Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (EPS) (in millions, except share and per share amounts in thousands):

	Three Months Ended March 31,
	2015		2014
Basic EPS:
Net income	$	932	$	480
Weighted-average common shares outstanding (in thousands)		696,415		723,971
Basic EPS	$	1.34	$	0.66
Diluted EPS:
Net income	$	932	$	480
Change in fair value of conversion feature on 7.25% convertible senior notes (a)		—		5
Net income for purposes of computing diluted EPS	$	932	$	485
Share computation for diluted earnings per share (in thousands):
Weighted-average shares outstanding		696,415		723,971
Dilutive effect of stock awards		20,515		13,534
Assumed conversion of convertible senior notes		—		3,830
Weighted average common shares outstanding		716,930		741,335
Diluted earnings per share	$	1.30	$	0.65
The following were excluded from the calculation of diluted EPS (in thousands):
Stock options, SARs and RSUs because inclusion would be antidilutive		1		33

^(a)  In March 2014, the Company notified the holders of US Airways Group’s 7.25% convertible senior notes that it had elected to settle all future conversions solely in cash instead of shares of AAG Common Stock in accordance with the related indenture. Thus, the diluted shares included the weighted average impact of the 7.25% convertible senior notes only for the period from January 1, 2014 to March 12, 2014. In addition, under GAAP, the Company was required to adjust the numerator for purposes of calculating diluted earnings per share by the change in fair value of the conversion feature from March 12, 2014 to March 31, 2014, which increased GAAP net income for purposes of computing diluted earnings per share by $5 million for the three months ended March 31, 2014.