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Special Items, Net (Tables)
 12 Months Ended
Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]  
Components of Special Items, Net Included in Consolidated Statements of Operations
Special items, net on our consolidated statements of operations consisted of the following (in millions):
 Year Ended December 31,
 202020192018
PSP1 Financial Assistance (1)
$(3,710)$— $— 
Fleet impairment (2)
1,484 213 — 
Severance expenses (3)
1,408 11 58 
Labor contract expenses (4)
228 — 13 
Mark-to-market adjustments on bankruptcy obligations, net (5)
(49)(11)(76)
Fleet restructuring expenses (6)
— 271 422 
Merger integration expenses (7)
— 191 268 
Litigation reserve adjustments— (53)45 
Intangible asset impairment (8)
— — 26 
Other operating special items, net(18)13 31 
Mainline operating special items, net(657)635 787 
PSP1 Financial Assistance (1)
(444)— — 
Fleet impairment (2)
117 — — 
Severance expenses (3)
18 — — 
Other operating special items, net— 6 6 
Regional operating special items, net(309)6 6 
Operating special items, net(966)641 793 
Mark-to-market adjustments on equity and other investments, net (9)
135 (5)104 
Debt refinancing, extinguishment and other, net35 8 9 
Nonoperating special items, net170 3 113 
Income tax special items (10)
— — 18 
(1)PSP1 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP1 Agreement. See Note 1(b) for further information.
(2)The 2020 fleet impairment resulted from our decision to retire certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Aircraft retired include Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300, Embraer 190, certain Embraer 140 and Bombardier CRJ200 aircraft. This included a $1.5 billion non-cash write-down of mainline and regional aircraft and spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. See Note 1(g) for further information related to these charges.
The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of our Embraer 190 fleet.
(3)The 2020 severance expenses included salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments related to these charges for the year ended December 31, 2020 were approximately $365 million.
The 2019 and 2018 severance expenses primarily included costs associated with reductions of management and support staff team members.
(4)The 2020 labor contract expenses primarily related to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases.
(5)Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG’s stock price.
(6)Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned.
(7)Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems.
(8)Intangible asset impairment included a non-cash charge to write-off our Brazil route authority as a result of the U.S.-Brazil open skies agreement.
(9)Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with our equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments.
(10)Income tax special items included an $18 million charge related to an international income tax matter.
American Airlines, Inc.  
Restructuring Cost and Reserve [Line Items]  
Components of Special Items, Net Included in Consolidated Statements of Operations
Special items, net on American’s consolidated statements of operations consisted of the following (in millions):
 Year Ended December 31,
 202020192018
PSP1 Financial Assistance (1)
$(3,710)$— $— 
Fleet impairment (2)
1,484 213 — 
Severance expenses (3)
1,408 11 58 
Labor contract expenses (4)
228 — 13 
Mark-to-market adjustments on bankruptcy obligations, net (5)
(49)(11)(76)
Fleet restructuring expenses (6)
— 271 422 
Merger integration expenses (7)
— 191 268 
Litigation reserve adjustments— (53)45 
Intangible asset impairment (8)
— — 26 
Other operating special items, net(18)13 31 
Mainline operating special items, net(657)635 787 
PSP1 Financial Assistance (1)
(444)— — 
Fleet impairment (2)
106 — — 
Regional operating special items, net(338)— — 
Operating special items, net(995)635 787 
Mark-to-market adjustments on equity and other investments, net (9)
135 (5)104 
Debt refinancing, extinguishment and other, net35 16 9 
Nonoperating special items, net170 11 113 
Income tax special items (10)
— — 18 
(1)PSP1 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP1 Agreement. See Note 1(b) for further information.
(2)The 2020 fleet impairment resulted from American's decision to retire certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Aircraft retired include Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300, Embraer 190, certain Embraer 140 and Bombardier CRJ200 aircraft. This included a $1.5 billion non-cash write-down of mainline and regional aircraft and spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. See Note 1(g) for further information related to these charges.
The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of American’s Embraer 190 fleet.
(3)The 2020 severance expenses included salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments related to these charges for the year ended December 31, 2020 were approximately $365 million.
The 2019 and 2018 severance expenses primarily included costs associated with reductions of management and support staff team members.
(4)The 2020 labor contract expenses primarily related to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases.
(5)Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG’s stock price.
(6)Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned.
(7)Merger integration expenses included costs associated with integration projects, principally American's technical operations, flight attendant, human resources and payroll systems.
(8)Intangible asset impairment included a non-cash charge to write-off American’s Brazil route authority as a result of the U.S.-Brazil open skies agreement.
(9)Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American’s equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments.
(10)Income tax special items included an $18 million charge related to an international income tax matter.