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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision were (in millions):
 Year Ended December 31,
 202420232022
Current income tax benefit:
State, local and foreign$— $— $(6)
Deferred income tax provision:
Federal285 268 59 
State and local23 31 6 
Deferred income tax provision308 299 65 
Total income tax provision$308 $299 $59 
The income tax provision differed from amounts computed at the statutory federal income tax rate as follows (in millions):
 Year Ended December 31,
 202420232022
Statutory income tax provision$242 $235 $39 
State, local and foreign income tax provision, net of federal tax effect21 22 — 
Book expenses not deductible for tax purposes44 38 22 
Change in valuation allowance— 3 — 
Other, net1 1 (2)
Income tax provision$308 $299 $59 
The components of our deferred tax assets and liabilities were (in millions):
 December 31,
 20242023
Deferred tax assets:
Net operating loss and other carryforwards$4,292 $4,238 
Loyalty program liability1,799 1,774 
Leases1,596 1,758 
Pension benefits234 434 
Postretirement benefits other than pension benefits270 274 
Rent expense60 84 
Other775 902 
Total deferred tax assets9,026 9,464 
Valuation allowance(22)(22)
Net deferred tax assets9,004 9,442 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,620)(4,503)
Leases(1,656)(1,798)
Other(252)(262)
Total deferred tax liabilities(6,528)(6,563)
Net deferred tax asset$2,476 $2,879 
At December 31, 2024, we had approximately $12.9 billion of gross federal net operating losses (NOLs) and $5.9 billion of other carryforwards available to reduce future federal taxable income, of which $2.6 billion will expire beginning in 2033 if unused and $16.2 billion can be carried forward indefinitely. We also had approximately $5.2 billion of NOL carryforwards to reduce future state taxable income at December 31, 2024, which will expire in taxable years 2024 through 2044 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 and other carryforwards, 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.
In 2024, we recorded an income tax provision of $308 million with an effective rate of approximately 27%, which was substantially non-cash. Substantially all of our income before income taxes is attributable to the United States.
We file our tax returns as prescribed by the tax laws of the jurisdictions in which we operate. Our 2021 through 2023 tax years are still subject to examination by the Internal Revenue Service. Various state, local and foreign jurisdiction tax years remain open to examination, and we are under examination, in administrative appeals or engaged in tax litigation in certain jurisdictions. We believe that the effect of any assessments will not be material to our consolidated financial statements.
The amount of, and changes to, our uncertain tax positions were not material in any of the years presented. We accrue interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.
American Airlines, Inc.  
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision were (in millions):
 Year Ended December 31,
 202420232022
Current income tax benefit:
State, local and foreign$— $— $(6)
Deferred income tax provision:
Federal391 361 112 
State and local35 33 10 
Deferred income tax provision426 394 122 
Total income tax provision$426 $394 $116 
The income tax provision differed from amounts computed at the statutory federal income tax rate as follows (in millions):
 Year Ended December 31,
 202420232022
Statutory income tax provision$354 $332 $95 
State, local and foreign income tax provision, net of federal tax effect30 25 3 
Book expenses not deductible for tax purposes40 35 20 
Change in valuation allowance— 3 — 
Other, net2 (1)(2)
Income tax provision$426 $394 $116 
The components of American’s deferred tax assets and liabilities were (in millions):
 December 31,
 20242023
Deferred tax assets:
Net operating loss and other carryforwards$3,891 $3,960 
Loyalty program liability1,799 1,774 
Leases1,582 1,746 
Pension benefits228 428 
Postretirement benefits other than pension benefits270 273 
Rent expense59 84 
Other726 846 
Total deferred tax assets8,555 9,111 
Valuation allowance(12)(12)
Net deferred tax assets8,543 9,099 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,599)(4,479)
Leases(1,642)(1,786)
Other(244)(254)
Total deferred tax liabilities(6,485)(6,519)
Net deferred tax asset$2,058 $2,580 
At December 31, 2024, American had approximately $12.8 billion of gross federal net operating losses (NOLs) and $4.2 billion of other carryforwards available to reduce future federal taxable income, of which $2.9 billion will expire beginning in 2033 if unused and $14.1 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 $5.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2024, which will expire in taxable years 2024 through 2044 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.
In 2024, American recorded an income tax provision of $426 million with an effective rate of approximately 25%, which was substantially non-cash. Substantially all of American’s income before income taxes is attributable to the United States.
American files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. American’s 2021 through 2023 tax years are still subject to examination by the Internal Revenue Service. Various state, local 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.