Leases

12 Months Ended

Dec. 31, 2023

Lessee, Lease, Description [Line Items]

Leases

Leases

We lease certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2023, we operated 737 leased aircraft, including seven aircraft in temporary storage and 237 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to 10 years.

At each airport where we conduct flight operations, we have agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with our level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on our consolidated balance sheets as a ROU asset or a lease liability. Additionally, at our hub locations and in certain other cities we serve, we lease administrative offices, catering, cargo, training, maintenance and other facilities.

The components of lease expense were as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	2,016	$	2,007	$	2,012
Finance lease cost:
Amortization of assets	128		143		107
Interest on lease liabilities	45		47		44
Variable lease cost	2,720		2,580		2,471
Total net lease cost	$	4,909	$	4,777	$	4,634

Included in the table above is $274 million, $242 million and $190 million of operating lease cost under our capacity purchase agreement with Republic for the years ended December 31, 2023, 2022 and 2021, respectively. We hold a 25% equity interest in Republic Holdings, the parent company of Republic.

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2023			2022
Operating leases:
Operating lease ROU assets	$	7,939		$	8,094
Current operating lease liabilities	$	1,309		$	1,465
Noncurrent operating lease liabilities	6,452			6,559
Total operating lease liabilities	$	7,761		$	8,024
Finance leases:
Property and equipment, at cost	$	1,380		$	1,364
Accumulated amortization	(891)			(779)
Property and equipment, net	$	489		$	585
Current finance lease liabilities	$	131		$	216
Noncurrent finance lease liabilities	375			545
Total finance lease liabilities	$	506		$	761
Weighted average remaining lease term (in years):
Operating leases	8.4			8.3
Finance leases	5.8			5.1
Weighted average discount rate:
Operating leases	7.6		%	7.4		%
Finance leases	7.2		%	7.2		%

Supplemental cash flow and other information related to leases was as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,033	$	1,990	$	2,053
Operating cash flows from finance leases	48		47		37
Financing cash flows from finance leases	265		190		126
Gain on sale leaseback transactions, net	12		2		25

Maturities of lease liabilities were as follows (in millions):

	December 31, 2023
	Operating Leases		Finance Leases
2024	$	1,809	$	166
2025	1,510		140
2026	1,289		114
2027	1,120		71
2028	988		30
2029 and thereafter	3,708		89
Total lease payments	10,424		610
Less: Imputed interest	(2,663)		(104)
Total lease obligations	7,761		506
Less: Current obligations	(1,309)		(131)
Long-term lease obligations	$	6,452	$	375

As of December 31, 2023, we had additional operating lease commitments that have not yet commenced of approximately $669 million for five Boeing 787 Family aircraft scheduled to be delivered in 2024 with lease terms of 10 years.

Leases

Leases

We lease certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2023, we operated 737 leased aircraft, including seven aircraft in temporary storage and 237 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to 10 years.

At each airport where we conduct flight operations, we have agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with our level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on our consolidated balance sheets as a ROU asset or a lease liability. Additionally, at our hub locations and in certain other cities we serve, we lease administrative offices, catering, cargo, training, maintenance and other facilities.

The components of lease expense were as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	2,016	$	2,007	$	2,012
Finance lease cost:
Amortization of assets	128		143		107
Interest on lease liabilities	45		47		44
Variable lease cost	2,720		2,580		2,471
Total net lease cost	$	4,909	$	4,777	$	4,634

Included in the table above is $274 million, $242 million and $190 million of operating lease cost under our capacity purchase agreement with Republic for the years ended December 31, 2023, 2022 and 2021, respectively. We hold a 25% equity interest in Republic Holdings, the parent company of Republic.

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2023			2022
Operating leases:
Operating lease ROU assets	$	7,939		$	8,094
Current operating lease liabilities	$	1,309		$	1,465
Noncurrent operating lease liabilities	6,452			6,559
Total operating lease liabilities	$	7,761		$	8,024
Finance leases:
Property and equipment, at cost	$	1,380		$	1,364
Accumulated amortization	(891)			(779)
Property and equipment, net	$	489		$	585
Current finance lease liabilities	$	131		$	216
Noncurrent finance lease liabilities	375			545
Total finance lease liabilities	$	506		$	761
Weighted average remaining lease term (in years):
Operating leases	8.4			8.3
Finance leases	5.8			5.1
Weighted average discount rate:
Operating leases	7.6		%	7.4		%
Finance leases	7.2		%	7.2		%

Supplemental cash flow and other information related to leases was as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,033	$	1,990	$	2,053
Operating cash flows from finance leases	48		47		37
Financing cash flows from finance leases	265		190		126
Gain on sale leaseback transactions, net	12		2		25

Maturities of lease liabilities were as follows (in millions):

	December 31, 2023
	Operating Leases		Finance Leases
2024	$	1,809	$	166
2025	1,510		140
2026	1,289		114
2027	1,120		71
2028	988		30
2029 and thereafter	3,708		89
Total lease payments	10,424		610
Less: Imputed interest	(2,663)		(104)
Total lease obligations	7,761		506
Less: Current obligations	(1,309)		(131)
Long-term lease obligations	$	6,452	$	375

As of December 31, 2023, we had additional operating lease commitments that have not yet commenced of approximately $669 million for five Boeing 787 Family aircraft scheduled to be delivered in 2024 with lease terms of 10 years.

American Airlines, Inc.

Lessee, Lease, Description [Line Items]

Leases

Leases

American leases certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2023, American operated 737 leased aircraft, including seven aircraft in temporary storage and 237 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to 10 years.

At each airport where American conducts flight operations, American has agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with American’s level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on American’s consolidated balance sheets as a ROU asset or a lease liability. Additionally, at American’s hub locations and in certain other cities it serves, American leases administrative offices, catering, cargo, training, maintenance and other facilities.

The components of lease expense were as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	1,992	$	1,987	$	1,998
Finance lease cost:
Amortization of assets	119		135		107
Interest on lease liabilities	44		46		44
Variable lease cost	2,703		2,572		2,461
Total net lease cost	$	4,858	$	4,740	$	4,610

Included in the table above is $274 million, $242 million and $190 million of operating lease cost under American’s capacity purchase agreement with Republic for the years ended December 31, 2023, 2022 and 2021, respectively. American holds a 25% equity interest in Republic Holdings, the parent company of Republic.

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2023			2022
Operating leases:
Operating lease ROU assets	$	7,886		$	8,033
Current operating lease liabilities	$	1,292		$	1,449
Noncurrent operating lease liabilities	6,416			6,512
Total operating lease liabilities	$	7,708		$	7,961
Finance leases:
Property and equipment, at cost	$	1,352		$	1,336
Accumulated amortization	(870)			(767)
Property and equipment, net	$	482		$	569
Current finance lease liabilities	$	124		$	209
Noncurrent finance lease liabilities	374			535
Total finance lease liabilities	$	498		$	744
Weighted average remaining lease term (in years):
Operating leases	8.4			8.3
Finance leases	5.8			5.0
Weighted average discount rate:
Operating leases	7.6		%	7.4		%
Finance leases	7.1		%	7.1		%

Supplemental cash flow and other information related to leases was as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,011	$	1,968	$	2,040
Operating cash flows from finance leases	47		46		37
Financing cash flows from finance leases	255		179		126
Gain on sale leaseback transactions, net	12		2		25

Maturities of lease liabilities were as follows (in millions):

	December 31, 2023
	Operating Leases		Finance Leases
2024	$	1,789	$	156
2025	1,498		140
2026	1,280		114
2027	1,115		71
2028	985		30
2029 and thereafter	3,682		89
Total lease payments	10,349		600
Less: Imputed interest	(2,641)		(102)
Total lease obligations	7,708		498
Less: Current obligations	(1,292)		(124)
Long-term lease obligations	$	6,416	$	374

As of December 31, 2023, American had additional operating lease commitments that have not yet commenced of approximately $669 million for five Boeing 787 Family aircraft scheduled to be delivered in 2024 with lease terms of 10 years.

Leases

Leases

American leases certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2023, American operated 737 leased aircraft, including seven aircraft in temporary storage and 237 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to 10 years.

At each airport where American conducts flight operations, American has agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with American’s level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on American’s consolidated balance sheets as a ROU asset or a lease liability. Additionally, at American’s hub locations and in certain other cities it serves, American leases administrative offices, catering, cargo, training, maintenance and other facilities.

The components of lease expense were as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	1,992	$	1,987	$	1,998
Finance lease cost:
Amortization of assets	119		135		107
Interest on lease liabilities	44		46		44
Variable lease cost	2,703		2,572		2,461
Total net lease cost	$	4,858	$	4,740	$	4,610

Included in the table above is $274 million, $242 million and $190 million of operating lease cost under American’s capacity purchase agreement with Republic for the years ended December 31, 2023, 2022 and 2021, respectively. American holds a 25% equity interest in Republic Holdings, the parent company of Republic.

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2023			2022
Operating leases:
Operating lease ROU assets	$	7,886		$	8,033
Current operating lease liabilities	$	1,292		$	1,449
Noncurrent operating lease liabilities	6,416			6,512
Total operating lease liabilities	$	7,708		$	7,961
Finance leases:
Property and equipment, at cost	$	1,352		$	1,336
Accumulated amortization	(870)			(767)
Property and equipment, net	$	482		$	569
Current finance lease liabilities	$	124		$	209
Noncurrent finance lease liabilities	374			535
Total finance lease liabilities	$	498		$	744
Weighted average remaining lease term (in years):
Operating leases	8.4			8.3
Finance leases	5.8			5.0
Weighted average discount rate:
Operating leases	7.6		%	7.4		%
Finance leases	7.1		%	7.1		%

Supplemental cash flow and other information related to leases was as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,011	$	1,968	$	2,040
Operating cash flows from finance leases	47		46		37
Financing cash flows from finance leases	255		179		126
Gain on sale leaseback transactions, net	12		2		25

Maturities of lease liabilities were as follows (in millions):

	December 31, 2023
	Operating Leases		Finance Leases
2024	$	1,789	$	156
2025	1,498		140
2026	1,280		114
2027	1,115		71
2028	985		30
2029 and thereafter	3,682		89
Total lease payments	10,349		600
Less: Imputed interest	(2,641)		(102)
Total lease obligations	7,708		498
Less: Current obligations	(1,292)		(124)
Long-term lease obligations	$	6,416	$	374

As of December 31, 2023, American had additional operating lease commitments that have not yet commenced of approximately $669 million for five Boeing 787 Family aircraft scheduled to be delivered in 2024 with lease terms of 10 years.