Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Estimated Useful Lives of Principal Property and Equipment

The estimated useful lives for the principal property and equipment classifications are as follows:

Principal Property and Equipment Classification	Estimated Useful Life
Aircraft, engines and related rotable parts	20 – 30 years
Buildings and improvements	5 – 30 years
Furniture, fixtures and other equipment	3 – 10 years
Capitalized software	5 – 10 years

Schedule of Amortizable Intangible Assets

The following table provides information relating to our amortizable intangible assets as of December 31, 2021 and 2020 (in millions):

	December 31,
	2021		2020
Domestic airport slots	$	365	$	365
Customer relationships	300		300
Marketing agreements	105		105
Tradenames	35		35
Airport gate leasehold rights	137		137
Accumulated amortization	(786)		(745)
Total	$	156	$	197

Schedule of Future Amortization Expense

We expect to record annual amortization expense for these intangible assets as follows (in millions):

2022	$	41
2023	7
2024	7
2025	7
2026	6
2027 and thereafter	88
Total	$	156

Disaggregation of Revenue

The following are the significant categories comprising our reported operating revenues (in millions):

	Year Ended December 31,
	2021		2020		2019
Passenger revenue:
Passenger travel	$	23,896	$	13,456	$	38,831
Loyalty revenue - travel (1)	2,167		1,062		3,179
Total passenger revenue	26,063		14,518		42,010
Cargo	1,314		769		863
Other:
Loyalty revenue - marketing services (2)	2,166		1,825		2,361
Other revenue	339		225		534
Total other revenue	2,505		2,050		2,895
Total operating revenues	$	29,882	$	17,337	$	45,768

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. See “Loyalty Revenue” below for further discussion on these mileage credits.

(2)During the years ended December 31, 2021, 2020 and 2019, cash payments from co-branded credit card and other partners were $3.4 billion, $2.9 billion and $3.9 billion, respectively.

The following is our total passenger revenue by geographic region (in millions):

	Year Ended December 31,
	2021		2020		2019
Domestic	$	21,453	$	11,765	$	30,881
Latin America	3,506		1,852		5,047
Atlantic	965		654		4,624
Pacific	139		247		1,458
Total passenger revenue	$	26,063	$	14,518	$	42,010

Schedule of Contract Balances

	December 31,
	2021		2020
	(in millions)
Loyalty program liability	$	9,135	$	9,195
Air traffic liability	6,087		4,757
Total	$	15,222	$	13,952

Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2020	$	9,195
Deferral of revenue	2,161
Recognition of revenue (1)	(2,221)
Balance at December 31, 2021 (2)	$	9,135

(1)Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. In response to the COVID-19 pandemic, we suspended the expiration of mileage credits through March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2021, our current loyalty program liability was $2.9 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to the COVID-19 pandemic, we will continue to monitor redemption patterns and may adjust our estimates in the future.

American Airlines, Inc.

Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Estimated Useful Lives of Principal Property and Equipment

The estimated useful lives for the principal property and equipment classifications are as follows:

Principal Property and Equipment Classification	Estimated Useful Life
Aircraft, engines and related rotable parts	20 – 30 years
Buildings and improvements	5 – 30 years
Furniture, fixtures and other equipment	3 – 10 years
Capitalized software	5 – 10 years

Schedule of Amortizable Intangible Assets

The following table provides information relating to American’s amortizable intangible assets as of December 31, 2021 and 2020 (in millions):

	December 31,
	2021		2020
Domestic airport slots	$	365	$	365
Customer relationships	300		300
Marketing agreements	105		105
Tradenames	35		35
Airport gate leasehold rights	137		137
Accumulated amortization	(786)		(745)
Total	$	156	$	197

Schedule of Future Amortization Expense

American expects to record annual amortization expense for these intangible assets as follows (in millions):

2022	$	41
2023	7
2024	7
2025	7
2026	6
2027 and thereafter	88
Total	$	156

Disaggregation of Revenue

The following are the significant categories comprising American’s reported operating revenues (in millions):

	Year Ended December 31,
	2021		2020		2019
Passenger revenue:
Passenger travel	$	23,896	$	13,456	$	38,831
Loyalty revenue - travel (1)	2,167		1,062		3,179
Total passenger revenue	26,063		14,518		42,010
Cargo	1,314		769		863
Other:
Loyalty revenue - marketing services (2)	2,166		1,825		2,361
Other revenue	337		223		527
Total other revenue	2,503		2,048		2,888
Total operating revenues	$	29,880	$	17,335	$	45,761

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. See “Loyalty Revenue” below for further discussion on these mileage credits.

(2)During the years ended December 31, 2021, 2020 and 2019, cash payments from co-branded credit card and other partners were $3.4 billion, $2.9 billion and $3.9 billion, respectively.

The following is American’s total passenger revenue by geographic region (in millions):

	Year Ended December 31,
	2021		2020		2019
Domestic	$	21,453	$	11,765	$	30,881
Latin America	3,506		1,852		5,047
Atlantic	965		654		4,624
Pacific	139		247		1,458
Total passenger revenue	$	26,063	$	14,518	$	42,010

Schedule of Contract Balances

	December 31,
	2021		2020
	(in millions)
Loyalty program liability	$	9,135	$	9,195
Air traffic liability	6,087		4,757
Total	$	15,222	$	13,952

Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2020	$	9,195
Deferral of revenue	2,161
Recognition of revenue (1)	(2,221)
Balance at December 31, 2021 (2)	$	9,135

(1)Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. In response to the COVID-19 pandemic, American suspended the expiration of mileage credits through March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2021, American’s current loyalty program liability was $2.9 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to the COVID-19 pandemic, American will continue to monitor redemption patterns and may adjust its estimates in the future.