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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision were (in millions):
 Year Ended December 31,
 202520242023
Deferred income tax provision:
Federal$72 $285 $268 
State and local7 23 31 
Deferred income tax provision79 308 299 
Total income tax provision$79 $308 $299 
The income tax provision differed from amounts computed at the U.S. federal statutory income tax rate as follows (amounts in millions):
Year Ended December 31,
202520242023
AmountRateAmountRateAmountRate
U.S. federal statutory income tax rate$40 21.0 %$242 21.0 %$236 21.0 %
Domestic federal:
Nontaxable or nondeductible items
Nondeductible meals and other nondeductible employee benefits28 15.3 %22 1.9 %22 2.0 %
Nondeductible officer compensation10 5.2 %12 1.1 %11 1.0 %
Other nontaxable and nondeductible items— — %11 0.9 %9 0.8 %
Other(6)(3.3)%— — %— — %
Domestic state and local income taxes, net of federal effect7 3.0 %21 1.8 %21 1.9 %
Effective tax rate$79 41.2 %$308 26.7 %$299 26.7 %
The components of our deferred tax assets and liabilities were (in millions):
 December 31,
 20252024
Deferred tax assets:
Net operating loss and other carryforwards$4,095 $4,292 
Loyalty program liability1,949 1,799 
Leases1,566 1,596 
Pension benefits109 234 
Postretirement benefits other than pension benefits260 270 
Rent expense37 60 
Other676 775 
Total deferred tax assets8,692 9,026 
Valuation allowance(22)(22)
Net deferred tax assets8,670 9,004 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,543)(4,620)
Leases(1,594)(1,656)
Other(174)(252)
Total deferred tax liabilities(6,311)(6,528)
Net deferred tax asset$2,359 $2,476 
At December 31, 2025, we had approximately $11.9 billion of gross federal NOLs and $6.0 billion of other carryforwards available to reduce future federal taxable income, of which $1.6 billion will expire beginning in 2033 if unused and $16.3 billion can be carried forward indefinitely. We also had approximately $5.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2025, which will expire in taxable years 2025 through 2045 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 and other carryforwards, 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.
In 2025, we recorded an income tax provision of $79 million with an effective rate of approximately 41.2%, which was substantially non-cash. Substantially all of our income before income taxes is attributable to the United States.
We file our tax returns as prescribed by the tax laws of the jurisdictions in which we operate. Our 2022 through 2024 tax years are still subject to examination by the Internal Revenue Service. Various state, local and foreign jurisdiction tax years remain open to examination, and we are under examination, in administrative appeals or engaged in tax litigation in certain jurisdictions. We believe that the effect of any assessments will not be material to our consolidated financial statements.
The amount of, and changes to, our uncertain tax positions were not material in any of the years presented. We accrue interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.
American Airlines, Inc.  
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision were (in millions):
 Year Ended December 31,
 202520242023
Deferred income tax provision:
Federal$183 $391 $361 
State and local14 35 33 
Deferred income tax provision197 426 394 
Total income tax provision$197 $426 $394 
The income tax provision differed from amounts computed at the U.S. federal statutory income tax rate as follows (amounts in millions):
Year Ended December 31,
202520242023
AmountRateAmountRateAmountRate
U.S. federal statutory income tax rate$160 21.0 %$355 21.0 %$332 21.0 %
Domestic federal:
Nontaxable or nondeductible items
Nondeductible meals and other nondeductible employee benefits23 3.0 %18 1.1 %19 1.2 %
Nondeductible officer compensation10 1.3 %12 0.7 %11 0.6 %
Other nontaxable and nondeductible items(4)(0.4)%12 0.7 %4 0.3 %
Other(6)(0.8)%— — %— — %
Domestic state and local income taxes, net of federal effect14 1.8 %29 1.7 %28 1.8 %
Effective tax rate$197 25.9 %$426 25.2 %$394 24.9 %
The components of American’s deferred tax assets and liabilities were (in millions):
 December 31,
 20252024
Deferred tax assets:
Net operating loss and other carryforwards$3,566 $3,891 
Loyalty program liability1,949 1,799 
Leases1,553 1,582 
Pension benefits104 228 
Postretirement benefits other than pension benefits260 270 
Rent expense37 59 
Other633 726 
Total deferred tax assets8,102 8,555 
Valuation allowance(12)(12)
Net deferred tax assets8,090 8,543 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,520)(4,599)
Leases(1,582)(1,642)
Other(165)(244)
Total deferred tax liabilities(6,267)(6,485)
Net deferred tax asset$1,823 $2,058 
At December 31, 2025, American had approximately $11.7 billion of gross federal NOLs and $3.8 billion of other carryforwards available to reduce future federal taxable income, of which $1.8 billion will expire beginning in 2033 if unused and $13.7 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 $4.7 billion of NOL carryforwards to reduce future state taxable income at December 31, 2025, which will expire in taxable years 2025 through 2045 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 its NOLs and other carryforwards, 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.
In 2025, American recorded an income tax provision of $197 million with an effective rate of approximately 25.9%, which was substantially non-cash. Substantially all of American’s income before income taxes is attributable to the United States.
American files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. American’s 2022 through 2024 tax years are still subject to examination by the Internal Revenue Service. Various state, local and foreign jurisdiction tax years remain open to examination, and American is under examination, in administrative appeals or engaged in tax litigation in certain jurisdictions. American believes that the effect of any assessments will not be material to its consolidated financial statements.
The amount of, and changes to, American’s uncertain tax positions were not material in any of the years presented. American accrues interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.