Leases

12 Months Ended

Dec. 31, 2024

Lessee, Lease, Description [Line Items]

Leases

Leases

We lease certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2024, we operated 716 leased aircraft, including 210 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to approximately 11 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,
	2024		2023		2022
Operating lease cost	$	1,851	$	2,016	$	2,007
Finance lease cost:
Amortization of assets	132		128		143
Interest on lease liabilities	39		45		47
Variable lease cost	3,075		2,720		2,580
Total net lease cost	$	5,097	$	4,909	$	4,777

Included in the table above is $225 million, $274 million and $242 million of operating lease cost under our capacity purchase agreement with Republic for the years ended December 31, 2024, 2023 and 2022, 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,
	2024			2023
Operating leases:
Operating lease ROU assets	$	7,333		$	7,939
Current operating lease liabilities	$	1,092		$	1,309
Noncurrent operating lease liabilities	5,976			6,452
Total operating lease liabilities	$	7,068		$	7,761
Finance leases:
Property and equipment, at cost	$	1,632		$	1,380
Accumulated amortization	(952)			(891)
Property and equipment, net	$	680		$	489
Current finance lease liabilities	$	132		$	131
Noncurrent finance lease liabilities	531			375
Total finance lease liabilities	$	663		$	506
Weighted average remaining lease term (in years):
Operating leases	8.2			8.4
Finance leases	7.4			5.8
Weighted average discount rate:
Operating leases	7.5		%	7.6		%
Finance leases	7.0		%	7.2		%

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

	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,830	$	2,033	$	1,990
Operating cash flows from finance leases	40		48		47
Financing cash flows from finance leases	152		265		190
Gain on sale leaseback transactions, net	76		12		2

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

	December 31, 2024
	Operating Leases		Finance Leases
2025	$	1,546	$	173
2026	1,403		150
2027	1,243		112
2028	1,114		77
2029	1,010		72
2030 and thereafter	3,049		256
Total lease payments	9,365		840
Less: Imputed interest	(2,297)		(177)
Total lease obligations	7,068		663
Less: Current obligations	(1,092)		(132)
Long-term lease obligations	$	5,976	$	531

As of December 31, 2024, we had additional operating lease commitments that have not yet commenced of approximately $693 million for five Boeing 787 Family aircraft scheduled to be delivered in 2025 with lease terms of 10 years.

Leases

Leases

We lease certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2024, we operated 716 leased aircraft, including 210 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to approximately 11 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,
	2024		2023		2022
Operating lease cost	$	1,851	$	2,016	$	2,007
Finance lease cost:
Amortization of assets	132		128		143
Interest on lease liabilities	39		45		47
Variable lease cost	3,075		2,720		2,580
Total net lease cost	$	5,097	$	4,909	$	4,777

Included in the table above is $225 million, $274 million and $242 million of operating lease cost under our capacity purchase agreement with Republic for the years ended December 31, 2024, 2023 and 2022, 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,
	2024			2023
Operating leases:
Operating lease ROU assets	$	7,333		$	7,939
Current operating lease liabilities	$	1,092		$	1,309
Noncurrent operating lease liabilities	5,976			6,452
Total operating lease liabilities	$	7,068		$	7,761
Finance leases:
Property and equipment, at cost	$	1,632		$	1,380
Accumulated amortization	(952)			(891)
Property and equipment, net	$	680		$	489
Current finance lease liabilities	$	132		$	131
Noncurrent finance lease liabilities	531			375
Total finance lease liabilities	$	663		$	506
Weighted average remaining lease term (in years):
Operating leases	8.2			8.4
Finance leases	7.4			5.8
Weighted average discount rate:
Operating leases	7.5		%	7.6		%
Finance leases	7.0		%	7.2		%

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

	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,830	$	2,033	$	1,990
Operating cash flows from finance leases	40		48		47
Financing cash flows from finance leases	152		265		190
Gain on sale leaseback transactions, net	76		12		2

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

	December 31, 2024
	Operating Leases		Finance Leases
2025	$	1,546	$	173
2026	1,403		150
2027	1,243		112
2028	1,114		77
2029	1,010		72
2030 and thereafter	3,049		256
Total lease payments	9,365		840
Less: Imputed interest	(2,297)		(177)
Total lease obligations	7,068		663
Less: Current obligations	(1,092)		(132)
Long-term lease obligations	$	5,976	$	531

As of December 31, 2024, we had additional operating lease commitments that have not yet commenced of approximately $693 million for five Boeing 787 Family aircraft scheduled to be delivered in 2025 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, 2024, American operated 716 leased aircraft, including 210 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to approximately 11 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,
	2024		2023		2022
Operating lease cost	$	1,828	$	1,992	$	1,987
Finance lease cost:
Amortization of assets	125		119		135
Interest on lease liabilities	39		44		46
Variable lease cost	3,059		2,703		2,572
Total net lease cost	$	5,051	$	4,858	$	4,740

Included in the table above is $225 million, $274 million and $242 million of operating lease cost under American’s capacity purchase agreement with Republic for the years ended December 31, 2024, 2023 and 2022, 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,
	2024			2023
Operating leases:
Operating lease ROU assets	$	7,274		$	7,886
Current operating lease liabilities	$	1,082		$	1,292
Noncurrent operating lease liabilities	5,926			6,416
Total operating lease liabilities	$	7,008		$	7,708
Finance leases:
Property and equipment, at cost	$	1,604		$	1,352
Accumulated amortization	(924)			(870)
Property and equipment, net	$	680		$	482
Current finance lease liabilities	$	132		$	124
Noncurrent finance lease liabilities	531			374
Total finance lease liabilities	$	663		$	498
Weighted average remaining lease term (in years):
Operating leases	8.2			8.4
Finance leases	7.4			5.8
Weighted average discount rate:
Operating leases	7.5		%	7.6		%
Finance leases	7.0		%	7.1		%

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

	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,810	$	2,011	$	1,968
Operating cash flows from finance leases	40		47		46
Financing cash flows from finance leases	145		255		179
Gain on sale leaseback transactions, net	76		12		2

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

	December 31, 2024
	Operating Leases		Finance Leases
2025	$	1,532	$	173
2026	1,390		150
2027	1,235		112
2028	1,107		77
2029	1,004		72
2030 and thereafter	3,009		256
Total lease payments	9,277		840
Less: Imputed interest	(2,269)		(177)
Total lease obligations	7,008		663
Less: Current obligations	(1,082)		(132)
Long-term lease obligations	$	5,926	$	531

As of December 31, 2024, American had additional operating lease commitments that have not yet commenced of approximately $693 million for five Boeing 787 Family aircraft scheduled to be delivered in 2025 with lease terms of 10 years.

Leases

Leases

American leases certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2024, American operated 716 leased aircraft, including 210 aircraft leased under capacity purchase agreements, with remaining terms ranging from less than one year to approximately 11 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,
	2024		2023		2022
Operating lease cost	$	1,828	$	1,992	$	1,987
Finance lease cost:
Amortization of assets	125		119		135
Interest on lease liabilities	39		44		46
Variable lease cost	3,059		2,703		2,572
Total net lease cost	$	5,051	$	4,858	$	4,740

Included in the table above is $225 million, $274 million and $242 million of operating lease cost under American’s capacity purchase agreement with Republic for the years ended December 31, 2024, 2023 and 2022, 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,
	2024			2023
Operating leases:
Operating lease ROU assets	$	7,274		$	7,886
Current operating lease liabilities	$	1,082		$	1,292
Noncurrent operating lease liabilities	5,926			6,416
Total operating lease liabilities	$	7,008		$	7,708
Finance leases:
Property and equipment, at cost	$	1,604		$	1,352
Accumulated amortization	(924)			(870)
Property and equipment, net	$	680		$	482
Current finance lease liabilities	$	132		$	124
Noncurrent finance lease liabilities	531			374
Total finance lease liabilities	$	663		$	498
Weighted average remaining lease term (in years):
Operating leases	8.2			8.4
Finance leases	7.4			5.8
Weighted average discount rate:
Operating leases	7.5		%	7.6		%
Finance leases	7.0		%	7.1		%

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

	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,810	$	2,011	$	1,968
Operating cash flows from finance leases	40		47		46
Financing cash flows from finance leases	145		255		179
Gain on sale leaseback transactions, net	76		12		2

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

	December 31, 2024
	Operating Leases		Finance Leases
2025	$	1,532	$	173
2026	1,390		150
2027	1,235		112
2028	1,107		77
2029	1,004		72
2030 and thereafter	3,009		256
Total lease payments	9,277		840
Less: Imputed interest	(2,269)		(177)
Total lease obligations	7,008		663
Less: Current obligations	(1,082)		(132)
Long-term lease obligations	$	5,926	$	531

As of December 31, 2024, American had additional operating lease commitments that have not yet commenced of approximately $693 million for five Boeing 787 Family aircraft scheduled to be delivered in 2025 with lease terms of 10 years.