Regional Expenses

6 Months Ended

Jun. 30, 2020

Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations. Regional expenses consist of the following (in millions):



	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
Aircraft fuel and related taxes	$	92		$	487	$	480		$	909
Salaries, wages and benefits	368			439		838			848
Capacity purchases from third-party regional carriers ⁽¹⁾	179			352		533			692
Maintenance, materials and repairs	56			101		171			195
Other rent and landing fees	104			162		257			329
Aircraft rent	3			8		8			15
Selling expenses	14			106		94			197
Depreciation and amortization	84			83		168			162
Special items, net	(178		)	—		(85		)	—
Other	79			148		260			301
Total regional expenses	$	801		$	1,886	$	2,724		$	3,648

⁽¹⁾

During the three months ended June 30, 2020 and 2019, we recognized $61 million and $149 million, respectively, of expense under our capacity purchase agreement with Republic Airline Inc. (Republic). During the six months ended June 30, 2020 and 2019, we recognized $211 million and $292 million, respectively, of expense under our capacity purchase agreement with Republic. We hold a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

American Airlines, Inc. [Member]

Regional Expenses [Line Items]

Regional Expenses



	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
Aircraft fuel and related taxes	$	92		$	487	$	480		$	909
Salaries, wages and benefits	71			85		155			165
Capacity purchases from third-party regional carriers ⁽¹⁾	570			907		1,483			1,765
Maintenance, materials and repairs	1			5		6			9
Other rent and landing fees	98			154		242			313
Aircraft rent	3			8		8			15
Selling expenses	14			105		94			197
Depreciation and amortization	71			71		141			138
Special items, net	(203		)	—		(110		)	—
Other	39			89		148			191
Total regional expenses	$	756		$	1,911	$	2,647		$	3,702

⁽¹⁾

During the three months ended June 30, 2020 and 2019, American recognized $61 million and $149 million, respectively, of expense under its capacity purchase agreement with Republic Airline Inc. (Republic). During the six months ended June 30, 2020 and 2019, American recognized $211 million and $292 million, respectively, of expense under its capacity purchase agreement with Republic. American holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.