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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
We sponsor defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen and we began providing enhanced benefits under our defined contribution pension plans for certain employee groups. We use a December 31 measurement date for all of our defined benefit pension plans. We also provide certain retiree medical and other postretirement benefits, including health care and life insurance benefits to retired employees and notional retiree health reimbursement arrangements for eligible participants.
Benefit Obligations, Fair Value of Plan Assets and Funded Status
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and funded status as of December 31, 2025 and 2024:
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2025202420252024
 (In millions)
Benefit obligation at beginning of period$13,349 $14,410 $1,308 $1,325 
Service cost3 2 23 29 
Interest cost730 723 69 64 
Actuarial loss (gain) (1), (2)
168 (741)(11)(58)
Plan amendments (3)
— — — 55 
Benefit payments(919)(913)(130)(107)
Other— (132)— — 
Benefit obligation at end of period$13,331 $13,349 $1,259 $1,308 
Fair value of plan assets at beginning of period$12,254 $12,431 $128 $133 
Actual return on plan assets1,229 568 15 9 
Employer contributions (4)
228 300 105 93 
Benefit payments(919)(913)(130)(107)
Other— (132)— — 
Fair value of plan assets at end of period$12,792 $12,254 $118 $128 
Funded status at end of period$(539)$(1,095)$(1,141)$(1,180)
(1)The 2025 and 2024 pension actuarial loss (gain) primarily relates to the change in our weighted average discount rate assumption.
(2)The 2025 and 2024 retiree medical and other postretirement benefits actuarial gain primarily relates to changes in certain retirement assumptions, offset in part by increases in health care premiums and health care cost assumptions. Changes in our weighted average discount rate assumption also impacted the net actuarial gain in 2025 and 2024.
(3)In 2024 we remeasured our retiree medical and other postretirement benefits to account for enhanced retirement benefits pursuant to the ratification of new CBAs. As a result, we increased our postretirement benefits obligation by $55 million, which was included as a component of prior service cost in accumulated other comprehensive loss.
(4)In 2025 and 2024, we made required contributions of $224 million and $285 million, respectively, to our defined benefit pension plans.
Balance Sheet Position
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2025202420252024
 (In millions)
As of December 31:
Current liability$4 $5 $108 $142 
Noncurrent liability535 1,090 1,033 1,038 
Total liabilities$539 $1,095 $1,141 $1,180 
Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
2025202420252024
(In millions)
As of December 31:
Net actuarial loss (gain)$2,907 $3,128 $(395)$(408)
Prior service cost— 1 220 238 
Total accumulated other comprehensive loss (income), pre-tax
$2,907 $3,129 $(175)$(170)
Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension Benefits
 20252024
 (In millions)
As of December 31:
Projected benefit obligation$8,820 $13,349 
Fair value of plan assets8,221 12,254 
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2025202420252024
 (In millions)
As of December 31:
Accumulated benefit obligation$8,814 $13,341 $— $— 
Accumulated postretirement benefit obligation
— — 1,259 1,308 
Fair value of plan assets8,221 12,254 118 128 
Net Periodic Benefit Cost (Income)
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202520242023202520242023
 (In millions)
For the years ended December 31:
Defined benefit plans:
Service cost$3 $2 $2 $23 $29 $17 
Interest cost730 723 758 69 64 55 
Expected return on assets(929)(978)(918)(9)(10)(11)
Amortization of:
Prior service cost (benefit)1 — 18 17 14 (6)
Unrecognized net loss (gain)91 105 106 (27)(31)(34)
Net periodic benefit cost (income)$(104)$(148)$(34)$73 $66 $21 
The service cost component of net periodic benefit cost (income) is included in operating expenses and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net on our consolidated statements of operations.
Assumptions
The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost (income) for the periods presented:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2025202420252024
Benefit obligations as of December 31:
Weighted average discount rate5.5%5.7%5.3%5.6%
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202520242023202520242023
Net periodic benefit cost (income) for the years ended December 31:
Weighted average discount rate5.7%5.2%5.6%5.6%5.3%5.7%
Weighted average expected rate of return on plan assets
7.75%8.0%8.0%7.75%8.0%8.0%
Weighted average health care cost trend rate assumed for next year (1)
N/AN/AN/A7.0%6.5%6.5%
(1)The weighted average health care cost trend rate at December 31, 2025 is assumed to decline gradually to 4.5% by 2036 and remain level thereafter.
As of January 1, 2026, our estimate of the long-term rate of return on plan assets is 7.3% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last 10 years, current and expected market conditions, and expected value to be generated through active management and securities lending programs.
Minimum Contributions
We are required to make minimum contributions to our defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as underfunding rules specific to countries where we maintain defined benefit pension plans. Based on current funding assumptions, we have minimum required contributions of $238 million for 2026 including contributions to defined benefit pension plans for our wholly-owned subsidiaries. Our future funding obligations will depend on the performance of our investments held in a trust by the pension plans, interest rates for determining funding targets, the amount of and timing of any supplemental contributions and our actuarial experience.
In January 2026, we made required contributions of $236 million and a supplemental contribution of $50 million to our defined benefit pension plans.
Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
202620272028202920302031-2035
Pension benefits$984 $999 $1,012 $1,023 $1,029 $5,113 
Retiree medical and other postretirement benefits136 138 140 139 137 610 
Plan Assets
The objectives of our investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers.
Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving the funded position with the potential risk that the funded position would decline. The current strategic target asset allocation with the corresponding allowed range is as follows:
Asset Class/Sub-ClassTarget AllocationAllowed Range
Equity45%
10% - 80%
Public:
U.S.18%
5% - 40%
International developed markets9%
0% - 20%
Emerging markets3%
0% - 10%
Private equity15%
5% - 35%
Fixed income55%
15% - 90%
Public U.S. fixed income45%
15% - 70%
Private income10%
 0% - 20%
Other0%
0% - 5%
Cash equivalents0%
0% - 20%
Public equity investments are intended to provide a real return over a full market cycle and, therefore, to contribute to the pension plan’s long-term objective. Public fixed income investments are intended to provide income to the plan and offer the potential for long term capital appreciation. Private investments, such as private equity and private income, are used to provide higher expected returns than public markets over the long-term by assuming reduced levels of liquidity and higher levels of risk. The pension plan’s master trust participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. The pension plan’s master trust will also engage in derivative instruments to equitize residual levels of cash as well as hedge the pension plan’s exposure to interest rates. Such programs are subject to market risk and counterparty risk.
Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. Investments in limited partnerships are carried at estimated net asset value (NAV) as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Mutual funds are valued once daily through a NAV calculation provided at the end of each trade day. Common/collective trusts are valued at NAV based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. No changes in valuation techniques or inputs occurred during the year.
Benefit Plan Assets Measured at Fair Value on a Recurring Basis
The fair value of our pension plan assets at December 31, 2025 and 2024, by asset category, were as follows (in millions) (1):
 December 31, 2025December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity (2)
$2,087 $— $— $2,087 $2,498 $— $— $2,498 
Fixed income (3)
476 5,390 — 5,866 439 3,723 — 4,162 
Other, net (4)
144 288 63 495 91 144 68 303 
Measured at NAV (5):
Common collective trusts (6)
— — — 273 — — — 1,153 
Private investments (7)
— — — 4,071 — — — 4,138 
Total plan assets$2,707 $5,678 $63 $12,792 $3,028 $3,867 $68 $12,254 
(1)See Note 7 for a description of the levels within the fair value hierarchy.
(2)Equity investments primarily include domestic and international common stock.
(3)Fixed income investments primarily include corporate and government bonds, as well as mutual funds invested in fixed income securities.
(4)Other primarily includes a short-term investment fund, net receivables and payables of the pension plan’s master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.
(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.
(6)Common collective trusts include commingled funds primarily invested in equity securities.
(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next 10 years. As of December 31, 2025, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.0 billion, most of which are expected to be called over the next seven years.
Changes in fair value measurements of Level 3 investments during the years ended December 31, 2025 and 2024, were as follows (in millions):
20252024
Balance at beginning of year$68 $84 
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date(8)(25)
Purchases5 9 
Sales(2)— 
Balance at end of year$63 $68 
Plan assets in the retiree medical and other postretirement benefits plans are primarily Level 2 mutual funds valued by quoted prices on the active market, which is fair value, and represents the NAV of the shares of such funds as of the close of business at the end of the period. NAV is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination.
Defined Contribution and Multiemployer Plans
The costs associated with our defined contribution plans were $1.6 billion, $1.4 billion and $1.1 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
We participate in the International Association of Machinists & Aerospace Workers (IAM) National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the IAM Pension Fund). Our contributions to the IAM Pension Fund were $63 million, $57 million and $52 million for the years ended December 31, 2025, 2024 and 2023, respectively. The IAM Pension Fund reported $640 million in employers’ contributions for the year ended December 31, 2024, which is the most recent year for which such information is available. For 2024 and 2023, our contributions represented more than 5% of total contributions to the IAM Pension Fund.
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, we were subject to an immaterial contribution surcharge, which ceased to apply June 14, 2019 upon our mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to our 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. As of the most recent data available, the IAM Pension Fund remains in critical status.
Profit Sharing Program
Our annual profit sharing program is funded by 10% of adjusted pre-tax earnings up to $2.5 billion and 20% of earnings above that threshold. Adjusted pre-tax earnings exclude net special items and certain other amounts, as defined by the plan. For the year ended December 31, 2025, we accrued $55 million for this program, which will be distributed to employees in the first quarter of 2026.
American Airlines, Inc.  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
American sponsors defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen and American began providing enhanced benefits under its defined contribution pension plans for certain employee groups. American uses a December 31 measurement date for all of its defined benefit pension plans. American also provides certain retiree medical and other postretirement benefits, including health care and life insurance benefits to retired employees and notional retiree health reimbursement arrangements for eligible participants.
Benefit Obligations, Fair Value of Plan Assets and Funded Status
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and funded status as of December 31, 2025 and 2024:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2025202420252024
 (In millions)
Benefit obligation at beginning of period$13,258 $14,314 $1,307 $1,325 
Service cost2 2 23 29 
Interest cost725 718 69 64 
Actuarial loss (gain) (1), (2)
169 (737)(11)(58)
Plan amendments (3)
— — — 54 
Benefit payments(914)(907)(130)(107)
Other— (132)— — 
Benefit obligation at end of period$13,240 $13,258 $1,258 $1,307 
Fair value of plan assets at beginning of period$12,175 $12,358 $128 $133 
Actual return on plan assets1,216 561 15 9 
Employer contributions (4)
225 295 105 93 
Benefit payments(914)(907)(130)(107)
Other— (132)— — 
Fair value of plan assets at end of period$12,702 $12,175 $118 $128 
Funded status at end of period$(538)$(1,083)$(1,140)$(1,179)
(1)The 2025 and 2024 pension actuarial loss (gain) primarily relates to the change in American’s weighted average discount rate assumption.
(2)The 2025 and 2024 retiree medical and other postretirement benefits actuarial gain primarily relates to changes in certain retirement assumptions, offset in part by increases in health care premiums and health care cost assumptions. Changes in American’s weighted average discount rate assumption also impacted the net actuarial gain in 2025 and 2024.
(3)In 2024, American remeasured its retiree medical and other postretirement benefits to account for enhanced retirement benefits pursuant to the ratification of new CBAs. As a result, American increased its postretirement benefits obligation by $54 million, which was included as a component of prior service cost in accumulated other comprehensive loss.
(4)In 2025 and 2024, American made required contributions of $221 million and $280 million, respectively, to its defined benefit pension plans.
Balance Sheet Position
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2025202420252024
 (In millions)
As of December 31:
Current liability$4 $5 $108 $142 
Noncurrent liability534 1,078 1,032 1,037 
Total liabilities$538 $1,083 $1,140 $1,179 
Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
2025202420252024
(In millions)
As of December 31:
Net actuarial loss (gain)$2,915 $3,130 $(395)$(407)
Prior service cost1 1 221 238 
Total accumulated other comprehensive loss (income), pre-tax
$2,916 $3,131 $(174)$(169)
Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension Benefits
 20252024
 (In millions)
As of December 31:
Projected benefit obligation$8,807 $13,258 
Fair value of plan assets8,209 12,175 
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2025202420252024
 (In millions)
As of December 31:
Accumulated benefit obligation$8,801 $13,251 $— $— 
Accumulated postretirement benefit obligation
— — 1,258 1,307 
Fair value of plan assets8,209 12,175 118 128 
Net Periodic Benefit Cost (Income)
 Pension BenefitsRetiree Medical and
  Other Postretirement Benefits  
 202520242023202520242023
 (In millions)
For the years ended December 31:
Defined benefit plans:
Service cost$2 $2 $2 $23 $29 $17 
Interest cost725 718 753 69 64 55 
Expected return on assets(923)(973)(914)(9)(10)(11)
Amortization of:
Prior service cost (benefit)— — 18 18 14 (6)
Unrecognized net loss (gain)91 105 106 (27)(31)(34)
Net periodic benefit cost (income)$(105)$(148)$(35)$74 $66 $21 
The service cost component of net periodic benefit cost (income) is included in operating expenses and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net on American’s consolidated statements of operations.
Assumptions
The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost (income) for the periods presented:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2025202420252024
Benefit obligations as of December 31:
Weighted average discount rate5.5%5.7%5.3%5.6%
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202520242023202520242023
Net periodic benefit cost (income) for the years ended December 31:
Weighted average discount rate5.7%5.2%5.6%5.6%5.3%5.7%
Weighted average expected rate of return on plan assets
7.75%8.0%8.0%7.75%8.0%8.0%
Weighted average health care cost trend rate assumed for next year (1)
N/AN/AN/A7.0%6.5%6.5%
(1)The weighted average health care cost trend rate at December 31, 2025 is assumed to decline gradually to 4.5% by 2036 and remain level thereafter.
As of January 1, 2026, American’s estimate of the long-term rate of return on plan assets is 7.3% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last 10 years, current and expected market conditions, and expected value to be generated through active management and securities lending programs.
Minimum Contributions
American is required to make minimum contributions to its defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as underfunding rules specific to countries where American maintains defined benefit pension plans. Based on current funding assumptions, American has minimum required contributions of $236 million for 2026. American’s future funding obligations will depend on the performance of American’s investments held in a trust by the pension plans, interest rates for determining funding targets, the amount of and timing of any supplemental contributions and American’s actuarial experience.
In January 2026, American made required contributions of $236 million and a supplemental contribution of $50 million to its defined benefit pension plans.
Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
202620272028202920302031-2035
Pension benefits$979 $993 $1,006 $1,016 $1,023 $5,078 
Retiree medical and other postretirement benefits135 138 140 139 137 609 
Plan Assets
The objectives of American’s investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers.
Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving the funded position with the potential risk that the funded position would decline. The current strategic target asset allocation with the corresponding allowed range is as follows:
Asset Class/Sub-ClassTarget AllocationAllowed Range
Equity45%
10% - 80%
Public:
U.S.18%
5% - 40%
International developed markets9%
0% - 20%
Emerging markets3%
0% - 10%
Private equity15%
5% - 35%
Fixed income55%
15% - 90%
Public U.S. fixed income45%
15% - 70%
Private income10%
0% - 20%
Other0%
0% - 5%
Cash equivalents0%
0% - 20%
Public equity investments are intended to provide a real return over a full market cycle and, therefore, to contribute to the pension plan’s long-term objective. Public fixed income investments are intended to provide income to the plan and offer the potential for long term capital appreciation. Private investments, such as private equity and private income, are used to provide higher expected returns than public markets over the long-term by assuming reduced levels of liquidity and higher levels of risk. The pension plan’s master trust participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. The pension plan’s master trust will also engage in derivative instruments to equitize residual levels of cash as well as hedge the pension plan’s exposure to interest rates. Such programs are subject to market risk and counterparty risk.
Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. Investments in limited partnerships are carried at estimated net asset value (NAV) as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Mutual funds are valued once daily through a NAV calculation provided at the end of each trade day. Common/collective trusts are valued at NAV based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. No changes in valuation techniques or inputs occurred during the year.
Benefit Plan Assets Measured at Fair Value on a Recurring Basis
The fair value of American’s pension plan assets at December 31, 2025 and 2024, by asset category, were as follows (in millions) (1):
December 31, 2025December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity (2)
$2,083 $— $— $2,083 $2,498 $— $— $2,498 
Fixed income (3)
465 5,390 — 5,855 427 3,723 — 4,150 
Other, net (4)
144 288 63 495 91 144 68 303 
Measured at NAV (5):
Common collective trusts (6)
— — — 198 — — — 1,086 
Private investments (7)
— — — 4,071 — — — 4,138 
Total plan assets$2,692 $5,678 $63 $12,702 $3,016 $3,867 $68 $12,175 
(1)See Note 6 for a description of the levels within the fair value hierarchy.
(2)Equity investments primarily include domestic and international common stock.
(3)Fixed income investments primarily include corporate and government bonds, as well as mutual funds invested in fixed income securities.
(4)Other primarily includes a short-term investment fund, net receivables and payables of the pension plan’s master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.
(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.
(6)Common collective trusts include commingled funds primarily invested in equity securities.
(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next 10 years. As of December 31, 2025, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.0 billion, most of which are expected to be called over the next seven years.
Changes in fair value measurements of Level 3 investments during the years ended December 31, 2025 and 2024, were as follows (in millions):
20252024
Balance at beginning of year$68 $84 
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date(8)(25)
Purchases5 9 
Sales(2)— 
Balance at end of year$63 $68 
Plan assets in the retiree medical and other postretirement benefits plans are primarily Level 2 mutual funds valued by quoted prices on the active market, which is fair value, and represents the NAV of the shares of such funds as of the close of business at the end of the period. NAV is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination.
Defined Contribution and Multiemployer Plans
The costs associated with American’s defined contribution plans were $1.6 billion, $1.4 billion and $1.1 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
American participates in the International Association of Machinists & Aerospace Workers (IAM) National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the IAM Pension Fund). American’s contributions to the IAM Pension Fund were $63 million, $57 million and $52 million for the years ended December 31, 2025, 2024 and 2023, respectively. The IAM Pension Fund reported $640 million in employers’ contributions for the year ended December 31, 2024, which is the most recent year for which such information is available. For 2024 and 2023, American’s contributions represented more than 5% of total contributions to the IAM Pension Fund.
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. As of the most recent data available, the IAM Pension Fund remains in critical status.
Profit Sharing Program
American’s annual profit sharing program is funded by 10% of adjusted pre-tax earnings up to $2.5 billion and 20% of earnings above that threshold. Adjusted pre-tax earnings exclude net special items and certain other amounts, as defined by the plan. For the year ended December 31, 2025, American accrued $55 million for this program, which will be distributed to employees in the first quarter of 2026.