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Debt
 6 Months Ended
Jun. 30, 2025
Debt Instrument [Line Items]  
Debt Debt
Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):
June 30, 2025December 31, 2024
Secured
2013 Term Loan Facility, variable interest rate of 6.50%, installments until due in February 2028
$970 $980 
2014 Term Loan Facility, variable interest rate of 5.98%, installments until due in January 2027
1,159 1,171 
2023 Term Loan Facility, variable interest rate of 6.51%, installments until due in June 2029
1,089 1,089 
10.75% senior secured IP notes, interest only payments until due in February 2026
524 781 
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026
105 156 
7.25% senior secured notes, interest only payments until due in February 2028
750 750 
8.50% senior secured notes, interest only payments until due in May 2029
1,000 1,000 
5.50% senior secured notes, installments until due in April 2026 (1)
1,167 1,750 
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)
3,000 3,000 
2021 AAdvantage Term Loan Facility, variable interest rate of 6.52%, installments until due in April 2028 (1)
2,275 2,450 
2025 AAdvantage Term Loan Facility, variable interest rate of 7.58%, installments beginning in July 2025 until due in May 2032 (1)
1,000 — 
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.15%, averaging 3.79%, maturing from 2025 to 2034
6,364 7,271 
Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.55% to 6.89%, averaging 6.03%, maturing from 2025 to 2037
4,522 4,094 
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036
880 880 
24,805 25,372 
Unsecured
PSP1 Promissory Note, variable interest rate of 6.13%, interest only payments until due in April 2030
1,757 1,757 
PSP2 Promissory Note, interest only payments until due in January 2031 (2)
1,030 1,030 
PSP3 Promissory Note, interest only payments until due in April 2031 (2)
959 959 
6.50% convertible senior notes, interest only payments until due in July 2025
1,000 1,000 
4,746 4,746 
Total long-term debt29,551 30,118 
Less: Total unamortized debt discount, premium and issuance costs332 305 
Less: Current maturities4,514 5,196 
Long-term debt, net of current maturities$24,705 $24,617 
(1)Collectively referred to as the AAdvantage Financing.
(2)PSP2 and PSP3 notes bear interest at a fixed interest rate of 1.00% until the first and second quarters of 2026, respectively. Thereafter and until maturity, the notes bear interest at 2.00% plus an interest rate based on the Secured Overnight Financing Rate (SOFR) or other benchmark replacement rate consistent with customary market conventions.
As of June 30, 2025, the maximum availability under our revolving credit and other facilities is as follows (in millions):
2013 Revolving Facility (1)
$519 
2014 Revolving Facility (1)
1,557 
2023 Revolving Facility (1)
924 
Other facilities (2)
400 
Total$3,400 
(1)On April 21, 2025, the aggregate revolving commitments under the 2013, 2014 and 2023 Revolving Facilities were increased from $2.9 billion to $3.0 billion upon the upsize of commitments by certain existing lenders. No other terms were changed and there are no borrowings outstanding under the facilities.
(2)Includes a revolving credit facility that provides for borrowing capacity of up to $350 million, maturing in March 2027 with an option to extend for an additional year. Additionally, American currently has $50 million of available borrowing base under a cargo receivables facility that is set to expire in December 2025. There are no amounts drawn under these facilities.
Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.
AAdvantage Term Loan Facilities
On March 24, 2025, American and AAdvantage Loyalty IP Ltd. (the Borrowers) entered into a second amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Second Amendment). As a result of the Second Amendment, the term loans outstanding with a principal amount of approximately $2.3 billion (the 2021 AAdvantage Term Loan Facility) were replaced with new term loans in the same principal amount. The terms of the new term loans are substantially similar to the prior term loans; however, the new term loans bear interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 1.25% per annum or, at the Borrowers’ option, the SOFR for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 2.25% per annum. Additionally, the scheduled quarterly principal amortization amount was reduced to 0.25% of the principal amount of term loans outstanding as of March 24, 2025 (approximately $6 million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in April 2028. Pursuant to the Second Amendment, the new term loans are not subject to a cost spread adjustment.
On May 28, 2025, the Borrowers entered into a third amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Third Amendment). As a result of the Third Amendment, the Borrowers incurred $1.0 billion of incremental term loans (the 2025 AAdvantage Term Loan Facility) due on May 28, 2032. The terms of the 2025 AAdvantage Term Loan Facility are substantially similar to the 2021 AAdvantage Term Loan Facility; however, the 2025 AAdvantage Term Loan Facility bears interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 2.25% per annum or, at the Borrowers’ option, the SOFR rate for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 3.25% per annum. Additionally, the scheduled quarterly principal amortization amount is equal to 0.25% of the original aggregate principal amount of the 2025 AAdvantage Term Loan Facility (approximately $3 million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in May 2032. Pursuant to the Third Amendment, the 2025 AAdvantage Term Loan Facility is not subject to a cost spread adjustment. The net proceeds from the 2025 AAdvantage Term Loan Facility were used to repay near term maturities, including the Convertible Notes described further below.
6.50% Convertible Senior Notes (the Convertible Notes)
On March 27, 2025, we provided notice to the holders of our Convertible Notes that we would settle our Convertible Notes at their maturity in cash (including any conversions up to a price per share of AAG common stock of approximately $22.00). We changed the default settlement method applicable to conversions of the Convertible Notes to provide that no shares of AAG common stock would be due upon settlement of the conversion of any Convertible Note (and, accordingly, such conversion would be settled entirely in cash) if the volume-weighted average price per share of AAG common stock did not exceed approximately $22.00 on any trading day of the 20-trading day “observation period” over which the consideration due upon conversion is calculated and determined. Pursuant to the terms of the indenture governing the Convertible Notes, the holders of the Convertible Notes could convert at their option beginning April 1, 2025, until the
close of business on the scheduled trading day immediately before the maturity date, July 1, 2025, of the Convertible Notes.
On July 1, 2025, the volume-weighted average price per share of AAG common stock did not exceed $22.00 on any trading day of the 20-trading day “observation period” and therefore the Convertible Notes were settled at their maturity in cash for $1.0 billion.
Equipment Loans and Other Notes Payable Issued in 2025
During the first six months of 2025, American entered into agreements under which it borrowed $712 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2036 through 2037 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 6.29% as of June 30, 2025.
Other Financing Activities
During the first six months of 2025, American prepaid $487 million of the outstanding principal amounts of equipment notes issued under EETCs, and these amounts were applied to repay the related trust certificates. Additionally, American prepaid $308 million toward portions of the outstanding principal amounts of the 10.75% senior secured IP notes and 10.75% senior secured LGA/DCA notes.
American Airlines, Inc.  
Debt Instrument [Line Items]  
Debt Debt
Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):
June 30, 2025December 31, 2024
Secured
2013 Term Loan Facility, variable interest rate of 6.50%, installments until due in February 2028
$970 $980 
2014 Term Loan Facility, variable interest rate of 5.98%, installments until due in January 2027
1,159 1,171 
2023 Term Loan Facility, variable interest rate of 6.51%, installments until due in June 2029
1,089 1,089 
10.75% senior secured IP notes, interest only payments until due in February 2026
524 781 
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026
105 156 
7.25% senior secured notes, interest only payments until due in February 2028
750 750 
8.50% senior secured notes, interest only payments until due in May 2029
1,000 1,000 
5.50% senior secured notes, installments until due in April 2026 (1)
1,167 1,750 
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)
3,000 3,000 
2021 AAdvantage Term Loan Facility, variable interest rate of 6.52%, installments until due in April 2028 (1)
2,275 2,450 
2025 AAdvantage Term Loan Facility, variable interest rate of 7.58%, installments beginning in July 2025 until due in May 2032 (1)
1,000 — 
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.15%, averaging 3.79%, maturing from 2025 to 2034
6,364 7,271 
Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.55% to 6.89%, averaging 6.03%, maturing from 2025 to 2037
4,522 4,094 
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036
880 880 
Total long-term debt24,805 25,372 
Less: Total unamortized debt discount, premium and issuance costs330 300 
Less: Current maturities3,514 4,196 
Long-term debt, net of current maturities$20,961 $20,876 
(1)Collectively referred to as the AAdvantage Financing.
As of June 30, 2025, the maximum availability under American’s revolving credit and other facilities is as follows (in millions):
2013 Revolving Facility (1)
$519 
2014 Revolving Facility (1)
1,557 
2023 Revolving Facility (1)
924 
Other facilities (2)
400 
Total$3,400 
(1)On April 21, 2025, the aggregate revolving commitments under the 2013, 2014 and 2023 Revolving Facilities were increased from $2.9 billion to $3.0 billion upon the upsize of commitments by certain existing lenders. No other terms were changed and there are no borrowings outstanding under the facilities.
(2)Includes a revolving credit facility that provides for borrowing capacity of up to $350 million, maturing in March 2027 with an option to extend for an additional year. Additionally, American currently has $50 million of available borrowing base under a cargo receivables facility that is set to expire in December 2025. There are no amounts drawn under these facilities.
Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.
AAdvantage Term Loan Facilities
On March 24, 2025, American and AAdvantage Loyalty IP Ltd. (the Borrowers) entered into a second amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Second Amendment). As a result of the Second Amendment, the term loans outstanding with a principal amount of approximately $2.3 billion (the 2021 AAdvantage Term Loan Facility) were replaced with new term loans in the same principal amount. The terms of the new term loans are substantially similar to the prior term loans; however, the new term loans bear interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 1.25% per annum or, at the Borrowers’ option, the Secured Overnight Financing Rate (SOFR) for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 2.25% per annum. Additionally, the scheduled quarterly principal amortization amount was reduced to 0.25% of the principal amount of term loans outstanding as of March 24, 2025 (approximately $6 million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in April 2028. Pursuant to the Second Amendment, the new term loans are not subject to a cost spread adjustment.
On May 28, 2025, the Borrowers entered into a third amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Third Amendment). As a result of the Third Amendment, the Borrowers incurred $1.0 billion of incremental term loans (the 2025 AAdvantage Term Loan Facility) due on May 28, 2032. The terms of the 2025 AAdvantage Term Loan Facility are substantially similar to the 2021 AAdvantage Term Loan Facility; however, the 2025 AAdvantage Term Loan Facility bears interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 2.25% per annum or, at the Borrowers’ option, the SOFR rate for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 3.25% per annum. Additionally, the scheduled quarterly principal amortization amount is equal to 0.25% of the original aggregate principal amount of the 2025 AAdvantage Term Loan Facility (approximately $3 million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in May 2032. Pursuant to the Third Amendment, the 2025 AAdvantage Term Loan Facility is not subject to a cost spread adjustment. The net proceeds from the 2025 AAdvantage Term Loan Facility were used to repay near term maturities, including the 6.50% convertible senior notes described in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A.
Equipment Loans and Other Notes Payable Issued in 2025
During the first six months of 2025, American entered into agreements under which it borrowed $712 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2036 through 2037 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 6.29% as of June 30, 2025.
Other Financing Activities
During the first six months of 2025, American prepaid $487 million of the outstanding principal amounts of equipment notes issued under EETCs, and these amounts were applied to repay the related trust certificates. Additionally, American prepaid $308 million toward portions of the outstanding principal amounts of the 10.75% senior secured IP notes and 10.75% senior secured LGA/DCA notes.