Financial Information for Subsidiary Guarantors and Non-guarantor Subsidiaries

There are various cross-guarantees among the Company, American, US Airways Group and US Airways with respect to publicly held debt securities. In connection with the Merger, the Company and American entered into a second supplemental indenture under which they jointly and severally guaranteed the payment of obligations associated with US Airways Group's 6.125% senior notes. In addition, on March 31, 2014, the Company, US Airways Group and US Airways entered into amended and restated guarantees of the payment obligations of US Airways under the equipment notes relating to each of its Series 2010-1, 2011-1, 2012-1, 2012-2 and 2013-1 Pass Through Certificates the result of which was to add AAG as a guarantor of such equipment notes on a joint and several basis with US Airways Group. In September 2014, the Company issued $750 million aggregate principal amount of the 5.50% senior notes, which are fully and unconditionally guaranteed by American, US Airways Group and US Airways.

In connection with the issuance of these guarantees, in accordance with Rule 3-10 of Regulation S-X and Rule 12h-5 under the Securities Exchange Act of 1934, as amended, US Airways Group and US Airways discontinued filing separate periodic and current reports with the SEC. As a result, in accordance with Rule 3-10, the Company is required to present the following condensed consolidating financial information for the periods after Merger close for American Airlines Group Parent, American, US Airways Group Parent, US Airways and all other non-guarantor subsidiaries, together with the consolidating adjustments necessary to present the Company’s results on a consolidated basis.

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In millions)(Unaudited)



	Three Months Ended September 30, 2014
	American Airlines Group (Parent Company Only)		American			US Airways Group (Parent Company Only)			US Airways			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Operating revenues
Mainline passenger	$	—	$	5,321		$	—		$	2,772		$	—		$	—		$	8,093
Regional passenger	—		748			—			917			—			—			1,665
Cargo	—		175			—			40			—			—			215
Other	—		811			—			385			898			(928		)	1,166
Total operating revenues	—		7,055			—			4,114			898			(928		)	11,139
Operating expenses
Aircraft fuel and related taxes	—		1,894			—			935			—			—			2,829
Salaries, wages and benefits	—		1,412			—			723			193			(191		)	2,137
Regional expenses	—		790			—			886			—			(8		)	1,668
Maintenance, materials and repairs	—		353			—			176			93			(93		)	529
Other rent and landing fees	—		279			—			152			8			(8		)	431
Aircraft rent	—		211			—			95			24			(24		)	306
Selling expenses	—		278			—			115			—			—			393
Depreciation and amortization	—		230			—			105			10			(11		)	334
Special items, net	—		164			—			57			—			—			221
Other	—		746			—			304			574			(593		)	1,031
Total operating expenses	—		6,357			—			3,548			902			(928		)	9,879
Operating income (loss)	—		698			—			566			(4		)	—			1,260
Nonoperating income (expense)
Interest income	2		5			1			5			—			(6		)	7
Interest expense, net	—		(136		)	(11		)	(68		)	(1		)	6			(210		)
Equity in earnings of subsidiaries	940		—			476			—			—			(1,416		)	—
Other, net	—		(97		)	—			(12		)	1			—			(108		)
Total nonoperating income (expense), net	942		(228		)	466			(75		)	—			(1,416		)	(311		)
Income (loss) before income taxes	942		470			466			491			(4		)	(1,416		)	949
Income tax provision (benefit)	—		5			—			2			7			(7		)	7
Net income (loss)	$	942	$	465		$	466		$	489		$	(11	)	$	(1,409	)	$	942

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)



	Three Months Ended September 30, 2014
	American Airlines Group (Parent Company Only)		American			US Airways Group (Parent Company Only)		US Airways			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Net income (loss)	$	942	$	465		$	466	$	489		$	(11	)	$	(1,409	)	$	942
Other comprehensive loss before tax:
Defined benefit pension plans and retiree medical	—		(37		)	—		(1		)	—			—			(38		)
Derivative financial instruments:
Change in fair value	—		—			—		—			—			—			—
Reclassification into earnings	—		(7		)	—		—			—			—			(7		)
Net unrealized loss on investments:
Net change in value	—		(2		)	—		—			—			—			(2		)
Other comprehensive loss before tax	—		(46		)	—		(1		)	—			—			(47		)
Reversal of non-cash tax provision	—		—			—		—			—			—			—
Comprehensive income (loss)	$	942	$	419		$	466	$	488		$	(11	)	$	(1,409	)	$	895

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In millions)(Unaudited)



	Nine Months Ended September 30, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)			US Airways			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Operating revenues
Mainline passenger	$	—		$	15,579		$	—		$	7,985		$	—		$	—		$	23,564
Regional passenger	—			2,202			—			2,577			—			—			4,779
Cargo	—			521			—			122			—			—			643
Other	—			2,374			—			1,211			2,386			(2,467		)	3,504
Total operating revenues	—			20,676			—			11,895			2,386			(2,467		)	32,490
Operating expenses
Aircraft fuel and related taxes	—			5,662			—			2,708			—			—			8,370
Salaries, wages and benefits	—			4,251			—			2,162			584			(578		)	6,419
Regional expenses	—			2,352			—			2,581			—			(14		)	4,919
Maintenance, materials and repairs	—			1,031			—			497			258			(258		)	1,528
Other rent and landing fees	—			853			—			444			23			(23		)	1,297
Aircraft rent	—			641			—			300			67			(71		)	937
Selling expenses	—			844			—			352			—			—			1,196
Depreciation and amortization	—			664			—			301			30			(35		)	960
Special items, net	22			127			—			186			3			(3		)	335
Other	5			2,258			1			930			1,430			(1,484		)	3,140
Total operating expenses	27			18,683			1			10,461			2,395			(2,466		)	29,101
Operating income (loss)	(27		)	1,993			(1		)	1,434			(9		)	(1		)	3,389
Nonoperating income (expense)
Interest income	7			18			2			8			1			(14		)	22
Interest expense, net	(4		)	(443		)	(31		)	(201		)	(2		)	14			(667		)
Equity in earnings of subsidiaries	2,309			—			1,188			—			—			(3,497		)	—
Other, net	—			(85		)	(53		)	(16		)	2			53			(99		)
Total nonoperating income (expense), net	2,312			(510		)	1,106			(209		)	1			(3,444		)	(744		)
Income (loss) before income taxes	2,285			1,483			1,105			1,225			(8		)	(3,445		)	2,645
Income tax provision (benefit)	—			351			—			4			14			(9		)	360
Net income (loss)	$	2,285		$	1,132		$	1,105		$	1,221		$	(22	)	$	(3,436	)	$	2,285

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)



	Nine Months Ended September 30, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)		US Airways			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Net income (loss)	$	2,285		$	1,132		$	1,105	$	1,221		$	(22	)	$	(3,436	)	$	2,285
Other comprehensive loss before tax:
Defined benefit pension plans and retiree medical	—			(139		)	—		(3		)	—			—			(142		)
Derivative financial instruments:
Change in fair value	(2		)	(52		)	—		—			—			—			(54		)
Reclassification into earnings	—			5			—		—			—			—			5
Net unrealized gain (loss) on investments:
Net change in value	2			(2		)	—		—			—			—			—
Other comprehensive loss before tax	—			(188		)	—		(3		)	—			—			(191		)
Reversal of non-cash tax provision	2			328			—		—			—			—			330
Comprehensive income (loss)	$	2,287		$	1,272		$	1,105	$	1,218		$	(22	)	$	(3,436	)	$	2,424

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions)(Unaudited)



	September 30, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)		US Airways		Non-Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
ASSETS
Current assets
Cash	$	—		$	1,008		$	1	$	164	$	5		$	—		$	1,178
Short-term investments	—			3,799			—		2,920		2			—			6,721
Restricted cash and short-term investments	—			652			—		223		—			—			875
Accounts receivable, net	—			1,459			—		497		12			(7		)	1,961
Receivables from related parties,net	2,838			—			330		830		679			(4,677		)	—
Aircraft fuel, spare parts and supplies, net	—			732			—		369		81			—			1,182
Prepaid expenses and other	—			539			—		1,062		31			(99		)	1,533
Total current assets	2,838			8,189			331		6,065		810			(4,783		)	13,450
Operating property and equipment	—			15,403			—		6,483		277			—			22,163
Other assets
Investment in subsidiaries	2,843			—			6,578		—		—			(9,421		)	—
Goodwill	—			—			—		4,089		—			—			4,089
Intangibles, net of accumulated amortization	—			863			—		1,442		—			—			2,305
Other assets	52			1,855			—		260		33			(34		)	2,166
Total other assets	2,895			2,718			6,578		5,791		33			(9,455		)	8,560
Total assets	$	5,733		$	26,310		$	6,909	$	18,339	$	1,120		$	(14,238	)	$	44,173

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt and capital leases	$	—		$	956		$	—	$	482	$	1		$	—		$	1,439
Accounts payable	—			1,155			—		284		59			—			1,498
Payables to related parties, net	—			3,437			793		51		396			(4,677		)	—
Air traffic liability	—			3,385			—		1,567		—			—			4,952
Frequent flyer liability	—			1,790			—		1,081		—			—			2,871
Other accrued liabilities	3			1,745			10		1,228		155			(13		)	3,128
Total current liabilities	3			12,468			803		4,693		611			(4,690		)	13,888
Noncurrent liabilities
Long-term debt and capital leases, net of current maturities	758			9,255			523		5,150		—			(35		)	15,651
Pensions and postretirement benefits	—			4,830			—		106		28			—			4,964
Mandatorily convertible preferred stock and other bankruptcy settlement obligations	—			239			—		—		—			—			239
Other liabilities	1			2,709			—		1,834		288			(372		)	4,460
Total noncurrent liabilities	759			17,033			523		7,090		316			(407		)	25,314
Stockholders’ equity (deficit)
Common stock	7			—			—		—		—			—			7
Additional paid-in capital	15,943			10,558			4,678		5,516		199			(20,951		)	15,943
Accumulated other comprehensive income (loss)	(1,893		)	(2,012		)	9		9		—			1,994			(1,893		)
Retained earnings (deficit)	(9,086		)	(11,737		)	896		1,031		(6		)	9,816			(9,086		)
Total stockholders’ equity (deficit)	4,971			(3,191		)	5,583		6,556		193			(9,141		)	4,971
Total liabilities and stockholders’ equity (deficit)	$	5,733		$	26,310		$	6,909	$	18,339	$	1,120		$	(14,238	)	$	44,173

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions)(Unaudited)



	December 31, 2013
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)			US Airways			Non-Guarantor Subsidiaries		Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
ASSETS
Current assets
Cash	$	1		$	829		$	1		$	303		$	6	$	—		$	1,140
Short-term investments	—			5,162			—			2,947			2		—			8,111
Restricted cash and short-term investments	—			702			—			333			—		—			1,035
Accounts receivable, net	—			1,186			—			357			17		—			1,560
Receivables from related parties, net	2,468			—			144			407			459		(3,478		)	—
Aircraft fuel, spare parts and supplies, net	—			620			—			296			96		—			1,012
Prepaid expenses and other	—			702			—			857			20		(114		)	1,465
Total current assets	2,469			9,201			145			5,500			600		(3,592		)	14,323
Operating property and equipment	—			13,469			—			5,506			284		—			19,259
Other assets
Investment in subsidiaries	—			—			5,317			—			—		(5,317		)	—
Goodwill	—			—			—			4,086			—		—			4,086
Intangibles, net of accumulated amortization	—			812			—			1,496			3		—			2,311
Other assets	42			2,130			—			131			30		(34		)	2,299
Total other assets	42			2,942			5,317			5,713			33		(5,351		)	8,696
Total assets	$	2,511		$	25,612		$	5,462		$	16,719		$	917	$	(8,943	)	$	42,278

LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt and capital leases	$	—		$	957		$	22		$	467		$	—	$	—		$	1,446
Accounts payable	—			1,013			—			304			51		—			1,368
Payables to related parties, net	—			2,807			408			50			213		(3,478		)	—
Air traffic liability	—			3,145			—			1,235			—		—			4,380
Frequent flyer liability	—			1,760			—			1,245			—		—			3,005
Other accrued liabilities	—			2,237			103			1,137			139		(9		)	3,607
Total current liabilities	—			11,919			533			4,438			403		(3,487		)	13,806
Noncurrent liabilities
Long-term debt and capital leases, net of current maturities	7			9,852			523			5,005			—		(34		)	15,353
Pensions and postretirement benefits	—			5,693			—			109			26		—			5,828
Mandatorily convertible preferred stock and other bankruptcy settlement obligations	435			5,424			—			—			69		—			5,928
Negative investment in subsidiaries	4,799			—			—			—			—		(4,799		)	—
Other liabilities	1			2,384			—			1,905			277		(473		)	4,094
Total noncurrent liabilities	5,242			23,353			523			7,019			372		(5,306		)	31,203
Stockholders’ equity (deficit)
Common stock	5			—			—			—			—		—			5
Additional paid-in capital	10,592			5,361			4,602			5,441			126		(15,530		)	10,592
Accumulated other comprehensive income (loss)	(2,032		)	(2,152		)	12			12			—		2,128			(2,032		)
Retained earnings (deficit)	(11,296		)	(12,869		)	(208		)	(191		)	16		13,252			(11,296		)
Total stockholders’ equity (deficit)	(2,731		)	(9,660		)	4,406			5,262			142		(150		)	(2,731		)
Total liabilities and stockholders’ equity (deficit)	$	2,511		$	25,612		$	5,462		$	16,719		$	917	$	(8,943	)	$	42,278

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions)(Unaudited)



	Nine Months Ended September 30, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)		US Airways			Non-Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Net cash provided by (used in) operating activities	$	(523	)	$	2,034		$	—	$	730		$	35		$	—		$	2,276
Cash flows from investing activities:
Capital expenditures and aircraft purchase deposits	—			(2,746		)	—		(1,027		)	(35		)	(198		)	(4,006		)
Decrease (increase) in investments	—			1,363			—		28			(1		)	—			1,390
Decrease in restricted cash and short-term investments	—			50			—		110			—			—			160
Net proceeds from slot transaction	—			299			—		8			—			—			307
Funds transferred to affiliates	—			(198		)	—		—			—			198			—
Proceeds from sale of property and equipment	—			5			—		19			—			—			24
Net cash used in investing activities	—			(1,227		)	—		(862		)	(36		)	—			(2,125		)
Cash flows from financing activities:
Payments on long-term debt and capital leases	—			(2,201		)	—		(403		)	—			(176		)	(2,780		)
Proceeds from issuance of long-term debt	750			1,098			—		559			—			—			2,407
Sale-leaseback transactions	—			531			—		—			—			—			531
Treasury stock repurchases	(155		)	—			—		—			—			—			(155		)
Dividend payment	(72		)	—			—		—			—			—			(72		)
Premium on debt extinguishment	—			(39		)	—		—			—			—			(39		)
Deferred financing costs	(10		)	(17		)	—		(2		)	—			—			(29		)
Exercise of stock options	9			—			—		—			—			—			9
Funds transferred to affiliates	—			—			—		(176		)	—			176			—
Other financing activities	—			—			—		15			—			—			15
Net cash provided by (used in) financing activities	522			(628		)	—		(7		)	—			—			(113		)
Net increase (decrease) in cash	(1		)	179			—		(139		)	(1		)	—			38
Cash at beginning of period	1			829			1		303			6			—			1,140
Cash at end of period	$	—		$	1,008		$	1	$	164		$	5		$	—		$	1,178