Basis of Presentation and Recent Accounting Pronouncements (Tables)

6 Months Ended

Jun. 30, 2018

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

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The effects of adoption of the New Revenue Standard and New Retirement Standard to our condensed consolidated statement of operations for the three and six months ended June 30, 2017 were as follows (in millions, except per share amounts):



				New Revenue Standard					New Retirement Standard
Three Months Ended June 30, 2017	As Reported			Deferred Revenue Method		Reclassifications			Reclassifications			As Recast
Operating revenues:
Passenger	$	9,582		$	98	$	673		$	—		$	10,353
Cargo	196			—		23			—			219
Other	1,327			—		(672		)	—			655
Total operating revenues	11,105			98		24			—			11,227
Total operating expenses	9,570			—		24			34			9,628
Operating income	1,535			98		—			(34		)	1,599
Total nonoperating expense, net	(244		)	—		—			34			(210		)
Income before income taxes	1,291			98		—			—			1,389
Income tax provision	488			37		—			—			525
Net income	$	803		$	61	$	—		$	—		$	864
Diluted earnings per common share	$	1.63										$	1.75



				New Revenue Standard					New Retirement Standard
Six Months Ended June 30, 2017	As Reported			Deferred Revenue Method		Reclassifications			Reclassifications			As Recast
Operating revenues:
Passenger	$	17,737		$	268	$	1,345		$	—		$	19,350
Cargo	368			—		42			—			410
Other	2,624			—		(1,337		)	—			1,287
Total operating revenues	20,729			268		50			—			21,047
Total operating expenses	18,593			—		50			68			18,711
Operating income	2,136			268		—			(68		)	2,336
Total nonoperating expense, net	(480		)	—		—			68			(412		)
Income before income taxes	1,656			268		—			—			1,924
Income tax provision	619			101		—			—			720
Net income	$	1,037		$	167	$	—		$	—		$	1,204
Diluted earnings per common share	$	2.07										$	2.41

The effects of adoption of the New Revenue Standard to our December 31, 2017 consolidated balance sheet are as follows (in millions):



	As Reported		New Revenue Standard			As Recast
Deferred tax asset	$	427	$	1,389		$	1,816
Air traffic liability	3,978		64			4,042
Current loyalty program liability	2,791		330			3,121
Noncurrent loyalty program liability	—		5,701			5,701
Total stockholders' equity (deficit)	3,926		(4,706		)	(780		)

American Airlines, Inc. [Member]

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

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The effects of adoption of the New Revenue Standard and New Retirement Standard to American’s condensed consolidated statement of operations for the three and six months ended June 30, 2017 were as follows (in millions):



				New Revenue Standard					New Retirement Standard
Three Months Ended June 30, 2017	As Reported			Deferred Revenue Method		Reclassifications			Reclassifications			As Recast
Operating revenues:
Passenger	$	9,582		$	98	$	673		$	—		$	10,353
Cargo	196			—		23			—			219
Other	1,324			—		(672		)	—			652
Total operating revenues	11,102			98		24			—			11,224
Total operating expenses	9,575			—		24			34			9,633
Operating income	1,527			98		—			(34		)	1,591
Total nonoperating expense, net	(198		)	—		—			34			(164		)
Income before income taxes	1,329			98		—			—			1,427
Income tax provision	502			37		—			—			539
Net income	$	827		$	61	$	—		$	—		$	888



				New Revenue Standard					New Retirement Standard
Six Months Ended June 30, 2017	As Reported			Deferred Revenue Method		Reclassifications			Reclassifications			As Recast
Operating revenues:
Passenger	$	17,737		$	268	$	1,345		$	—		$	19,350
Cargo	368			—		42			—			410
Other	2,617			—		(1,337		)	—			1,280
Total operating revenues	20,722			268		50			—			21,040
Total operating expenses	18,592			—		50			68			18,710
Operating income	2,130			268		—			(68		)	2,330
Total nonoperating expense, net	(391		)	—		—			68			(323		)
Income before income taxes	1,739			268		—			—			2,007
Income tax provision	650			101		—			—			751
Net income	$	1,089		$	167	$	—		$	—		$	1,256

The effects of adoption of the New Revenue Standard to American’s December 31, 2017 consolidated balance sheet are as follows (in millions):



	As Reported		New Revenue Standard			As Recast
Deferred tax asset	$	682	$	1,389		$	2,071
Air traffic liability	3,978		64			4,042
Current loyalty program liability	2,791		330			3,121
Noncurrent loyalty program liability	—		5,701			5,701
Total stockholder’s equity (deficit)	14,594		(4,706		)	9,888