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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
We sponsor defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen and we began providing enhanced benefits under our defined contribution pension plans for certain employee groups. We use a December 31 measurement date for all of our defined benefit pension plans. We also provide certain retiree medical and other postretirement benefits, including health care and life insurance benefits to retired employees and notional retiree health reimbursement arrangements for eligible participants.
Benefit Obligations, Fair Value of Plan Assets and Funded Status
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and funded status as of December 31, 2024 and 2023:
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2024202320242023
 (In millions)
Benefit obligation at beginning of period$14,410 $14,037 $1,325 $906 
Service cost2 2 29 17 
Interest cost723 758 64 55 
Actuarial loss (gain) (1), (2)
(741)507 (58)92 
Plan amendments (3)
— — 55 339 
Benefit payments(913)(894)(107)(84)
Other(132)— — — 
Benefit obligation at end of period$13,349 $14,410 $1,308 $1,325 
Fair value of plan assets at beginning of period$12,431 $11,884 $133 $133 
Actual return on plan assets568 1,368 9 14 
Employer contributions (4)
300 73 93 70 
Benefit payments(913)(894)(107)(84)
Other(132)— — — 
Fair value of plan assets at end of period$12,254 $12,431 $128 $133 
Funded status at end of period$(1,095)$(1,979)$(1,180)$(1,192)
(1)The 2024 and 2023 pension actuarial loss (gain) primarily relates to the change in our weighted average discount rate assumption.
(2)The 2024 retiree medical and other postretirement benefits actuarial gain primarily relates to changes in certain retirement and weighted average discount rate assumptions, offset by increases in health care premiums and health care cost assumptions.
The 2023 retiree medical and other postretirement benefits actuarial loss primarily relates to the change in our weighted average discount rate assumption and change in health care cost assumptions.
(3)We remeasured our retiree medical and other postretirement benefits to account for enhanced retirement benefits pursuant to the ratification of new CBAs. As a result, in 2024 and 2023, we increased our postretirement benefits obligation by $55 million and $339 million, respectively, which was included as a component of prior service cost in accumulated other comprehensive loss.
(4)In 2024, we made required contributions of $285 million and supplemental contributions of $15 million to our defined benefit pension plans, and in 2023, we made required contributions of $69 million and supplemental contributions of $4 million to our defined benefit pension plans.
Balance Sheet Position
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2024202320242023
 (In millions)
As of December 31:
Current liability$5 $5 $142 $122 
Noncurrent liability1,090 1,974 1,038 1,070 
Total liabilities$1,095 $1,979 $1,180 $1,192 
Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
2024202320242023
(In millions)
As of December 31:
Net actuarial loss (gain)$3,128 $3,566 $(408)$(383)
Prior service cost1 — 238 197 
Total accumulated other comprehensive loss (income), pre-tax
$3,129 $3,566 $(170)$(186)
Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension Benefits
 20242023
 (In millions)
As of December 31:
Projected benefit obligation$13,349 $14,410 
Fair value of plan assets12,254 12,431 
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2024202320242023
 (In millions)
As of December 31:
Accumulated benefit obligation$13,341 $14,403 $— $— 
Accumulated postretirement benefit obligation
— — 1,308 1,325 
Fair value of plan assets12,254 12,431 128 133 
Net Periodic Benefit Cost (Income)
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202420232022202420232022
 (In millions)
For the years ended December 31:
Defined benefit plans:
Service cost$2 $2 $3 $29 $17 $16 
Interest cost723 758 556 64 55 30 
Expected return on assets(978)(918)(1,138)(10)(11)(12)
Amortization of:
Prior service cost (benefit)— 18 28 14 (6)(14)
Unrecognized net loss (gain)105 106 156 (31)(34)(30)
Net periodic benefit cost (income)$(148)$(34)$(395)$66 $21 $(10)
The service cost component of net periodic benefit cost (income) is included in operating expenses and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net on our consolidated statements of operations.
Assumptions
The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost (income) for the periods presented:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2024202320242023
Benefit obligations as of December 31:
Weighted average discount rate5.7%5.2%5.6%5.3%
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202420232022202420232022
Net periodic benefit cost (income) for the years ended December 31:
Weighted average discount rate5.2%5.6%3.0%5.3%5.7%2.8%
Weighted average expected rate of return on plan assets
8.0%8.0%8.0%8.0%8.0%8.0%
Weighted average health care cost trend rate assumed for next year (1)
N/AN/AN/A6.5%6.5%5.8%
(1)The weighted average health care cost trend rate at December 31, 2024 is assumed to decline gradually to 4.5% by 2033 and remain level thereafter.
As of January 1, 2025, our estimate of the long-term rate of return on plan assets is 7.75% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last 10 years, current and expected market conditions, and expected value to be generated through active management and securities lending programs.
Minimum Contributions
We are required to make minimum contributions to our defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as underfunding rules specific to countries where we maintain defined benefit pension plans. Based on current funding assumptions, we have minimum required contributions of $224 million for 2025 including contributions to defined benefit pension plans for our wholly-owned subsidiaries. Our future funding obligations will depend on the performance of our investments held in a trust by the pension plans, interest rates for determining funding targets, the amount of and timing of any supplemental contributions and our actuarial experience.
Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
202520262027202820292030-2034
Pension benefits$962 $982 $1,001 $1,015 $1,025 $5,149 
Retiree medical and other postretirement benefits159 163 160 157 153 651 
Plan Assets
The objectives of our investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers.
Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving the funded position with the potential risk that the funded position would decline. The current strategic target asset allocation with the corresponding allowed range is as follows:
Asset Class/Sub-ClassTarget AllocationAllowed Range
Equity56 %
30% - 85%
Public:
U.S. Large18 %
10% - 40%
U.S. Small/Mid4 %
0% - 10%
International Large11.5 %
5% - 25%
International Small/Mid2.5 %
0% - 10%
Emerging Markets5 %
0% - 15%
Private Equity15 %
5% - 30%
Fixed Income44 %
15% - 70%
Public U.S. Fixed Income35 %
15% - 60%
Private Income9 %
0% - 20%
Other0 %
0% - 5%
Cash Equivalents0 %
0% - 20%
Public equity investments are intended to provide a real return over a full market cycle and, therefore, to contribute to the pension plan’s long-term objective. Public fixed income investments are intended to provide income to the plan and offer the potential for long term capital appreciation. Private investments, such as private equity and private income, are used to provide higher expected returns than public markets over the long-term by assuming reduced levels of liquidity and higher levels of risk. The pension plan’s master trust participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. The pension plan’s master trust will also engage in derivative instruments to equitize residual levels of cash as well as hedge the pension plan’s exposure to interest rates. Such programs are subject to market risk and counterparty risk.
Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. Investments in limited partnerships are carried at estimated net asset value (NAV) as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Mutual funds are valued once daily through a NAV calculation provided at the end of each trade day. Common/collective trusts are valued at NAV based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. No changes in valuation techniques or inputs occurred during the year.
Benefit Plan Assets Measured at Fair Value on a Recurring Basis
The fair value of our pension plan assets at December 31, 2024 and 2023, by asset category, were as follows (in millions) (1):
 December 31, 2024December 31, 2023
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity (2)
$2,498 $— $— $2,498 $3,182 $— $— $3,182 
Fixed income (3)
439 3,723 — 4,162 260 3,238 — 3,498 
Other, net (4)
91 144 68 303 (6)348 84 426 
Measured at NAV (5):
Common collective trusts (6)
— — — 1,153 — — — 1,244 
Private investments (7)
— — — 4,138 — — — 4,081 
Total plan assets$3,028 $3,867 $68 $12,254 $3,436 $3,586 $84 $12,431 
(1)See Note 7 for a description of the levels within the fair value hierarchy.
(2)Equity investments include domestic and international common stock and preferred stock.
(3)Fixed income investments include corporate, government and U.S. municipal bonds, as well as mutual funds invested in fixed income securities.
(4)Other primarily includes a short-term investment fund, net receivables and payables of the master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.
(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.
(6)Common collective trusts include commingled funds primarily invested in equity securities. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next 10 years. As of December 31, 2024, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.1 billion, most of which are expected to be called over the next five years.
Changes in fair value measurements of Level 3 investments during the years ended December 31, 2024 and 2023, were as follows (in millions):
20242023
Balance at beginning of year$84 $75 
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date(25)(9)
Purchases9 20 
Sales— (2)
Balance at end of year$68 $84 
Plan assets in the retiree medical and other postretirement benefits plans are primarily Level 2 mutual funds valued by quoted prices on the active market, which is fair value, and represents the NAV of the shares of such funds as of the close of business at the end of the period. NAV is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination.
Defined Contribution and Multiemployer Plans
The costs associated with our defined contribution plans were $1.4 billion, $1.1 billion and $949 million for the years ended December 31, 2024, 2023 and 2022, respectively.
We participate in the International Association of Machinists & Aerospace Workers (IAM) National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the IAM Pension Fund). Our contributions to the IAM Pension Fund were $57 million, $52 million and $46 million for the years ended December 31, 2024, 2023 and 2022, respectively. The IAM Pension Fund reported $570 million in employers’ contributions for the year ended December 31, 2023, which is the most recent year for which such information is available. For 2023, our contributions represented more than 5% of total contributions to the IAM Pension Fund.
On March 29, 2019, the actuary for the IAM Pension Fund certified that the fund was in “endangered” status despite reporting a funded status of over 80%. Additionally, the IAM Pension Fund’s Board voluntarily elected to enter into “critical” status on April 17, 2019. Upon entry into critical status, the IAM Pension Fund was required by law to adopt a rehabilitation plan aimed at restoring the financial health of the pension plan and did so on April 17, 2019 (the Rehabilitation Plan). Under the Rehabilitation Plan, we were subject to an immaterial contribution surcharge, which ceased to apply June 14, 2019 upon our mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to our contribution rate. This contribution schedule will remain in effect through the earlier of December 31, 2031 or the date the IAM Pension Fund emerges from critical status. As of the most recent data available, the IAM Pension Fund remains in critical status.
Profit Sharing Program
We accrue a percentage of our pre-tax income excluding net special items for our profit sharing program. For the year ended December 31, 2024, we accrued $228 million for this program, which will be distributed to employees in the first quarter of 2025.
American Airlines, Inc.  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
American sponsors defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen and American began providing enhanced benefits under its defined contribution pension plans for certain employee groups. American uses a December 31 measurement date for all of its defined benefit pension plans. American also provides certain retiree medical and other postretirement benefits, including health care and life insurance benefits to retired employees and notional retiree health reimbursement arrangements for eligible participants.
Benefit Obligations, Fair Value of Plan Assets and Funded Status
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and funded status as of December 31, 2024 and 2023:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2024202320242023
 (In millions)
Benefit obligation at beginning of period$14,314 $13,948 $1,325 $906 
Service cost2 2 29 17 
Interest cost718 753 64 55 
Actuarial loss (gain) (1), (2)
(737)501 (58)92 
Plan amendments (3)
— — 54 339 
Benefit payments(907)(890)(107)(84)
Other(132)— — — 
Benefit obligation at end of period$13,258 $14,314 $1,307 $1,325 
Fair value of plan assets at beginning of period$12,358 $11,821 $133 $133 
Actual return on plan assets561 1,356 9 14 
Employer contributions (4)
295 71 93 70 
Benefit payments(907)(890)(107)(84)
Other(132)— — — 
Fair value of plan assets at end of period$12,175 $12,358 $128 $133 
Funded status at end of period$(1,083)$(1,956)$(1,179)$(1,192)
(1)The 2024 and 2023 pension actuarial loss (gain) primarily relates to the change in American’s weighted average discount rate assumption.
(2)The 2024 retiree medical and other postretirement benefits actuarial gain primarily relates to changes in certain retirement and weighted average discount rate assumptions, offset by increases in health care premiums and health care cost assumptions.
The 2023 retiree medical and other postretirement benefits actuarial loss primarily relates to the change in American’s weighted average discount rate assumption and change in health care cost assumptions.
(3)American remeasured its retiree medical and other postretirement benefits to account for enhanced retirement benefits pursuant to the ratification of new CBAs. As a result, in 2024 and 2023, American increased its postretirement benefits obligation by $54 million and $339 million, respectively, which was included as a component of prior service cost in accumulated other comprehensive loss.
(4)In 2024, American made required contributions of $280 million and supplemental contributions of $15 million to its defined benefit pension plans, and in 2023, American made required contributions of $67 million and supplemental contributions of $4 million to its defined benefit pension plans.
Balance Sheet Position
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2024202320242023
 (In millions)
As of December 31:
Current liability$5 $6 $142 $122 
Noncurrent liability1,078 1,950 1,037 1,070 
Total liabilities$1,083 $1,956 $1,179 $1,192 
Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
2024202320242023
(In millions)
As of December 31:
Net actuarial loss (gain)$3,130 $3,561 $(407)$(382)
Prior service cost1 — 238 197 
Total accumulated other comprehensive loss (income), pre-tax
$3,131 $3,561 $(169)$(185)
Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension Benefits
 20242023
 (In millions)
As of December 31:
Projected benefit obligation$13,258 $14,314 
Fair value of plan assets12,175 12,358 
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2024202320242023
 (In millions)
As of December 31:
Accumulated benefit obligation$13,251 $14,307 $— $— 
Accumulated postretirement benefit obligation
— — 1,307 1,325 
Fair value of plan assets12,175 12,358 128 133 
Net Periodic Benefit Cost (Income)
 Pension BenefitsRetiree Medical and
  Other Postretirement Benefits  
 202420232022202420232022
 (In millions)
For the years ended December 31:
Defined benefit plans:
Service cost$2 $2 $3 $29 $17 $16 
Interest cost718 753 552 64 55 30 
Expected return on assets(973)(914)(1,133)(10)(11)(12)
Amortization of:
Prior service cost (benefit)— 18 28 14 (6)(14)
Unrecognized net loss (gain)105 106 156 (31)(34)(30)
Net periodic benefit cost (income)$(148)$(35)$(394)$66 $21 $(10)
The service cost component of net periodic benefit cost (income) is included in operating expenses and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net on American’s consolidated statements of operations.
Assumptions
The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost (income) for the periods presented:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2024202320242023
Benefit obligations as of December 31:
Weighted average discount rate5.7%5.2%5.6%5.3%
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202420232022202420232022
Net periodic benefit cost (income) for the years ended December 31:
Weighted average discount rate5.2%5.6%3.0%5.3%5.7%2.8%
Weighted average expected rate of return on plan assets
8.0%8.0%8.0%8.0%8.0%8.0%
Weighted average health care cost trend rate assumed for next year (1)
N/AN/AN/A6.5%6.5%5.8%
(1)The weighted average health care cost trend rate at December 31, 2024 is assumed to decline gradually to 4.5% by 2033 and remain level thereafter.
As of January 1, 2025, American’s estimate of the long-term rate of return on plan assets is 7.75% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last 10 years, current and expected market conditions, and expected value to be generated through active management and securities lending programs.
Minimum Contributions
American is required to make minimum contributions to its defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as underfunding rules specific to countries where American maintains defined benefit pension plans. Based on current funding assumptions, American has minimum required contributions of $221 million for 2025. American’s future funding obligations will depend on the performance of American’s investments held in a trust by the pension plans, interest rates for determining funding targets, the amount of and timing of any supplemental contributions and American’s actuarial experience.
Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
202520262027202820292030-2034
Pension benefits$957 $977 $995 $1,009 $1,019 $5,115 
Retiree medical and other postretirement benefits158 163 160 156 153 650 
Plan Assets
The objectives of American’s investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers.
Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving the funded position with the potential risk that the funded position would decline. The current strategic target asset allocation with the corresponding allowed range is as follows:
Asset Class/Sub-ClassTarget AllocationAllowed Range
Equity56 %
30% - 85%
Public:
U.S. Large18 %
10% - 40%
U.S. Small/Mid4 %
0% - 10%
International Large11.5 %
5% - 25%
International Small/Mid2.5 %
0% - 10%
Emerging Markets5 %
0% - 15%
Private Equity15 %
5% - 30%
Fixed Income44 %
15% - 70%
Public U.S. Fixed Income35 %
15% - 60%
Private Income9 %
0% - 20%
Other0 %
0% - 5%
Cash Equivalents0 %
0% - 20%
Public equity investments are intended to provide a real return over a full market cycle and, therefore, to contribute to the pension plan’s long-term objective. Public fixed income investments are intended to provide income to the plan and offer the potential for long term capital appreciation. Private investments, such as private equity and private income, are used to provide higher expected returns than public markets over the long-term by assuming reduced levels of liquidity and higher levels of risk. The pension plan’s master trust participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. The pension plan’s master trust will also engage in derivative instruments to equitize residual levels of cash as well as hedge the pension plan’s exposure to interest rates. Such programs are subject to market risk and counterparty risk.
Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. Investments in limited partnerships are carried at estimated net asset value (NAV) as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Mutual funds are valued once daily through a NAV calculation provided at the end of each trade day. Common/collective trusts are valued at NAV based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. No changes in valuation techniques or inputs occurred during the year.
Benefit Plan Assets Measured at Fair Value on a Recurring Basis
The fair value of American’s pension plan assets at December 31, 2024 and 2023, by asset category, were as follows (in millions) (1):
December 31, 2024December 31, 2023
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity (2)
$2,498 $— $— $2,498 $3,134 $— $— $3,134 
Fixed income (3)
427 3,723 — 4,150 235 3,238 — 3,473 
Other, net (4)
91 144 68 303 (6)348 84 426 
Measured at NAV (5):
Common collective trusts (6)
— — — 1,086 — — — 1,244 
Private investments (7)
— — — 4,138 — — — 4,081 
Total plan assets$3,016 $3,867 $68 $12,175 $3,363 $3,586 $84 $12,358 
(1)See Note 6 for a description of the levels within the fair value hierarchy.
(2)Equity investments include domestic and international common stock and preferred stock.
(3)Fixed income investments include corporate, government and U.S. municipal bonds, as well as mutual funds invested in fixed income securities.
(4)Other primarily includes a short-term investment fund, net receivables and payables of the master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.
(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.
(6)Common collective trusts include commingled funds primarily invested in equity securities. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next 10 years. As of December 31, 2024, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.1 billion, most of which are expected to be called over the next five years.
Changes in fair value measurements of Level 3 investments during the years ended December 31, 2024 and 2023, were as follows (in millions):
20242023
Balance at beginning of year$84 $75 
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date(25)(9)
Purchases9 20 
Sales— (2)
Balance at end of year$68 $84 
Plan assets in the retiree medical and other postretirement benefits plans are primarily Level 2 mutual funds valued by quoted prices on the active market, which is fair value, and represents the NAV of the shares of such funds as of the close of business at the end of the period. NAV is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination.
Defined Contribution and Multiemployer Plans
The costs associated with American’s defined contribution plans were $1.4 billion, $1.1 billion and $916 million for the years ended December 31, 2024, 2023 and 2022, respectively.
American participates in the International Association of Machinists & Aerospace Workers (IAM) National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the IAM Pension Fund). American’s contributions to the IAM Pension Fund were $57 million, $52 million and $46 million for the years ended December 31, 2024, 2023 and 2022, respectively. The IAM Pension Fund reported $570 million in employers’ contributions for the year ended December 31, 2023, which is the most recent year for which such information is available. For 2023, American’s contributions represented more than 5% of total contributions to the IAM Pension Fund.
On March 29, 2019, the actuary for the IAM Pension Fund certified that the fund was in “endangered” status despite reporting a funded status of over 80%. Additionally, the IAM Pension Fund’s Board voluntarily elected to enter into “critical” status on April 17, 2019. Upon entry into critical status, the IAM Pension Fund was required by law to adopt a rehabilitation plan aimed at restoring the financial health of the pension plan and did so on April 17, 2019 (the Rehabilitation Plan). Under the Rehabilitation Plan, American was subject to an immaterial contribution surcharge, which ceased to apply June 14, 2019 upon American’s mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to its contribution rate. This contribution schedule will remain in effect through the earlier of December 31, 2031 or the date the IAM Pension Fund emerges from critical status. As of the most recent data available, the IAM Pension Fund remains in critical status.
Profit Sharing Program
American accrues a percentage of its pre-tax income excluding net special items for its profit sharing program. For the year ended December 31, 2024, American accrued $228 million for this program, which will be distributed to employees in the first quarter of 2025.