided the air transportation. Additionally, such credit card processing companies may

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require cash or other collateral reserves to be established. These credit card processing companies are not currently entitled to maintain any holdbacks pursuant to these requirements. These holdback requirements can be implemented at the discretion of the credit card processing companies upon the occurrence of specific events, including material adverse changes in our financial condition or the triggering of a liquidity covenant. The imposition of holdback requirements, up to and including 100% of relevant advanced ticket sales, would materially reduce our liquidity. Likewise, other of our commercial agreements contain provisions that allow other counterparties to impose less-favorable terms, including the acceleration of amounts due, in the event of material adverse changes in our financial condition. For example, we maintain certain letters of credit, insurance- and surety-related agreements under which counterparties may require collateral, including cash collateral.

The loss of key personnel upon whom we depend to operate our business or the inability to attract and develop additional qualified personnel could adversely affect our business.

We believe that our future success will depend in large part on our ability to attract, develop and retain highly qualified management, technical and other personnel. Retaining and recruiting people with the appropriate skills is particularly challenging as the economy in general, and the airline industry in particular, continue to recover from the COVID-19 pandemic, resulting in competition for the human resources necessary to operate our business successfully. We may not be successful in attracting, developing or retaining key personnel or other highly qualified personnel. In addition, competition for skilled personnel has intensified and may continue to intensify if overall industry capacity continues to increase and/or we were to incur attrition at levels higher than we have historically. Any inability to attract, develop and retain significant numbers of qualified management and other personnel would have a material adverse effect on our business, results of operations and financial condition.

Our business has been and will continue to be affected by many changing economic and other conditions beyond our control, including global events that affect travel behavior, and our results of operations could be volatile and fluctuate due to seasonality.

Our business, results of operations and financial condition have been and will continue to be affected by many changing economic and other conditions beyond our control, including, among others:

•actual or potential changes in international, national, regional and local economic, business and financial conditions, including recession, inflation and higher interest rates;

•the occurrence of wars, terrorist attacks and political instability;

•changes in consumer preferences, perceptions, spending patterns and demographic trends;

•changes in the competitive environment due to industry consolidation, changes in airline alliance affiliations and other factors;

•actual or potential disruptions to the U.S. National Airspace System (the ATC system);

•increases in costs of safety, security and environmental measures;

•outbreaks of diseases that affect travel behavior, such as occurred during the COVID-19 pandemic; and

•weather and natural disasters, including increases in frequency, severity or duration of such disasters, and related costs caused by more severe weather due to climate change.

The COVID-19 pandemic, along with the measures governments and private organizations worldwide implemented in an attempt to contain its spread, resulted in significant volatility in demand for air travel, which adversely affected our business, operations and financial condition to an unprecedented extent and for a prolonged period. Measures implemented during the COVID-19 pandemic—such as travel restrictions, including testing regimes, “stay at home” and quarantine orders, limitations on public gatherings, cancellation of public events and many others—initially resulted in a precipitous decline in demand for both domestic and international business and leisure travel. In response to this material deterioration in demand, we took a number of aggressive actions to ameliorate the impacts to our business, operations and financial condition. While cases have declined globally and many governments have loosened or lifted COVID-related travel restrictions, the potential for a resurgence of COVID-19, including the emergence and spread of any new variants, and its after effects remain uncertain, and there can be no assurance that any mitigating actions we take in response will be sufficient to avert a deterioration in our business, financial condition and results of operations. Additionally, the COVID-19 pandemic necessitated changes in business practices which may persist. For example, businesses and other

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travelers may continue to forego air travel in favor of remote or flexible working policies and communication alternatives such as videoconferencing. In addition, businesses may seek to reduce travel costs by requiring the purchase of less expensive tickets, thereby potentially impacting our average revenue per available seat mile.

In addition to the effects of the COVID-19 pandemic, an outbreak of another contagious disease—such as has occurred in the past with the Ebola virus, Middle East Respiratory Syndrome, Severe Acute Respiratory Syndrome, H1N1 influenza virus, avian flu, Zika virus or any other similar illness—if it were to become associated with air travel or persist for an extended period, could materially affect the airline industry and us by reducing revenues and adversely impacting our operations and passengers’ travel behavior. As a result of these or other conditions beyond our control, our results of operations could be volatile and subject to rapid and unexpected change. In addition, due to generally weaker demand for air travel during the winter, our revenues in the first and fourth quarters of the year could be weaker than revenues in the second and third quarters of the year.

Union disputes, employee strikes and other labor-related disruptions, or our inability to otherwise maintain labor costs at competitive levels and hire and retain a sufficient number of employees may adversely affect our operations and financial performance.

Relations between air carriers and labor unions in the U.S. are governed by the Railway Labor Act (RLA). Under the RLA, collective bargaining agreements (CBAs) generally contain “amendable dates” rather than expiration dates, and the RLA requires that a carrier maintain the existing terms and conditions of employment following the amendable date through a multi-stage and usually lengthy series of bargaining processes overseen by the National Mediation Board (NMB). As of December 31, 2022, approximately 87% of our employees were represented for collective bargaining purposes by labor unions, and 48% were covered by CBAs that are currently amendable or that will become amendable within one year. For the dates that the CBAs with our major work groups become amendable under the RLA, see “Labor Relations” under Part I, Item 1. Business – “Sustainability – Our People” in our 2022 Form 10-K.

In the case of a CBA that is amendable under the RLA, if no agreement is reached during direct negotiations between the parties, either party may request that the NMB appoint a federal mediator. The RLA prescribes no timetable for the direct negotiation and mediation processes, and it is not unusual for those processes to last for many months or even several years. If no agreement is reached in mediation, the NMB in its discretion may declare that an impasse exists and proffer binding arbitration to the parties. Either party may decline to submit to arbitration, and if arbitration is rejected by either party, a 30-day “cooling off” period commences. During or after that period, a Presidential Emergency Board (PEB) may be established, which examines the parties’ positions and recommends a solution. The PEB process lasts for 30 days and is followed by another 30-day “cooling off” period. At the end of this “cooling off” period, unless an agreement is reached or action is taken by Congress, the labor organization may exercise “self-help,” such as a strike, which could materially adversely affect our business, results of operations and financial condition.

None of the unions representing our employees presently may lawfully engage in concerted slowdowns or refusals to work, such as strikes, sick-outs or other similar activity, against us. Nonetheless, there is a risk that employees, either with or without union involvement, could engage in one or more concerted refusals to work that could individually or collectively harm the operation of our airline and impair our financial performance. Additionally, some of our unions have brought and may continue to bring grievances to binding arbitration, including those related to wages. If successful, there is a risk these arbitral avenues could result in material additional costs that we did not anticipate. See also “Labor Relations” under Part I, Item 1. Business – “Sustainability – Our People” in our 2022 Form 10-K.

Currently, we believe our labor costs are generally competitive relative to the other large network carriers. However, personnel shortages, in particular for pilots, and general wage inflation stand to impact our labor costs moving forward. Certain of our competitors have recently concluded agreements with their pilots’ unions which include significant increases in pay and benefits. We are currently in negotiations for several important new labor agreements, including with our mainline pilots, and we anticipate that any new contracts we agree with our labor groups will likewise include material increases in salaries and other benefits, which will significantly increase our labor expense.

If we encounter problems with any of our third-party regional operators or third-party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services.

A significant portion of our regional operations are conducted by third-party operators on our behalf and are provided for under capacity purchase agreements. Due to our reliance on third parties to provide these essential services, we are subject to the risk of disruptions to their operations, which has in the past and may in the future result from many of the

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same risk factors disclosed in this report, such as the impact of adverse economic conditions, the inability of third parties to hire or retain skilled personnel, including in particular pilots and mechanics, and other risk factors, such as an out-of-court or bankruptcy restructuring of any of our regional operators. Several of these third-party regional operators provide significant regional capacity that we would be unable to replace in a short period of time should that operator fail to perform its obligations to us. Disruptions to capital markets, shortages of pilots, mechanics and other skilled personnel and adverse economic conditions in general have subjected certain of these third-party regional operators to significant financial pressures, which have in the past and may in the future lead to bankruptcies among these operators. In particular, the severe decline in demand for air travel resulting from the COVID-19 pandemic and related governmental restrictions on travel materially impacted demand for services provided by our regional carriers and, as a result, we temporarily significantly reduced our regional capacity. Further, as airlines attempt to restore capacity in line with increased demand for air travel following the height of the COVID-19 pandemic, these third-party operators have experienced difficulties in recruiting and retaining sufficient personnel to operate significantly increased schedules, and have in some instances been required to offer significant increases in pay and other benefits to recruit and retain pilots and other personnel. Ongoing volatility in travel demand has the potential to continue to adversely affect our regional operators, some of whom may experience significant financial stress, declare bankruptcy or otherwise cease to operate. We may also experience disruption to our regional operations or incur financial damages if we terminate the capacity purchase agreement with one or more of our current operators or transition the services to another provider. Any significant disruption to our regional operations would have a material adverse effect on our business, results of operations and financial condition.

In addition, our reliance upon others to provide essential services on behalf of our operations may result in our relative inability to control the efficiency and timeliness of contract services. We have entered into agreements with contractors to provide various facilities and services required for our operations, including distribution and sale of airline seat inventory, reservations, provision of information technology and services, regional operations, aircraft maintenance, fueling, catering, ground services and facilities and baggage handling. Similar agreements may be entered into in any new markets we decide to serve. These agreements are generally subject to termination after notice by the third-party service provider. We are also at risk should one of these service providers cease operations, and there is no guarantee that we could replace these providers on a timely basis with comparably priced providers, or at all. These third parties are also facing challenges retaining and recruiting people with the appropriate skills to meet our requirements as the economy in general, and the airline industry in particular, continue to recover from the COVID-19 pandemic. The COVID-19 pandemic also caused significant disruption in global supply chains and staffing shortages, which have affected and may continue to affect the availability and timely delivery and fulfillment of many goods, including certain of those that we purchase directly or which are required by third parties to perform contracted services for us. We rely on the operation of complex supply chains and a large number of third parties for the procurement and fulfillment of parts, components, consumable or disposable goods and other products and services essential to our business. Following a faster than expected return of demand for air travel as COVID-19 cases declined worldwide and governments lifted travel restrictions, suppliers and many of the airports we serve experienced acute shortages of personnel, resulting in increased delays, cancellations and, in certain cases, restrictions on passenger numbers or the number of flights to or from certain airports. We cannot guarantee that, as a result of ongoing or future supply chain disruptions or staffing shortages, we, our third-party partners, or the airports we serve will be able to timely source all of the products and services we require in the course of our business, or that we will be successful in procuring suitable alternatives. Any material problems with the adequacy, efficiency and timeliness of contract services, resulting from financial hardships, personnel shortages or otherwise, could have a material adverse effect on our business, results of operations and financial condition.

Any damage to our reputation or brand image could adversely affect our business or financial results.

Maintaining a good reputation globally is critical to our business. Our reputation or brand image could be adversely impacted by, among other things, any failure to maintain high ethical, social and environmental sustainability practices for all of our operations and activities, our impact on the environment, public pressure from investors or policy groups to change our policies, such as movements to institute a “living wage,” customer perceptions of our advertising campaigns, sponsorship arrangements or marketing programs, customer perceptions of our use of social media, or customer perceptions of statements made by us, our employees and executives, agents or other third parties. In addition, we operate in a highly visible industry that has significant exposure to social media. Negative publicity, including as a result of misconduct by our customers, vendors or employees, can spread rapidly through social media. Should we not respond in a timely and appropriate manner to address negative publicity, our brand and reputation may be significantly harmed. Damage to our reputation or brand image or loss of customer confidence in our services could adversely affect our business and financial results, as well as require additional resources to rebuild our reputation.

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Moreover, an outbreak and spread of an infectious disease could adversely impact consumer perceptions of the health and safety of travel, and in particular airline travel, such as occurred during the COVID-19 pandemic. Actual or perceived risk of infection on our flights could have a material adverse effect on the public’s perception of us and may harm our reputation and business. We have in the past, and may in the future be required to take extensive measures to reassure our team members and the traveling public of the safety of air travel, and we could incur significant costs implementing safety, hygiene-related or other actions to limit the actual or perceived threat of infection among our employees and passengers. However, we cannot assure that any actions we might take in response to an infectious disease outbreak will be sufficient to restore the confidence of consumers in the safety of air travel. In addition, as a result of mask mandates and other mitigating measures that airports and carriers were required by law to implement to limit the spread of COVID-19, we experienced an increase in the incidence of aggressive customer behavior and physical confrontation on our flights, certain of which resulted in injuries to our personnel. While the rate of these incidents has declined following the lifting of mask mandates and other COVID-19 measures, if our employees feel unsafe or believe that we are not doing enough to prevent and prosecute such incidents, we could experience higher rates of employee absence or attrition and we may suffer reputational harm which could make it more difficult to attract and retain employees, and which could in turn negatively affect our business, financial condition and results of operations.

We are at risk of losses and adverse publicity stemming from any public incident involving our company, our people or our brand, including any accident or other public incident involving our personnel or aircraft, or the personnel or aircraft of our regional, codeshare or joint business operators.

We are at risk of adverse publicity stemming from any public incident involving our company, our people or our brand, particularly given the ease with which individuals can now capture and rapidly disseminate information via social media. Such an incident could involve the actual or alleged behavior of any of our employees, contractors or passengers. Further, if our personnel, one of our aircraft, a type of aircraft in our fleet, or personnel of, or an aircraft that is operated under our brand by, one of our regional operators or an airline with which we have a marketing alliance, joint business or codeshare relationship, were to be involved in a public incident, accident, catastrophe or regulatory enforcement action, we could be exposed to significant reputational harm and potential legal liability. The insurance we carry may be inapplicable or inadequate to cover any such incident, accident, catastrophe or action. In the event that our insurance is inapplicable or inadequate, we may be forced to bear substantial losses from an incident or accident. In addition, any such incident, accident, catastrophe or action involving our personnel, one of our aircraft (or personnel and aircraft of our regional operators and our codeshare partners), or a type of aircraft in our fleet could create an adverse public perception, which could harm our reputation, result in air travelers being reluctant to fly on our aircraft or those of our regional operators or codeshare partners, and adversely impact our business, results of operations and financial condition.

Changes to our business model that are designed to increase revenues may not be successful and may cause operational difficulties or decreased demand.

We have in the past instituted, and intend to institute in the future, changes to our business model designed to increase revenues and offset costs. These measures include further segmentation of the classes of service we offer, such as Premium Economy service and Basic Economy service, enhancements to our AAdvantage loyalty program, charging separately for services that had previously been included within the price of a ticket, changes to our practices and contracts with providers of distribution systems to provide additional content flexibility, changing (whether it be increasing, decreasing or eliminating) other pre-existing fees, reconfiguration of our aircraft cabins, and efforts to optimize our network including by focusing growth on a limited number of large hubs and entering into agreements with other airlines. For example, in 2020, we eliminated change fees for most domestic and international tickets, which has reduced our change fee revenue, a trend which is expected to continue assuming this policy remains in place. We may introduce additional initiatives in the future; however, as time goes on, we expect that it will be more difficult to identify and implement additional initiatives. We cannot assure that these measures or any future initiatives will be successful in increasing our revenues or offsetting our costs. Additionally, the implementation of these initiatives may create logistical challenges that could harm the operational performance of our airline or result in decreased demand. Also, our implementation of any new or increased fees might result in adverse brand perceptions, reputational harm or regulatory scrutiny, and could reduce the demand for air travel on our airline or across the industry in general, particularly if weakened economic conditions make our customers more sensitive to increased travel costs or provide a significant competitive advantage to other carriers that determine not to institute similar charges.

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Our intellectual property rights, particularly our branding rights, are valuable, and any inability to protect them may adversely affect our business and financial results.

We consider our intellectual property rights, particularly our branding rights such as our trademarks applicable to our airline and AAdvantage loyalty program, to be a significant and valuable aspect of our business. We protect our intellectual property rights through a combination of trademark, copyright and other forms of legal protection, contractual agreements and policing of third-party misuses of our intellectual property. Our failure to obtain or adequately protect our intellectual property or any change in law that lessens or removes the current legal protections of our intellectual property may diminish our competitiveness and adversely affect our business and financial results. Any litigation or disputes regarding intellectual property may be costly and time-consuming and may divert the attention of our management and key personnel from our business operations, either of which may adversely affect our business and financial results.

In addition, we have used certain of our branding and AAdvantage loyalty program intellectual property as collateral for various financings (including the AAdvantage Financing), which contain covenants that impose restrictions on the use of such intellectual property and, in the case of the AAdvantage Financing, on certain amendments or changes to our AAdvantage loyalty program. These covenants may have an adverse effect on our ability to use such intellectual property.

We may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity.

From time to time, we are a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of our business or otherwise. We are currently involved in various legal proceedings and claims that have not yet been fully resolved, and additional claims may arise in the future. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within our control. Litigation is subject to significant uncertainty and may be expensive, time-consuming, and disruptive to our operations. Although we will vigorously defend ourselves in such legal proceedings, their ultimate resolution and potential financial and other impacts on us are uncertain. For these and other reasons, we may choose to settle legal proceedings and claims, regardless of their actual merit. If a legal proceeding is resolved against us, it could result in significant compensatory damages, and in certain circumstances punitive or trebled damages, disgorgement of revenue or profits, remedial corporate measures or injunctive relief imposed on us. If our existing insurance does not cover the amount or types of damages awarded, or if other resolution or actions taken as a result of the legal proceeding were to restrain our ability to operate or market our services, our consolidated financial position, results of operations or cash flows could be materially adversely affected. In addition, legal proceedings, and any adverse resolution thereof, can result in adverse publicity and damage to our reputation, which could adversely impact our business. Additional information regarding certain legal matters in which we are involved can be found in Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part I, Item 1B, respectively.

Our ability to utilize our NOLs and other carryforwards may be limited.

Under the Internal Revenue Code of 1986, as amended (the Code), a corporation is generally allowed a deduction for net operating losses (NOLs) carried over from prior taxable years. As of December 31, 2022, we had approximately $16.2 billion of gross federal NOLs and $4.3 billion of other carryforwards available to reduce future federal taxable income, of which $5.9 billion will expire beginning in 2024 if unused and $14.6 billion can be carried forward indefinitely. We also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused. Our NOL carryforwards are subject to adjustment on audit by the Internal Revenue Service and the respective state taxing authorities. Additionally, due to the impact of the COVID-19 pandemic and other economic factors, certain of the NOL carryforwards may expire before we can generate sufficient taxable income to use them.

Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. There can be no assurance that an additional valuation allowance on our net deferred tax assets will not be required should our financial performance be negatively impacted in the future. Such valuation allowance could be material.

A corporation’s ability to deduct its federal NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 of the Code (Section 382) if it undergoes an “ownership change” as defined in Section 382 (generally where cumulative stock ownership changes among material stockholders exceed 50% during a rolling three-year period). In 2013, we experienced an ownership change in connection with our emergence from bankruptcy and US Airways Group, Inc. (US Airways Group) experienced an ownership change

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in connection with the merger of US Airways Group and AMR Corporation (the Merger). The general limitation rules for a debtor in a bankruptcy case are liberalized where the ownership change occurs upon emergence from bankruptcy. We elected to be covered by certain special rules for federal income tax purposes that permitted approximately $9.0 billion (with $4.4 billion of unlimited NOLs still remaining at December 31, 2022) of our federal NOL carryforwards to be utilized without regard to the annual limitation generally imposed by Section 382. If the special rules are determined not to apply, our ability to utilize such federal NOL carryforwards may be subject to limitation. In addition, under the loan program of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the warrants (and common stock issuable upon exercise thereof) we issued to the U.S. Department of Treasury (Treasury) did not and will not result in an “ownership change” for purposes of Section 382. This exception does not apply for companies issuing warrants, stock options, common or preferred stock or other equity pursuant to the payroll support program established under the CARES Act (PSP1), the payroll support program established under the Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law) (PSP2) and the payroll support program established under the American Rescue Plan Act of 2021 (ARP) (PSP3) and accordingly will not apply to the warrants issued by us under PSP1, PSP2 and PSP3. Substantially all of our remaining federal NOL carryforwards attributable to US Airways Group and its subsidiaries are subject to limitation under Section 382 as a result of the Merger; however, our ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes.

Notwithstanding the foregoing, an ownership change may severely limit or effectively eliminate our ability to utilize our NOL carryforwards and other tax attributes. In connection with the expiration in December 2021 of certain transfer restrictions applicable to substantial shareholders contained in our Certificate of Incorporation, the Board of Directors of AAG adopted a tax benefits preservation plan (the Tax Benefits Preservation Plan) in order to preserve our ability to use our NOLs and certain other tax attributes to reduce potential future income tax obligations. The Tax Benefits Preservation Plan was subsequently ratified by our stockholders at the 2022 Annual Meeting of Stockholders of AAG. The Tax Benefits Preservation Plan is designed to reduce the likelihood that we experience an ownership change by deterring certain acquisitions of AAG common stock. There is no assurance, however, that the deterrent mechanism will be effective, and such acquisitions may still occur. In addition, the Tax Benefits Preservation Plan may adversely affect the marketability of AAG common stock by discouraging existing or potential investors from acquiring AAG common stock or additional shares of AAG common stock, because any non-exempt third party that acquires 4.9% or more of the then-outstanding shares of AAG common stock would suffer substantial dilution of its ownership interest in AAG.

New U.S. tax legislation may adversely affect our financial condition, results of operations and cash flows.

On August 16, 2022, the Inflation Reduction Act (the IRA) was signed into law in the U.S. Among other changes, the IRA introduced a corporate minimum tax on certain corporations with average adjusted financial statement income over a three-tax year period in excess of $1.0 billion and an excise tax on certain stock repurchases by certain covered corporations for taxable years beginning after December 31, 2022. The corporate minimum tax and any excise tax imposed on any repurchases of AAG common stock made after December 31, 2022 may adversely affect our financial condition in the future. The U.S. government may enact additional significant changes to the taxation of business entities including, among others, an increase in the corporate income tax rate, significant changes to the taxation of income derived from international operations, and an addition of further limitations on the deductibility of business interest. We are currently unable to predict whether such additional changes will occur. If such changes are enacted or implemented, we are currently unable to predict the ultimate impact on our business and therefore there can be no assurance our business will not be adversely affected.

We have a significant amount of goodwill, which is assessed for impairment at least annually. In addition, we may never realize the full value of our intangible assets or long-lived assets, causing us to record material impairment charges.

Goodwill and indefinite-lived intangible assets are not amortized, but are assessed for impairment at least annually, or more frequently if conditions indicate that an impairment may have occurred. In accordance with applicable accounting standards, we first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. In addition, we are required to assess certain of our other long-lived assets for impairment if conditions indicate that an impairment may have occurred.

Future impairment of goodwill or other long-lived assets could be recorded in results of operations as a result of changes in assumptions, estimates, or circumstances, some of which are beyond our control. There can be no assurance that a material impairment charge of goodwill or tangible or intangible assets will be avoided. The value of our aircraft could be impacted in future periods by changes in supply and demand for these aircraft. Such changes in supply and

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demand for certain aircraft types could result from grounding of aircraft by us or other airlines, including as a result of significant or prolonged declines in demand for air travel and corresponding reductions to capacity. We can provide no assurance that a material impairment loss of tangible or intangible assets will not occur in a future period; we have previously incurred significant impairment charges associated with our decision to retire certain aircraft as a result of the severe decline in demand for air travel due to the COVID-19 pandemic, and the risk of future material impairments remains uncertain. Such impairment charges could have a material adverse effect on our business, results of operations and financial condition.

The airline industry is intensely competitive and dynamic.

Our competitors include other major domestic airlines and foreign, regional and new entrant airlines, as well as joint ventures formed by some of these airlines, many of which have greater financial or other resources and/or lower cost structures than ours, as well as other forms of transportation, such as rail and private automobiles or alternatives to commuting or business travel including remote or flexible working policies and communication alternatives such as videoconferencing. In many of our markets, we compete with at least one low-cost carrier (including so-called ultra-low-cost carriers). Our revenues are sensitive to the actions of other carriers in many areas, including pricing, scheduling, capacity, fees (including cancellation, change and baggage fees), amenities, loyalty benefits and promotions, which can have a substantial adverse impact not only on our revenues, but on overall industry revenues. These factors may become even more significant in periods when the industry experiences large losses (such as occurred recently during the COVID-19 pandemic), as airlines under financial stress, or in bankruptcy, may institute pricing or fee structures intended to attract more customers to achieve near-term survival at the expense of long-term viability.

Low-cost carriers (including so-called ultra-low-cost carriers) have a profound impact on industry revenues. Using the advantage of low unit costs, these carriers offer lower fares in order to shift demand from larger, more established airlines, and represent significant competitors, particularly for customers who fly infrequently, are price sensitive and therefore tend not to be loyal to any one particular carrier. A number of these low-cost carriers have recently commenced operations with the stated intention to grow rapidly. Many of these new and existing carriers have announced growth strategies including commitments to acquire significant numbers of new aircraft for delivery in the next few years. These low-cost carriers are attempting to continue to increase their market share through growth and consolidation, and are expected to continue to have an impact on our revenues and overall performance. We and several other large network carriers have implemented “Basic Economy” fares designed to more effectively compete against low-cost carriers, but we cannot predict whether these initiatives will be successful. While historically these carriers have provided competition in domestic markets, we have recently experienced new competition from low-cost carriers on international routes, including low-cost airlines executing international long-haul expansion strategies, a trend likely to continue, in particular with the planned introduction of long-range narrowbody aircraft in coming years. The actions of existing or future low-cost carriers, including those described above, could have a material adverse effect on our operations and financial performance.

We provide air travel internationally, directly as well as through joint businesses, alliances, codeshare and similar arrangements to which we are a party. While our network is comprehensive, compared to some of our key global competitors, we generally have somewhat greater relative exposure to certain regions (for example, Latin America) and somewhat lower relative exposure to others (for example, China). Our financial performance relative to our key competitors will therefore be influenced significantly by macro-economic conditions in particular regions around the world and the relative exposure of our network to the markets in those regions, including the duration of declines in demand for travel to specific regions as a result of the COVID-19 pandemic and the speed with which demand for travel to these regions returns.

Our international service exposes us to foreign economies and the potential for reduced demand when any foreign country we serve suffers adverse local economic conditions or if governments restrict commercial air service to or from any of these markets. For example, the COVID-19 pandemic resulted in a precipitous and prolonged decline in demand for air travel, in particular international travel, in part as a result of the imposition by the U.S. and foreign governments of restrictions on travel from certain regions. In addition, open skies agreements, which are now in place with a substantial number of countries around the world, provide international airlines with open access to U.S. markets, potentially subjecting us to increased competition on our international routes. See also “Our business is subject to extensive government regulation, which may result in increases in our costs, disruptions to our operations, limits on our operating flexibility, reductions in the demand for air travel, and competitive disadvantages.”

Certain airline alliances, joint ventures and joint businesses have been, or may in the future be, granted immunity from antitrust regulations by governmental authorities for specific areas of cooperation, such as joint pricing decisions. To the extent alliances formed by our competitors can undertake activities that are not available to us, our ability to effectively

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compete may be hindered. Our ability to attract and retain customers is dependent upon, among other things, our ability to offer our customers convenient access to desired markets. Our business could be adversely affected if we are unable to maintain or obtain alliance and marketing relationships with other air carriers in desired markets.

American has established a transatlantic joint business with British Airways, Aer Lingus, Iberia and Finnair, a transpacific joint business with Japan Airlines and a joint business relating to Australia and New Zealand with Qantas, each of which has been granted antitrust immunity. The transatlantic joint business benefits from a grant of antitrust immunity from the United States Department of Transportation (DOT) and was reviewed by the European Commission (EC) in July 2010. In connection with this review, we provided certain commitments to the EC regarding, among other things, the availability of take-off and landing slots at London Heathrow (LHR) or London Gatwick (LGW) airports. The commitments accepted by the EC were binding for 10 years. In October 2018, in anticipation of the exit of the United Kingdom from the European Union (EU), commonly referred to as Brexit, and the expiry of the EC commitments in July 2020, the United Kingdom Competition and Markets Authority (CMA) opened an investigation into the transatlantic joint business. We continue to fully cooperate with the CMA and, in September 2020 and April 2022, the CMA adopted interim measures that effectively extend the EC commitments until March 2026 in light of the uncertainty and other impacts resulting from the COVID-19 pandemic. The CMA plans to complete its investigation before the scheduled expiration of the interim measures in March 2026. The foregoing arrangements are important aspects of our international network and we are dependent on the performance and continued cooperation of the other airlines party to those arrangements.

We have a marketing relationship, the Northeast Alliance arrangement (NEA), with JetBlue Airways Corporation (JetBlue) that includes an alliance agreement with reciprocal codesharing on certain domestic and international routes from New York (John F. Kennedy International Airport (JFK), LaGuardia Airport (LGA), and Newark Liberty International Airport) and Boston Logan International Airport, and provides for reciprocal loyalty program benefits. The NEA does not include JetBlue’s transatlantic flying. Pursuant to federal law, American and JetBlue submitted this proposed alliance arrangement to the DOT for review. After American, JetBlue and the DOT agreed to a series of commitments (the DOT Agreement), the DOT terminated its review of the proposed alliance in January 2021. The commitments include growth commitments to ensure capacity expansion, slot divestitures at JFK and at Ronald Reagan Washington National Airport (DCA) near Washington, D.C. and antitrust compliance measures. Beyond the DOT Agreement, American and JetBlue will also refrain from certain kinds of coordination on certain city pair markets. Upon the DOT’s termination of its review of the proposed alliance, American and JetBlue implemented the proposed alliance subject to these commitments. On September 21, 2021, the United States Department of Justice (DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue in the U.S. District Court for the District of Massachusetts alleging that American and JetBlue violated U.S. antitrust law in connection with the NEA. The parties presented their respective cases in a bench trial that commenced on September 27, 2022. Closing arguments from both parties were presented on November 18, 2022. A decision is expected in the second quarter of 2023. Separately, in December 2022, two putative class action lawsuits were filed in the U.S. District Court for the Eastern District of New York also alleging that the NEA violated U.S. antitrust laws. Those lawsuits, which have been consolidated, seek monetary and injunctive relief. In February 2023, private party plaintiffs filed two additional putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. We believe these complaints are without merit and are defending against them vigorously.

Notwithstanding the DOT’s termination of its reviews of the NEA and certain other alliances, the DOT maintains authority to conduct investigations under the scope of its existing statutes and regulations, including conduct related to this alliance. On September 21, 2021, the DOT published a Clarification Notice relating to the DOT Agreement. The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to the DOJ to resolve the antitrust concerns that the DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. On September 30, 2022, the DOT issued a further statement referencing the prior Clarification Notice and, among other things, indicating its intention to continue working with the DOJ in its efforts to resolve the ongoing proceedings regarding the NEA.

No assurances can be given as to any benefits that we may derive from any of the foregoing arrangements or any other arrangements that may ultimately be implemented, or whether regulators will, or if granted continue to, approve or impose material conditions on our business activities.

Other mergers and other forms of airline partnerships, including antitrust immunity grants, may take place and may not involve us as a participant. Depending on which carriers combine or integrate and which assets, if any, are sold or

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otherwise transferred to other carriers in connection with any such transactions, our competitive position relative to the post-transaction carriers or other carriers that acquire such assets could be harmed. In addition, as carriers combine through traditional mergers or integrate their operations through antitrust immunity grants, their route networks will grow, and that growth will result in greater overlap with our network, which in turn could decrease our overall market share and revenues. Such combination or collaboration is not limited to the U.S., but could include further transactions among international carriers in Europe and elsewhere that result in broader networks offered by rival airlines.

Additionally, our AAdvantage loyalty program, which is an important element of our sales and marketing programs, faces significant and increasing competition from the loyalty programs offered by other travel companies, as well as from similar loyalty benefits offered by banks and other financial services companies. Competition among loyalty programs is intense regarding the rewards, fees, required usage, and other terms and conditions of these programs. In addition, we have used certain assets from our AAdvantage loyalty program as collateral for the AAdvantage Financing, which contains covenants that impose restrictions on certain amendments or changes to certain of our AAdvantage program agreements provided as collateral under the AAdvantage Financing and other aspects of the AAdvantage loyalty program. These competitive factors and covenants (to the extent applicable) may affect our ability to attract and retain customers, increase usage of our loyalty program and maximize the revenue generated by our loyalty program.

We may also be impacted by competition regulations affecting certain of our major commercial partners, including our co-branded credit card partners. For example, there has previously been bipartisan legislation proposed in Congress called the Credit Card Competition Act designed to increase credit card transaction routing options for merchants which, if enacted, could result in a reduction of the fees levied on credit card transactions. If this legislation were successful, it could fundamentally alter the profitability of our agreements with co-branded credit card partners and the benefits we provide to our consumers through the co-branded credit cards issued by these partners.

The commercial relationships that we have with other companies, including any related equity investments, may not produce the returns or results we expect.

An important part of our strategy to expand our network has been to initiate or expand our commercial relationships with other airlines, such as by entering into global alliance, joint business and codeshare relationships, and, in certain instances, including China Southern Airlines Company Limited, GOL Linhas Aéreas Inteligentes S.A. and JetSmart Airlines SpA, by making an equity investment in another airline in connection with initiating or expanding such a commercial relationship. We may explore additional investments in, and joint ventures and strategic alliances with, other carriers as part of our global business strategy. We face competition in forming and maintaining these commercial relationships since there are a limited number of potential arrangements and other airlines are looking to enter into similar relationships, and our inability to form or maintain these relationships or inability to form as many of these relationships as our competitors may have an adverse effect on our business. Any such existing or future investment could involve significant challenges and risks, including that we may not realize a satisfactory return on our investment or that they may not generate the expected revenue synergies, and they may distract management focus from our operations or other strategic options. We may also be subject to consequences from any illegal conduct of joint business partners as well as to any political or regulatory change that negatively impacts or prohibits our arrangements with any such business partners. In addition, as a result of the COVID-19 pandemic and subsequent economic recovery, the industry experienced significant volatility in demand for air travel both internationally and domestically, which is expected to continue into the foreseeable future and could materially disrupt our partners’ abilities to provide air service, the timely execution of our strategic operating plans, including the finalization, approval and implementation of new strategic relationships or the maintenance or expansion of existing relationships. If any carriers with which we partner or in which we hold an equity stake were to cease trading or be declared insolvent, we could lose the value of any such investment or experience significant operational disruption. These events could have a material adverse effect on our business, results of operations and financial condition.

We may also from time to time pursue commercial relationships with companies outside the airline industry, which relationships may include equity investments or other financial commitments. Any such relationship or related investment could involve unique risks, particularly where these relationships involve new industry participants, emerging technologies or industries with which we are unfamiliar.

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Our business is very dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity.

Our operating results are materially impacted by changes in the availability, price volatility and cost of aircraft fuel, which represents one of the largest single cost items in our business and thus is a significant factor in the price of airline tickets. Market prices for aircraft fuel have fluctuated substantially over the past several years and prices continue to be highly volatile, with market spot prices ranging from a low of approximately $0.37 per gallon to a high of approximately $4.40 per gallon during the period from January 1, 2020 to March 31, 2023.

Because of the amount of fuel needed to operate our business, even a relatively small increase or decrease in the price of fuel can have a material effect on our operating results and liquidity. Due to the competitive nature of the airline industry and unpredictability of the market for air travel, we can offer no assurance that we may be able to increase our fares, impose fuel surcharges or otherwise increase revenues or decrease other operating costs sufficiently to offset fuel price increases. Similarly, we cannot predict actions that may be taken by our competitors in response to changes in fuel prices.

We cannot predict the future availability, price volatility or cost of aircraft fuel. Natural disasters (including hurricanes or similar events in the U.S. Southeast and on the Gulf Coast where a significant portion of domestic refining capacity is located), political disruptions or wars involving oil-producing countries, changes in production levels of individual nations or associations of oil-producing states, economic sanctions imposed against oil-producing countries or specific industry participants, changes in fuel-related governmental policy, the strength of the U.S. dollar against foreign currencies, changes in the cost to transport or store petroleum products and any related staffing or transportation equipment shortages, changes in access to petroleum product pipelines and terminals, speculation in the energy futures markets, changes in aircraft fuel production capacity, environmental concerns and other unpredictable events, may result in fuel supply shortages, distribution challenges, additional fuel price volatility and cost increases in the future. Any of these factors or events could cause a disruption in or increased demands on oil production, refinery operations, pipeline capacity or terminal access and possibly result in significant increases in the price of aircraft fuel and diminished availability of aircraft fuel supply.

Our aviation fuel purchase contracts generally do not provide meaningful price protection against increases in fuel costs. Our current policy is not to enter into transactions to hedge our fuel consumption, although we review this policy from time to time based on market conditions and other factors. Accordingly, as of March 31, 2023, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices. See also the discussion in Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk – “Aircraft Fuel.”

In addition, as part of our emissions reduction targets, we and other airlines have committed to increasing the use of sustainable aviation fuel (SAF) in our fleet. Currently, industrial production of SAF is small in scale and inadequate to meet growing industry demand, and while additional production capacity is expected to come online in coming years, we anticipate that competition for SAF among industry participants will remain intense. As a result, we may need to pay a significant premium for SAF above the price we would pay for conventional jet fuel. To secure future SAF supply, we have entered into multiple agreements for the purchase of future SAF production, and continue to engage with producers regarding potential future SAF purchases, which may include investments to support these producers. Certain existing or potential future agreements pertain to SAF production from facilities that are planned but not yet operational, and which may utilize technology that has not been proven at commercial scale. There is no assurance that these facilities will be built or that they will meet contracted production timelines and volumes. In the event that the SAF is not delivered on schedule or in sufficient volumes, there can be no assurance that we will be able to source a supply of SAF sufficient to meet our stated goals, or that we will be able to do so on favorable economic terms.

Our business is subject to extensive government regulation, which may result in increases in our costs, disruptions to our operations, limits on our operating flexibility, reductions in the demand for air travel, and competitive disadvantages.

Airlines are subject to extensive domestic and international regulatory requirements. In the last several years, Congress and state and local governments have passed laws and regulatory initiatives, and the DOT, the Federal Aviation Administration (FAA), the Transportation Security Administration and several of their respective international counterparts have issued regulations and a number of other directives, that affect the airline industry. These requirements impose substantial costs on us and restrict the ways we may conduct our business.

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For example, the FAA from time to time issues directives and other regulations relating to the maintenance and operation of aircraft that require significant expenditures or operational restrictions. These requirements can be issued with little or no notice, or can otherwise impact our ability to efficiently or fully utilize our aircraft, and in some instances have resulted in the temporary and prolonged grounding of aircraft types altogether (including, for example, the March 2019 grounding of all Boeing 737 MAX Family aircraft, which was not lifted in the United States until November 2020), or otherwise caused substantial disruption and resulted in material costs to us and lost revenues. The recent telecom industry roll-out of 5G technology, and concerns regarding its possible interference with aircraft navigation systems, also resulted in regulatory uncertainty and the potential for operational impacts, including possible suspension of service to certain airports or the operation of certain aircraft. See “We rely heavily on technology and automated systems to operate our business, and any failure of these technologies or systems could harm our business, results of operations and financial condition.” The FAA also exercises comprehensive regulatory authority over nearly all technical aspects of our operations. Our failure to comply with such requirements has in the past and may in the future result in fines and other enforcement actions by the FAA or other regulators. The FAA recently issued a final rule implementing flight attendant duty and rest periods, which will impact our scheduling flexibility. In the future, any new regulatory requirements, particularly requirements that limit our ability to operate or price our products, could have a material adverse effect on us and the industry.

In 2018, Congress passed a five-year funding authorization for the FAA which is scheduled to expire in September 2023. The legislative process to renew this authorization (the FAA Authorization Renewal) could impact us, and commercial aviation more generally, in numerous ways. As part of the FAA Authorization Renewal, Congress could seek to impose new rules or regulations concerning, among other things, customer service, aviation safety, labor requirements, investments in FAA staffing and resources, improvements to the ATC system and managing new entrants in the U.S. national airspace system, as well as new or increased fees or taxes intended to fund these policies. Any new or enhanced requirements resulting from the FAA Authorization Renewal have the potential to increase our costs or impact our operation. Congressional action on the FAA Authorization Renewal has already begun and Congress has indicated that their goal is to pass the bill in advance of the expiration in September 2023. If Congress fails to pass the FAA Authorization Renewal, we expect passage of an extension of current law to prevent a lapse in authorities.

DOT consumer rules, and rules promulgated by certain analogous agencies in other countries we serve, dictate procedures for many aspects of our customer’s journey, including at the time of ticket purchase, at the airport, and onboard the aircraft. DOT requires multiple disclosures of airline fares, taxes and baggage fees and is further changing these requirements to increase the number of disclosures and the time at which they must be disclosed. DOT also recently issued a proposed rule mandating refunds in certain circumstances, such as a global pandemic. DOT has also proposed rules requiring disclosure of certain ancillary fees by air carriers and travel agents. Finally, DOT will be proposing and implementing a number of new disability regulations that will impact us, including rules for accessible lavatories on single-aisle aircraft, wheelchair damage and prompt wheelchair assistance.

The Aviation and Transportation Security Act mandates the federalization of certain airport security procedures and imposes additional security requirements on airports and airlines, most of which are funded by a per-ticket tax on passengers and a tax on airlines. Present and potential future security requirements can have the effect of imposing costs and inconvenience on travelers, potentially reducing the demand for air travel.

Similarly, there are a number of legislative and regulatory initiatives and reforms at the state and local levels. These initiatives include increasingly stringent laws to protect the environment, wage/hour requirements, mandatory paid sick or family leave, and healthcare mandates. These laws could affect our relationship with our workforce and the vendors that serve our airline and cause our expenses to increase without an ability to pass through these costs. In recent years, the airline industry has experienced an increase in litigation over the application of state and local employment laws, particularly in California. Application of these laws may result in operational disruption, increased litigation risk and impact our negotiated labor agreements. For example, we are currently involved in legal proceedings brought by flight attendants and certain other work groups in California concerning alleged violations of the state’s labor code including, among other things, violations of certain meal and rest break laws, and an adverse determination in any of these cases could adversely impact our operational flexibility and result in the imposition of damages and fines, which could potentially be significant. Additionally, in September 2021, the Biden Administration issued an executive order mandating a COVID-19 vaccination requirement for federal contractors. Due to a number of our agreements, American is classified as a government contractor. Consistent with this executive order and guidance from the Safer Federal Workforce Task Force responsible for implementing the order, we announced that the federal vaccine mandate would require all of American’s U.S.-based team members and certain international crew members to be vaccinated or be exempt due to an accommodation for a medical disability or sincerely held religious belief. Enforcement of the federal contractor vaccine mandate has been on

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hold amid multiple ongoing legal challenges. Given the uncertainty of its viability in the courts, the timing of implementation and availability of accommodations, we cannot predict the ultimate impact of this federal vaccination requirement on our business should the federal government move to reinstate and enforce it. Moreover, we may be subject to state and local vaccine mandates and other COVID-19-related requirements governing airports where we operate. While the Occupational Health and Safety Administration (OSHA) has withdrawn its overarching COVID-19 Emergency Temporary Standard, the U.S. Supreme Court has acknowledged that OSHA may issue a revised COVID-19 standard targeted to high-risk occupations or workplaces, which could impact our regional carriers and other service providers.

The results of our operations, demand for air travel, and the manner in which we conduct business each may be affected by changes in law and future actions taken by governmental agencies, including:

•changes in law that affect the services that can be offered by airlines in particular markets and at particular airports, or the types of fares offered or fees that can be charged to passengers;

•the granting and timing of certain governmental approvals (including antitrust or foreign government approvals) needed for codesharing alliances, joint businesses and other arrangements with other airlines, and the imposition of regulatory investigations or commencement of litigation related to any of the foregoing (including our arrangements with JetBlue);

•restrictions on competitive practices (for example, court orders, or agency regulations or orders, that would curtail an airline’s ability to respond to a competitor);

•the adoption of new passenger security standards or regulations that impact customer service standards;

•restrictions on airport operations, such as restrictions on the use of slots at airports or the auction or reallocation of slot rights currently held by us;

•the adoption of more restrictive locally-imposed noise restrictions; and

•restrictions on travel or special guidelines regarding aircraft occupancy or hygiene in response to outbreaks of illness, such as occurred during the COVID-19 pandemic, including the imposition of preflight testing regimes or vaccination confirmation requirements which have in the past and may in the future have the effect of reducing demand for air travel in the markets where such requirements are imposed.

Each additional regulation or other form of regulatory oversight increases costs and adds greater complexity to airline operations and, in some cases, may reduce the demand for air travel. There can be no assurance that the increased costs or greater complexity associated with our compliance with new rules, anticipated rules or other forms of regulatory oversight will not have a material adverse effect on us.

Any significant reduction in air traffic capacity at and in the airspace serving key airports in the U.S. or overseas could have a material adverse effect on our business, results of operations and financial condition. In addition, the ATC system is not successfully modernizing to meet the growing demand for U.S. air travel. Air traffic controllers rely on outdated procedures and technologies that routinely compel airlines, including ourselves, to fly inefficient routes or take significant delays on the ground. The ATC system’s inability to manage existing travel demand has led government agencies to implement short-term capacity constraints during peak travel periods or adverse weather conditions in certain markets, resulting in delays and disruptions of air traffic. The outdated technologies also cause the ATC system to be less resilient in the event of a failure, and past system disruptions have resulted in large-scale flight cancellations and delays. We experienced this challenge in January 2023 when an outage in the ATC Notice to Air Missions system led to a nationwide ground-stop for nearly two hours, resulting in significant operational disruption throughout the day.

In the early 2000s, the FAA embarked on a path to modernize the national airspace system, including migration from the current radar-based ATC system to a GPS-based system. This modernization of the ATC system, generally referred to as “NextGen,” has been plagued by delays and cost overruns, and it remains uncertain when the full array of benefits expected from this modernization will be available to the public and the airlines, including ourselves. Failure to update the ATC system and the substantial costs that may be imposed on airlines, including ourselves, to fund a modernized ATC system may have a material adverse effect on our business.

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Further, our business has been adversely impacted when government agencies have ceased to operate as expected, including due to partial shut-downs, sequestrations or similar events and the COVID-19 pandemic. These events have resulted in, among other things, reduced demand for air travel, an actual or perceived reduction in air traffic control and security screening resources and related travel delays, as well as disruption in the ability of the FAA to grant required regulatory approvals, such as those that are involved when a new aircraft is first placed into service.

Our operating authority in international markets is subject to aviation agreements between the U.S. and the respective countries or governmental authorities, such as the EU, and in some cases, fares and schedules require the approval of the DOT and/or the relevant foreign governments. Moreover, alliances with international carriers may be subject to the jurisdiction and regulations of various foreign agencies. The U.S. government has negotiated “open skies” agreements with 130 trading partners, which agreements allow unrestricted route authority access between the U.S. and the foreign markets. While the U.S. has worked to increase the number of countries with which open skies agreements are in effect, a number of markets important to us, including China, do not have open skies agreements. For example, the open skies air services agreement between the U.S. and the EU, which took effect in March 2008, provides airlines from the U.S. and EU member states open access to each other’s markets, with freedom of pricing and unlimited rights to fly from the U.S. to any airport in the EU. As a result of the agreement and a subsequent open skies agreement involving the U.S. and the United Kingdom, which was agreed in anticipation of Brexit, we face increased competition in these markets, including LHR. Bilateral and multilateral agreements among the U.S. and various foreign governments of countries we serve but which are not covered by an open skies treaty are subject to periodic renegotiation. We currently operate a number of international routes under government arrangements that limit the number of airlines permitted to operate on the route, the capacity of the airlines providing services on the route, or the number of airlines allowed access to particular airports. If an open skies policy were to be adopted for any of these markets, it could adversely impact us and could result in impairments of our related tangible and intangible assets. In addition, competition from foreign airlines, revenue-sharing joint ventures, joint business agreements, and other alliance arrangements by and among other airlines could impair the value of our business and assets on the open skies routes.

On May 1, 2021 the EU and United Kingdom entered into a new trade and cooperation agreement (the EU-UK Trade and Cooperation Agreement) to govern certain aspects of their relationship following Brexit. We face risks associated with Brexit, notably given the extent of our passenger and cargo traffic and that of our joint business partners that flows through LHR in the United Kingdom. The EU-UK Trade and Cooperation Agreement includes provisions in relation to commercial air service that we expect to be sufficient to sustain our current services under the transatlantic joint business. However, the scope of traffic rights under the EU-UK Trade and Cooperation Agreement is less extensive than before Brexit and therefore the full impact of the EU-UK Trade and Cooperation Agreement is uncertain. As a result, the continuation of our current services, and those of our partners could be disrupted. This could materially adversely affect our business, results of operations and financial condition. More generally, changes in U.S. or foreign government aviation policies could result in the alteration or termination of such agreements, diminish the value of route authorities, slots or other assets located abroad, or otherwise adversely affect our international operations.

We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control.

We operate a global business with significant operations outside of the U.S. Our current international activities and prospects have been, and in the future could be, adversely affected by government policies, reversals or delays in the opening of foreign markets, increased competition in international markets, the performance of our alliance, joint business and codeshare partners in a given market, exchange controls or other restrictions on repatriation of funds, currency and political risks (including changes in exchange rates and currency devaluations), environmental regulation, increases in taxes and fees and changes in international governmental regulation of our operations, including the inability to obtain or retain needed route authorities and/or slots. In particular, the COVID-19 pandemic severely impacted the demand for international travel for a prolonged period, and resulted in the imposition of significant governmental restrictions on commercial air service to or from certain regions. We responded by temporarily suspending a significant portion of our long-haul international flights and delaying the introduction of certain new long-haul international routes. While many countries have largely eliminated their pandemic restrictions, or are in the process of doing so, we can provide no assurance as to when demand for international travel will return to pre-COVID-19 pandemic levels, if at all, or whether certain international destinations we previously served will be economical in the future.

We are subject to varying registration requirements and ongoing reporting obligations in the countries where we operate. Our permission to continue doing business in these countries may depend on our ability to timely fulfil or remedy any noncompliance with these and other governmental requirements. We may also be subject to the risk that relevant

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government agencies will be delayed in granting or renewing required approvals, including as a result of shutdowns (such as occurred in certain jurisdictions during the COVID-19 pandemic), cybersecurity incidents or other events. Any lapse, revocation, suspension or delay in approval of our authority to do business in a given jurisdiction may prevent us from serving certain destinations and could adversely impact our business, financial condition and results of operations.

More generally, our industry may be affected by any deterioration in global trade relations, including shifts in the trade policies of individual nations. For example, much of the demand for international air travel is the result of business travel in support of global trade. Should protectionist governmental policies, such as increased tariff or other trade barriers, travel limitations and other regulatory actions, have the effect of reducing global commercial activity, the result could be a material decrease in the demand for international air travel. Additionally, certain of the products and services that we purchase, including certain of our aircraft and related parts, are sourced from suppliers located outside the U.S., and the imposition of new tariffs, or any increase in existing tariffs, by the U.S. government in respect of the importation of such products could materially increase the amounts we pay for them.

We face risks associated with Brexit, notably given the extent of our passenger and cargo traffic and that of our joint business partners that flows through LHR in the United Kingdom. The EU-UK Trade and Cooperation Agreement includes provisions in relation to commercial air service that we expect to be sufficient to sustain our current services under the transatlantic joint business. However, the scope of traffic rights under the EU-UK Trade and Cooperation Agreement is less extensive than before Brexit and therefore the full impact of the EU-UK Trade and Cooperation Agreement is uncertain. As a result, the continuation of our current services, and those of our partners could be disrupted. Moreover, Brexit has created uncertainty as to the future trade relationship between the EU and the United Kingdom, including air traffic services. LHR is presently a very important element of our international network, however it may become less desirable as a destination or as a hub location after Brexit when compared to other airports in Europe. This could materially adversely affect our business, results of operations and financial condition.

Brexit has also led to legal and regulatory uncertainty such as the identity of the relevant regulators, new regulatory action and/or potentially divergent treaties, laws and regulations as the United Kingdom determines which EU treaties, laws and regulations to replace or replicate, including those governing aviation, labor, environmental, data protection/privacy, competition and other matters applicable to the provision of air transportation services by us or our alliance, joint business or codeshare partners. For example, the Retained EU Law (Revocation and Reform) Bill which is currently before the UK Parliament would, if enacted in its current form, “sunset” at the end of 2023 a large part of retained EU legislation that has continued in force in the UK post-Brexit, unless specific action is taken to preserve or delay the “sunset” of individual retained EU legislation. The extent of any such specific action, and therefore the specific retained EU legislation that would “sunset” at the end of 2023, is currently unknown. The impact on our business of any treaties, laws and regulations that replace the existing EU counterparts, or other governmental or regulatory actions taken by the United Kingdom or the EU in connection with or subsequent to Brexit, cannot be predicted, including whether or not regulators will continue to approve or impose material conditions on our business activities such as the transatlantic joint business. See also “The airline industry is intensely competitive and dynamic.” Any of these effects, and others we cannot anticipate, could materially adversely affect our business, results of operations and financial condition.

Additionally, fluctuations in foreign currencies, including devaluations, exchange controls and other restrictions on the repatriation of funds, have significantly affected and may continue to significantly affect our operating performance, liquidity and the value of any cash held outside the U.S. in local currency. Such fluctuations in foreign currencies, including devaluations, cannot be predicted by us and can significantly affect the value of our assets located outside the United States. These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect our business, results of operations and financial condition.

We may be adversely affected by conflicts overseas or terrorist attacks; the travel industry continues to face ongoing security concerns.

Acts of terrorism or fear of such attacks, including elevated national threat warnings, wars or other military conflicts, may depress air travel, particularly on international routes, and cause declines in revenues and increases in costs. The attacks of September 11, 2001 and continuing terrorist threats, attacks and attempted attacks materially impacted and continue to impact air travel. Increased security procedures introduced at airports since the attacks of September 11, 2001 and any other such measures that may be introduced in the future generate higher operating costs for airlines. The Aviation and Transportation Security Act mandated improved flight deck security, deployment of federal air marshals on-board flights, improved airport perimeter access security, airline crew security training, enhanced security screening of passengers, baggage, cargo, mail, employees and vendors, enhanced training and qualifications of security screening personnel, additional provision of passenger data to the U.S. Customs and Border Protection Agency and enhanced

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background checks. A concurrent increase in airport security charges and procedures, such as restrictions on carry-on baggage, has also had and may continue to have a disproportionate impact on short-haul travel, which constitutes a significant portion of our flying and revenue. Implementation of and compliance with increasingly complex security and customs requirements will continue to result in increased costs for us and our passengers, and have caused and likely will continue to cause periodic service disruptions and delays. We have at times found it necessary or desirable to make significant expenditures to comply with security-related requirements while seeking to reduce their impact on our customers, such as expenditures for automated security screening lines at airports. As a result of competitive pressure, and the need to improve security screening throughput to support the pace of our operations, it is unlikely that we will be able to capture all security-related costs through increased fares. We cannot forecast what new security requirements may be imposed in the future, or their impact on our business. In addition, avoiding areas of armed conflict or locations inaccessible to us due to geopolitical factors can impact our operations and financial results. For instance, airspace closures or restrictions may require us to alter flight paths, thereby increasing the distance, duration and amount of fuel required to operate certain international flights, in particular relative to competitors not subject to these airspace restrictions.

We are subject to risks associated with climate change, including increased regulation of our CO2 emissions, changing consumer preferences and the potential increased impacts of severe weather events on our operations and infrastructure.

Efforts to transition to a low-carbon future have increased the focus by global, regional and national regulators on climate change and greenhouse gas (GHG) emissions, including carbon dioxide (CO2) emissions. In particular, the International Civil Aviation Organization (ICAO) has adopted rules, including those pertaining to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will require us to mitigate the growth in CO2 emissions associated with a significant majority of our international flights. For more information on CORSIA, see “Aircraft Emissions and Climate Change Requirements” under Item 1. Business – “Domestic and Global Regulatory Landscape – Environmental Matters” in our 2022 Form 10-K.

At this time, the costs of complying with our future obligations under CORSIA are uncertain, primarily due to continued volatility in demand for international air travel in the recovery from the COVID-19 pandemic and because there is significant uncertainty with respect to the future supply and price of eligible carbon offset credits and lower-carbon aircraft fuels. In addition, our future CORSIA obligations are uncertain because those obligations are based on the growth in emissions of the global aviation sector and our individual airline emissions will not be incorporated into our CORSIA obligations until 2033. Due to the competitive nature of the airline industry and unpredictability of the market for air travel, we can offer no assurance that we may be able to increase our fares, impose surcharges or otherwise increase revenues or decrease other operating costs sufficiently to offset our costs of meeting obligations under CORSIA.

CORSIA is a global market-based measure that offers a harmonized way to reduce emissions from international aviation. In the event CORSIA does not come into force as expected or is terminated for whatever reason, we and other airlines could become subject to an unpredictable and inconsistent array of national or regional emissions restrictions, creating a patchwork of complex regulatory requirements that could lead to increased expense related to the emissions of our flights.

Concerns over climate change are likely to result in continued attempts by governments to adopt requirements or change business environments related to aviation that, if successful, may result in increased costs to the airline industry and us. In addition, several countries and U.S. states have adopted or are considering adopting programs, including new taxes, to regulate domestic GHG emissions. Finally, certain airports have adopted, and others could in the future adopt, GHG emission or climate-related goals that could impact our operations or require us to make changes or investments in our infrastructure.

In January 2021, the U.S. Environmental Protection Agency (EPA) adopted GHG emission standards for new aircraft engines, which are aligned with the 2017 ICAO aircraft engine GHG emission standards. Like the ICAO standards, the final EPA standards for new aircraft engines would not apply retroactively to engines already on in-service aircraft. These final standards have been challenged by several states and environmental groups, and the Biden Administration has issued an executive order requiring a review of these final standards. On November 15, 2021, the EPA announced that it would not rewrite the existing aircraft engine GHG emissions standards but would seek more ambitious new aircraft GHG emission standards within the ICAO process. No progress in this regard has been reported to date. The outcome of the legal challenge and the potential impact of the development of new aircraft GHG emissions standards cannot be predicted at this time.

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The EC’s ReFuelEU Aviation initiative (part of its “Fit for 55” program) included a proposal for the creation of a SAF blending mandate for aviation fuel suppliers set at 2% beginning in 2025 and rising to 63% by 2050, among other requirements. The European Parliament (which has proposed stricter targets in relation to SAF blending percentages for 2050) and the European Council have adopted initial negotiating positions with respect to the ReFuelEU Aviation initiative and are currently in negotiations in relation to the final text of the proposed regulation. Individual EU member states have been developing their own requirements including, for example, a 1% SAF mandate in France that came into force on January 1, 2022. Whether and in what form these regulations will be finalized and the potential effects on our business are uncertain at this time.

Climate change-related regulatory activity and developments may adversely affect our business and financial results by requiring us to reduce our emissions before cost-effective emissions reduction technologies are available, for example through requirements to make capital investments to purchase specific types of equipment or technologies, purchase carbon offset credits, or otherwise incur additional costs related to our emissions. Such activity may also impact us indirectly by increasing our operating costs, including fuel costs.

In addition, as part of our emissions reduction targets, we and other airlines have committed to increasing the use of SAF in our fleet. Currently, industrial production of SAF is small in scale and inadequate to meet growing industry demand, and while additional production capacity is expected to come online in coming years, we anticipate that competition for SAF among industry participants will remain intense. As a result, we may need to pay a significant premium for SAF above the price we would pay for conventional jet fuel. To secure future SAF supply, we have entered into multiple agreements for the purchase of future SAF production, and we continue to engage with producers regarding potential future SAF purchases, which may include investments to support these producers. Certain existing or potential future agreements pertain to SAF production from facilities that are planned but not yet operational and which may utilize technology that has not been proven at commercial scale. There is no assurance that these facilities will be built or that they will meet contracted production timelines and volumes. In the event that the SAF is not delivered on schedule or in sufficient volumes, there can be no assurance that we will be able to source a supply of SAF sufficient to meet our stated goals, or that we will be able to do so on favorable economic terms.

Growing recognition among consumers of the dangers of climate change may mean some customers choose to fly less frequently or fly on an airline they perceive as operating in a manner that is more sustainable to the climate. Business customers may choose to use alternatives to travel, such as virtual meetings and workspaces. Greater development of high-speed rail in markets now served by short-haul flights could provide passengers with lower-carbon alternatives to flying with us. Our collateral to secure loans, in the form of aircraft, spare parts and airport slots, could lose value as customer demand shifts and economies move to low-carbon alternatives, which may increase our financing cost.

Finally, the potential acute and chronic physical effects of climate change, such as increased frequency and severity of storms, floods, fires, sea-level rise, excessive heat, longer-term changes in weather patterns and other climate-related events, could affect our operations, infrastructure and financial results. Operational impacts, such as more frequent or widespread flight cancellations, could result in loss of revenue. We could incur significant costs to improve the climate resiliency of our infrastructure and otherwise prepare for, respond to, and mitigate such physical effects of climate change. We are not able to predict accurately the materiality of any potential losses or costs associated with the physical effects of climate change.

We are subject to many forms of environmental and noise regulation and may incur substantial costs as a result.

We are subject to a number of increasingly stringent federal, state, local and foreign laws, regulations and ordinances relating to the protection of human health and the environment and noise reduction, including those relating to emissions to the air, discharges to land and surface and subsurface waters, safe drinking water, and the management of hazardous substances, oils and waste materials. This universe of substances is evolving to encompass many substances not previously regulated. Compliance with environmental laws and regulations can require significant expenditures, and violations can lead to significant fines and penalties, as well as civil liability.

We are also subject to other environmental laws and regulations, including those that require us to investigate and remediate soil or groundwater to meet certain remediation standards. Under federal law, generators of waste materials, and current and former owners or operators of facilities, can be subject to liability for investigation and remediation costs at locations that have been identified as requiring response actions. Liability under these laws may be retroactive, strict, joint and several, meaning that we could be liable for the costs of cleaning up environmental contamination regardless of

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when it occurred, fault or the amount of waste directly attributable to us. We have liability for investigation and remediation costs at various sites, although such costs currently are not expected to have a material adverse effect on our business.

Governmental authorities in the U.S. and abroad are increasingly focused on potential contamination resulting from the use of certain chemicals, most notably per- and polyfluoroalkyl, substances (PFAS). Products containing PFAS have been used in manufacturing, industrial, and consumer applications over many decades, including those related to aviation. Among other things, recent changes to federal requirements for firefighting foams containing PFAS, as well as related state regulations affecting their use, will require operational changes. On August 26, 2022, the EPA published for public comment a new rulemaking that would designate two PFAS substances (perfluorooctanoic acid and perfluorooctanesulfonic acid) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act. This rulemaking would require entities to immediately report current and past releases that meet or exceed the reportable quantity for such substances to EPA’s National Response Center. Depending on the final outcome of this rulemaking and the introduction of any additional state or federal regulations, we may incur costs in connection with reporting obligations and costs related to historic usage of PFAS-containing materials, transitioning away from the usage of PFAS-containing products, disposing of PFAS-containing waste or remediating any residual environmental impacts.

We have various leases and agreements with respect to real property, tanks and pipelines with airports and other operators. Under these leases and agreements, we have agreed to indemnify the lessor or operator against environmental liabilities associated with the real property or operations described under the agreement, even in certain cases where we are not the party responsible for the initial event that caused the environmental damage. We also participate in leases with other airlines in fuel consortiums and fuel committees at airports, and such indemnities are generally joint and several among the participating airlines.

Governmental authorities in several U.S. and foreign cities are also considering, or have already implemented, aircraft noise reduction programs, including the imposition of nighttime curfews and limitations on daytime take offs and landings. We have been able to accommodate local noise restrictions imposed to date, but our operations could be adversely affected if locally-imposed regulations become more restrictive or widespread. The FAA is also currently evaluating possible changes to how aircraft noise is measured, and the resulting standards that are based on them. Ultimately, these changes could have an impact on, or limit, our operations, or make it more difficult for the FAA to modernize and increase the efficiency of the airspace and airports we utilize.

A higher than normal number of pilot retirements, more stringent duty time regulations, increased flight hour requirements for commercial airline pilots, reductions in the number of military pilots entering the commercial workforce, increased training requirements and other factors have caused a shortage of pilots that could materially adversely affect our business.

Large numbers of pilots in the industry accepted early retirement during the COVID-19 pandemic or are approaching the FAA’s mandatory retirement age of 65. Our pilots and other employees are subject to rigorous certification standards, and our pilots and other crew members must adhere to flight time and rest requirements. Commencing in 2013, the minimum flight hour requirement to achieve a commercial pilot’s license in the United States increased from 250 to 1,500 hours, thereby significantly increasing the time and cost commitment required to become licensed to fly commercial aircraft. Additionally, the number of military pilots being trained by the U.S. armed forces and available as commercial pilots upon their retirement from military service has been decreasing. Further, in the course of the domestic airline industry rapidly restoring capacity during the recovery from the COVID-19 pandemic, the significant training requirements to return large numbers of pilots to active flying have been time consuming and disruptive.

These and other factors have contributed to a shortage of qualified, entry-level pilots, shortages of experienced pilots trained and ready for duty, and increased compensation costs materially for pilots throughout the industry. The foregoing factors have also led to increased competition from large, mainline carriers attempting to meet their hiring needs and significant further proposed increases in mainline pilot compensation. We believe that this industry-wide pilot shortage will remain a significant problem for airlines in the United States for the foreseeable future. Our regional airline subsidiaries and other regional partners have recently been unable to hire adequate numbers of pilots to meet their needs, resulting in a reduction in the number of flights offered, disruptions, increased compensation expense and costs of operations, financial difficulties and other adverse effects, and these circumstances may become more severe in the future and thereby cause a material adverse effect on our business.

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We depend on a limited number of suppliers for aircraft, aircraft engines and parts.

We depend on a limited number of suppliers for aircraft, aircraft engines and many aircraft and engine parts. For example, as of the end of 2022, all of our mainline aircraft were manufactured by either Airbus S.A.S. (Airbus) or The Boeing Company (Boeing) and all of our regional aircraft were manufactured by either Bombardier or Embraer. Further, our supplier base continues to consolidate as evidenced by recent transactions involving Airbus and Bombardier and Mitsubishi and Bombardier, and the cessation of production of certain Bombardier regional aircraft that we and our regional partners currently operate in large numbers. Due to the limited number of these suppliers, we are vulnerable to any problems associated with the performance of their obligation to supply key aircraft, parts and engines, including design defects, mechanical problems, contractual performance by suppliers, adverse perception by the public that would result in customer avoidance of any of our aircraft or any action by the FAA or any other regulatory authority resulting in an inability to certify or operate our aircraft, even temporarily. For instance, in March 2019, the FAA ordered the grounding of all Boeing 737 MAX Family aircraft, which remained in place for over a year and was not lifted in the United States until November 2020. More recently, regulatory concerns raised by the FAA forced Boeing to temporarily suspend deliveries of certain 787 aircraft, resulting in significant reductions to our planned long-haul flying. The limited number of these suppliers may also result in reduced competition and potentially higher prices than if the supplier base was less concentrated.

Delays in scheduled aircraft deliveries or other loss of anticipated fleet capacity, and failure of new aircraft to perform as expected, may adversely impact our business, results of operations and financial condition.

The success of our business depends on, among other things, effectively managing the number and types of aircraft we operate. If, for any reason, we are unable to accept or secure deliveries of new aircraft on contractually scheduled delivery dates, this could have negative impacts on our business, results of operations and financial condition. Our failure to integrate newly purchased aircraft into our fleet as planned might require us to seek extensions of the terms for some leased aircraft or otherwise delay the exit of certain aircraft from our fleet. Such unanticipated extensions or delays, which recently have been relatively commonplace among manufacturers of commercial aircraft, may require us to operate existing aircraft beyond the point at which it is economically optimal to retire them, resulting in increased maintenance costs, or reductions to our schedule, thereby reducing revenues. If new aircraft orders are not filled on a timely basis, we could face higher financing and operating costs than planned. In addition, if the aircraft we receive do not meet expected performance or quality standards, including with respect to fuel efficiency, safety and reliability, we could face higher financing and operating costs than planned and our business, results of operations and financial condition could be adversely impacted. For instance, in March 2019, the FAA grounded all Boeing 737 MAX Family aircraft, including the 24 aircraft in our fleet at the time of the grounding, as a result of which we were unable to take delivery of the Boeing 737 MAX Family aircraft we had on order from Boeing. More recently, regulatory concerns raised by the FAA forced Boeing to temporarily suspend deliveries of 787 aircraft, resulting in significant reductions to our planned long-haul flying. Repeated or prolonged delays in the production, delivery or induction of our new aircraft could require us to scale back our growth plans, reduce frequencies or forgo service entirely to certain markets, which could adversely affect our business, financial condition and results of operations.

We rely heavily on technology and automated systems to operate our business, and any failure of these technologies or systems could harm our business, results of operations and financial condition.

We are highly dependent on existing and emerging technology and automated systems to operate our business. These technologies and systems include our computerized airline reservation system, flight operations and crew scheduling systems, financial planning, management and accounting systems, telecommunications systems, website, maintenance systems and check-in kiosks. In order for our operations to work efficiently, our website and reservation system must be able to accommodate a high volume of traffic, maintain secure information and deliver flight information, as well as issue electronic tickets and process critical financial information in a timely manner. Substantially all of our tickets are issued to passengers as electronic tickets. We depend on our reservation system, which is hosted and maintained under a long-term contract by a third-party service provider, to be able to issue, track and accept these electronic tickets. If our technologies or automated systems are not functioning or if our third-party service providers were to fail to adequately provide technical support, system maintenance or timely software upgrades for any one of our key existing systems, we could experience service disruptions or delays, which could harm our business and result in the loss of important data, increase our expenses and decrease our revenues. Furthermore, certain critical aspects of our operation rely on legacy technological systems which may grow more difficult or expensive to support and maintain over time, and such systems may fail to perform as required or become more vulnerable to malfunction or failure over time. In the event that one or more of our primary technology or systems vendors goes into bankruptcy, ceases operations or fails to perform as

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promised, replacement services may not be readily available on a timely basis, at competitive rates or at all, and any transition time to a new system may be significant.

Our aircraft employ a number of sophisticated radio and satellite-based navigation and safety technologies, and we are subject to risks associated with the introduction or expansion of technologies that could interfere with the safe operation of these flight systems. For example, telecommunications companies are expanding and increasing the commercial and consumer applications of 5G cellular communication networks, and regulators, manufacturers and operators have expressed concerns that certain 5G applications could interfere with certain flight systems. On December 23, 2021, the FAA issued a special airworthiness information bulletin (SAIB), in which it indicated that further testing and assessment is needed regarding the effects of 5G on certain aircraft equipped with radar altimeters, which measure the aircraft’s altitude and guide pilots during landings. If it were determined that 5G signals posed an interference risk to these altimeters or other systems, the FAA indicated in its SAIB that it could restrict flight operations in areas where such interference could occur. On January 18, 2022, major U.S. telecommunications companies agreed to delay the implementation of 5G near airports until July 5, 2022 while working with the FAA to develop long-term mitigations to support safe aviation operations. While the telecommunications industry agreed to delay the activation of 5G transmitters in close proximity to airports, it did move forward with the activation of a vast majority of 5G transmitters away from airports, and we expect that companies will continue expanding their 5G networks over the next several years. As a result, the FAA has taken precautionary steps to mitigate any remaining interference risks, which have resulted in minimal impacts to our operations, particularly in low-visibility conditions at certain airports and with our regional carriers. While we are working closely with the FAA and other aviation industry participants to develop a long-term strategy that permits the full implementation of the 5G spectrum without disruption to safe aviation operations, any new restrictions imposed to mitigate interference risks would require us to adjust our operating procedures and could impact our ability to operate certain aircraft or to serve certain markets. On June 17, 2022, the FAA announced that major U.S. telecommunications companies have agreed to continue to keep 5G mitigations beyond July 5, 2022, but simultaneously announced their expectation that the U.S. mainline commercial fleet to have radio altimeter retrofits or other enhancements in place by July 2023. We have made clear our commitment to updating our aircraft as soon as possible and we have already completed retrofitting our mainline Airbus A320 fleet with updated radio altimeters. We will continue retrofitting aircraft across both our mainline and regional fleets and currently expect completion by July 2023.

Our technologies and automated systems are not completely protected against events that are beyond our control, including natural disasters, power failures, terrorist attacks, cyber-attacks, data theft, defects, errors, equipment and software failures, computer viruses or telecommunications failures. When service interruptions occur as a result of any of the aforementioned events, we address them in accordance with applicable laws, rules and regulations. However, substantial or sustained system failures could cause service delays or failures and result in our customers purchasing tickets from other airlines. We cannot assure that our security measures, change control procedures or disaster recovery plans are adequate to prevent disruptions or delays. Disruption in or changes to these technologies or systems could result in a disruption to our business and the loss of important data. Any of the foregoing could result in a material adverse effect on our business, results of operations and financial condition.

Evolving data security and privacy requirements (in particular, compliance with applicable federal, state and foreign laws relating to handling of personal information about individuals) could increase our costs, and any significant data security or privacy incident could disrupt our operations, harm our reputation, expose us to legal risks and otherwise materially adversely affect our business, results of operations and financial condition.

In the normal course of our business, we collect, process, use and disclose personal information about individuals and rely on third party service providers to host or otherwise process personal information. Many federal, state and foreign governmental bodies and agencies have adopted, or are considering adopting, laws and regulations that impose limits on the collection, processing, use, disclosure and security of personal information about individuals. In some cases, such laws and regulations can be enforced by private parties in addition to government entities. In addition, privacy advocacy and industry groups may propose new and different self-regulatory standards or guidance that may legally or contractually apply to us and our vendors. These non-uniform laws, regulations, standards and guidance are complex and currently evolving and can be subject to significant change and interpretation, and may be inconsistently applied and enforced from one jurisdiction to another.

Our business requires the secure processing and storage of personal information relating to our customers, employees, business partners and others. However, like any global enterprise operating in today’s digital business environment, we have experienced cybersecurity incidents and data breaches. The threat of cybersecurity incidents continues to increase as the frequency, intensity and sophistication of attacks and intrusions increase around the world.

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Despite ongoing efforts to maintain and improve the security of digital information, individuals, including employees or contractors, may be able to circumvent the security measures we put in place, and we may be unable to anticipate new techniques used for these attacks and intrusions and implement adequate preventative measures. We and our business partners have been the target of cybersecurity attacks and data breaches in the past and expect that we will continue to be in the future. For example, in March 2021, a sub-set of AAdvantage members as well as members of several other major airline loyalty programs received a notification about a security incident involving a limited amount of loyalty data held by a service provider. As another example, in July 2022, a minor phishing incident resulted in certain employee email accounts being accessed and acquired without authorization that contained personal information about a very limited number of individuals, including travelers (following which we notified the individuals). We react and respond to these cybersecurity attacks in accordance with the applicable legal requirements, our own approved cybersecurity protocols, as well as our commercial partners’ standards, but we cannot ensure that our responses will be sufficient to prevent or mitigate the potential adverse impacts of these incidents, which may be material.

Geopolitical issues continue to increase our cybersecurity risk and potential for cybersecurity incidents, for example, the conflict involving Russia and Ukraine, which has resulted in a heightened risk of cyberattacks against companies like ours that have operations, vendors and/or supply chain providers located in or around the region of conflict or are otherwise related to the conflict.

There has been heightened legislative and regulatory focus on data privacy and cybersecurity in the U.S., the EU, China and elsewhere, particularly with respect to critical infrastructure providers, including those in the transportation sector. As a result, we must comply with a proliferating and fast-evolving set of legal requirements in this area, including substantive data privacy and cybersecurity standards as well as requirements for notifying regulators and affected individuals in the event of a data security incident. This regulatory environment is increasingly challenging and may present material obligations and risks to our business, including significantly expanded compliance burdens, costs and enforcement risks.

In addition, many of our commercial partners, including credit card companies, have imposed data security standards that we must meet. In particular, we are required by the Payment Card Industry Security Standards Council, founded by the credit card companies, to comply with their highest level of data security standards. While we continue our efforts to meet these standards, new and revised standards may be imposed that may be difficult for us to meet and could increase our costs.

Significant cybersecurity incidents involving us or one of our AAdvantage partners or other business partners have in the past and may in the future result in a range of potentially material negative consequences for us, including unauthorized access to, disclosure, modification, misuse, loss or destruction of company systems or data; theft of sensitive, regulated or confidential data, such as personal information or our intellectual property; the loss of functionality of critical systems through ransomware, denial of service or other attacks; a diminished ability to retain or attract new customers; a deterioration in our relationships with business partners and other third parties; interruptions or failures in our payment related systems; and business delays, service or system disruptions, damage to equipment and injury to persons or property. The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving and may be difficult to anticipate or to detect for long periods of time. The constantly changing nature of the threats means that we cannot and have not been able to prevent all data security breaches or misuse of data. Similarly, we depend on the ability of our key commercial partners, including AAdvantage partners, other business partners, our regional carriers, distribution partners and technology vendors, to conduct their businesses in a manner that complies with applicable security standards and assures their ability to perform on a timely basis. A security failure, including a failure to meet relevant payment security standards, breach or other significant cybersecurity incident affecting one of our partners, interruptions or failures in our payment related systems, could result in potentially material negative consequences for us, including loss of critical data, service interruptions and the potential for fines, restrictions and expulsion from card acceptance programs. In addition, we use third-party service providers to help us deliver services to customers. These service providers may store personal information, credit card information and/or other confidential information. Such information may be the target of unauthorized access or subject to security breaches because of third-party action, employee error, malfeasance or otherwise. Any of these could (a) result in the loss of information, litigation, indemnity obligations, expensive and inconsistent cybersecurity incident and data breach notification requirements, damage to our reputation, regulatory scrutiny, and other liability, or (b) have a material adverse effect on our business, financial condition and results of operations.

The costs and operational consequences of defending against, preparing for, responding to and remediating an incident of cybersecurity breach may be substantial. As cybersecurity threats become more frequent, intense and sophisticated, costs of proactive defense measures are increasing. Further, we could be exposed to litigation, regulatory

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enforcement or other legal action as a result of an incident, carrying the potential for damages, fines, sanctions or other penalties, as well as injunctive relief and enforcement actions requiring costly compliance measures. A significant number of recent privacy and data security incidents, including those involving other large airlines, have resulted in very substantial adverse financial consequences to those companies. A cybersecurity incident could also impact our brand, including that of the AAdvantage program, harm our reputation and adversely impact our relationship with our customers, employees and stockholders. The increased regulatory focus on data privacy practices apart from how personal data is secured, such as how personal data is collected, used for marketing purposes, and shared with third parties, also may require changes to our processes and increase compliance costs. There is also an increased risk to our business in the event of a significant data privacy violation, including additional compliance costs, reputational harm, disruption to the manner in which we provide our services, including the geographies we service, and being subject to complaints and/or regulatory investigations, significant monetary liability, fines, penalties, regulatory enforcement, individual or class action lawsuits, public criticism, loss of customers, loss of goodwill or other additional liabilities, such as claims by industry groups or other third parties. Accordingly, failure to appropriately address data privacy and cybersecurity issues could result in material financial and other liabilities and cause significant reputational harm to our company.

In addition, litigation, claims and enforcement related to privacy, biometrics and other provisions of state privacy laws may involve new interpretations of privacy laws. Compliance with these laws and regulations may be inconsistent from jurisdiction to jurisdiction, increasing the cost of compliance and our risk of liability from litigation. Any litigation, claims or enforcement actions to which we are or become a party could potentially result in substantial monetary damages or fines.

We rely on third-party distribution channels and must manage effectively the costs, rights and functionality of these channels.

We rely on third-party distribution channels, including those provided by or through global distribution systems (GDSs) (e.g., Amadeus, Sabre and Travelport), conventional travel agents, travel management companies and online travel agents (OTAs) (e.g., Expedia, including its booking sites Orbitz and Travelocity, and Booking Holdings, including its booking sites Kayak and Priceline), to distribute a significant portion of our airline tickets, and we expect in the future to continue to rely on these channels. We are also dependent upon the ability and willingness of these distribution channels to expand their ability to distribute and collect revenues for ancillary products (e.g., fees for selective seating). These distribution channels are more expensive and at present have less functionality in respect of ancillary product offerings than those we operate ourselves, such as our website at www.aa.com. Certain of these distribution channels also effectively restrict the manner in which we distribute our products generally.

To remain competitive, we will need to manage successfully our distribution costs and rights, increase our distribution flexibility and improve the functionality of our distribution channels, while maintaining an industry-competitive cost structure. Further, as distribution technology changes we will need to continue to update our technology by acquiring new technology from third parties, building the functionality ourselves, or a combination, which in any event will likely entail significant technological and commercial risk and involve potentially material investments. These imperatives may affect our relationships with conventional travel agents, travel management companies, GDSs and OTAs, including if consolidation of conventional travel agents, travel management companies, GDSs or OTAs continues, or should any of these parties seek to acquire other technology providers thereby potentially limiting our technology alternatives. Any inability to manage our third-party distribution costs, rights and functionality at a competitive level or any material diminishment or disruption in the distribution of our tickets could have a material adverse effect on our business, results of operations and financial condition.

If we are unable to obtain and maintain adequate facilities and infrastructure throughout our system and, at some airports, adequate slots, we may be unable to operate our existing flight schedule and to expand or change our route network in the future, which may have a material adverse impact on our operations.

In order to operate our existing and proposed flight schedule and, where desirable, add service along new or existing routes, we must be able to maintain and/or obtain adequate gates, check-in counters, operations areas, operations control facilities and administrative support space. As airports around the world become more congested, it may not be possible for us to ensure that our plans for new service can be implemented in a commercially viable manner, given operating constraints at airports throughout our network, including those imposed by inadequate facilities at desirable airports.

In light of constraints on existing facilities, there is presently a significant amount of capital spending underway at major airports in the United States, including large projects underway at a number of airports where we have significant operations, such as Chicago O’Hare International Airport (ORD), Dallas/Fort Worth International Airport, JFK and Los Angeles International Airport (LAX). This spending is expected to result in increased costs to airlines and the traveling

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public that use those facilities as the airports seek to recover their investments through increased rental, landing and other facility costs. In some circumstances, such costs could be imposed by the relevant airport authority without our approval. Accordingly, our operating costs are expected to increase significantly at many airports at which we operate, including a number of our hubs and gateways, as a result of capital spending projects currently underway and additional projects that we expect to commence over the next several years.

In addition, operations at three major domestic airports, certain smaller domestic airports and many foreign airports we serve are regulated by governmental entities through allocations of slots or similar regulatory mechanisms that limit the rights of carriers to conduct operations at those airports. Each slot represents the authorization to land at or take off from the particular airport during a specified time period and may impose other operational restrictions as well. In the U.S., the DOT and the FAA currently regulate the allocation of slots or slot exemptions at DCA and two New York City airports: JFK and LGA. Our operations at these airports generally require the allocation of slots or similar regulatory authority. In addition to slot restrictions, operations at DCA and LGA are also limited based on a so-called “perimeter rule” which generally limits the stage length of the flights that can be operated from those airports to 1,250 and 1,500 miles, respectively. Similarly, our operations at LHR, international airports in Beijing, Frankfurt, Paris, Tokyo and other airports outside the U.S. are regulated by local slot authorities pursuant to the International Airline Trade Association Worldwide Scheduling Guidelines and/or applicable local law. Termination of slot controls at some or all of the foregoing airports could affect our operational performance and competitive position. We currently have sufficient slots or analogous authorizations to operate our existing flights and we have generally, but not always, been able to obtain the rights to expand our operations and to change our schedules. However, there is no assurance that we will be able to obtain sufficient slots or analogous authorizations in the future or as to the cost of acquiring such rights because, among other reasons, such allocations are often sought after by other airlines and are subject to changes in governmental policies. Due to the dramatic reduction in air travel during the COVID-19 pandemic, we relied in many instances on exemptions granted by applicable authorities from the requirement that we continuously use certain slots, gates and routes or risk having such operating rights revoked, and depending on the applicable authority these exemptions can vary in the way they are structured and applied. We cannot predict whether such exemptions will continue to be made available, whether they will be granted on the same or similar terms, or whether we ultimately could be at risk of losing valuable operating rights. If we are forced to surrender slots, we may be unable to provide our desired level of service to or from certain destinations in the future. We cannot provide any assurance that regulatory changes resulting in changes in the application of slot controls or the allocation of or any reallocation of existing slots, the continued enforcement or termination of a perimeter rule or similar regulatory regime will not have a material adverse impact on our operations.

Our ability to provide service can also be impaired at airports, such as LAX and ORD where the airport gates and other facilities are currently inadequate to accommodate all of the service that we would like to provide, or airports such as Dallas Love Field Airport where we have no access to gates at all.

Any limitation on our ability to acquire or maintain adequate gates, ticketing facilities, operations areas, operations control facilities, slots (where applicable), or office space could have a material adverse effect on our business, results of operations and financial condition.

Interruptions or disruptions in service at one of our key facilities could have a material adverse impact on our operations.

We operate principally through our hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways including London Heathrow (among others). Substantially all of our flights either originate at or fly into one of these locations. A significant interruption or disruption in service at one of our hubs, gateways or other airports where we have a significant presence, resulting from air traffic control delays, weather conditions, natural disasters, growth constraints, performance by third-party service providers (such as electric utility or telecommunications providers), failure of computer systems, disruptions at airport facilities or other key facilities used by us to manage our operations (including as a result of social or environmental activism), labor relations, power supplies, fuel supplies, terrorist activities, or otherwise could result in the cancellation or delay of a significant portion of our flights and, as a result, could have a severe impact on our business, results of operations and financial condition. We have limited control, particularly in the short term, over the operation, quality or maintenance of many of the services on which our operations depend and over whether vendors of such services will improve or continue to provide services that are essential to our business.

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Increases in insurance costs or reductions in insurance coverage may adversely impact our operations and financial results.

The terrorist attacks of September 11, 2001 led to a significant increase in insurance premiums and a decrease in the insurance coverage available to commercial air carriers. Accordingly, our insurance costs increased significantly, and our ability to continue to obtain insurance even at current prices remains uncertain. The occurrence or persistence of certain events, including armed conflicts, could also impact our ability to obtain commercial insurance coverage against certain risks, or to obtain such insurance on commercially acceptable terms. If we are unable to maintain adequate insurance coverage or to secure suitable alternatives outside the commercial insurance markets, our business could be materially and adversely affected. Additionally, severe disruptions in the domestic and global financial markets could adversely impact the claims paying ability of some insurers. Future downgrades in the ratings of enough insurers could adversely impact both the availability of appropriate insurance coverage and its cost. Because of competitive pressures in our industry, our ability to pass along additional insurance costs to passengers is limited. As a result, further increases in insurance costs or reductions in available insurance coverage could have an adverse impact on our financial results.

The airline industry is heavily taxed.

The airline industry is subject to extensive government fees and taxation that negatively impact our revenue and profitability. The U.S. airline industry is one of the most heavily taxed of all industries. These fees and taxes have grown significantly in the past decade for domestic flights, and various U.S. fees and taxes also are assessed on international flights. For example, as permitted by federal legislation, most major U.S. airports impose a per-passenger facility charge on us. In addition, the governments of foreign countries in which we operate impose on U.S. airlines, including us, various fees and taxes, and these assessments have been increasing in number and amount in recent years. Moreover, we are obligated to collect a federal excise tax, commonly referred to as the “ticket tax,” on domestic and international air transportation. We collect the excise tax, along with certain other U.S. and foreign taxes and user fees on air transportation (such as passenger security fees), and pass along the collected amounts to the appropriate governmental agencies. Although these taxes and fees are not our operating expenses, they represent an additional cost to our customers. There are continuing efforts in Congress and in other countries to raise different portions of the various taxes, fees, and charges imposed on airlines and their passengers, including the passenger facility charge, and we may not be able to recover all of these charges from our customers. Increases in such taxes, fees and charges could negatively impact our business, results of operations and financial condition.

Under DOT regulations, all governmental taxes and fees must be included in the prices we quote or advertise to our customers. Due to the competitive revenue environment, many increases in these fees and taxes have been absorbed by the airline industry rather than being passed on to the customer. Further increases in fees and taxes may reduce demand for air travel, and thus our revenues.

Risks Related to Ownership of AAG Common Stock and Convertible Notes

The price of AAG common stock has been and may in the future be volatile.

The market price of AAG common stock has fluctuated substantially in the past, and may fluctuate substantially in the future, due to a variety of factors, many of which are beyond our control, including:

•the effects of the COVID-19 pandemic on our business or the U.S. and global economies;

•macro-economic conditions, including the price of fuel;

•changes in market values of airline companies as well as general market conditions;

•our operating and financial results failing to meet the expectations of securities analysts or investors;

•changes in financial estimates or recommendations by securities analysts;

•changes in our level of outstanding indebtedness and other obligations;

•changes in our credit ratings;

•material announcements by us or our competitors;

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•expectations regarding any future capital deployment program, including share repurchase programs and any future dividend payments that may be declared by our Board of Directors, or any subsequent determination to cease repurchasing stock or paying dividends;

•new regulatory pronouncements and changes in regulatory guidelines;

•general and industry-specific economic conditions;

•changes in our key personnel;

•public or private sales of a substantial number of shares of AAG common stock or issuances of AAG common stock upon the exercise or conversion of restricted stock unit awards, stock appreciation rights, or other securities that may be issued from time to time, including warrants we have issued in connection with our receipt of funds under the CARES Act, the PSP Extension Law and the ARP;

•increases or decreases in reported holdings by insiders or other significant stockholders;

•fluctuations in trading volume; and

•technical factors in the public trading market for our stock that may produce price movements that may or may not comport with macro, industry or company-specific fundamentals, including, without limitation, the sentiment of retail investors (including as may be expressed on financial trading and other social media sites), the amount and status of short interest in our securities, access to margin debt, trading in options and other derivatives on our common stock and any related hedging and other technical trading factors.

The closing price of our common stock on the Nasdaq Global Select Market varied from $11.86 to $20.22 during 2022 and $12.74 to $17.08 during 2023 year-to-date through April 21, 2023. At times, fluctuations in our stock price have been rapid, imposing risks on investors due to the possibility of significant, short-term price volatility. While we believe that in recent years this wide range of trading prices has largely reflected the changing prospects for a large airline facing the challenges imposed by the COVID-19 pandemic, we also believe, based in part on the commentary of market analysts, that the trading price of our common stock has at times been influenced by the technical trading factors discussed in the last bullet above. On some occasions, market analysts have explained fluctuations in our stock price by reference to purported “short squeeze” activity. A “short squeeze” is a technical market condition that occurs when the price of a stock increases substantially, forcing market participants who had taken a position that its price would fall (i.e., who had sold the stock “short”), to buy it, which in turn may create significant, short-term demand for the stock not for fundamental reasons, but rather due to the need for such market participants to acquire the stock in order to forestall the risk of even greater losses. A “short squeeze” condition in the market for a stock can lead to short-term conditions involving very high volatility and trading that may or may not track fundamental valuation models.

If we do decide to make repurchases of or pay dividends on our common stock, we cannot guarantee that we will continue to do so or that such a capital deployment program will enhance long-term stockholder value.

In connection with the financial assistance provided under PSP1, PSP2 and PSP3, we agreed not to repurchase shares of AAG common stock through September 30, 2022. Following the expiration of these restrictions, if we determine to make any share repurchases in the future, such repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Our future repurchases of AAG common stock, if any, may be limited, suspended or discontinued at any time at our discretion and without prior notice.

In connection with the financial assistance provided under PSP1, PSP2 and PSP3, we also agreed not to pay dividends on AAG common stock through September 30, 2022. Following the expiration of these restrictions, if we determine to make any dividends in the future, such dividends that may be declared and paid from time to time will be subject to market and economic conditions, applicable legal requirements and other relevant factors. The amount and timing of any future dividends, if any, may vary, and the payment of any dividend does not assure that we will pay dividends in the future.

In addition, any future repurchases of AAG common stock or payment of dividends, or any determination to cease repurchasing stock or paying dividends, could affect our stock price and increase its volatility. The existence of a future share repurchase program and any future dividends could cause our stock price to be higher than it would otherwise be and could potentially reduce the market liquidity for our stock. Additionally, any future repurchases of AAG common stock

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or payment of dividends will diminish our cash reserves, which may impact our ability to finance future growth and to pursue possible future strategic opportunities and acquisitions. Further, our repurchase of AAG common stock may fluctuate such that our cash flow may be insufficient to fully cover our share repurchases. Under the recently enacted IRA, we may become subject to an excise tax on the fair market value of AAG common stock repurchased after December 31, 2022, which may adversely affect our financial condition. Although our share repurchase programs are intended to enhance long-term stockholder value, there is no assurance that they will do so.

AAG’s Certificate of Incorporation, Bylaws and Tax Benefit Preservation Plan include provisions that limit voting and acquisition and disposition of our equity interests and specify an exclusive forum for certain stockholder disputes.

Our Certificate of Incorporation and Bylaws include significant provisions that limit voting and ownership and disposition of our equity interests as described in Part II, Item 5. Market for American Airlines Group’s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities – “Ownership Restrictions” and AAG’s Description of the Registrants’ Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, which is filed as Exhibit 4.1 in our 2022 Form 10-K. Further restrictions are set forth in our Tax Benefit Preservation Plan. These restrictions may adversely affect the ability of certain holders of AAG common stock and our other equity interests to vote such interests and adversely affect the ability of persons to acquire shares of AAG common stock and our other equity interests.

Our Certificate of Incorporation also specifies that the Court of Chancery of the State of Delaware shall be the exclusive forum for substantially all disputes between us and our stockholders. Because the applicability of the exclusive forum provision is limited to the extent permitted by applicable law, we do not intend for the exclusive forum provision to apply to suits brought to enforce any duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction, and acknowledge that federal courts have concurrent jurisdiction over all suits brought to enforce any duty or liability created by the Securities Act of 1933, as amended (Securities Act). We note that there is uncertainty as to whether a court would enforce the provision as it applies to the Securities Act and that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. This provision may have the effect of discouraging lawsuits against our directors and officers.

Certain provisions of AAG’s Certificate of Incorporation and Bylaws make it difficult for stockholders to change the composition of our Board of Directors and may discourage takeover attempts that some of our stockholders might consider beneficial.

Certain provisions of our Certificate of Incorporation and Bylaws, as currently in effect, may have the effect of delaying or preventing changes in control if our Board of Directors determines that such changes in control are not in our best interest and the best interest of our stockholders. These provisions include, among other things, the following:

•advance notice procedures for stockholder proposals to be considered at stockholders’ meetings;

•the ability of our Board of Directors to fill vacancies on the board;

•a prohibition against stockholders taking action by written consent;

•stockholders are restricted from calling a special meeting unless they hold at least 20% of our outstanding shares and follow the procedures provided for in the amended Bylaws;

•a requirement that holders of at least 80% of the voting power of the shares entitled to vote in the election of directors approve any amendment of our Bylaws submitted to stockholders for approval; and

•super-majority voting requirements to modify or amend specified provisions of our Certificate of Incorporation.

These provisions are not intended to prevent a takeover, but are intended to protect and maximize the value of the interests of our stockholders. While these provisions have the effect of encouraging persons seeking to acquire control of our company to negotiate with our Board of Directors, they could enable our Board of Directors to prevent a transaction that some, or a majority, of our stockholders might believe to be in their best interest and, in that case, may prevent or discourage attempts to remove and replace incumbent directors. In addition, we are subject to the provisions of Section 203 of the Delaware General Corporation Law, which prohibits business combinations with interested

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stockholders. Interested stockholders do not include stockholders whose acquisition of our securities is approved by the Board of Directors prior to the investment under Section 203.

The issuance or sale of shares of our common stock, rights to acquire shares of our common stock, or warrants issued to Treasury under the CARES Act, the PSP Extension Law, the ARP, PSP1, PSP2 and PSP3, could depress the trading price of our common stock and the Convertible Notes.

We may conduct future offerings of material amounts of our common stock, preferred stock or other securities that are convertible into or exercisable for our common stock to finance our operations, to fund acquisitions, or for any other purposes at any time and from time to time (including as compensation to the U.S. Government for the proceeds received pursuant to PSP1, PSP2 or PSP3). If these additional shares or securities are issued or sold, or if it is perceived that they will be sold, into the public market or otherwise, the trading price of our common stock and the 6.50% convertible senior notes due 2025 (the Convertible Notes) could decline substantially. If we issue additional shares of our common stock or rights to acquire shares of our common stock, if any of our existing stockholders sells a substantial amount of our common stock, or if the market perceives that such issuances or sales may occur, then the trading price of our common stock and the Convertible Notes could decline substantially.

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ITEM 6. EXHIBITS

Exhibits required to be filed by Item 601 of Regulation S-K: Where the amount of securities authorized to be issued under any of our long-term debt agreements does not exceed 10% of our assets, pursuant to paragraph (b)(4) of Item 601 of Regulation S-K, in lieu of filing such as an exhibit, we hereby agree to furnish to the Commission upon request a copy of any agreement with respect to such long-term debt.

Exhibit Number	Description
4.1	Indenture, dated as of February 15, 2023, by and among American Airlines, Inc., American Airlines Group Inc. and Wilmington Trust, National Association, as trustee and as collateral agent (incorporated by reference to Exhibit 4.1 to AAG’s Current Report on Form 8-K filed on February 15, 2023 (Commission File No. 1-8400)).
4.2	Form of 7.25% Senior Secured Notes due 2028 (incorporated by reference to Exhibit A to Exhibit 4.1 AAG’s Current Report on Form 8-K filed on February 15, 2023 (Commission File No. 1-8400)).
10.1	Letter Agreement, dated as of January 19, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
10.2	Supplemental Agreement No. 18, dated as of February 9, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
31.1	Certification of AAG Chief Executive Officer pursuant to Rule 13a-14(a).
31.2	Certification of AAG Chief Financial Officer pursuant to Rule 13a-14(a).
31.3	Certification of American Chief Executive Officer pursuant to Rule 13a-14(a).
31.4	Certification of American Chief Financial Officer pursuant to Rule 13a-14(a).
32.1	AAG Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code).
32.2	American Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code).
101.1	Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL (eXtensible Business Reporting Language).
104.1	Cover page interactive data file (formatted in Inline XBRL and contained in Exhibit 101.1).

* Portions of this exhibit have been omitted in accordance with Item 601(b)(10) of Regulation S-K.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		American Airlines Group Inc.
Date: April 27, 2023	By:	/s/ Devon E. May
		Devon E. May
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		American Airlines, Inc.
Date: April 27, 2023	By:	/s/ Devon E. May
		Devon E. May
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

84

EX-10.1

Exhibit 10.1

Certain information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) is the type that the registrant treats as private or confidential.

    The Boeing Company

    P.O. Box 3707

    Seattle, WA 98124 2207

AAL-LA-2300047

American Airlines, Inc.

P.O. Box 619616

Dallas-Fort Worth Airport

Dallas, Texas 75261-9616    

Subject:    [****] for 787 [****] (January 2023)

Reference:    AAL-LA-2100511, [****] for 787 [****], dated March 9, 2021, between American Airlines, Inc. (Customer) and The Boeing Company (Boeing) (March 2021 Agreement)

This agreement (Agreement) is between Customer and Boeing.

RECITALS

Boeing and Customer are parties to Purchase Agreement No. 3219 (Purchase Agreement), pursuant to which Customer has committed to purchase from Boeing and Boeing is committed to manufacture and sell to Customer, among other things, seventeen (17) Boeing model 787-8 aircraft as [****] to the Purchase Agreement (787-8 [****] Aircraft). Capitalized terms used in this Agreement without definitions have the meanings specified to them in the Purchase Agreement.

Customer has taken delivery of the thirteen (13) 787-8 [****] Aircraft [****] (Delivered 787-8 [****] Aircraft and[****] Delivered 787-8 [****] Aircraft, respectively) with four (4) 787-8 [****] Aircraft remaining to be delivered under the Purchase Agreement ([****] Undelivered 787-8 [****] Aircraft).

The [****] of [****] 787-8 [****] Aircraft [****]. After the [****], [****] 787-8 [****] Aircraft [****] set forth in Tables 2 and 3 of Attachment A [****] ([****]). [****].

In [****].

AGREEMENTS

Boeing and Customer have agreed to [****] for the [****] Undelivered 787-8 [****] Aircraft [****].

Attachment A contains [****] of (i) the [****] Scheduled Delivery Months [****] and the [****] for the Delivered 787-8 [****] Aircraft [****], (ii) the [****] Scheduled Delivery Months [****], the [****] Scheduled Delivery Month, and the [****] for the [****] Delivered 787-8 [****] Aircraft [****] and (iii) the [****] Scheduled Delivery Months [****], the [****] Scheduled Delivery Month, and the [****] Scheduled Delivery Month for the [****] Undelivered 787-8 [****] Aircraft [****].

The [****], [****] in this Agreement will [****]. Boeing [****] with Section 4 below. These [****], subject to and in accordance with this Agreement and the Purchase Agreement, ([****]), and b) Customer’s [****] under this Agreement and the Purchase Agreement including as such [****] are modified by this Agreement, and are subject to [****] set forth

AAL-LA-2300047

[****] Accommodations for 787 [****] (January 2023)    Page 1

BOEING PROPRIETARY

under this Agreement and the Purchase Agreement, including as such [****] are modified under this Agreement.

1.[****] for the [****] Undelivered [****] Exercised Aircraft

Boeing and Customer [****] that the [****] Undelivered 2018 787-8 [****] Aircraft are [****] as set forth on Attachment A.

2.[****].

2.1    [****]. Prior to the date of this Agreement, Boeing [****] Customer [****] of Letter Agreement No. 6-1162-TRW-0670R1 to the Purchase Agreement entitled Miscellaneous Commitments for Model 787 Aircraft, [****] shown in the table below ([****]), and Customer will [****] to Boeing. The Parties agree that as of the date of this Agreement Boeing [****] Delivered 787-8 [****] Aircraft and [****] Undelivered 787-8 [****] Aircraft [****] to Customer as [****] Scheduled Delivery Months of such [****] 2018 [****] Aircraft or [****] Undelivered 787-8 [****] Aircraft.

MSN and Block No.	Category	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft t	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]
[****]	[****] Delivered 787-8 [****] Aircraft	[****]

AAL-LA-2300047

[****] for 787 [****] (January 2023)    Page 2

BOEING PROPRIETARY

[****]	[****] Undelivered 787-8 [****] Aircraft	[****]
[****]	[****] Undelivered 787-8 [****] Aircraft	[****]
[****]	[****] Undelivered 787-8 [****] Aircraft	[****]
[****]	[****] Undelivered 787-8 [****] Aircraft	[****]
[****]		[****]

    2.2    [****].    Boeing will [****] ([****]). [****] as follows:

2.2.1 [****].

2.2.2 [****].

2.2.3 [****].

3.     [****].

    Boeing and Customer agree that the [****] Undelivered 2018 787-8 [****] Aircraft [****].

4.    [****].

4.1    Customer agrees that, [****], the [****] to Customer as contained in this Agreement [****] by Customer [****], and are [****] Customer may have [****] Boeing, [****] of Boeing’s [****] to Customer with [****]. Customer [****] Boeing and its [****].

4.2    [****] in Section 4.1 above and the provisions of Section 2.1 above, this Agreement [****], and Customer [****], [****] under the Purchase Agreement, or [****] for (a) [****], or (b) [****]. [****].

5.     Administrative Supplemental Agreement.

Boeing and Customer will sign a mutually agreeable supplemental agreement to the Purchase Agreement within [****] calendar days after Boeing has provided Customer a draft of the Supplemental Agreement that administratively incorporates the relevant terms of this Agreement into the Purchase Agreement. Failure to execute a supplemental agreement does not nullify any agreements set forth in this Agreement.

AAL-LA-2300047

[****] for 787 [****] (January 2023)    Page 3

BOEING PROPRIETARY

6.    Governing Law.

This Agreement will be interpreted under and governed by the laws of the state of Washington, U.S.A., except that the conflict of laws provisions under Washington law will not be applied for the purpose of making other law applicable.

7.    Confidentiality.

The information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. This Agreement will be subject to the terms and conditions of Letter Agreement No. AAL-PA-03735-LA-1106670 to the Purchase Agreement entitled Confidentiality.

8.    Effect on Purchase Agreement.

Except as expressly set forth in this Agreement, all terms and provisions contained in the Purchase Agreement will remain in full force and effect. [****] and may be changed only in writing signed by authorized representatives of the parties.

ACCEPTED AND AGREED TO this
Date:	January 19, 2023
AMERICAN AIRLINES, INC.		THE BOEING COMPANY
By:	/s/ American Airlines, Inc.	By:	/s/ The Boeing Company
Name:	American Airlines, Inc.	Name:	The Boeing Company
Title:	VP, Treasurer	Title:	Attorney-In-Fact

AAL-LA-2300047

[****] for 787 [****] (January 2023)    Page 4

BOEING PROPRIETARY

Attachment A

to

AAL-LA-2300047

Table 1

Delivered 787-8 [****] Aircraft
[****] Scheduled Delivery Month	[****]
[****]-2020	[****]
[****]-2020	[****]
[****]-2020	[****]
[****] 2020	[****]

Table 2

[****] Delivered 787-8 [****] Aircraft
[****] Scheduled Delivery Month	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2020	[****]	[****]
[****]-2021	[****]	[****]

Table 3

[****] Undelivered 787-8 [****] Aircraft
[****] Scheduled Delivery Month	[****]	[****]
[****]-2021	[****]	[****]
[****]-2021	[****]	[****]
[****]-2021	[****]	[****]
[****]-2021	[****]	[****]

AAL-LA-2300047

[****] for 787 [****] (January 2023)    Page 5

BOEING PROPRIETARY

EX-10.2

Exhibit 10.2

Certain information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) is the type that the registrant treats as private or confidential.

SUPPLEMENTAL AGREEMENT NO. 18

to

Purchase Agreement No. 3219

between

THE BOEING COMPANY

and

AMERICAN AIRLINES, INC.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT No. 18 (SA-18) is made between THE BOEING COMPANY, a Delaware corporation with offices in Seattle, Washington (Boeing), and AMERICAN AIRLINES, INC, a Delaware corporation with offices in Fort Worth, Texas, together with its successors and permitted assigns (Customer);

WHEREAS, Boeing and Customer entered into Purchase Agreement No. 3219 dated October 15, 2008, relating to Boeing Model 787 aircraft, as amended and supplemented (Purchase Agreement) and capitalized terms used herein without definitions shall have the meanings specified in such Purchase Agreement;

WHEREAS, Customer and Boeing agree to [****] the [****] for certain undelivered 2018 787-8 [****] Aircraft set forth on [****];

WHEREAS, Customer and Boeing agree to [****] to 787 aircraft; and

NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set forth below and otherwise agree as follows:

1.Table of Contents.

The Table of Contents referencing SA-17 in the footer is deleted in its entirety and is replaced with the new Table of Contents (attached hereto) referencing SA-18 in the footer. Such new Table of Contents is hereby incorporated into the Purchase Agreement in replacement of its predecessor.

PA 3219    SA-18        Page 1

BOEING PROPRIETARY

2.Tables.

Table 6R3. Table 6R2 entitled “787-8 [****] Aircraft, Aircraft Delivery, Description, Price and Advance Payments” referencing SA-16 in the footer is deleted in its entirety and is replaced with the similarly titled Table 6R3 (attached hereto) referencing SA-18 in the footer. Table 6R3 is hereby incorporated into the Purchase Agreement in replacement of Table 6R2.

3.Letter Agreements.

Letter Agreement AAL-PA-3219-2300600 entitled “[****]” is hereby incorporated into the Purchase Agreement.    

4.Effect on Purchase Agreement.

4.1Table 6 Reference Clarifications.

The following references in the Purchase Agreement and the associated exhibits, supplemental exhibits, and letter agreements to the Purchase Agreement to “Table 6R2” is now deemed to refer to “Table 6R3”. Specifically, the locations of such references are (but may not be limited to) as follows:

Location of References*

Articles 1, 2, 3 (all sections), 4 (all sections), and Section 5.1 of the Basic Articles

Exhibit C(R1), Definitions of “Aircraft” and “Engine”

Section 1 of Supplemental Exhibit AE1

Section 1 (definition of “[****]”) and Attachment C(R4) of Letter Agreement 6-1162-TRW-0664R2 entitled “[****]”

Section 1.4.1 of Letter Agreement 6-1162-CLO-1047R4 entitled “[****]”

Section 1.1 of LA 6-1162-TRW-0672R1 entitled “Promotional Support Agreement”

Section 9.2 of Letter Agreement 6-1162-TRW-0674R4 entitled “Business Considerations”

Section 1.1 of Letter Agreement AAL-PA-3219-LA1802492 entitled “Open Configuration Matters”

PA 3219    SA-18    Page 2

BOEING PROPRIETARY

The 2nd paragraph of Letter Agreement AAL-PA-3219-LA-201170 entitled “[****]”

Sections 6 and 7 of Supplemental Agreement No. 11

Supplemental Exhibit EE2

4.2    Except as expressly set forth herein, all terms and provisions contained in the Purchase Agreement shall remain in full force and effect. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous proposals, and agreements, understandings, commitments or representations whatsoever, oral or written, with respect to the subject matter hereof and may be changed only in writing signed by authorized representatives of the parties.

AGREED AND ACCEPTED
February 9, 2023
Date
THE BOEING COMPANY	AMERICAN AIRLINES, INC.
/s/ The Boeing Company	/s/ American Airlines, Inc.
Signature	Signature
The Boeing Company	American Airlines, Inc.
Printed name	Printed name
Attorney-in-Fact	VP, Treasurer
Title	Title

PA 3219    SA-18    Page 3

BOEING PROPRIETARY

TABLE OF CONTENTS

ARTICLES			SA NUMBER
1.	Quantity, Model and Description		SA-3
2.	Delivery Schedule		SA-3
3.	Price		SA-3
4.	Payment		SA-3
5.	Miscellaneous		SA-3
6.	Confidential Treatment
TABLE
1.	Aircraft Information Table – TRENT WITHDRAWN		SA-2
1(R7)	787-9 Aircraft Information Table – GENX
2(R1)	787-8 Aircraft Information Table – GENX ([****] (12) 787-8 Aircraft)		SA-5
3(R1)	787-8 Aircraft Information Table – GENX ([****] Eight (8) 787-8 Aircraft, yielding Twenty (20) 787-8 Aircraft)		SA-5
4	WITHDRAWN		SA-6
5(R1) 6R3 7	2018 787-9 [****] Aircraft Information Table – GENX 2018 787-8 [****] Aircraft Information Table-GENX 2018 787-9 [****] Aircraft Information Table – GENX		SA-16 SA-18 SA-16
EXHIBIT
A(R3).	Aircraft Configuration for [****] Aircraft		SA-11
A2(R5)	Aircraft Configuration for [****] Aircraft		SA-12
B(R1).	Aircraft Delivery Requirements and Responsibilities		SA-3
C(R1).	Defined Terms		SA-3
SUPPLEMENTAL EXHIBITS
AE1.		[****]
BFE1(R1).		Buyer Furnished Equipment Variables 787-9	SA-3
BFE2.		Buyer Furnished Equipment Variables 787-8	SA-3
CS1.		787 Customer Support Document
EE1.		[****]

P.A. No. 3219     SA-18

Table of Contents         Page 1

BOEING PROPRIETARY

TABLE OF CONTENTS, continued

EE1.	[****] WITHDRAWN	SA-2
EE2.	[****]	SA-4
SLP1.	Service Life Policy Components
LETTER AGREEMENTS		SA NUMBER
3219-01	[****]
3219-02	Special Terms – Seats and In-Flight Entertainment
3219-04	[****]
3219-05R1	Spare Parts Commitments	SA-3
3219-06R1	Spare Parts Initial Provisioning	SA-3
3219-08R2	Open Configuration Matters WITHDRAWN	SA-8
6-1162-AKP-071R1	[****]Terminated per AAL-PA-1977-LA-1105595
6-1162-AKP-072R2	[****]Terminated per AAL-PA-1977-LA-1105595
6-1162-AKP-073R1	Accident Claims and Litigation
6-1162-CLO-1031R1	[****] WITHDRAWN	SA-2 SA-3
6-1162-CLO-1032R1	[****] Terminated	SA-3
6-1162-CLO-1039	[****]
6-1162-CLO-1042	[****]
6-1162-CLO-1043R1	787 Inspection Process	SA-3
6-1162-CLO-1045R1	[****]	SA-2
6-1162-CLO-1046	SA-eE, COTS Software and End User License Matters WITHDRAWN	SA-3
6-1162-CLO-1047R4	[****]	SA-11
6-1162-CLO-1048	Final Matters    WITHDRAWN	SA-2
6-1162-CLO-1049R2	CS1 Matters	SA-6
6-1162-TRW-0664R2	Aircraft Purchase Rights and Substitution Rights	SA-11
	Attachment A(R2) – MADP Exercise Dates WITHDRAWN	SA-11

P.A. No. 3219     SA-18

Table of Contents         Page 2

BOEING PROPRIETARY

TABLE OF CONTENTS, continued

	Attachment B(R2) – QADP Exercise Dates WITHDRAWN	SA-11
	Attachment C(R3) – MADP & QADP Rights Aircraft: Description/Price Data Attachment C(R4)	SA-11
	Attachment D – Form of Purchase Agreement Supplement	SA-11
	Attachment E – Letter Agreements To Be Included In Purchase Agreement Supplement	SA-6
6-1162-TRW-0665	[****] WITHDRAWN	SA-3
6-1162-TRW-0666	[****] WITHDRAWN	SA-3
6-1162-TRW-0667R3	[****]	SA-11
6-1162-TRW-0668R1	Special Matters Relating to COTS Software and End User License Agreements	SA-3
6-1162-TRW-0670R1	Miscellaneous Commitments for Model 787 Aircraft	SA-3
6-1162-TRW-0671	[****] WITHDRAWN	SA-3
6-1162-TRW-0672R1	Promotional Support Agreement	SA-3
6-1162-TRW-0673R1	Confidentiality	SA-3
6-1162-TRW-0674R4	Business Considerations	SA-11
AAL-PA-3219-LA-08836R2	[****]	SA-11
AAL-PA-3219-LA-08837R1	[****]	SA-6
AAL-PA-3219-LA-08838	[****]	SA-3
AAL-LA-1106678	[****]	SA-3
AAL-PA-3219-LA-1302236R2	[****]	SA-13
AAL-PA-3219-LA-1604503R1	787 Business Matters	SA-8
AAL-PA-03219-LA-1701988	[****]	SA-10
AAL-PA-03219_LA-1804779	[****]	SA-11
AAL-PA-03219-LA-1802262R1	[****]	SA-12
AAL-PA-03219-LA-1802492	Open Configuration Matters	SA-11
AAL-PA-3219-LA-2001170	[****]	SA-15
AAL-PA-3219-2101557	[****]	SA-16
AAL-LA-2100530	[****]	SA-16
AAL-PA-3219-2300600	[****]	SA-18

P.A. No. 3219     SA-18

Table of Contents         Page 3

BOEING PROPRIETARY

TABLE OF CONTENTS, continued

ATTACHMENTS
Attachment 1	Schedule for [****] of 787-9 MADP Rights	SA-11
Attachment 2	Schedule for [****] of 787-9 QADP Rights	SA-11
Attachment 3	787-9 Purchase Rights Aircraft [****] Delivery Schedule	SA-11

P.A. No. 3219     SA-18

Table of Contents         Page 4

BOEING PROPRIETARY

Table 6R3 To

Purchase Agreement No. PA-03219

787-8 [****] Aircraft, Aircraft Delivery, Description, Price and Advance Payments

Airframe Model/MTOW:	787-8	[****] pounds	Detail Specification:    [****]
Engine Model/Thrust:	GENX-1B70	[****] pounds	Airframe Price Base Year/Escalation Formula:    [****]		[****]
Airframe Price:		$[****]	Engine Price Base Year/Escalation Formula:    [****]		[****]
Optional Features:		$[****]
Sub-Total of Airframe and Features:		$[****]	Airframe Escalation Data:
Engine Price (Per Aircraft):		$[****]	Base Year Index (ECI):	[****]
Aircraft Basic Price (Excluding BFE/SPE):		$[****]	Base Year Index (CPI):	[****]
Buyer Furnished Equipment (BFE) Estimate:		$[****]	Engine Escalation Data:
//Seller Purchased Equipment (SPE)/In-Flight Entertainment (IFE)// Estimate:		$[****]	Base Year Index (ECI):	[****]
LIFT Seats Provided by Boeing (Estimate):		$[****]	Base Year Index (CPI):	[****]
Deposit per Aircraft:		$[****]

[****]	[****]	[****]		Escalation	Escalation	Escalation Estimate	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Scheduled	Scheduled	Scheduled	Number of	Factor	Factor	Adv Payment Base	[****]	[****]	[****]	Total
Delivery Month	Delivery Months	Delivery Months	Aircraft	(Airframe)	(Engine)	Price Per A/P	[****]	[****]	[****]	[****]
[****]-2020		Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]-2020		Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]-2020		Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]

AAL-PA-03219 113460-1F.txt SA-18 Table 6R3

                                                      Page 1

Boeing Proprietary

Table 6R3 To

Purchase Agreement No. PA-03219

787-8 [****] Aircraft, Aircraft Delivery, Description, Price and Advance Payments

[****]	[****]	[****]		Escalation	Escalation	Escalation Estimate	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Scheduled	Scheduled	Scheduled	Number of	Factor	Factor	Adv Payment Base	[****]	[****]	[****]	Total
Delivery Month	Delivery Months	Delivery Months	Aircraft	(Airframe)	(Engine)	Price Per A/P	[****]	[****]	[****]	[****]
[****]	[****]	[****] [****]-2023	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	[****] [****]-2023	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Delivered	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	[****] [****]-2023	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
[****]	[****]	Undelivered [****]-2023	1	[****]	[****]	$[****]	$[****]	$[****]	$[****]	$[****]
Total:			17

AAL-PA-03219 113460-1F.txt SA-18 Table 6R3

                                                      Page 1

Boeing Proprietary

The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207

AAL-PA-3219-LA-2300600

American Airlines, Inc.

P.O. Box 619616

Dallas-Fort Worth Airport, Texas 75261-9616

Subject:    [****]

References:    (a)    Purchase Agreement No. 3219 (Purchase Agreement) between The Boeing Company (Boeing) and American Airlines, Inc. (Customer) relating to Model 787 aircraft (collectively, the Aircraft); and

(b) Aircraft General Terms Agreement No. AGTA-AAL (AGTA) between Boeing and Customer dated as of October 31, 1997.

This agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement or the AGTA, as the context requires.

As of the date of this Letter Agreement, Customer has [****] ([****]) [****] 2018 787-8 [****] Aircraft under the Purchase Agreement.

Boeing and Customer agree as follows:

1.787-8 [****] Aircraft.

1.1 [****] Undelivered 2018 787-8 [****] Aircraft.

1.1.1    Boeing and Customer acknowledge (i) that the [****] of [****] ([****]) [****] 2018 787-8 [****] Aircraft ([****] 2018 787-8 [****] Aircraft) [****] ([****]) and (ii) that the [****] for the [****] 787-8 [****] Aircraft [****] ([****]).

1.1.2    Boeing and Customer agree that the [****] of the [****] 2018 787-8 [****] Aircraft is [****].

2.Assignment.

Notwithstanding any other provision of the Purchase Agreement except for the AGTA Assignment Provisions (as defined in Section 1 of Letter Agreement AAl-LA-1106678 entitled “Assignment Matter”), the rights and obligations described in this Letter Agreement are provided to Customer in consideration of Customer’s becoming the operator of the Aircraft and cannot be assigned, in whole or in part, without the prior written consent of Boeing.

3.Confidential Treatment.

Customer and Boeing understand that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. This Letter Agreement Letter shall be subject to

P.A. No. 3219    SA-18          L.A. AAL-PA-3219-LA-2300600

[****]                             Page 1

BOEING PROPRIETARY

the terms and conditions of Letter Agreement 6-1162-TRW-0673R1 entitled “Confidentiality.

The rest of this page is left intentionally blank.

P.A. No. 3219    SA-18          L.A. AAL-PA-3219-LA-230600

[****]                             Page 2

BOEING PROPRIETARY

EXECUTED as of February 9 , 2023
THE BOEING COMPANY		AMERICAN AIRLINES, INC.
By:	/s/ The Boeing Company	By:	/s/ American Airlines, Inc.
Name:	The Boeing Company	Name:	American Airlines, Inc
Title:	Attorney-In-Fact	Title:	VP, Treasurer

P.A. No. 3219    SA-18          L.A. AAL-PA-3219-LA-230600

[****]                             Page 3

BOEING PROPRIETARY

Attachment A

to

AAL-PA-3219-LA-2300600

[****] 2018 787-8 [****] Aircraft
[****] Scheduled Delivery Month	[****]	[****]
[****]-2021	[****]	[****]
[****]-2021	[****]	[****]
[****]-2021	[****]	[****]
[****]-2021	[****]	[****]

SA-18

BOEING PROPRIETARY

EX-31.1

Exhibit 31.1

CEO CERTIFICATION

I, Robert D. Isom, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of American Airlines Group Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2023

/s/ Robert D. Isom

Name: Robert D. Isom

Title:    Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CFO CERTIFICATION

I, Devon E. May, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of American Airlines Group Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2023

/s/ Devon E. May
Name:	Devon E. May
Title:	Executive Vice President and Chief Financial Officer

EX-31.3

Exhibit 31.3

CEO CERTIFICATION

I, Robert D. Isom, certify that:

(a)I have reviewed this Quarterly Report on Form 10-Q of American Airlines, Inc.;

(b)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(c)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(d)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

i.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

ii.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

iii.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

iv.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(e)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

i.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

ii.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2023

/s/ Robert D. Isom

Name: Robert D. Isom

Title: Chief Executive Officer and President

EX-31.4

Exhibit 31.4

CFO CERTIFICATION

I, Devon E. May, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of American Airlines, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2023

/s/ Devon E. May
Name:	Devon E. May
Title:	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of CEO and CFO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of American Airlines Group Inc. (the “Company”) for the quarterly period ended March 31, 2023 (the “Report”), Robert D. Isom, as Chief Executive Officer and President of the Company, and Devon E. May, as Executive Vice President and Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert D. Isom

Name: Robert D. Isom

Title: Chief Executive Officer and President

Date: April 27, 2023

/s/ Devon E. May              

Name: Devon E. May

Title: Executive Vice President and
Chief Financial Officer

Date: April 27, 2023

This certification is being furnished to accompany the Report pursuant to 18 U.S.C. § 1350 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

Certification of CEO and CFO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of American Airlines, Inc. (the “Company”) for the quarterly period ended March 31, 2023 (the “Report”), Robert D. Isom, as Chief Executive Officer and President of the Company, and Devon E. May, as Executive Vice President and Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert D. Isom

Name: Robert D. Isom

Title: Chief Executive Officer and President

Date: April 27, 2023

/s/ Devon E. May

Name: Devon E. May

Title: Executive Vice President and
Chief Financial Officer

Date: April 27, 2023

This certification is being furnished to accompany the Report pursuant to 18 U.S.C. § 1350 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 21, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-8400
Entity Registrant Name	American Airlines Group Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-1825172
Entity Address, Address Line One	1 Skyview Drive,
Entity Address, City or Town	Fort Worth,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76155
City Area Code	(682)
Local Phone Number	278-9000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		652,862,508
Entity Central Index Key	0000006201
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock, $0.01 par value per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	AAL
Security Exchange Name	NASDAQ
Preferred Stock Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock Purchase Rights
American Airlines, Inc.
Document Information [Line Items]
Entity File Number	1-2691
Entity Registrant Name	American Airlines, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-1502798
Entity Address, Address Line One	1 Skyview Drive,
Entity Address, City or Town	Fort Worth,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76155
City Area Code	(682)
Local Phone Number	278-9000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,000
Entity Central Index Key	0000004515

XML

Condensed Consolidated Statements of Operations - American Airlines Group Inc. - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating revenues:
Operating revenues	$ 12,189	$ 8,899
Operating expenses:
Aircraft fuel and related taxes	3,167	2,502
Salaries, wages and benefits	3,281	3,154
Regional expenses	1,142	1,052
Maintenance, materials and repairs	712	617
Other rent and landing fees	708	678
Aircraft rent	344	353
Selling expenses	438	332
Depreciation and amortization	486	492
Special items, net	13	157
Other	1,460	1,285
Total operating expenses	11,751	10,622
Operating income (loss)	438	(1,723)
Nonoperating income (expense):
Interest income	125	8
Interest expense, net	(540)	(463)
Other income (expense), net	(6)	92
Total nonoperating expense, net	(421)	(363)
Income (loss) before income taxes	17	(2,086)
Income tax provision (benefit)	7	(451)
Net income (loss)	$ 10	$ (1,635)
Earnings (loss) per common share:
Basic (in dollars per share)	$ 0.02	$ (2.52)
Diluted (in dollars per share)	$ 0.02	$ (2.52)
Weighted average shares outstanding (in thousands):
Basic (in shares)	652,000	649,503
Diluted (in shares)	656,707	649,503
Passenger
Operating revenues:
Operating revenues	$ 11,103	$ 7,818
Cargo
Operating revenues:
Operating revenues	223	364
Other
Operating revenues:
Operating revenues	$ 863	$ 717

XML

Condensed Consolidated Statements of Operations - American Airlines, Inc. - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating revenues:
Operating revenues	$ 12,189	$ 8,899
Operating expenses:
Aircraft fuel and related taxes	3,167	2,502
Salaries, wages and benefits	3,281	3,154
Regional expenses	1,142	1,052
Maintenance, materials and repairs	712	617
Other rent and landing fees	708	678
Aircraft rent	344	353
Selling expenses	438	332
Depreciation and amortization	486	492
Special items, net	13	157
Other	1,460	1,285
Total operating expenses	11,751	10,622
Operating income (loss)	438	(1,723)
Nonoperating income (expense):
Interest income	125	8
Interest expense, net	(540)	(463)
Other income (expense), net	(6)	92
Total nonoperating expense, net	(421)	(363)
Income (loss) before income taxes	17	(2,086)
Income tax provision (benefit)	7	(451)
Net income (loss)	10	(1,635)
Passenger
Operating revenues:
Operating revenues	11,103	7,818
Cargo
Operating revenues:
Operating revenues	223	364
Other
Operating revenues:
Operating revenues	863	717
American Airlines, Inc.
Operating revenues:
Operating revenues	12,188	8,896
Operating expenses:
Aircraft fuel and related taxes	3,167	2,502
Salaries, wages and benefits	3,280	3,152
Regional expenses	1,143	1,023
Maintenance, materials and repairs	712	617
Other rent and landing fees	708	678
Aircraft rent	344	353
Selling expenses	438	332
Depreciation and amortization	484	492
Special items, net	13	157
Other	1,460	1,286
Total operating expenses	11,749	10,592
Operating income (loss)	439	(1,696)
Nonoperating income (expense):
Interest income	231	11
Interest expense, net	(550)	(424)
Other income (expense), net	(6)	95
Total nonoperating expense, net	(325)	(318)
Income (loss) before income taxes	114	(2,014)
Income tax provision (benefit)	29	(436)
Net income (loss)	85	(1,578)
American Airlines, Inc. | Passenger
Operating revenues:
Operating revenues	11,103	7,818
American Airlines, Inc. | Cargo
Operating revenues:
Operating revenues	223	364
American Airlines, Inc. | Other
Operating revenues:
Operating revenues	$ 862	$ 714

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Condensed Consolidated Statements of Comprehensive Income (Loss) - American Airlines Group Inc. - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 10	$ (1,635)
Other comprehensive income (loss), net of tax:
Pension, retiree medical and other postretirement benefits	17	28
Investments	1	(2)
Total other comprehensive income, net of tax	18	26
Total comprehensive income (loss)	$ 28	$ (1,609)

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Condensed Consolidated Statements of Comprehensive Income (Loss) - American Airlines, Inc. - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income (loss)	$ 10	$ (1,635)
Other comprehensive income (loss), net of tax:
Pension, retiree medical and other postretirement benefits	17	28
Investments	1	(2)
Other comprehensive income, net	18	26
Total comprehensive income (loss)	28	(1,609)
American Airlines, Inc.
Net income (loss)	85	(1,578)
Other comprehensive income (loss), net of tax:
Pension, retiree medical and other postretirement benefits	17	28
Investments	1	(2)
Other comprehensive income, net	18	26
Total comprehensive income (loss)	$ 103	$ (1,552)

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Condensed Consolidated Balance Sheets - American Airlines Group Inc. - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 452	$ 440	$ 376
Short-term investments	11,041	8,525
Restricted cash and short-term investments	955	995
Accounts receivable, net	1,989	2,138
Aircraft fuel, spare parts and supplies, net	2,308	2,279
Prepaid expenses and other	907	892
Total current assets	17,652	15,269
Operating property and equipment
Flight equipment	40,020	39,703
Ground property and equipment	10,030	9,913
Equipment purchase deposits	640	613
Total property and equipment, at cost	50,690	50,229
Less accumulated depreciation and amortization	(20,546)	(20,029)
Total property and equipment, net	30,144	30,200
Operating lease right-of-use assets	7,838	8,094
Other assets
Goodwill	4,091	4,091
Intangibles, net of accumulated amortization of $828 and $827, respectively	2,057	2,059
Deferred tax asset	3,088	3,099
Other assets	1,916	1,904
Total other assets	11,152	11,153
Total assets	66,786	64,716
Current liabilities
Current maturities of long-term debt and finance leases	3,579	3,274
Accounts payable	2,455	2,149
Accrued salaries and wages	1,809	1,713
Operating lease liabilities	1,439	1,465
Other accrued liabilities	2,769	2,981
Total current liabilities	24,590	21,496
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	31,586	32,389
Pension and postretirement benefits	2,737	2,837
Loyalty program liability	5,881	5,976
Operating lease liabilities	6,325	6,559
Other liabilities	1,438	1,258
Total noncurrent liabilities	47,967	49,019
Commitments and contingencies
Stockholder’s equity
Common stock, value	7	6
Additional paid-in capital	7,290	7,291
Accumulated other comprehensive loss	(4,567)	(4,585)
Retained deficit	(8,501)	(8,511)
Total stockholders’ deficit	(5,771)	(5,799)	$ (8,940)	$ (7,340)
Total liabilities and stockholders’ equity (deficit)	66,786	64,716
Air traffic liability
Current liabilities
Deferred revenue, current	9,053	6,745
Loyalty program liability
Current liabilities
Deferred revenue, current	$ 3,486	$ 3,169

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Condensed Consolidated Balance Sheets - American Airlines Group Inc. (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accumulated amortization of intangibles	$ 828	$ 827
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,750,000,000	1,750,000,000
Common stock, shares issued (in shares)	652,817,674	650,642,461
Common stock, shares outstanding (in shares)	652,817,674	650,642,461

XML

Condensed Consolidated Balance Sheets - American Airlines, Inc. - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash	$ 452	$ 440
Short-term investments	11,041	8,525
Restricted cash and short-term investments	955	995
Accounts receivable, net	1,989	2,138
Aircraft fuel, spare parts and supplies, net	2,308	2,279
Prepaid expenses and other	907	892
Total current assets	17,652	15,269
Operating property and equipment
Flight equipment	40,020	39,703
Ground property and equipment	10,030	9,913
Equipment purchase deposits	640	613
Total property and equipment, at cost	50,690	50,229
Less accumulated depreciation and amortization	(20,546)	(20,029)
Total property and equipment, net	30,144	30,200
Operating lease right-of-use assets	7,838	8,094
Other assets
Goodwill	4,091	4,091
Intangibles, net of accumulated amortization of $828 and $827, respectively	2,057	2,059
Deferred tax asset	3,088	3,099
Other assets	1,916	1,904
Total other assets	11,152	11,153
Total assets	66,786	64,716
Current liabilities
Current maturities of long-term debt and finance leases	3,579	3,274
Accounts payable	2,455	2,149
Accrued salaries and wages	1,809	1,713
Operating lease liabilities	1,439	1,465
Other accrued liabilities	2,769	2,981
Total current liabilities	24,590	21,496
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	31,586	32,389
Pension and postretirement benefits	2,737	2,837
Loyalty program liability	5,881	5,976
Operating lease liabilities	6,325	6,559
Other liabilities	1,438	1,258
Total noncurrent liabilities	47,967	49,019
Commitments and contingencies
Stockholder’s equity
Common stock, value	7	6
Additional paid-in capital	7,290	7,291
Accumulated other comprehensive loss	(4,567)	(4,585)
Retained deficit	(8,501)	(8,511)
Total stockholders’ deficit	(5,771)	(5,799)
Total liabilities and stockholders’ equity (deficit)	66,786	64,716
Accumulated Other Comprehensive Loss
Stockholder’s equity
Total stockholders’ deficit	(4,567)	(4,585)
American Airlines, Inc.
Current assets
Cash	443	429
Short-term investments	11,039	8,523
Restricted cash and short-term investments	955	995
Accounts receivable, net	1,966	2,117
Receivables from related parties, net	6,711	6,588
Aircraft fuel, spare parts and supplies, net	2,185	2,157
Prepaid expenses and other	812	798
Total current assets	24,111	21,607
Operating property and equipment
Flight equipment	39,672	39,359
Ground property and equipment	9,594	9,479
Equipment purchase deposits	640	613
Total property and equipment, at cost	49,906	49,451
Less accumulated depreciation and amortization	(20,073)	(19,569)
Total property and equipment, net	29,833	29,882
Operating lease right-of-use assets	7,776	8,033
Other assets
Goodwill	4,091	4,091
Intangibles, net of accumulated amortization of $828 and $827, respectively	2,057	2,059
Deferred tax asset	2,859	2,893
Other assets	1,771	1,759
Total other assets	10,778	10,802
Total assets	72,498	70,324
Current liabilities
Current maturities of long-term debt and finance leases	3,572	3,267
Accounts payable	2,373	2,071
Accrued salaries and wages	1,619	1,529
Operating lease liabilities	1,422	1,449
Other accrued liabilities	2,667	2,852
Total current liabilities	24,192	21,082
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	26,352	27,155
Pension and postretirement benefits	2,712	2,811
Loyalty program liability	5,881	5,976
Operating lease liabilities	6,280	6,512
Other liabilities	1,371	1,195
Total noncurrent liabilities	42,596	43,649
Commitments and contingencies
Stockholder’s equity
Common stock, value	0	0
Additional paid-in capital	17,244	17,230
Accumulated other comprehensive loss	(4,672)	(4,690)
Retained deficit	(6,862)	(6,947)
Total stockholders’ deficit	5,710	5,593
Total liabilities and stockholders’ equity (deficit)	72,498	70,324
American Airlines, Inc. | Accumulated Other Comprehensive Loss
Stockholder’s equity
Total stockholders’ deficit	(4,672)	(4,690)
Air traffic liability
Current liabilities
Deferred revenue, current	9,053	6,745
Air traffic liability | American Airlines, Inc.
Current liabilities
Deferred revenue, current	9,053	6,745
Loyalty program liability
Current liabilities
Deferred revenue, current	3,486	3,169
Loyalty program liability | American Airlines, Inc.
Current liabilities
Deferred revenue, current	$ 3,486	$ 3,169

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Condensed Consolidated Balance Sheets - American Airlines, Inc. (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accumulated amortization of intangibles	$ 828	$ 827
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,750,000,000	1,750,000,000
Common stock, shares outstanding (in shares)	652,817,674	650,642,461
Common stock, shares issued (in shares)	652,817,674	650,642,461
American Airlines, Inc.
Accumulated amortization of intangibles	$ 828	$ 827
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, shares outstanding (in shares)	1,000	1,000
Common stock, shares issued (in shares)	1,000	1,000

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Condensed Consolidated Statements of Cash Flows - American Airlines Group Inc. - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Statement of Cash Flows [Abstract]
Net cash provided by operating activities		$ 3,333	$ 1,185
Cash flows from investing activities:
Capital expenditures, net of aircraft purchase deposit returns		(505)	(807)
Purchases of short-term investments		(5,131)	(7,035)
Sales of short-term investments		2,666	7,089
Decrease in restricted short-term investments		29	36
Other investing activities		145	(54)
Net cash used in investing activities		(2,796)	(771)
Cash flows from financing activities:
Payments on long-term debt and finance leases		(2,326)	(661)
Proceeds from issuance of long-term debt		1,824	367
Other financing activities		(37)	(16)
Net cash used in financing activities		(539)	(310)
Net increase (decrease) in cash and restricted cash		(2)	104
Cash and restricted cash at beginning of period		586	408
Cash and restricted cash at end of period	[1]	584	512
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases		88	313
Finance leases converted to operating leases		14	0
Property and equipment acquired through finance leases		6	58
Supplemental information:
Interest paid, net		646	566
Income taxes paid		$ 1	$ 0

[1] The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash$452 $376 Restricted cash included in restricted cash and short-term investments132 136 Total cash and restricted cash$584 $512 

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Condensed Consolidated Statements of Cash Flows - American Airlines Group Inc. (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023		Dec. 31, 2022	Mar. 31, 2022		Dec. 31, 2021
Statement of Cash Flows [Abstract]
Cash	$ 452		$ 440	$ 376
Restricted cash included in restricted cash and short-term investments	132			136
Total cash and restricted cash	$ 584	[1]	$ 586	$ 512	[1]	$ 408

[1] The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash$452 $376 Restricted cash included in restricted cash and short-term investments132 136 Total cash and restricted cash$584 $512 

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Condensed Consolidated Statements of Cash Flows - American Airlines, Inc. - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Net cash provided by operating activities		$ 3,333	$ 1,185
Cash flows from investing activities:
Capital expenditures, net of aircraft purchase deposit returns		(505)	(807)
Purchases of short-term investments		(5,131)	(7,035)
Sales of short-term investments		2,666	7,089
Decrease in restricted short-term investments		29	36
Other investing activities		145	(54)
Net cash used in investing activities		(2,796)	(771)
Cash flows from financing activities:
Payments on long-term debt and finance leases		(2,326)	(661)
Proceeds from issuance of long-term debt		1,824	367
Other financing activities		(37)	(16)
Net cash used in financing activities		(539)	(310)
Net increase (decrease) in cash and restricted cash		(2)	104
Cash and restricted cash at beginning of period		586	408
Cash and restricted cash at end of period	[1]	584	512
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases		88	313
Finance leases converted to operating leases		14	0
Property and equipment acquired through finance leases		6	58
Supplemental information:
Interest paid, net		646	566
Income taxes paid		1	0
American Airlines, Inc.
Net cash provided by operating activities		3,306	810
Cash flows from investing activities:
Capital expenditures, net of aircraft purchase deposit returns		(494)	(790)
Purchases of short-term investments		(5,131)	(7,022)
Sales of short-term investments		2,666	7,089
Decrease in restricted short-term investments		29	36
Other investing activities		145	(54)
Net cash used in investing activities		(2,785)	(741)
Cash flows from financing activities:
Payments on long-term debt and finance leases		(2,324)	(339)
Proceeds from issuance of long-term debt		1,824	367
Other financing activities		(21)	0
Net cash used in financing activities		(521)	28
Net increase (decrease) in cash and restricted cash		0	97
Cash and restricted cash at beginning of period		575	400
Cash and restricted cash at end of period	[2]	575	497
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases		84	284
Finance leases converted to operating leases		14	0
Property and equipment acquired through finance leases		6	58
Supplemental information:
Interest paid, net		585	502
Income taxes paid		$ 1	$ 0

[1] The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash$452 $376 Restricted cash included in restricted cash and short-term investments132 136 Total cash and restricted cash$584 $512 

[2] The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash$443 $361 Restricted cash included in restricted cash and short-term investments132 136 Total cash and restricted cash$575 $497 

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Condensed Consolidated Statements of Cash Flows - American Airlines, Inc. (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023		Dec. 31, 2022	Mar. 31, 2022
Cash	$ 452		$ 440	$ 376
Restricted cash included in restricted cash and short-term investments	132			136
Total cash and restricted cash	584	[1]	586	512	[1]
American Airlines, Inc.
Cash	443		429	361
Restricted cash included in restricted cash and short-term investments	132			136
Total cash and restricted cash	$ 575	[2]	$ 575	$ 497	[2]

[1] The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash$452 $376 Restricted cash included in restricted cash and short-term investments132 136 Total cash and restricted cash$584 $512 

[2] The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash$443 $361 Restricted cash included in restricted cash and short-term investments132 136 Total cash and restricted cash$575 $497 

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Condensed Consolidated Statements of Stockholders' Deficit - American Airlines Group Inc. - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Deficit
Beginning balance at Dec. 31, 2021	$ (7,340)	$ 6	$ 7,234	$ (5,942)	$ (8,638)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,635)				(1,635)
Other comprehensive income, net	26			26
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	(14)		(14)
Share-based compensation expense	23		23
Ending balance at Mar. 31, 2022	(8,940)	6	7,243	(5,916)	(10,273)
Beginning balance at Dec. 31, 2022	(5,799)	6	7,291	(4,585)	(8,511)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	10				10
Other comprehensive income, net	18			18
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	(15)	1	(16)
Share-based compensation expense	15		15
Ending balance at Mar. 31, 2023	$ (5,771)	$ 7	$ 7,290	$ (4,567)	$ (8,501)

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Condensed Consolidated Statements of Stockholders' Deficit - American Airlines Group Inc. (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Issuance of shares of AAG common stock pursuant to employee stock plans (in shares)	2,175,213	1,770,173

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Condensed Consolidated Statements of Stockholder's Equity - American Airlines, Inc. - USD ($) $ in Millions	Total	American Airlines, Inc.	Common Stock	Common Stock American Airlines, Inc.	Additional Paid-in Capital	Additional Paid-in Capital American Airlines, Inc.	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss American Airlines, Inc.	Retained Deficit	Retained Deficit American Airlines, Inc.
Beginning balance at Dec. 31, 2021	$ (7,340)	$ 3,826	$ 6	$ 0	$ 7,234	$ 17,152	$ (5,942)	$ (6,041)	$ (8,638)	$ (7,285)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,635)	(1,578)							(1,635)	(1,578)
Other comprehensive income, net	26	26					26	26
Share-based compensation expense	23	23			23	23
Ending balance at Mar. 31, 2022	(8,940)	2,297	6	0	7,243	17,175	(5,916)	(6,015)	(10,273)	(8,863)
Beginning balance at Dec. 31, 2022	(5,799)	5,593	6	0	7,291	17,230	(4,585)	(4,690)	(8,511)	(6,947)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	10	85							10	85
Other comprehensive income, net	18	18					18	18
Share-based compensation expense	15	14			15	14
Ending balance at Mar. 31, 2023	$ (5,771)	$ 5,710	$ 7	$ 0	$ 7,290	$ 17,244	$ (4,567)	$ (4,672)	$ (8,501)	$ (6,862)

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Basis of Presentation

3 Months Ended

Mar. 31, 2023

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

American Airlines, Inc.

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2022. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

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Special Items, Net

3 Months Ended

Mar. 31, 2023

Restructuring Cost and Reserve [Line Items]

Special Items, Net

Special Items, Net

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended March 31,
	2023		2022
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	13		157
Nonoperating special items, net (3)	15		3

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of our retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. We retired our Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

(3)Nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

American Airlines, Inc.

Restructuring Cost and Reserve [Line Items]

Special Items, Net

Special Items, Net

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended March 31,
	2023		2022
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	13		157
Nonoperating special items, net (3)	15		3

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of American’s retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. American retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

(3)Nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

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Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings (Loss) Per Common Share

Earnings (Loss) Per Common Share

The following table provides the computation of basic and diluted earnings (loss) per common share (EPS) (in millions, except share and per share amounts):

	Three Months Ended March 31,
	2023		2022
Basic EPS:
Net income (loss)	$	10	$	(1,635)
Weighted average common shares outstanding (in thousands)	652,000		649,503
Basic EPS	$	0.02	$	(2.52)
Diluted EPS:
Net income (loss) for purposes of computing diluted EPS	$	10	$	(1,635)
Share computation for diluted EPS (in thousands):
Basic weighted average common shares outstanding	652,000		649,503
Dilutive effect of restricted stock unit awards	1,064		—
Dilutive effect of certain PSP Warrants and Treasury Loan Warrants	3,643		—
Diluted weighted average common shares outstanding	656,707		649,503
Diluted EPS	$	0.02	$	(2.52)

The following were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive (in thousands):

	Three Months Ended March 31,
	2023	2022
6.50% convertible senior notes	61,728	61,728
Restricted stock unit awards	4,099	3,933

In addition, for the three months ended March 31, 2023 and 2022, excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive are certain shares underlying the warrants we issued to the U.S. Department of Treasury (Treasury) pursuant to (i) the payroll support program established under the Coronavirus Aid, Relief, and Economic Security Act (PSP1), (ii) the payroll support program established under the Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP2), (iii) the payroll support program established under the American Rescue Plan Act of 2021 (PSP3) (collectively, the PSP Warrants) and (iv) the Loan and Guarantee Agreement with Treasury (Treasury Loan Warrants).

The table below provides a summary of the PSP Warrants and the Treasury Loan Warrants:

Warrants	Warrants Issued (shares, in thousands)	Exercise Price		Expiration
PSP1 Warrants	14,048	$	12.51	April 2025 to September 2025
PSP2 Warrants	6,576	15.66		January 2026 to April 2026
PSP3 Warrants	4,407	21.75		April 2026 to June 2026
Treasury Loan Warrants	4,396	12.51		September 2025

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Revenue Recognition

3 Months Ended

Mar. 31, 2023

Entity Information [Line Items]

Revenue Recognition

Revenue Recognition

Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	141		121
Total other revenue	863		717
Total operating revenues	$	12,189	$	8,899

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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

	Three Months Ended March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

We attribute passenger revenue by geographic region based upon the origin and destination of each flight segment.

Contract Balances

Our significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future travel and other non-air travel awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, our current loyalty program liability was $3.5 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in our air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the three months ended March 31, 2023, $3.8 billion of revenue was recognized in passenger revenue that was included in our air traffic liability at December 31, 2022. Tickets issued in 2022 and thereafter are no longer subject to change fees which provides more flexibility for customers to change travel plans. Given this new flexibility offered to our customers, our estimate of revenue that will be recognized from the air traffic liability for future flown or unused tickets may be subject to variability and differ from historical experience.

American Airlines, Inc.

Entity Information [Line Items]

Revenue Recognition

Revenue Recognition

Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	140		118
Total other revenue	862		714
Total operating revenues	$	12,188	$	8,896

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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

	Three Months Ended March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

American attributes passenger revenue by geographic region based upon the origin and destination of each flight segment.

Contract Balances

American’s significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future travel and other non-air travel awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, American’s current loyalty program liability was $3.5 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in American’s air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the three months ended March 31, 2023, $3.8 billion of revenue was recognized in passenger revenue that was included in American’s air traffic liability at December 31, 2022. Tickets issued in 2022 and thereafter are no longer subject to change fees which provides more flexibility for customers to change travel plans. Given this new flexibility offered to its customers, American’s estimate of revenue that will be recognized from the air traffic liability for future flown or unused tickets may be subject to variability and differ from historical experience.

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Debt

3 Months Ended

Mar. 31, 2023

Debt Instrument [Line Items]

Debt

Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	March 31, 2023		December 31, 2022
Secured
2013 Term Loan Facility, variable interest rate of 8.15%, installments through 2028	$	1,000	$	1,752
2014 Term Loan Facility, variable interest rate of 6.51%, installments through 2027	1,183		1,196
11.75% senior secured notes, interest only payments until due in July 2025	2,500		2,500
10.75% senior secured IP notes, interest only payments until due in February 2026	1,000		1,000
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	200		200
7.25% senior secured notes, interest only payments until due in February 2028	750		—
5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (1)	3,500		3,500
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
AAdvantage Term Loan Facility, variable interest rate of 9.56%, installments beginning in July 2023 through April 2028 (1)	3,500		3,500
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.13%, averaging 3.70%, maturing from 2023 to 2034	8,776		9,175
Equipment loans and other notes payable, fixed and variable interest rates ranging from 3.32% to 8.20%, averaging 6.37%, maturing from 2023 to 2035	3,150		3,170
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	1,050		1,050
	29,609		30,043
Unsecured
PSP1 Promissory Note, interest only payments until due in April 2030	1,757		1,757
PSP2 Promissory Note, interest only payments until due in January 2031	1,030		1,030
PSP3 Promissory Note, interest only payments until due in April 2031	959		959
6.50% convertible senior notes, interest only payments until due in July 2025	1,000		1,000
3.75% senior notes, interest only payments until due in March 2025	500		500
	5,246		5,246
Total long-term debt	34,855		35,289
Less: Total unamortized debt discount, premium and issuance costs	396		386
Less: Current maturities	3,370		3,059
Long-term debt, net of current maturities	$	31,089	$	31,844

(1)Collectively referred to as the AAdvantage Financing.

As of March 31, 2023, the maximum availability under our revolving credit and other facilities is as follows (in millions):

2013 Revolving Facility	$	736
2014 Revolving Facility	1,631
April 2016 Revolving Facility	446
Other short-term facilities	64
Total	$	2,877

American currently has $64 million of available borrowing base under a cargo receivables facility that is set to expire in December 2023. As a result of the below amendments to the 2013, 2014 and April 2016 Revolving Facilities, the aggregate commitments under these facilities will be $2.8 billion through October 11, 2024, and thereafter through October 13, 2026, such aggregate commitments will decrease to $2.2 billion.

Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.

6.50% Convertible Senior Notes

At March 31, 2023, the if-converted value of the 6.50% convertible senior notes due 2025 (the Convertible Notes) did not exceed the principal amount. The last reported sale price per share of our common stock (as defined in the indenture governing our Convertible Notes, the Convertible Notes Indenture) did not exceed 130% of the conversion price of the Convertible Notes for at least 20 of the 30 consecutive trading days ending on March 31, 2023. Accordingly, pursuant to the terms of the Convertible Notes Indenture, the holders of the Convertible Notes cannot convert at their option at any time during the quarter ending June 30, 2023. Each $1,000 principal amount of Convertible Notes is convertible at a rate of 61.7284 shares of our common stock, subject to adjustment as provided in the Convertible Notes Indenture. We may settle conversions by paying or delivering, as applicable, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election.

2023 Financing Activities

2013 Credit Facilities

In February 2023, American and AAG refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility (the 2013 Term Loan Facility Refinancing) through the combination of (i) the issuance of $750 million in aggregate principal amount of 7.25% senior secured notes due 2028 and (ii) the entry into the Seventh Amendment to the 2013 Credit Agreement, pursuant to which the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility was extended to February 2028 from June 2025. The Seventh Amendment also amended certain other terms of the 2013 Credit Agreement, including the interest rate and amortization schedule for the 2013 Term Loan Facility, the requirements for delivery of appraisals and certain covenants relating to dispositions of collateral. Additionally, the Seventh Amendment transitioned the benchmark interest rate from LIBOR to the Secured Overnight Financing Rate (SOFR). As a result, the 2013 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period and an applicable margin of 2.75%.

In March 2023, American and AAG entered into the Eighth Amendment to the 2013 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2013 Revolving Facility. The Eighth Amendment also amended certain other terms of the 2013 Credit Agreement, including certain covenants and transitioned the benchmark interest rate from LIBOR to SOFR. The 2013 Revolving Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 2.25%, 2.50% or 2.75%, depending on AAG’s public corporate rating, or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 3.25%, 3.50% or 3.75%, depending on AAG’s public corporate rating. Additionally, as a result of the Eighth Amendment, through October 11, 2024, the aggregate commitments under the 2013 Revolving Facility will be $736 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $563 million.

7.25% Senior Secured Notes

On February 15, 2023, as part of the 2013 Term Loan Facility Refinancing, American issued $750 million aggregate principal amount of 7.25% senior secured notes due 2028 (the 7.25% Senior Secured Notes) in a private offering. The 7.25% Senior Secured Notes were issued at par and bear interest at a rate of 7.25% per annum (subject to increase if the collateral coverage ratio described below is not met). Interest on the 7.25% Senior Secured Notes is payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2023. The 7.25% Senior Secured Notes will mature on February 15, 2028. The obligations of American under the 7.25% Senior Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by AAG. American used the proceeds from the offering of the 7.25% Senior Secured Notes, together with cash on hand, to repay a portion of the term loans then outstanding under the 2013 Term Loan Facility and to pay related fees and expenses.

The 7.25% Senior Secured Notes were issued pursuant to an indenture, dated as of February 15, 2023 (the 7.25% Senior Secured Notes Indenture), by and among American, AAG and Wilmington Trust, National Association, as trustee and collateral agent. The 7.25% Senior Secured Notes are American’s senior secured obligations and are secured on a first lien basis by security interests in certain assets, rights and properties that American uses to provide non-stop scheduled air carrier services between (a) certain airports in the United States and (b) airports in countries in South America (which comprises Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela but does not include territories subject to the sovereignty, control or jurisdiction of a country not otherwise listed herein) and New Zealand (collectively, the 7.25% Senior Secured Notes Collateral). The 7.25% Senior Secured Notes Collateral also secures, on a first lien, pari passu basis with the 7.25% Senior Secured Notes, the 2013 Credit Facilities under the 2013 Credit Agreement.

American may redeem the 7.25% Senior Secured Notes, in whole at any time or in part from time to time prior to February 15, 2025, at a redemption price equal to 100% of the principal amount of the 7.25% Senior Secured Notes to be redeemed, plus a “make-whole” premium, plus any accrued and unpaid interest thereon to but excluding the date of redemption. At any time on or after February 15, 2025, American may redeem all or any of the 7.25% Senior Secured Notes in whole at any time, or in part from time to time, at the redemption prices described in the 7.25% Senior Secured Notes Indenture, plus any accrued and unpaid interest thereon to but excluding the date of redemption. In addition, at any time prior to February 15, 2025, American may redeem up to 40% of the original aggregate principal amount of the 7.25% Senior Secured Notes (calculated after giving effect to any issuance of additional notes) with the net cash proceeds of certain equity offerings, at a redemption price equal to 107.250% of the aggregate principal amount of the 7.25% Senior Secured Notes to be redeemed, plus any accrued and unpaid interest thereon to but excluding the date of redemption.

Further, if certain change of control transactions occur, each holder of 7.25% Senior Secured Notes may require American to repurchase the 7.25% Senior Secured Notes in whole or in part at a repurchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to but not including the repurchase date.

Twice per year, American is required to deliver an appraisal of the 7.25% Senior Secured Notes Collateral and an officer’s certificate demonstrating the calculation of a collateral coverage ratio in relation to the 7.25% Senior Secured Notes Collateral (the 7.25% Senior Secured Notes Collateral Coverage Ratio) as of the date of delivery of the appraisal for the applicable period. If the 7.25% Senior Secured Notes Collateral Coverage Ratio is less than 1.6 to 1.0 as of the date of delivery of the appraisal for the applicable period, then, subject to a cure period in which additional collateral can be provided or debt repaid such that American meets the required 7.25% Senior Secured Notes Collateral Coverage Ratio, American will be required to pay special interest in an additional amount equal to 2.0% per annum of the principal amount of the 7.25% Senior Secured Notes until the 7.25% Senior Secured Notes Collateral Coverage Ratio is established to be at least 1.6 to 1.0.

2014 Credit Facilities

In March 2023, American and AAG entered into the Ninth Amendment to the 2014 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2014 Revolving Facility. The Ninth Amendment also amended certain other terms of the 2014 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the 2014 Revolving Facility and the 2014 Term Loan Facility from LIBOR to SOFR. The 2014 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” The 2014 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 0.75%. Additionally, as a result of the Ninth Amendment, through October 11, 2024, the aggregate commitments under the 2014 Revolving Facility will be $1.6 billion, and thereafter through October 13, 2026, such aggregate commitments will decrease to $1.2 billion.

April 2016 Revolving Facility

In March 2023, American and AAG entered into the Sixth Amendment to the April 2016 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the April 2016 Revolving Facility. The Sixth Amendment also amended certain other terms under the April 2016 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the April 2016 Revolving Facility from LIBOR to SOFR. The April 2016 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” Additionally, as a result of the

Sixth Amendment, through October 11, 2024, the aggregate commitments under the April 2016 Revolving Facility will be $446 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $342 million.

Equipment Loans and Other Notes Payable Issued in 2023

During the first three months of 2023, American entered into agreements under which it borrowed $94 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2035 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 7.04% as of March 31, 2023.

American Airlines, Inc.

Debt Instrument [Line Items]

Debt

Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	March 31, 2023		December 31, 2022
Secured
2013 Term Loan Facility, variable interest rate of 8.15%, installments through 2028	$	1,000	$	1,752
2014 Term Loan Facility, variable interest rate of 6.51%, installments through 2027	1,183		1,196
11.75% senior secured notes, interest only payments until due in July 2025	2,500		2,500
10.75% senior secured IP notes, interest only payments until due in February 2026	1,000		1,000
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	200		200
7.25% senior secured notes, interest only payments until due in February 2028	750		—
5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (1)	3,500		3,500
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
AAdvantage Term Loan Facility, variable interest rate of 9.56%, installments beginning in July 2023 through April 2028 (1)	3,500		3,500
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.13%, averaging 3.70%, maturing from 2023 to 2034	8,776		9,175
Equipment loans and other notes payable, fixed and variable interest rates ranging from 3.32% to 8.20%, averaging 6.37%, maturing from 2023 to 2035	3,150		3,170
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	1,050		1,050
Total long-term debt	29,609		30,043
Less: Total unamortized debt discount, premium and issuance costs	377		364
Less: Current maturities	3,370		3,059
Long-term debt, net of current maturities	$	25,862	$	26,620

(1)Collectively referred to as the AAdvantage Financing.

As of March 31, 2023, the maximum availability under American’s revolving credit and other facilities is as follows (in millions):

2013 Revolving Facility	$	736
2014 Revolving Facility	1,631
April 2016 Revolving Facility	446
Other short-term facilities	64
Total	$	2,877

American currently has $64 million of available borrowing base under a cargo receivables facility that is set to expire in December 2023. As a result of the below amendments to the 2013, 2014 and April 2016 Revolving Facilities, the aggregate commitments under these facilities will be $2.8 billion through October 11, 2024, and thereafter through October 13, 2026, such aggregate commitments will decrease to $2.2 billion.

Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.

2023 Financing Activities

2013 Credit Facilities

In February 2023, American and AAG refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility (the 2013 Term Loan Facility Refinancing) through the combination of (i) the issuance of $750 million in aggregate principal amount of 7.25% senior secured notes due 2028 and (ii) the entry into the Seventh Amendment to the 2013 Credit Agreement, pursuant to which the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility was extended to February 2028 from June 2025. The Seventh Amendment also amended certain other terms of the 2013 Credit Agreement, including the interest rate and amortization schedule for the 2013 Term Loan Facility, the requirements for delivery of appraisals and certain covenants relating to dispositions of collateral. Additionally, the Seventh Amendment transitioned the benchmark interest rate from LIBOR to the Secured Overnight Financing Rate (SOFR). As a result, the 2013 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period and an applicable margin of 2.75%.

In March 2023, American and AAG entered into the Eighth Amendment to the 2013 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2013 Revolving Facility. The Eighth Amendment also amended certain other terms of the 2013 Credit Agreement, including certain covenants and transitioned the benchmark interest rate from LIBOR to SOFR. The 2013 Revolving Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 2.25%, 2.50% or 2.75%, depending on AAG’s public corporate rating, or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 3.25%, 3.50% or 3.75%, depending on AAG’s public corporate rating. Additionally, as a result of the Eighth Amendment, through October 11, 2024, the aggregate commitments under the 2013 Revolving Facility will be $736 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $563 million.

7.25% Senior Secured Notes

On February 15, 2023, as part of the 2013 Term Loan Facility Refinancing, American issued $750 million aggregate principal amount of 7.25% senior secured notes due 2028 (the 7.25% Senior Secured Notes) in a private offering. The 7.25% Senior Secured Notes were issued at par and bear interest at a rate of 7.25% per annum (subject to increase if the collateral coverage ratio described below is not met). Interest on the 7.25% Senior Secured Notes is payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2023. The 7.25% Senior Secured Notes will mature on February 15, 2028. The obligations of American under the 7.25% Senior Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by AAG. American used the proceeds from the offering of the 7.25% Senior Secured Notes, together with cash on hand, to repay a portion of the term loans then outstanding under the 2013 Term Loan Facility and to pay related fees and expenses.

The 7.25% Senior Secured Notes were issued pursuant to an indenture, dated as of February 15, 2023 (the 7.25% Senior Secured Notes Indenture), by and among American, AAG and Wilmington Trust, National Association, as trustee and collateral agent. The 7.25% Senior Secured Notes are American’s senior secured obligations and are secured on a first lien basis by security interests in certain assets, rights and properties that American uses to provide non-stop scheduled air carrier services between (a) certain airports in the United States and (b) airports in countries in South America (which comprises Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela but does not include territories subject to the sovereignty, control or jurisdiction of a country not otherwise listed herein) and New Zealand (collectively, the 7.25% Senior Secured Notes Collateral). The 7.25% Senior Secured Notes Collateral also secures, on a first lien, pari passu basis with the 7.25% Senior Secured Notes, the 2013 Credit Facilities under the 2013 Credit Agreement.

American may redeem the 7.25% Senior Secured Notes, in whole at any time or in part from time to time prior to February 15, 2025, at a redemption price equal to 100% of the principal amount of the 7.25% Senior Secured Notes to be redeemed, plus a “make-whole” premium, plus any accrued and unpaid interest thereon to but excluding the date of redemption. At any time on or after February 15, 2025, American may redeem all or any of the 7.25% Senior Secured Notes in whole at any time, or in part from time to time, at the redemption prices described in the 7.25% Senior Secured Notes Indenture, plus any accrued and unpaid interest thereon to but excluding the date of redemption. In addition, at any time prior to February 15, 2025, American may redeem up to 40% of the original aggregate principal amount of the 7.25% Senior Secured Notes (calculated after giving effect to any issuance of additional notes) with the net cash proceeds of

certain equity offerings, at a redemption price equal to 107.250% of the aggregate principal amount of the 7.25% Senior Secured Notes to be redeemed, plus any accrued and unpaid interest thereon to but excluding the date of redemption.

Further, if certain change of control transactions occur, each holder of 7.25% Senior Secured Notes may require American to repurchase the 7.25% Senior Secured Notes in whole or in part at a repurchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to but not including the repurchase date.

Twice per year, American is required to deliver an appraisal of the 7.25% Senior Secured Notes Collateral and an officer’s certificate demonstrating the calculation of a collateral coverage ratio in relation to the 7.25% Senior Secured Notes Collateral (the 7.25% Senior Secured Notes Collateral Coverage Ratio) as of the date of delivery of the appraisal for the applicable period. If the 7.25% Senior Secured Notes Collateral Coverage Ratio is less than 1.6 to 1.0 as of the date of delivery of the appraisal for the applicable period, then, subject to a cure period in which additional collateral can be provided or debt repaid such that American meets the required 7.25% Senior Secured Notes Collateral Coverage Ratio, American will be required to pay special interest in an additional amount equal to 2.0% per annum of the principal amount of the 7.25% Senior Secured Notes until the 7.25% Senior Secured Notes Collateral Coverage Ratio is established to be at least 1.6 to 1.0.

2014 Credit Facilities

In March 2023, American and AAG entered into the Ninth Amendment to the 2014 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the 2014 Revolving Facility. The Ninth Amendment also amended certain other terms of the 2014 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the 2014 Revolving Facility and the 2014 Term Loan Facility from LIBOR to SOFR. The 2014 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” The 2014 Term Loan Facility bears interest at a base rate (subject to a floor of 1.00%) plus an applicable margin of 1.75% or, at American’s option, the SOFR rate for a tenor of one, three or six months, depending on the interest period selected by American (subject to a floor of 0.00%), plus the SOFR adjustment applicable to such interest period plus an applicable margin of 0.75%. Additionally, as a result of the Ninth Amendment, through October 11, 2024, the aggregate commitments under the 2014 Revolving Facility will be $1.6 billion, and thereafter through October 13, 2026, such aggregate commitments will decrease to $1.2 billion.

April 2016 Revolving Facility

In March 2023, American and AAG entered into the Sixth Amendment to the April 2016 Credit Agreement, pursuant to which American extended the maturity of certain commitments under the April 2016 Revolving Facility. The Sixth Amendment also amended certain other terms under the April 2016 Credit Agreement including the requirements for delivery of appraisals and certain other covenants and transitioned the benchmark interest rate for the April 2016 Revolving Facility from LIBOR to SOFR. The April 2016 Revolving Facility bears interest at the same base rate and applicable margin as the 2013 Revolving Facility, as noted above in “2013 Credit Facilities.” Additionally, as a result of the Sixth Amendment, through October 11, 2024, the aggregate commitments under the April 2016 Revolving Facility will be $446 million, and thereafter through October 13, 2026, such aggregate commitments will decrease to $342 million.

Equipment Loans and Other Notes Payable Issued in 2023

During the first three months of 2023, American entered into agreements under which it borrowed $94 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2035 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 7.04% as of March 31, 2023.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Taxes [Line Items]

Income Taxes

Income Taxes

At December 31, 2022, we had approximately $16.2 billion of gross federal net operating losses (NOLs) and $4.3 billion of other carryforwards available to reduce future federal taxable income, of which $5.9 billion will expire beginning in 2024 if unused and $14.6 billion can be carried forward indefinitely. We also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused.

Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs, when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. We consider all available positive and negative evidence and make certain assumptions in evaluating the realizability of our deferred tax assets. Many factors are considered that impact our assessment of future profitability, including conditions which are beyond our control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. We have determined that positive factors outweigh negative factors in the determination of the realizability of our deferred tax assets. There can be no assurance that an additional valuation allowance on our net deferred tax assets will not be required. Such valuation allowance could be material.

During the three months ended March 31, 2023 and 2022, we recorded an income tax provision of $7 million and an income tax benefit of $451 million, respectively.

American Airlines, Inc.

Income Taxes [Line Items]

Income Taxes

Income TaxesAt December 31, 2022, American had approximately $16.1 billion of gross federal net operating losses (NOLs) and $3.5 billion of other carryforwards available to reduce future federal taxable income, of which $6.2 billion will expire beginning in 2024 if unused and $13.4 billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $5.9 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused.American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include the NOLs, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. American has determined that positive factors outweigh negative factors in the determination of the realizability of its deferred tax assets. There can be no assurance that an additional valuation allowance on American’s net deferred tax assets will not be required. Such valuation allowance could be material.During the three months ended March 31, 2023 and 2022, American recorded an income tax provision of $29 million and an income tax benefit of $436 million, respectively

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Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements

Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

We utilize the market approach to measure the fair value of our financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Our short-term investments, restricted cash and restricted short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2023.

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of March 31, 2023
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	3,296	$	3,296	$	—	$	—
Corporate obligations	4,453		—		4,453		—
Bank notes/certificates of deposit/time deposits	2,442		—		2,442		—
Repurchase agreements	450		—		450		—
U.S. government and agency obligations	400		—		400		—
	11,041		3,296		7,745		—
Restricted cash and short-term investments (1), (3)	955		486		469		—
Long-term investments (4)	246		246		—		—
Total	$	12,242	$	4,028	$	8,214	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

(2)Our short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations and collateral associated with the payment of interest for the AAdvantage Financing.

(4)Long-term investments include our equity investments in China Southern Airlines Company Limited (China Southern Airlines), GOL Linhas Aéreas Inteligentes S.A. (GOL) and Vertical Aerospace Ltd. (Vertical). See Note 8 for further information on our equity investments.

Fair Value of Debt

The fair value of our long-term debt was estimated using quoted market prices or discounted cash flow analyses based on our current estimated incremental borrowing rates for similar types of borrowing arrangements. If our long-term debt was measured at fair value, it would have been classified as Level 2 except for $3.7 billion as of March 31, 2023 and December 31, 2022, which would have been classified as Level 3 in the fair value hierarchy. The fair value of the Convertible Notes, which would have been classified as Level 2, was $1.1 billion as of March 31, 2023 and December 31, 2022.

The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions):

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	34,459	$	33,573	$	34,903	$	32,569

American Airlines, Inc.

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements

Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

American utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. American’s short-term investments, restricted cash and restricted short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2023.

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of March 31, 2023
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	3,295	$	3,295	$	—	$	—
Corporate obligations	4,453		—		4,453		—
Bank notes/certificates of deposit/time deposits	2,441		—		2,441		—
Repurchase agreements	450		—		450		—
U.S. government and agency obligations	400		—		400		—
	11,039		3,295		7,744		—
Restricted cash and short-term investments (1), (3)	955		486		469		—
Long-term investments (4)	246		246		—		—
Total	$	12,240	$	4,027	$	8,213	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

(2)American’s short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations and collateral associated with the payment of interest for the AAdvantage Financing.

(4)Long-term investments include American’s equity investments in China Southern Airlines Company Limited (China Southern Airlines), GOL Linhas Aéreas Inteligentes S.A. (GOL) and Vertical Aerospace Ltd. (Vertical). See Note 7 for further information on American’s equity investments.

Fair Value of Debt

The fair value of American’s long-term debt was estimated using quoted market prices or discounted cash flow analyses based on American’s current estimated incremental borrowing rates for similar types of borrowing arrangements. If American’s long-term debt was measured at fair value, it would have been classified as Level 2.

The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions):

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	29,232	$	28,814	$	29,679	$	28,453

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Investments

3 Months Ended

Mar. 31, 2023

Schedule of Investments [Line Items]

Investments

Investments

To help expand our network and as part of our ongoing commitment to sustainability, we enter into various commercial relationships or other strategic partnerships, including equity investments, with other airlines and companies. Our equity investments are reflected in other assets on our condensed consolidated balance sheets. Our share of equity method investees’ financial results and changes in fair value are recorded in nonoperating other income, net on the condensed consolidated statements of operations.

Our equity investment ownership interests and carrying values were:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	228	$	222
China Southern Airlines	Fair Value	1.5	%	1.5	%	193		176
Other investments (1)	Various					201		212
Total						$	622	$	610

(1)Primarily includes our investment in JetSmart Airlines SpA, which is accounted for under the equity method, and our investments in GOL and Vertical, which are each accounted for at fair value.

American Airlines, Inc.

Schedule of Investments [Line Items]

Investments

Investments

To help expand American’s network and as part of its ongoing commitment to sustainability, American enters into various commercial relationships or other strategic partnerships, including equity investments, with other airlines and companies. American’s equity investments are reflected in other assets on its condensed consolidated balance sheets. American’s share of equity method investees’ financial results and changes in fair value are recorded in nonoperating other income, net on the condensed consolidated statements of operations.

American’s equity investment ownership interests and carrying values were:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	228	$	222
China Southern Airlines	Fair Value	1.5	%	1.5	%	193		176
Other investments (1)	Various					201		212
Total						$	622	$	610

(1)Primarily includes American’s investment in JetSmart Airlines SpA, which is accounted for under the equity method, and American’s investments in GOL and Vertical, which are each accounted for at fair value.

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2023

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans

Employee Benefit Plans

The following table provides the components of net periodic benefit income (in millions):

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
Three Months Ended March 31,	2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3
Interest cost	190		139		12		7
Expected return on assets	(229)		(285)		(3)		(3)
Amortization of:
Prior service cost (benefit)	7		7		(3)		(3)
Unrecognized net loss (gain)	27		38		(9)		(6)
Net periodic benefit income	$	(5)	$	(100)	$	—	$	(2)

Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen.

The service cost component of net periodic benefit income is included in operating expenses and the other components of net periodic benefit income are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.

During the three months ended March 31, 2023, we made required contributions of $67 million to our defined benefit pension plans.

American Airlines, Inc.

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans

Employee Benefit Plans

The following table provides the components of net periodic benefit income (in millions):

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
Three Months Ended March 31,	2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3
Interest cost	189		138		12		7
Expected return on assets	(228)		(283)		(3)		(3)
Amortization of:
Prior service cost (benefit)	7		7		(3)		(3)
Unrecognized net loss (gain)	27		38		(9)		(6)
Net periodic benefit income	$	(5)	$	(99)	$	—	$	(2)

Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen.

The service cost component of net periodic benefit income is included in operating expenses and the other components of net periodic benefit income are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.

During the three months ended March 31, 2023, American made required contributions of $67 million to its defined benefit pension plans.

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, Retiree Medical and Other Postretirement Benefits		Unrealized Gain (Loss) on Investments		Income Tax Provision (1)			Total
Balance at December 31, 2022	$	(2,978)	$	(6)	$	(1,601)		$	(4,585)
Other comprehensive income (loss) before reclassifications	—		2		(1)			1
Amounts reclassified from AOCI	22		—		(5)		(2)	17
Net current-period other comprehensive income (loss)	22		2		(6)			18
Balance at March 31, 2023	$	(2,956)	$	(4)	$	(1,607)		$	(4,567)

(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income (loss) until the obligations are fully extinguished.

(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision (benefit) on the condensed consolidated statements of operations.

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI				Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended March 31,
	2023		2022
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	Nonoperating other income (expense), net
Actuarial loss	14		25		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	17	$	28

American Airlines, Inc.

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, Retiree Medical and Other Postretirement Benefits		Unrealized Gain (Loss) on Investments		Income Tax Provision (1)			Total
Balance at December 31, 2022	$	(2,974)	$	(6)	$	(1,710)		$	(4,690)
Other comprehensive income (loss) before reclassifications	—		2		(1)			1
Amounts reclassified from AOCI	22		—		(5)		(2)	17
Net current-period other comprehensive income (loss)	22		2		(6)			18
Balance at March 31, 2023	$	(2,952)	$	(4)	$	(1,716)		$	(4,672)

(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income (loss) until the obligations are fully extinguished.

(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision (benefit) on the condensed consolidated statements of operations.

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI				Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended March 31,
	2023		2022
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	Nonoperating other income (expense), net
Actuarial loss	14		25		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	17	$	28

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Regional Expenses

3 Months Ended

Mar. 31, 2023

Regional Expenses [Line Items]

Regional Expenses

Regional Expenses

Our regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include our wholly-owned regional carriers as well as third-party regional carriers. Our regional carrier arrangements are in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations.

Regional expenses for each of the three months ended March 31, 2023 and 2022 include $80 million of depreciation and amortization and $1 million of aircraft rent.

During the three months ended March 31, 2023 and 2022, we recognized $168 million and $150 million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). We hold a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

American Airlines, Inc.

Regional Expenses [Line Items]

Regional Expenses

Regional Expenses

American’s regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include AAG’s wholly-owned regional carriers as well as third-party regional carriers. American’s regional carrier arrangements are in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations.

Regional expenses for the three months ended March 31, 2023 and 2022 include $68 million and $66 million of depreciation and amortization, respectively, and $1 million each of aircraft rent.

During the three months ended March 31, 2023 and 2022, American recognized $168 million and $150 million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). American holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

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Transactions with Related Parties

3 Months Ended

Mar. 31, 2023

American Airlines, Inc.

Entity Information [Line Items]

Transactions with Related Parties

Transactions with Related Parties

The following represents the net receivables (payables) to related parties (in millions):

	March 31, 2023		December 31, 2022
AAG	$	8,837	$	8,692
AAG’s wholly-owned subsidiaries (1)	(2,126)		(2,104)
Total	$	6,711	$	6,588

(1)The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle.

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Legal Proceedings

3 Months Ended

Mar. 31, 2023

Long-term Purchase Commitment [Line Items]

Legal Proceedings

Legal Proceedings

Private Party Antitrust Action Related to the Merger. On August 6, 2013, a lawsuit captioned Carolyn Fjord, et al., v. AMR Corporation, et al., was filed in the U.S. Bankruptcy Court for the Southern District of New York (Bankruptcy Court). The complaint named as defendants US Airways Group, US Airways, Inc., AMR Corporation and American, alleged that the effect of the merger of US Airways Group and AMR Corporation (the Merger) may be to create a monopoly in violation of Section 7 of the Clayton Antitrust Act, and sought injunctive relief and/or divestiture. On November 27, 2013, the Bankruptcy Court denied plaintiffs’ motion to preliminarily enjoin the Merger. On August 29, 2018, the Bankruptcy Court denied in part defendants’ motion for summary judgment, and fully denied plaintiffs’ cross-motion for summary judgment. The parties’ evidentiary cases were presented before the Bankruptcy Court in a bench trial in March 2019 and the parties submitted proposed findings of fact and conclusions of law and made closing arguments in April 2019. On January 29, 2021, the Bankruptcy Court published its decision finding in our favor. On March 25, 2022, the U.S. District Court for the Southern District of New York entered judgment affirming the Bankruptcy Court’s decision. On April 21, 2022, plaintiffs appealed that decision to the U.S. Court of Appeals for the Second Circuit. On March 20, 2023, the Second Circuit affirmed in full the District Court’s decision. Plaintiffs did not file a petition for panel rehearing or rehearing en banc with the Second Circuit, and their current deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 20, 2023. We believe this lawsuit is without merit and intend to continue to vigorously defend against any further appeals by the plaintiffs.

Government Antitrust Action Related to the Northeast Alliance. On September 21, 2021, the United States Department of Justice (the DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue Airways Corporation (JetBlue) in the U.S. District Court for the District of Massachusetts alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed Northeast Alliance arrangement (NEA). The parties presented their respective cases in a bench trial that commenced on September 27, 2022. The parties presented closing arguments on November 18, 2022. A decision is expected in the second quarter of 2023.

Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and JetBlue in January 2021, at the conclusion of the DOT’s review of the NEA (DOT Agreement). The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to the DOJ to resolve the antitrust concerns that the DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. On September 30, 2022, the DOT issued a further statement referencing the prior Clarification Notice and, among other things, indicating its intention to continue working with the DOJ in its efforts to resolve the ongoing proceedings regarding the NEA.

Private Party Antitrust Actions Related to the Northeast Alliance. On December 5, 2022 and December 7, 2022, two private party plaintiffs filed putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the Eastern District of New York alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. American and JetBlue are currently seeking dismissal or transfer of the complaint filed in the U.S. District Court for the District of Massachusetts to the U.S. District Court for the Eastern District of New York. We believe these lawsuits are without merit and are defending against them vigorously.

General. In addition to the specifically identified legal proceedings, we and our subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within our control. Therefore, although we will vigorously defend ourselves in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on us are uncertain but could be material.

American Airlines, Inc.

Long-term Purchase Commitment [Line Items]

Legal Proceedings

Legal Proceedings

Private Party Antitrust Action Related to the Merger. On August 6, 2013, a lawsuit captioned Carolyn Fjord, et al., v. AMR Corporation, et al., was filed in the U.S. Bankruptcy Court for the Southern District of New York (Bankruptcy Court). The complaint named as defendants US Airways Group, US Airways, Inc., AMR Corporation and American, alleged that the effect of the merger of US Airways Group and AMR Corporation (the Merger) may be to create a monopoly in violation of Section 7 of the Clayton Antitrust Act, and sought injunctive relief and/or divestiture. On November 27, 2013, the Bankruptcy Court denied plaintiffs’ motion to preliminarily enjoin the Merger. On August 29, 2018, the Bankruptcy Court denied in part defendants’ motion for summary judgment, and fully denied plaintiffs’ cross-motion for summary judgment. The parties’ evidentiary cases were presented before the Bankruptcy Court in a bench trial in March 2019 and the parties submitted proposed findings of fact and conclusions of law and made closing arguments in April 2019. On January 29, 2021, the Bankruptcy Court published its decision finding in American’s favor. On March 25, 2022, the U.S. District Court for the Southern District of New York entered judgment affirming the Bankruptcy Court’s decision. On April 21, 2022, plaintiffs appealed that decision to the U.S. Court of Appeals for the Second Circuit. On March 20, 2023, the Second Circuit affirmed in full the District Court’s decision. Plaintiffs did not file a petition for panel rehearing or rehearing en banc with the Second Circuit, and their current deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 20, 2023. American believes this lawsuit is without merit and intends to continue to vigorously defend against any further appeals by the plaintiffs.

Government Antitrust Action Related to the Northeast Alliance. On September 21, 2021, the United States Department of Justice (the DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue Airways Corporation (JetBlue) in the U.S. District Court for the District of Massachusetts alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed Northeast Alliance arrangement (NEA). The parties presented their respective cases in a bench trial that commenced on September 27, 2022. The parties presented closing arguments on November 18, 2022. A decision is expected in the second quarter of 2023.

Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and JetBlue in January 2021, at the conclusion of the DOT’s review of the NEA (DOT Agreement). The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to the DOJ to resolve the antitrust concerns that the DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. On September 30, 2022, the DOT issued a further statement referencing the prior Clarification Notice and, among other things, indicating its intention to continue working with the DOJ in its efforts to resolve the ongoing proceedings regarding the NEA.

Private Party Antitrust Actions Related to the Northeast Alliance. On December 5, 2022 and December 7, 2022, two private party plaintiffs filed putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the Eastern District of New York alleging that American and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against American and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. American and JetBlue are currently seeking dismissal or transfer of the complaint filed in the U.S. District Court for the District of Massachusetts to the U.S. District Court for the Eastern District of New York. American believes these lawsuits are without merit and is defending against them vigorously.

General. In addition to the specifically identified legal proceedings, American and its subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within American’s control. Therefore, although American will vigorously defend itself in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on American are uncertain but could be material.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2023

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

American Airlines, Inc.

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2022. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

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Special Items, Net (Tables)

3 Months Ended

Mar. 31, 2023

Restructuring Cost and Reserve [Line Items]

Components of Special Items, Net in Condensed Consolidated Statements of Operations

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended March 31,
	2023		2022
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	13		157
Nonoperating special items, net (3)	15		3

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of our retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. We retired our Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

(3)Nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

American Airlines, Inc.

Restructuring Cost and Reserve [Line Items]

Components of Special Items, Net in Condensed Consolidated Statements of Operations

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended March 31,
	2023		2022
Severance expenses (1)	$	21	$	—
Fleet impairment (2)	—		149
Other operating special items, net	(8)		8
Mainline operating special items, net	13		157
Nonoperating special items, net (3)	15		3

(1)Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions.

(2)Fleet impairment in the first quarter of 2022 included a non-cash impairment charge to write down the carrying value of American’s retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. American retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.

(3)Nonoperating special items, net principally included charges associated with debt refinancings and extinguishments.

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Earnings (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings (Loss) per Common Share

The following table provides the computation of basic and diluted earnings (loss) per common share (EPS) (in millions, except share and per share amounts):

	Three Months Ended March 31,
	2023		2022
Basic EPS:
Net income (loss)	$	10	$	(1,635)
Weighted average common shares outstanding (in thousands)	652,000		649,503
Basic EPS	$	0.02	$	(2.52)
Diluted EPS:
Net income (loss) for purposes of computing diluted EPS	$	10	$	(1,635)
Share computation for diluted EPS (in thousands):
Basic weighted average common shares outstanding	652,000		649,503
Dilutive effect of restricted stock unit awards	1,064		—
Dilutive effect of certain PSP Warrants and Treasury Loan Warrants	3,643		—
Diluted weighted average common shares outstanding	656,707		649,503
Diluted EPS	$	0.02	$	(2.52)

Anti-Dilutive Securities Excluded From Calculation of Diluted EPS

The following were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive (in thousands):

	Three Months Ended March 31,
	2023	2022
6.50% convertible senior notes	61,728	61,728
Restricted stock unit awards	4,099	3,933

Schedule of Warrants

The table below provides a summary of the PSP Warrants and the Treasury Loan Warrants:

Warrants	Warrants Issued (shares, in thousands)	Exercise Price		Expiration
PSP1 Warrants	14,048	$	12.51	April 2025 to September 2025
PSP2 Warrants	6,576	15.66		January 2026 to April 2026
PSP3 Warrants	4,407	21.75		April 2026 to June 2026
Treasury Loan Warrants	4,396	12.51		September 2025

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Entity Information [Line Items]

Disaggregation of Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	141		121
Total other revenue	863		717
Total operating revenues	$	12,189	$	8,899

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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

	Three Months Ended March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

Schedule of Contract Liabilities

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, our current loyalty program liability was $3.5 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

American Airlines, Inc.

Entity Information [Line Items]

Disaggregation of Revenue

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

	Three Months Ended March 31,
	2023		2022
Passenger revenue:
Passenger travel	$	10,291	$	7,213
Loyalty revenue - travel (1)	812		605
Total passenger revenue	11,103		7,818
Cargo	223		364
Other:
Loyalty revenue - marketing services	722		596
Other revenue	140		118
Total other revenue	862		714
Total operating revenues	$	12,188	$	8,896

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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

	Three Months Ended March 31,
	2023		2022
Domestic	$	8,037	$	6,060
Latin America	1,915		1,227
Atlantic	931		466
Pacific	220		65
Total passenger revenue	$	11,103	$	7,818

Schedule of Contract Liabilities

	March 31, 2023		December 31, 2022
	(In millions)
Loyalty program liability	$	9,367	$	9,145
Air traffic liability	9,053		6,745
Total	$	18,420	$	15,890

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2022	$	9,145
Deferral of revenue	1,057
Recognition of revenue (1)	(835)
Balance at March 31, 2023 (2)	$	9,367

(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 mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of March 31, 2023, American’s current loyalty program liability was $3.5 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

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Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Instrument [Line Items]

Schedule of Long-Term Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	March 31, 2023		December 31, 2022
Secured
2013 Term Loan Facility, variable interest rate of 8.15%, installments through 2028	$	1,000	$	1,752
2014 Term Loan Facility, variable interest rate of 6.51%, installments through 2027	1,183		1,196
11.75% senior secured notes, interest only payments until due in July 2025	2,500		2,500
10.75% senior secured IP notes, interest only payments until due in February 2026	1,000		1,000
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	200		200
7.25% senior secured notes, interest only payments until due in February 2028	750		—
5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (1)	3,500		3,500
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
AAdvantage Term Loan Facility, variable interest rate of 9.56%, installments beginning in July 2023 through April 2028 (1)	3,500		3,500
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.13%, averaging 3.70%, maturing from 2023 to 2034	8,776		9,175
Equipment loans and other notes payable, fixed and variable interest rates ranging from 3.32% to 8.20%, averaging 6.37%, maturing from 2023 to 2035	3,150		3,170
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	1,050		1,050
	29,609		30,043
Unsecured
PSP1 Promissory Note, interest only payments until due in April 2030	1,757		1,757
PSP2 Promissory Note, interest only payments until due in January 2031	1,030		1,030
PSP3 Promissory Note, interest only payments until due in April 2031	959		959
6.50% convertible senior notes, interest only payments until due in July 2025	1,000		1,000
3.75% senior notes, interest only payments until due in March 2025	500		500
	5,246		5,246
Total long-term debt	34,855		35,289
Less: Total unamortized debt discount, premium and issuance costs	396		386
Less: Current maturities	3,370		3,059
Long-term debt, net of current maturities	$	31,089	$	31,844

(1)Collectively referred to as the AAdvantage Financing.

Schedule of Line of Credit

As of March 31, 2023, the maximum availability under our revolving credit and other facilities is as follows (in millions):

2013 Revolving Facility	$	736
2014 Revolving Facility	1,631
April 2016 Revolving Facility	446
Other short-term facilities	64
Total	$	2,877

American Airlines, Inc.

Debt Instrument [Line Items]

Schedule of Long-Term Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	March 31, 2023		December 31, 2022
Secured
2013 Term Loan Facility, variable interest rate of 8.15%, installments through 2028	$	1,000	$	1,752
2014 Term Loan Facility, variable interest rate of 6.51%, installments through 2027	1,183		1,196
11.75% senior secured notes, interest only payments until due in July 2025	2,500		2,500
10.75% senior secured IP notes, interest only payments until due in February 2026	1,000		1,000
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	200		200
7.25% senior secured notes, interest only payments until due in February 2028	750		—
5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (1)	3,500		3,500
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
AAdvantage Term Loan Facility, variable interest rate of 9.56%, installments beginning in July 2023 through April 2028 (1)	3,500		3,500
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.13%, averaging 3.70%, maturing from 2023 to 2034	8,776		9,175
Equipment loans and other notes payable, fixed and variable interest rates ranging from 3.32% to 8.20%, averaging 6.37%, maturing from 2023 to 2035	3,150		3,170
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	1,050		1,050
Total long-term debt	29,609		30,043
Less: Total unamortized debt discount, premium and issuance costs	377		364
Less: Current maturities	3,370		3,059
Long-term debt, net of current maturities	$	25,862	$	26,620

(1)Collectively referred to as the AAdvantage Financing.

Schedule of Line of Credit

As of March 31, 2023, the maximum availability under American’s revolving credit and other facilities is as follows (in millions):

2013 Revolving Facility	$	736
2014 Revolving Facility	1,631
April 2016 Revolving Facility	446
Other short-term facilities	64
Total	$	2,877

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of March 31, 2023
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	3,296	$	3,296	$	—	$	—
Corporate obligations	4,453		—		4,453		—
Bank notes/certificates of deposit/time deposits	2,442		—		2,442		—
Repurchase agreements	450		—		450		—
U.S. government and agency obligations	400		—		400		—
	11,041		3,296		7,745		—
Restricted cash and short-term investments (1), (3)	955		486		469		—
Long-term investments (4)	246		246		—		—
Total	$	12,242	$	4,028	$	8,214	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

(2)Our short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations and collateral associated with the payment of interest for the AAdvantage Financing.

(4)Long-term investments include our equity investments in China Southern Airlines Company Limited (China Southern Airlines), GOL Linhas Aéreas Inteligentes S.A. (GOL) and Vertical Aerospace Ltd. (Vertical). See Note 8 for further information on our equity investments.

Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities

The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions):

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	34,459	$	33,573	$	34,903	$	32,569

American Airlines, Inc.

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Summary of Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of March 31, 2023
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	3,295	$	3,295	$	—	$	—
Corporate obligations	4,453		—		4,453		—
Bank notes/certificates of deposit/time deposits	2,441		—		2,441		—
Repurchase agreements	450		—		450		—
U.S. government and agency obligations	400		—		400		—
	11,039		3,295		7,744		—
Restricted cash and short-term investments (1), (3)	955		486		469		—
Long-term investments (4)	246		246		—		—
Total	$	12,240	$	4,027	$	8,213	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

(2)American’s short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations and collateral associated with the payment of interest for the AAdvantage Financing.

(4)Long-term investments include American’s equity investments in China Southern Airlines Company Limited (China Southern Airlines), GOL Linhas Aéreas Inteligentes S.A. (GOL) and Vertical Aerospace Ltd. (Vertical). See Note 7 for further information on American’s equity investments.

Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities

The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions):

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	29,232	$	28,814	$	29,679	$	28,453

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Investments (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Investments [Line Items]

Schedule of Equity Investments

Our equity investment ownership interests and carrying values were:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	228	$	222
China Southern Airlines	Fair Value	1.5	%	1.5	%	193		176
Other investments (1)	Various					201		212
Total						$	622	$	610

(1)Primarily includes our investment in JetSmart Airlines SpA, which is accounted for under the equity method, and our investments in GOL and Vertical, which are each accounted for at fair value.

American Airlines, Inc.

Schedule of Investments [Line Items]

Schedule of Equity Investments

American’s equity investment ownership interests and carrying values were:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	228	$	222
China Southern Airlines	Fair Value	1.5	%	1.5	%	193		176
Other investments (1)	Various					201		212
Total						$	622	$	610

(1)Primarily includes American’s investment in JetSmart Airlines SpA, which is accounted for under the equity method, and American’s investments in GOL and Vertical, which are each accounted for at fair value.

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2023

Defined Benefit Plan Disclosure [Line Items]

Components of Net Periodic Benefit Cost (Income)

The following table provides the components of net periodic benefit income (in millions):

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
Three Months Ended March 31,	2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3
Interest cost	190		139		12		7
Expected return on assets	(229)		(285)		(3)		(3)
Amortization of:
Prior service cost (benefit)	7		7		(3)		(3)
Unrecognized net loss (gain)	27		38		(9)		(6)
Net periodic benefit income	$	(5)	$	(100)	$	—	$	(2)

American Airlines, Inc.

Defined Benefit Plan Disclosure [Line Items]

Components of Net Periodic Benefit Cost (Income)

The following table provides the components of net periodic benefit income (in millions):

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
Three Months Ended March 31,	2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3
Interest cost	189		138		12		7
Expected return on assets	(228)		(283)		(3)		(3)
Amortization of:
Prior service cost (benefit)	7		7		(3)		(3)
Unrecognized net loss (gain)	27		38		(9)		(6)
Net periodic benefit income	$	(5)	$	(99)	$	—	$	(2)

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss) [Line Items]

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, Retiree Medical and Other Postretirement Benefits		Unrealized Gain (Loss) on Investments		Income Tax Provision (1)			Total
Balance at December 31, 2022	$	(2,978)	$	(6)	$	(1,601)		$	(4,585)
Other comprehensive income (loss) before reclassifications	—		2		(1)			1
Amounts reclassified from AOCI	22		—		(5)		(2)	17
Net current-period other comprehensive income (loss)	22		2		(6)			18
Balance at March 31, 2023	$	(2,956)	$	(4)	$	(1,607)		$	(4,567)

(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income (loss) until the obligations are fully extinguished.

(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision (benefit) on the condensed consolidated statements of operations.

Reclassifications out of Accumulated Other Comprehensive Loss

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI				Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended March 31,
	2023		2022
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	Nonoperating other income (expense), net
Actuarial loss	14		25		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	17	$	28

American Airlines, Inc.

Accumulated Other Comprehensive Income (Loss) [Line Items]

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, Retiree Medical and Other Postretirement Benefits		Unrealized Gain (Loss) on Investments		Income Tax Provision (1)			Total
Balance at December 31, 2022	$	(2,974)	$	(6)	$	(1,710)		$	(4,690)
Other comprehensive income (loss) before reclassifications	—		2		(1)			1
Amounts reclassified from AOCI	22		—		(5)		(2)	17
Net current-period other comprehensive income (loss)	22		2		(6)			18
Balance at March 31, 2023	$	(2,952)	$	(4)	$	(1,716)		$	(4,672)

(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income (loss) until the obligations are fully extinguished.

(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision (benefit) on the condensed consolidated statements of operations.

Reclassifications out of Accumulated Other Comprehensive Loss

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI				Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended March 31,
	2023		2022
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	Nonoperating other income (expense), net
Actuarial loss	14		25		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	17	$	28

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Transactions with Related Parties (Tables)

3 Months Ended

Mar. 31, 2023

American Airlines, Inc.

Entity Information [Line Items]

Summary of Net Receivables (Payables) to Related Parties

The following represents the net receivables (payables) to related parties (in millions):

	March 31, 2023		December 31, 2022
AAG	$	8,837	$	8,692
AAG’s wholly-owned subsidiaries (1)	(2,126)		(2,104)
Total	$	6,711	$	6,588

(1)The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle.

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Special Items, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Nonoperating special items, net	$ 15	$ 3
American Airlines, Inc.
Restructuring Cost and Reserve [Line Items]
Nonoperating special items, net	15	3
Mainline
Restructuring Cost and Reserve [Line Items]
Severance expenses	21	0
Fleet impairment	0	149
Other operating special items, net	(8)	8
Operating special items, net	13	157
Mainline | American Airlines, Inc.
Restructuring Cost and Reserve [Line Items]
Severance expenses	21	0
Fleet impairment	0	149
Other operating special items, net	(8)	8
Operating special items, net	$ 13	$ 157

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Earnings (Loss) per Common Share - Computation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic EPS:
Net income (loss)	$ 10	$ (1,635)
Basic weighted average common shares outstanding (in shares)	652,000	649,503
Basic EPS (in dollars per share)	$ 0.02	$ (2.52)
Diluted EPS:
Net income (loss) for purposes of computing diluted EPS	$ 10	$ (1,635)
Dilutive effect of stock awards (in shares)	1,064	0
Dilutive effect of warrants (in shares)	3,643	0
Diluted weighted average common shares outstanding (in shares)	656,707	649,503
Diluted EPS (in dollars per share)	$ 0.02	$ (2.52)

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Earnings (Loss) per Common Share - Anti-Dilutive Securities Excluded From Calculation of Diluted EPS (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2020
6.50% Senior Notes | Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest rate	6.50%		6.50%
6.50% convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	61,728	61,728
Restricted stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4,099	3,933

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Earnings (Loss) Per Common Share - Schedule of Warrants (Details) shares in Thousands	Mar. 31, 2023 $ / shares shares
PSP1 Warrants
Class of Warrant or Right [Line Items]
Warrants Issued (shares, in thousands) | shares	14,048
Exercise price of warrants (in dollars per share) | $ / shares	$ 12.51
PSP2 Warrants
Class of Warrant or Right [Line Items]
Warrants Issued (shares, in thousands) | shares	6,576
Exercise price of warrants (in dollars per share) | $ / shares	$ 15.66
PSP3 Warrants
Class of Warrant or Right [Line Items]
Warrants Issued (shares, in thousands) | shares	4,407
Exercise price of warrants (in dollars per share) | $ / shares	$ 21.75
Treasury Loan Warrant
Class of Warrant or Right [Line Items]
Warrants Issued (shares, in thousands) | shares	4,396
Exercise price of warrants (in dollars per share) | $ / shares	$ 12.51

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Revenue Recognition - Significant Categories of Reported Operating Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Operating revenues	$ 12,189	$ 8,899
Passenger
Revenue from External Customer [Line Items]
Operating revenues	11,103	7,818
Passenger travel
Revenue from External Customer [Line Items]
Operating revenues	10,291	7,213
Loyalty revenue - travel
Revenue from External Customer [Line Items]
Operating revenues	812	605
Cargo
Revenue from External Customer [Line Items]
Operating revenues	223	364
Other
Revenue from External Customer [Line Items]
Operating revenues	863	717
Loyalty revenue - marketing services
Revenue from External Customer [Line Items]
Operating revenues	722	596
Other revenue
Revenue from External Customer [Line Items]
Operating revenues	141	121
American Airlines, Inc.
Revenue from External Customer [Line Items]
Operating revenues	12,188	8,896
American Airlines, Inc. | Passenger
Revenue from External Customer [Line Items]
Operating revenues	11,103	7,818
American Airlines, Inc. | Passenger travel
Revenue from External Customer [Line Items]
Operating revenues	10,291	7,213
American Airlines, Inc. | Loyalty revenue - travel
Revenue from External Customer [Line Items]
Operating revenues	812	605
American Airlines, Inc. | Cargo
Revenue from External Customer [Line Items]
Operating revenues	223	364
American Airlines, Inc. | Other
Revenue from External Customer [Line Items]
Operating revenues	862	714
American Airlines, Inc. | Loyalty revenue - marketing services
Revenue from External Customer [Line Items]
Operating revenues	722	596
American Airlines, Inc. | Other revenue
Revenue from External Customer [Line Items]
Operating revenues	$ 140	$ 118

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Revenue Recognition - Passenger Revenue by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Airline Destination Disclosure [Line Items]
Operating revenues	$ 12,189	$ 8,899
Passenger
Airline Destination Disclosure [Line Items]
Operating revenues	11,103	7,818
Passenger | Domestic
Airline Destination Disclosure [Line Items]
Operating revenues	8,037	6,060
Passenger | Latin America
Airline Destination Disclosure [Line Items]
Operating revenues	1,915	1,227
Passenger | Atlantic
Airline Destination Disclosure [Line Items]
Operating revenues	931	466
Passenger | Pacific
Airline Destination Disclosure [Line Items]
Operating revenues	220	65
American Airlines, Inc.
Airline Destination Disclosure [Line Items]
Operating revenues	12,188	8,896
American Airlines, Inc. | Passenger
Airline Destination Disclosure [Line Items]
Operating revenues	11,103	7,818
American Airlines, Inc. | Passenger | Domestic
Airline Destination Disclosure [Line Items]
Operating revenues	8,037	6,060
American Airlines, Inc. | Passenger | Latin America
Airline Destination Disclosure [Line Items]
Operating revenues	1,915	1,227
American Airlines, Inc. | Passenger | Atlantic
Airline Destination Disclosure [Line Items]
Operating revenues	931	466
American Airlines, Inc. | Passenger | Pacific
Airline Destination Disclosure [Line Items]
Operating revenues	$ 220	$ 65

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Revenue Recognition - Significant Contract Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Contract balances, liability	$ 18,420	$ 15,890
Loyalty program liability
Disaggregation of Revenue [Line Items]
Contract balances, liability	9,367	9,145
Air traffic liability
Disaggregation of Revenue [Line Items]
Contract balances, liability	9,053	6,745
American Airlines, Inc.
Disaggregation of Revenue [Line Items]
Contract balances, liability	18,420	15,890
American Airlines, Inc. | Loyalty program liability
Disaggregation of Revenue [Line Items]
Contract balances, liability	9,367	9,145
American Airlines, Inc. | Air traffic liability
Disaggregation of Revenue [Line Items]
Contract balances, liability	$ 9,053	$ 6,745

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Revenue Recognition - Changes in Loyalty Program Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Movement In Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 15,890
Ending balance	18,420
Loyalty program liability
Movement In Contract With Customer, Liability [Roll Forward]
Beginning balance	9,145
Deferral of revenue	1,057
Recognition of revenue	(835)
Ending balance	$ 9,367
Inactive period before expiration of mileage credits	24 months
Deferred revenue, current	$ 3,486	$ 3,169
Revenue recognition term	12 months
American Airlines, Inc.
Movement In Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 15,890
Ending balance	18,420
American Airlines, Inc. | Loyalty program liability
Movement In Contract With Customer, Liability [Roll Forward]
Beginning balance	9,145
Deferral of revenue	1,057
Recognition of revenue	(835)
Ending balance	9,367
Deferred revenue, current	$ 3,486	$ 3,169

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Revenue Recognition - Narrative (Details) - Air traffic liability $ in Billions	3 Months Ended
	Mar. 31, 2023 USD ($)
Disaggregation of Revenue [Line Items]
Contract term	one year
Revenue recognition term	12 months
Recognition of revenue	$ 3.8
American Airlines, Inc.
Disaggregation of Revenue [Line Items]
Recognition of revenue	$ 3.8

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Debt - Components of Long-Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total long-term debt	$ 34,855	$ 35,289
Less: Total unamortized debt discount, premium and issuance costs	396	386
Less: Current maturities	3,370	3,059
Long-term debt, net of current maturities	31,089	31,844
Secured Debt
Debt Instrument [Line Items]
Total long-term debt	29,609	30,043
Secured Debt | 2013 Revolving Facility
Debt Instrument [Line Items]
Total long-term debt	$ 1,000	1,752
Variable interest rate	8.15%
Secured Debt | 2014 Revolving Facility
Debt Instrument [Line Items]
Total long-term debt	$ 1,183	1,196
Variable interest rate	6.51%
Secured Debt | 11.75% Senior Secured Notes
Debt Instrument [Line Items]
Total long-term debt	$ 2,500	2,500
Interest rate	11.75%
Secured Debt | 10.75% Senior Secured Notes, IP Notes
Debt Instrument [Line Items]
Total long-term debt	$ 1,000	1,000
Interest rate	10.75%
Secured Debt | 10.75% Senior Secured Notes, LGA/DCA Notes
Debt Instrument [Line Items]
Total long-term debt	$ 200	200
Interest rate	10.75%
Secured Debt | 7.25% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 750	0
Interest rate	7.25%
Secured Debt | 5.50% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 3,500	3,500
Interest rate	5.50%
Secured Debt | 5.75% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 3,000	3,000
Interest rate	5.75%
Secured Debt | AAdvantage Term Loan Facility
Debt Instrument [Line Items]
Total long-term debt	$ 3,500	3,500
Variable interest rate	9.56%
Secured Debt | Enhanced Equipment Trust Certificates (EETC)
Debt Instrument [Line Items]
Total long-term debt	$ 8,776	9,175
Average interest rate	3.70%
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Minimum
Debt Instrument [Line Items]
Interest rate	2.88%
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Maximum
Debt Instrument [Line Items]
Interest rate	7.13%
Secured Debt | Equipment Loans and Other Notes Payable
Debt Instrument [Line Items]
Total long-term debt	$ 3,150	3,170
Average interest rate	6.37%
Secured Debt | Equipment Loans and Other Notes Payable | Minimum
Debt Instrument [Line Items]
Interest rate	3.32%
Secured Debt | Equipment Loans and Other Notes Payable | Maximum
Debt Instrument [Line Items]
Interest rate	8.20%
Secured Debt | Special Facility Revenue Bonds
Debt Instrument [Line Items]
Total long-term debt	$ 1,050	1,050
Secured Debt | Special Facility Revenue Bonds | Minimum
Debt Instrument [Line Items]
Interest rate	2.25%
Secured Debt | Special Facility Revenue Bonds | Maximum
Debt Instrument [Line Items]
Interest rate	5.38%
Unsecured Debt
Debt Instrument [Line Items]
Total long-term debt	$ 5,246	5,246
Unsecured Debt | Payroll Support Program Promissory Note One, CARES Act
Debt Instrument [Line Items]
Total long-term debt	1,757	1,757
Unsecured Debt | Payroll Support Program Promissory Note Two, CARES Act
Debt Instrument [Line Items]
Total long-term debt	1,030	1,030
Unsecured Debt | Payroll Support Program Promissory Note Three, CARES Act
Debt Instrument [Line Items]
Total long-term debt	959	959
Unsecured Debt | 6.50% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 1,000	1,000
Interest rate	6.50%
Unsecured Debt | 3.75% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 500	500
Interest rate	3.75%
American Airlines, Inc.
Debt Instrument [Line Items]
Less: Total unamortized debt discount, premium and issuance costs	$ 377	364
Less: Current maturities	3,370	3,059
Long-term debt, net of current maturities	25,862	26,620
American Airlines, Inc. | Secured Debt
Debt Instrument [Line Items]
Total long-term debt	29,609	30,043
American Airlines, Inc. | Secured Debt | 2013 Revolving Facility
Debt Instrument [Line Items]
Total long-term debt	$ 1,000	1,752
Variable interest rate	8.15%
American Airlines, Inc. | Secured Debt | 2014 Revolving Facility
Debt Instrument [Line Items]
Total long-term debt	$ 1,183	1,196
Variable interest rate	6.51%
American Airlines, Inc. | Secured Debt | 11.75% Senior Secured Notes
Debt Instrument [Line Items]
Total long-term debt	$ 2,500	2,500
Interest rate	11.75%
American Airlines, Inc. | Secured Debt | 10.75% Senior Secured Notes, IP Notes
Debt Instrument [Line Items]
Total long-term debt	$ 1,000	1,000
Interest rate	10.75%
American Airlines, Inc. | Secured Debt | 10.75% Senior Secured Notes, LGA/DCA Notes
Debt Instrument [Line Items]
Total long-term debt	$ 200	200
Interest rate	10.75%
American Airlines, Inc. | Secured Debt | 7.25% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 750	0
Interest rate	7.25%
American Airlines, Inc. | Secured Debt | 5.50% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 3,500	3,500
Interest rate	5.50%
American Airlines, Inc. | Secured Debt | 5.75% Senior Notes
Debt Instrument [Line Items]
Total long-term debt	$ 3,000	3,000
Interest rate	5.75%
American Airlines, Inc. | Secured Debt | AAdvantage Term Loan Facility
Debt Instrument [Line Items]
Total long-term debt	$ 3,500	3,500
Variable interest rate	9.56%
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC)
Debt Instrument [Line Items]
Total long-term debt	$ 8,776	9,175
Average interest rate	3.70%
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Minimum
Debt Instrument [Line Items]
Interest rate	2.88%
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Maximum
Debt Instrument [Line Items]
Interest rate	7.13%
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable
Debt Instrument [Line Items]
Total long-term debt	$ 3,150	3,170
Average interest rate	6.37%
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | Minimum
Debt Instrument [Line Items]
Interest rate	3.32%
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | Maximum
Debt Instrument [Line Items]
Interest rate	8.20%
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds
Debt Instrument [Line Items]
Total long-term debt	$ 1,050	$ 1,050
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | Minimum
Debt Instrument [Line Items]
Interest rate	2.25%
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | Maximum
Debt Instrument [Line Items]
Interest rate	5.38%

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Debt - Schedule of Line of Credit (Details) $ in Millions	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	$ 2,877
American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	2,877
Revolving Credit Facility | 2013 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	736
Revolving Credit Facility | 2014 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	1,631
Revolving Credit Facility | April 2016 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	446
Revolving Credit Facility | Other short-term facilities
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	64
Revolving Credit Facility | American Airlines, Inc. | 2013 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	736
Revolving Credit Facility | American Airlines, Inc. | 2014 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	1,631
Revolving Credit Facility | American Airlines, Inc. | April 2016 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	446
Revolving Credit Facility | American Airlines, Inc. | Other short-term facilities
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	$ 64

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Debt - Narrative (Details)		1 Months Ended		3 Months Ended
	Feb. 15, 2023 USD ($)	Mar. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	Mar. 31, 2023 USD ($) day	Oct. 13, 2026 USD ($)	Oct. 11, 2024 USD ($)	Jun. 30, 2020
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 2,877,000,000		$ 2,877,000,000
American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 2,877,000,000		$ 2,877,000,000
6.50% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate		6.50%		6.50%			6.50%
Conversion terms, percentage sales price exceeds conversion price				130.00%
Convertible debt, threshold trading days | day				20
Convertible debt, threshold consecutive trading days | day				30
Conversion ratio				0.0617284
2014 Revolving Facility | Term Loan | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor		1.00%
Debt instrument, basis spread on variable rate, interest rate margin		1.75%
2014 Revolving Facility | Term Loan | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate, floor		0.00%
Debt instrument, basis spread on variable rate, interest rate margin		0.75%
2014 Revolving Facility | American Airlines, Inc. | Term Loan | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor		1.00%
Debt instrument, basis spread on variable rate, interest rate margin		1.75%
2014 Revolving Facility | American Airlines, Inc. | Term Loan | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate, floor		0.00%
Debt instrument, basis spread on variable rate, interest rate margin		0.75%
7.25% Senior Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate			7.25%
Debt instrument, face amount			$ 750,000,000
7.25% Senior Notes | Secured Debt
Debt Instrument [Line Items]
Interest rate		7.25%		7.25%
7.25% Senior Notes | American Airlines, Inc. | Senior Notes
Debt Instrument [Line Items]
Interest rate	7.25%		7.25%
Debt instrument, face amount	$ 750,000,000		$ 750,000,000
Debt instrument, covenant terms, minimum collateral coverage ratio	1.6
Debt instrument, special interest rate	2.00%
7.25% Senior Notes | American Airlines, Inc. | Senior Notes | On or Prior to the Fourth Anniversary
Debt Instrument [Line Items]
Debt redemption price percentage	100.00%
7.25% Senior Notes | American Airlines, Inc. | Senior Notes | After the Fourth Anniversary and On or Prior to the Fifth Anniversary
Debt Instrument [Line Items]
Debt redemption price percentage	107.25%
Debt instrument, redemption price, percentage of principal amount redeemed	40.00%
7.25% Senior Notes | American Airlines, Inc. | Senior Notes | In the Event of Specified Change of Control
Debt Instrument [Line Items]
Debt redemption price percentage	101.00%
7.25% Senior Notes | American Airlines, Inc. | Secured Debt
Debt Instrument [Line Items]
Interest rate		7.25%		7.25%
Equipment Loans and Other Notes Payable | Secured Debt
Debt Instrument [Line Items]
Proceeds from secured notes payable				$ 94,000,000
Long term debt average interest rate		7.04%		7.04%
Equipment Loans and Other Notes Payable | American Airlines, Inc. | Secured Debt
Debt Instrument [Line Items]
Proceeds from secured notes payable				$ 94,000,000
Long term debt average interest rate		7.04%		7.04%
Revolving Credit Facility | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 2,200,000,000	$ 2,800,000,000
Revolving Credit Facility | American Airlines, Inc. | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					2,200,000,000	2,800,000,000
Revolving Credit Facility | Cargo Receivable Facility | American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 64,000,000		$ 64,000,000
Revolving Credit Facility | 2013 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 736,000,000		736,000,000
Debt instrument, refinanced amount			$ 1,800,000,000
Revolving Credit Facility | 2013 Revolving Facility | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					563,000,000	736,000,000
Revolving Credit Facility | 2013 Revolving Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor		1.00%	1.00%
Debt instrument, basis spread on variable rate, interest rate margin			1.75%
Revolving Credit Facility | 2013 Revolving Facility | Base Rate | Interest Rate Margin One
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		2.25%
Revolving Credit Facility | 2013 Revolving Facility | Base Rate | Interest Rate Margin Two
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		2.50%
Revolving Credit Facility | 2013 Revolving Facility | Base Rate | Interest Rate Margin Three
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		2.75%
Revolving Credit Facility | 2013 Revolving Facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate, floor		0.00%	0.00%
Debt instrument, basis spread on variable rate, interest rate margin			2.75%
Revolving Credit Facility | 2013 Revolving Facility | SOFR | Interest Rate Margin One
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		3.25%
Revolving Credit Facility | 2013 Revolving Facility | SOFR | Interest Rate Margin Two
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		3.50%
Revolving Credit Facility | 2013 Revolving Facility | SOFR | Interest Rate Margin Three
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		3.75%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 736,000,000		736,000,000
Debt instrument, refinanced amount			$ 1,800,000,000
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					563,000,000	736,000,000
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor		1.00%	1.00%
Debt instrument, basis spread on variable rate, interest rate margin			1.75%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | Base Rate | Interest Rate Margin One
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		2.25%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | Base Rate | Interest Rate Margin Two
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		2.50%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | Base Rate | Interest Rate Margin Three
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		2.75%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate, floor		0.00%	0.00%
Debt instrument, basis spread on variable rate, interest rate margin			2.75%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | SOFR | Interest Rate Margin One
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		3.25%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | SOFR | Interest Rate Margin Two
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		3.50%
Revolving Credit Facility | 2013 Revolving Facility | American Airlines, Inc. | SOFR | Interest Rate Margin Three
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate, interest rate margin		3.75%
Revolving Credit Facility | Credit Facility 2013, Term Loan
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 1,000,000,000
Revolving Credit Facility | Credit Facility 2013, Term Loan | American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			$ 1,000,000,000
Revolving Credit Facility | 2014 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 1,631,000,000		1,631,000,000
Revolving Credit Facility | 2014 Revolving Facility | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					1,200,000,000	1,600,000,000
Revolving Credit Facility | 2014 Revolving Facility | American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		1,631,000,000		1,631,000,000
Revolving Credit Facility | 2014 Revolving Facility | American Airlines, Inc. | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					1,200,000,000	1,600,000,000
Revolving Credit Facility | April 2016 Revolving Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		446,000,000		446,000,000
Revolving Credit Facility | April 2016 Revolving Facility | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					342,000,000	446,000,000
Revolving Credit Facility | April 2016 Revolving Facility | American Airlines, Inc.
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 446,000,000		$ 446,000,000
Revolving Credit Facility | April 2016 Revolving Facility | American Airlines, Inc. | Forecast
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 342,000,000	$ 446,000,000

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Tax Credit Carryforward [Line Items]
Other carryforwards			$ 4,300
Income tax provision (benefit)	$ 7	$ (451)
Federal
Tax Credit Carryforward [Line Items]
NOL carryforwards			16,200
Operating loss carryforwards and other carryforwards, subject to expiration			5,900
Operating loss carryforwards and other carryforwards, not subject to expiration			14,600
State
Tax Credit Carryforward [Line Items]
NOL carryforward subject to expiration			6,000
American Airlines, Inc.
Tax Credit Carryforward [Line Items]
Other carryforwards			3,500
Income tax provision (benefit)	$ 29	$ (436)
American Airlines, Inc. | Federal
Tax Credit Carryforward [Line Items]
NOL carryforwards			16,100
Operating loss carryforwards and other carryforwards, subject to expiration			6,200
Operating loss carryforwards and other carryforwards, not subject to expiration			13,400
American Airlines, Inc. | State
Tax Credit Carryforward [Line Items]
NOL carryforward subject to expiration			$ 5,900

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Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 11,041	$ 8,525
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	11,041
Restricted cash and short-term investments	955
Long-term investments	246
Total	12,242
Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	3,296
Recurring | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,453
Recurring | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	2,442
Recurring | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	450
Recurring | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	400
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	3,296
Restricted cash and short-term investments	486
Long-term investments	246
Total	4,028
Recurring | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	3,296
Recurring | Level 1 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 1 | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 1 | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 1 | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	7,745
Restricted cash and short-term investments	469
Long-term investments	0
Total	8,214
Recurring | Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 2 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,453
Recurring | Level 2 | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	2,442
Recurring | Level 2 | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	450
Recurring | Level 2 | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	400
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Restricted cash and short-term investments	0
Long-term investments	0
Total	0
Recurring | Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 3 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 3 | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 3 | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Recurring | Level 3 | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	11,039	$ 8,523
American Airlines, Inc. | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	11,039
Restricted cash and short-term investments	955
Long-term investments	246
Total	12,240
American Airlines, Inc. | Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	3,295
American Airlines, Inc. | Recurring | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,453
American Airlines, Inc. | Recurring | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	2,441
American Airlines, Inc. | Recurring | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	450
American Airlines, Inc. | Recurring | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	400
American Airlines, Inc. | Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	3,295
Restricted cash and short-term investments	486
Long-term investments	246
Total	4,027
American Airlines, Inc. | Recurring | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	3,295
American Airlines, Inc. | Recurring | Level 1 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 1 | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 1 | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 1 | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	7,744
Restricted cash and short-term investments	469
Long-term investments	0
Total	8,213
American Airlines, Inc. | Recurring | Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 2 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	4,453
American Airlines, Inc. | Recurring | Level 2 | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	2,441
American Airlines, Inc. | Recurring | Level 2 | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	450
American Airlines, Inc. | Recurring | Level 2 | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	400
American Airlines, Inc. | Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Restricted cash and short-term investments	0
Long-term investments	0
Total	0
American Airlines, Inc. | Recurring | Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 3 | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 3 | Bank notes/certificates of deposit/time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 3 | Repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
American Airlines, Inc. | Recurring | Level 3 | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 0

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	$ 3,700	$ 3,700
Level 2 | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	33,573	32,569
Level 2 | Convertible Note | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	1,100	1,100
Level 2 | American Airlines, Inc. | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	$ 28,814	$ 28,453

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Fair Value Measurements - Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current maturities	$ 33,573	$ 32,569
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current maturities	34,459	34,903
American Airlines, Inc. | Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current maturities	28,814	28,453
American Airlines, Inc. | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current maturities	$ 29,232	$ 29,679

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Investments - Schedule of Equity Investments (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Investments	$ 201	$ 212
Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	622	610
American Airlines, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Investments	201	212
American Airlines, Inc. | Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 622	$ 610
China Southern Airlines
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest, fair value method investments	1.50%	1.50%
Carrying value, fair value method investments	$ 193	$ 176
China Southern Airlines | American Airlines, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest, fair value method investments	1.50%	1.50%
Carrying value, fair value method investments	$ 193	$ 176
Republic Airline Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest, equity method investments	25.00%	25.00%
Carrying value, equity method investments	$ 228	$ 222
Republic Airline Inc. | American Airlines, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest, equity method investments	25.00%	25.00%
Carrying value, equity method investments	$ 228	$ 222

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Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 1
Interest cost	190	139
Expected return on assets	(229)	(285)
Amortization of:
Prior service cost (benefit)	7	7
Unrecognized net loss (gain)	27	38
Net periodic benefit income	(5)	(100)
Retiree Medical and Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	3	3
Interest cost	12	7
Expected return on assets	(3)	(3)
Amortization of:
Prior service cost (benefit)	(3)	(3)
Unrecognized net loss (gain)	(9)	(6)
Net periodic benefit income	0	(2)
American Airlines, Inc. | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	1
Interest cost	189	138
Expected return on assets	(228)	(283)
Amortization of:
Prior service cost (benefit)	7	7
Unrecognized net loss (gain)	27	38
Net periodic benefit income	(5)	(99)
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	3	3
Interest cost	12	7
Expected return on assets	(3)	(3)
Amortization of:
Prior service cost (benefit)	(3)	(3)
Unrecognized net loss (gain)	(9)	(6)
Net periodic benefit income	$ 0	$ (2)

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Employee Benefit Plans - Narrative (Details) - Pension Benefits $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed amount	$ 67
American Airlines, Inc.
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed amount	$ 67

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Accumulated Other Comprehensive Loss - Components of AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI tax, attributable to parent [Roll Forward]
Beginning balance, tax	$ (1,601)
Other comprehensive income (loss) before reclassifications, tax	(1)
Amounts reclassified from AOCI, tax	(5)
Net current-period other comprehensive income (loss), tax	(6)
Ending balance, tax	(1,607)
AOCI attributable to parent, net of tax [Roll Forward]
Beginning balance, net of tax	(4,585)
Other comprehensive income (loss) before reclassifications, net of tax	1
Amounts reclassified from AOCI, net of tax	17
Total other comprehensive income, net of tax	18	$ 26
Ending balance, net of tax	(4,567)
Pension, Retiree Medical and Other Postretirement Benefits
AOCI attributable to parent, before tax [Roll Forward]
Beginning balance, before tax	(2,978)
Other comprehensive income (loss) before reclassifications, before tax	0
Amounts reclassified from AOCI, before tax	22
Net current-period other comprehensive income (loss), before tax	22
Ending balance, before tax	(2,956)
Unrealized Gain (Loss) on Investments
AOCI attributable to parent, before tax [Roll Forward]
Beginning balance, before tax	(6)
Other comprehensive income (loss) before reclassifications, before tax	2
Amounts reclassified from AOCI, before tax	0
Net current-period other comprehensive income (loss), before tax	2
Ending balance, before tax	(4)
American Airlines, Inc.
AOCI tax, attributable to parent [Roll Forward]
Beginning balance, tax	(1,710)
Other comprehensive income (loss) before reclassifications, tax	(1)
Amounts reclassified from AOCI, tax	(5)
Net current-period other comprehensive income (loss), tax	(6)
Ending balance, tax	(1,716)
AOCI attributable to parent, net of tax [Roll Forward]
Beginning balance, net of tax	(4,690)
Other comprehensive income (loss) before reclassifications, net of tax	1
Amounts reclassified from AOCI, net of tax	17
Total other comprehensive income, net of tax	18	$ 26
Ending balance, net of tax	(4,672)
American Airlines, Inc. | Pension, Retiree Medical and Other Postretirement Benefits
AOCI attributable to parent, before tax [Roll Forward]
Beginning balance, before tax	(2,974)
Other comprehensive income (loss) before reclassifications, before tax	0
Amounts reclassified from AOCI, before tax	22
Net current-period other comprehensive income (loss), before tax	22
Ending balance, before tax	(2,952)
American Airlines, Inc. | Unrealized Gain (Loss) on Investments
AOCI attributable to parent, before tax [Roll Forward]
Beginning balance, before tax	(6)
Other comprehensive income (loss) before reclassifications, before tax	2
Amounts reclassified from AOCI, before tax	0
Net current-period other comprehensive income (loss), before tax	2
Ending balance, before tax	$ (4)

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Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Nonoperating other income (expense), net	$ 421	$ 363
Net income (loss)	(10)	1,635
American Airlines, Inc.
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Nonoperating other income (expense), net	325	318
Net income (loss)	(85)	1,578
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	17	28
Reclassification out of Accumulated Other Comprehensive Income | Prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Nonoperating other income (expense), net	3	3
Reclassification out of Accumulated Other Comprehensive Income | Actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Nonoperating other income (expense), net	14	25
Reclassification out of Accumulated Other Comprehensive Income | American Airlines, Inc.
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	17	28
Reclassification out of Accumulated Other Comprehensive Income | American Airlines, Inc. | Prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Nonoperating other income (expense), net	3	3
Reclassification out of Accumulated Other Comprehensive Income | American Airlines, Inc. | Actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Nonoperating other income (expense), net	$ 14	$ 25

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Regional Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Regional Expenses [Line Items]
Depreciation and amortization	$ 486	$ 492
Aircraft rent	344	353
American Airlines, Inc.
Regional Expenses [Line Items]
Depreciation and amortization	484	492
Aircraft rent	344	353
Regional Carrier
Regional Expenses [Line Items]
Depreciation and amortization	80	80
Aircraft rent	1	1
Regional Carrier | American Airlines, Inc.
Regional Expenses [Line Items]
Depreciation and amortization	68	66
Aircraft rent	1	1
Regional Carrier | Republic Airline Inc.
Regional Expenses [Line Items]
Capacity purchases from third-party regional carriers	168	150
Regional Carrier | Republic Airline Inc. | American Airlines, Inc.
Regional Expenses [Line Items]
Capacity purchases from third-party regional carriers	$ 168	$ 150
Republic Airways Holdings, Inc.
Regional Expenses [Line Items]
Ownership percentage	25.00%
Republic Airways Holdings, Inc. | American Airlines, Inc.
Regional Expenses [Line Items]
Ownership percentage	25.00%

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Transactions with Related Parties (Details) - American Airlines, Inc. - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Receivables from related parties, net	$ 6,711	$ 6,588
AAG
Related Party Transaction [Line Items]
Receivables from related parties, net	8,837	8,692
AAG's wholly-owned subsidiaries
Related Party Transaction [Line Items]
Receivables from related parties, net	$ (2,126)	$ (2,104)

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Legal Proceedings (Details) - Private Party Antitrust Actions Related to the Northeast Alliance	Feb. 15, 2023 lawsuit	Dec. 07, 2022 lawsuit plaintiff
Long-term Purchase Commitment [Line Items]
Number of private party plaintiffs who filed putative class action | plaintiff		2
Number of additional putative class action lawsuits	2
American Airlines, Inc.
Long-term Purchase Commitment [Line Items]
Number of private party plaintiffs who filed putative class action		2
Number of additional putative class action lawsuits	2