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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision (benefit) were (in millions):
 Year Ended December 31,
 202220212020
Current income tax benefit:
State, local and foreign$(6)$— $— 
Deferred income tax provision (benefit):
Federal59 (508)(2,335)
State and local6 (47)(233)
Deferred income tax provision (benefit)65 (555)(2,568)
Total income tax provision (benefit)$59 $(555)$(2,568)
The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):
 Year Ended December 31,
 202220212020
Statutory income tax provision (benefit)$39 $(535)$(2,405)
State, local and foreign income tax benefit, net of federal tax effect— (37)(183)
Book expenses not deductible for tax purposes22 23 22 
Other, net(2)(6)(2)
Income tax provision (benefit)$59 $(555)$(2,568)
The components of our deferred tax assets and liabilities were (in millions):
 December 31,
 20222021
Deferred tax assets:
Operating loss and other carryforwards$4,679 $4,612 
Loyalty program liability1,809 1,903 
Leases1,819 1,833 
Pensions474 941 
Postretirement benefits other than pensions179 214 
Rent expense130 92 
Other742 784 
Total deferred tax assets9,832 10,379 
Valuation allowance(19)(34)
Net deferred tax assets9,813 10,345 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,630)(4,747)
Leases(1,832)(1,767)
Other(262)(284)
Total deferred tax liabilities(6,724)(6,798)
Net deferred tax asset$3,089 $3,547 
At December 31, 2022, we had approximately $16.2 billion of gross federal net operating losses (NOLs) and $4.3 billion of other carryforwards available to reduce future federal taxable income, of which $5.9 billion will expire beginning in 2024 if unused and $14.6 billion can be carried forward indefinitely. We also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused.
Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs, when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. We consider all available positive and negative evidence and make certain assumptions in evaluating the realizability of our deferred tax assets. Many factors are considered that impact our assessment of future profitability, including conditions which are beyond our control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. We have determined that positive factors outweigh negative factors in the determination of the realizability of our deferred tax assets. There can be no assurance that an additional valuation allowance on our net deferred tax assets will not be required. Such valuation allowance could be material.
Our ability to deduct our NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 where an “ownership change” has occurred. Substantially all of our remaining federal NOL carryforwards attributable to US Airways Group are subject to limitation under Section 382; however, our ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes. Our ability to utilize any new NOL carryforwards arising after the ownership changes is not affected by the annual limitation rules imposed by Section 382 unless another ownership change occurs. Under the Section 382 limitation, cumulative stock ownership changes among material stockholders exceeding 50% during a rolling three-year period can potentially limit our future use of NOLs and tax credits.
In 2022, we recorded an income tax provision of $59 million, with an effective rate of approximately 32%, which was substantially non-cash. Substantially all of our income before income taxes is attributable to the United States.
The Inflation Reduction Act (IRA) was enacted on August 16, 2022, which among other provisions, introduced a corporate minimum tax on certain corporations with average adjusted financial statement income over a three-tax year period in excess of $1.0 billion, an excise tax on certain stock repurchases by certain covered corporations for taxable years beginning after December 31, 2022, and several tax incentives to promote clean energy. Based on our current analysis and pending future guidance to be issued by the U.S. Department of Treasury, we do not believe these provisions will have a material impact on our consolidated financial statements.
We file our tax returns as prescribed by the tax laws of the jurisdictions in which we operate. Our 2019 through 2021 tax years are still subject to examination by the Internal Revenue Service. Various state and foreign jurisdiction tax years remain open to examination and we are under examination, in administrative appeals, or engaged in tax litigation in certain jurisdictions. We believe that the effect of any assessments will not be material to our consolidated financial statements.
The amount of, and changes to, our uncertain tax positions were not material in any of the years presented. We accrue interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.
American Airlines, Inc.  
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision (benefit) were (in millions):
 Year Ended December 31,
 202220212020
Current income tax benefit:
State, local and foreign$(6)$— $— 
Deferred income tax provision (benefit):
Federal112 (453)(2,224)
State and local10 (47)(229)
Deferred income tax provision (benefit)122 (500)(2,453)
Total income tax provision (benefit)$116 $(500)$(2,453)
The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):
 Year Ended December 31,
 202220212020
Statutory income tax provision (benefit)$95 $(478)$(2,290)
State, local and foreign income tax provision (benefit), net of federal tax effect3 (37)(181)
Book expenses not deductible for tax purposes20 21 20 
Other, net(2)(6)(2)
Income tax provision (benefit)$116 $(500)$(2,453)
The components of American’s deferred tax assets and liabilities were (in millions):
 December 31,
 20222021
Deferred tax assets:
Operating loss and other carryforwards$4,492 $4,476 
Loyalty program liability1,809 1,903 
Leases1,804 1,822 
Pensions467 934 
Postretirement benefits other than pensions179 215 
Rent expense130 92 
Other689 734 
Total deferred tax assets9,570 10,176 
Valuation allowance(9)(24)
Net deferred tax assets9,561 10,152 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,603)(4,715)
Leases(1,817)(1,758)
Other(256)(279)
Total deferred tax liabilities(6,676)(6,752)
Net deferred tax asset$2,885 $3,400 
At December 31, 2022, American had approximately $16.1 billion of gross federal net operating losses (NOLs) and $3.5 billion of other carryforwards available to reduce future federal taxable income, of which $6.2 billion will expire beginning in 2024 if unused and $13.4 billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $5.9 billion of NOL carryforwards to reduce future state taxable income at December 31, 2022, which will expire in taxable years 2022 through 2042 if unused.
American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include the NOLs, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. American has determined that positive factors outweigh negative factors in the determination of the realizability of its deferred tax assets. There can be no assurance that an additional valuation allowance on American’s net deferred tax assets will not be required. Such valuation allowance could be material.
American’s ability to deduct its NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 where an “ownership change” has
occurred. Substantially all of American’s remaining federal NOL carryforwards attributable to US Airways Group are subject to limitation under Section 382; however, American’s ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes. American’s ability to utilize any new NOL carryforwards arising after the ownership changes is not affected by the annual limitation rules imposed by Section 382 unless another ownership change occurs. Under the Section 382 limitation, cumulative stock ownership changes among material stockholders exceeding 50% during a rolling three-year period can potentially limit American’s future use of NOLs and tax credits.
In 2022, American recorded an income tax provision of $116 million, with an effective rate of approximately 26%, which was substantially non-cash. Substantially all of American’s income before income taxes is attributable to the United States.
The Inflation Reduction Act (IRA) was enacted on August 16, 2022, which among other provisions, introduced a corporate minimum tax on certain corporations with average adjusted financial statement income over a three-tax year period in excess of $1.0 billion, an excise tax on certain stock repurchases by certain covered corporations for taxable years beginning after December 31, 2022, and several tax incentives to promote clean energy. Based on American’s current analysis and pending future guidance to be issued by the U.S. Department of Treasury, American does not believe these provisions will have a material impact on its consolidated financial statements.
American files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. American’s 2019 through 2021 tax years are still subject to examination by the Internal Revenue Service. Various state and foreign jurisdiction tax years remain open to examination and American is under examination, in administrative appeals, or engaged in tax litigation in certain jurisdictions. American believes that the effect of any assessments will not be material to its consolidated financial statements.
The amount of, and changes to, American’s uncertain tax positions were not material in any of the years presented. American accrues interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.