Regional Expenses

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
Aircraft fuel and related taxes	$	158	$	485	$	638	$	1,395
Salaries, wages and benefits	379		461		1,218		1,310
Capacity purchases from third-party regional carriers ⁽¹⁾	233		354		765		1,046
Maintenance, materials and repairs	72		108		244		303
Other rent and landing fees	112		167		369		495
Aircraft rent	3		8		11		23
Selling expenses	27		102		121		299
Depreciation and amortization	79		84		247		246
Special items, net	(224)		6		(309)		6
Other	75		158		334		459
Total regional expenses	$	914	$	1,933	$	3,638	$	5,582

⁽¹⁾During the three months ended September 30, 2020 and 2019, we recognized $102 million and $150 million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). During the nine months ended September 30, 2020 and 2019, we recognized $313 million and $442 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.

Regional Expenses [Line Items]

Regional Expenses


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
Aircraft fuel and related taxes	$	158	$	485	$	638	$	1,395
Salaries, wages and benefits	59		76		214		241
Capacity purchases from third-party regional carriers ⁽¹⁾	622		900		2,105		2,665
Maintenance, materials and repairs	(4)		14		2		23
Other rent and landing fees	106		159		347		472
Aircraft rent	3		8		11		23
Selling expenses	27		102		121		299
Depreciation and amortization	66		72		207		210
Special items, net	(228)		—		(338)		—
Other	43		97		193		288
Total regional expenses	$	852	$	1,913	$	3,500	$	5,616

⁽¹⁾During the three months ended September 30, 2020 and 2019, American recognized $102 million and $150 million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). During the nine months ended September 30, 2020 and 2019, American recognized $313 million and $442 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.