Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 16, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-8400 | |
Entity Registrant Name | American Airlines Group Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-1825172 | |
Entity Address, Address Line One | 1 Skyview Drive, | |
Entity Address, City or Town | Fort Worth, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76155 | |
City Area Code | (682) | |
Local Phone Number | 278-9000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | AAL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 641,383,123 | |
Entity Central Index Key | 0000006201 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
American Airlines, Inc. | ||
Document Information [Line Items] | ||
Entity File Number | 1-2691 | |
Entity Registrant Name | American Airlines, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1502798 | |
Entity Address, Address Line One | 1 Skyview Drive, | |
Entity Address, City or Town | Fort Worth, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76155 | |
City Area Code | (682) | |
Local Phone Number | 278-9000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0000004515 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating revenues: | ||
Operating revenues | $ 4,008 | $ 8,515 |
Operating expenses: | ||
Aircraft fuel and related taxes | 1,034 | 1,784 |
Salaries, wages and benefits | 2,730 | 3,219 |
Regional expenses | 625 | 1,140 |
Maintenance, materials and repairs | 376 | 629 |
Other rent and landing fees | 570 | 611 |
Aircraft rent | 351 | 334 |
Selling expenses | 151 | 385 |
Depreciation and amortization | 478 | 560 |
Special items, net | (1,708) | 1,132 |
Other | 716 | 1,270 |
Total operating expenses | 5,323 | 11,064 |
Operating loss | (1,315) | (2,549) |
Nonoperating income (expense): | ||
Interest income | 4 | 21 |
Interest expense, net | (371) | (257) |
Other income (expense), net | 109 | (105) |
Total nonoperating expense, net | (258) | (341) |
Loss before income taxes | (1,573) | (2,890) |
Income tax benefit | (323) | (649) |
Net loss | $ (1,250) | $ (2,241) |
Loss per common share: | ||
Basic (in dollars per share) | $ (1.97) | $ (5.26) |
Diluted (in dollars per share) | $ (1.97) | $ (5.26) |
Weighted average shares outstanding: | ||
Basic (in shares) | 634,609 | 425,713 |
Diluted (in shares) | 634,609 | 425,713 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0.10 |
Passenger | ||
Operating revenues: | ||
Operating revenues | $ 3,179 | $ 7,681 |
Cargo | ||
Operating revenues: | ||
Operating revenues | 315 | 147 |
Other | ||
Operating revenues: | ||
Operating revenues | 514 | 687 |
American Airlines, Inc. | ||
Operating revenues: | ||
Operating revenues | 4,008 | 8,514 |
Operating expenses: | ||
Aircraft fuel and related taxes | 1,034 | 1,784 |
Salaries, wages and benefits | 2,729 | 3,217 |
Regional expenses | 624 | 1,107 |
Maintenance, materials and repairs | 376 | 629 |
Other rent and landing fees | 570 | 611 |
Aircraft rent | 351 | 334 |
Selling expenses | 151 | 385 |
Depreciation and amortization | 478 | 560 |
Special items, net | (1,708) | 1,132 |
Other | 717 | 1,291 |
Total operating expenses | 5,322 | 11,050 |
Operating loss | (1,314) | (2,536) |
Nonoperating income (expense): | ||
Interest income | 9 | 104 |
Interest expense, net | (333) | (260) |
Other income (expense), net | 109 | (105) |
Total nonoperating expense, net | (215) | (261) |
Loss before income taxes | (1,529) | (2,797) |
Income tax benefit | (314) | (628) |
Net loss | (1,215) | (2,169) |
American Airlines, Inc. | Passenger | ||
Operating revenues: | ||
Operating revenues | 3,179 | 7,681 |
American Airlines, Inc. | Cargo | ||
Operating revenues: | ||
Operating revenues | 315 | 147 |
American Airlines, Inc. | Other | ||
Operating revenues: | ||
Operating revenues | $ 514 | $ 686 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net loss | $ (1,250) | $ (2,241) |
Other comprehensive income (loss), net of tax: | ||
Pension, retiree medical and other postretirement benefits | 67 | (126) |
Investments | 0 | (23) |
Total other comprehensive income (loss), net of tax | 67 | (149) |
Total comprehensive loss | (1,183) | (2,390) |
American Airlines, Inc. | ||
Net loss | (1,215) | (2,169) |
Other comprehensive income (loss), net of tax: | ||
Pension, retiree medical and other postretirement benefits | 66 | (126) |
Investments | 0 | (23) |
Total other comprehensive income (loss), net of tax | 66 | (149) |
Total comprehensive loss | $ (1,149) | $ (2,318) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 277 | $ 245 |
Short-term investments | 13,762 | 6,619 |
Restricted cash and short-term investments | 806 | 609 |
Accounts receivable, net | 971 | 1,342 |
Aircraft fuel, spare parts and supplies, net | 1,658 | 1,614 |
Prepaid expenses and other | 615 | 666 |
Total current assets | 18,089 | 11,095 |
Operating property and equipment | ||
Flight equipment | 37,480 | 37,816 |
Ground property and equipment | 9,108 | 9,194 |
Equipment purchase deposits | 1,136 | 1,446 |
Total property and equipment, at cost | 47,724 | 48,456 |
Less accumulated depreciation and amortization | (16,827) | (16,757) |
Total property and equipment, net | 30,897 | 31,699 |
Operating lease right-of-use assets | 8,000 | 8,039 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $755 and $745, respectively | 2,019 | 2,029 |
Deferred tax asset | 3,632 | 3,239 |
Other assets | 1,921 | 1,816 |
Total other assets | 11,663 | 11,175 |
Total assets | 68,649 | 62,008 |
Current liabilities | ||
Current maturities of long-term debt and finance leases | 2,444 | 2,797 |
Accounts payable | 1,624 | 1,196 |
Accrued salaries and wages | 1,576 | 1,716 |
Operating lease liabilities | 1,595 | 1,651 |
Other accrued liabilities | 2,173 | 2,419 |
Total current liabilities | 17,333 | 16,569 |
Noncurrent liabilities | ||
Long-term debt and finance leases, net of current maturities | 37,247 | 29,796 |
Pension and postretirement benefits | 6,765 | 7,069 |
Loyalty program liability | 7,055 | 7,162 |
Operating lease liabilities | 6,738 | 6,777 |
Other liabilities | 1,456 | 1,502 |
Total noncurrent liabilities | 59,261 | 52,306 |
Commitments and contingencies | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.01 par value; 1,750,000,000 shares authorized, 641,374,475 shares issued and outstanding at March 31, 2021; 621,479,522 shares issued and outstanding at December 31, 2020 | 6 | 6 |
Additional paid-in capital | 6,980 | 6,894 |
Accumulated other comprehensive loss | (7,036) | (7,103) |
Retained deficit | (7,895) | (6,664) |
Total stockholders’ deficit | (7,945) | (6,867) |
Total liabilities and stockholders’ equity (deficit) | 68,649 | 62,008 |
Air traffic liability | ||
Current liabilities | ||
Deferred revenue, current | 5,598 | 4,757 |
Loyalty program liability | ||
Current liabilities | ||
Deferred revenue, current | 2,323 | 2,033 |
American Airlines, Inc. | ||
Current assets | ||
Cash | 270 | 231 |
Short-term investments | 13,748 | 6,617 |
Restricted cash and short-term investments | 806 | 609 |
Accounts receivable, net | 965 | 1,334 |
Receivables from related parties, net | 6,647 | 7,877 |
Aircraft fuel, spare parts and supplies, net | 1,564 | 1,520 |
Prepaid expenses and other | 584 | 633 |
Total current assets | 24,584 | 18,821 |
Operating property and equipment | ||
Flight equipment | 37,147 | 37,485 |
Ground property and equipment | 8,748 | 8,836 |
Equipment purchase deposits | 1,136 | 1,446 |
Total property and equipment, at cost | 47,031 | 47,767 |
Less accumulated depreciation and amortization | (16,449) | (16,393) |
Total property and equipment, net | 30,582 | 31,374 |
Operating lease right-of-use assets | 7,958 | 7,994 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $755 and $745, respectively | 2,019 | 2,029 |
Deferred tax asset | 3,530 | 3,235 |
Other assets | 1,773 | 1,671 |
Total other assets | 11,413 | 11,026 |
Total assets | 74,537 | 69,215 |
Current liabilities | ||
Current maturities of long-term debt and finance leases | 2,447 | 2,800 |
Accounts payable | 1,536 | 1,116 |
Accrued salaries and wages | 1,515 | 1,661 |
Operating lease liabilities | 1,586 | 1,641 |
Other accrued liabilities | 2,065 | 2,300 |
Total current liabilities | 17,070 | 16,308 |
Noncurrent liabilities | ||
Long-term debt and finance leases, net of current maturities | 32,346 | 26,182 |
Pension and postretirement benefits | 6,723 | 7,027 |
Loyalty program liability | 7,055 | 7,162 |
Operating lease liabilities | 6,701 | 6,739 |
Other liabilities | 1,405 | 1,449 |
Total noncurrent liabilities | 54,230 | 48,559 |
Commitments and contingencies | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.01 par value; 1,750,000,000 shares authorized, 641,374,475 shares issued and outstanding at March 31, 2021; 621,479,522 shares issued and outstanding at December 31, 2020 | 0 | 0 |
Additional paid-in capital | 17,088 | 17,050 |
Accumulated other comprehensive loss | (7,128) | (7,194) |
Retained deficit | (6,723) | (5,508) |
Total stockholders’ deficit | 3,237 | 4,348 |
Total liabilities and stockholders’ equity (deficit) | 74,537 | 69,215 |
American Airlines, Inc. | Air traffic liability | ||
Current liabilities | ||
Deferred revenue, current | 5,598 | 4,757 |
American Airlines, Inc. | Loyalty program liability | ||
Current liabilities | ||
Deferred revenue, current | $ 2,323 | $ 2,033 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accumulated amortization of intangibles | $ 755 | $ 745 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,750,000,000 | 1,750,000,000 |
Common stock, shares issued (in shares) | 641,374,475 | 621,479,522 |
Common stock, shares outstanding (in shares) | 641,374,475 | 621,479,522 |
American Airlines, Inc. | ||
Accumulated amortization of intangibles | $ 755 | $ 745 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net cash provided by (used in) operating activities | $ 174 | $ (168) | |
Cash flows from investing activities: | |||
Capital expenditures, net of aircraft purchase deposit returns | 19 | (845) | |
Proceeds from sale of property and equipment | 108 | 35 | |
Proceeds from sale-leaseback transactions | 99 | 280 | |
Purchases of short-term investments | (8,557) | (820) | |
Sales of short-term investments | 1,415 | 1,237 | |
Increase in restricted short-term investments | (194) | 0 | |
Other investing activities | (42) | (49) | |
Net cash used in investing activities | (7,152) | (162) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 10,861 | 1,698 | |
Payments on long-term debt and finance leases | (4,054) | (926) | |
Proceeds from issuance of equity | 316 | 0 | |
Deferred financing costs | (162) | (31) | |
Treasury stock repurchases and shares withheld for taxes pursuant to employee stock plans | (13) | (171) | |
Dividend payments | 0 | (43) | |
Other financing activities | 65 | (1) | |
Net cash provided by financing activities | 7,013 | 526 | |
Net increase in cash and restricted cash | 35 | 196 | |
Cash and restricted cash at beginning of period | 399 | 290 | |
Cash and restricted cash at end of period | [1] | 434 | 486 |
Non-cash transactions: | |||
Right-of-use (ROU) assets acquired through operating leases | 359 | 328 | |
Property and equipment acquired through finance leases | 22 | 0 | |
Settlement of bankruptcy obligations | 0 | 56 | |
Deferred financing costs paid through issuance of debt | 0 | 17 | |
Supplemental information: | |||
Interest paid, net | 479 | 239 | |
Income taxes paid | 0 | 2 | |
American Airlines, Inc. | |||
Net cash provided by (used in) operating activities | 1,428 | (401) | |
Cash flows from investing activities: | |||
Capital expenditures, net of aircraft purchase deposit returns | 24 | (829) | |
Proceeds from sale of property and equipment | 108 | 34 | |
Proceeds from sale-leaseback transactions | 99 | 280 | |
Purchases of short-term investments | (8,545) | (820) | |
Sales of short-term investments | 1,415 | 1,237 | |
Increase in restricted short-term investments | (194) | 0 | |
Other investing activities | (42) | (49) | |
Net cash used in investing activities | (7,135) | (147) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 9,965 | 1,198 | |
Payments on long-term debt and finance leases | (4,054) | (426) | |
Deferred financing costs | (162) | (25) | |
Net cash provided by financing activities | 5,749 | 747 | |
Net increase in cash and restricted cash | 42 | 199 | |
Cash and restricted cash at beginning of period | 385 | 277 | |
Cash and restricted cash at end of period | [2] | 427 | 476 |
Non-cash transactions: | |||
Right-of-use (ROU) assets acquired through operating leases | 358 | 320 | |
Property and equipment acquired through finance leases | 22 | 0 | |
Settlement of bankruptcy obligations | 0 | 56 | |
Deferred financing costs paid through issuance of debt | 0 | 17 | |
Supplemental information: | |||
Interest paid, net | 426 | 228 | |
Income taxes paid | $ 0 | $ 2 | |
[1] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash $ 277 $ 474 Restricted cash included in restricted cash and short-term investments 157 12 Total cash and restricted cash $ 434 $ 486 | ||
[2] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash $ 270 $ 464 Restricted cash included in restricted cash and short-term investments 157 12 Total cash and restricted cash $ 427 $ 476 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | ||
Cash | $ 277 | $ 245 | $ 474 | ||
Restricted cash included in restricted cash and short-term investments | 157 | 12 | |||
Total cash and restricted cash | 434 | [1] | 399 | 486 | [1] |
American Airlines, Inc. | |||||
Cash | 270 | 231 | 464 | ||
Restricted cash included in restricted cash and short-term investments | 157 | 12 | |||
Total cash and restricted cash | $ 427 | [2] | $ 385 | $ 476 | [2] |
[1] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash $ 277 $ 474 Restricted cash included in restricted cash and short-term investments 157 12 Total cash and restricted cash $ 434 $ 486 | ||||
[2] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets: Cash $ 270 $ 464 Restricted cash included in restricted cash and short-term investments 157 12 Total cash and restricted cash $ 427 $ 476 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Retained Earnings (Deficit) | Retained Earnings (Deficit)Cumulative Effect, Period of Adoption, Adjustment | American Airlines, Inc. | American Airlines, Inc.Common Stock | American Airlines, Inc.Additional Paid-in Capital | American Airlines, Inc.Accumulated Other Comprehensive Loss | American Airlines, Inc.Retained Earnings (Deficit) |
Beginning Balance at Dec. 31, 2019 | $ (118) | $ 4 | $ 3,945 | $ (6,331) | $ 2,264 | $ 13,422 | $ 0 | $ 16,903 | $ (6,423) | $ 2,942 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (2,241) | (2,241) | (2,169) | (2,169) | |||||||||
Other comprehensive income, net | (149) | (149) | (149) | (149) | |||||||||
Purchase and retirement of AAG common stock | (145) | (145) | |||||||||||
Dividends declared on AAG common stock | (44) | (44) | |||||||||||
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes | (13) | (13) | |||||||||||
Settlement of single-dip unsecured claims held in Disputed Claims Reserve | 56 | 56 | |||||||||||
Share-based compensation expense | 18 | 18 | 18 | 18 | |||||||||
Intercompany equity transfer | 56 | 56 | |||||||||||
Ending Balance at Mar. 31, 2020 | (2,636) | 4 | 3,861 | (6,480) | (21) | 11,178 | 0 | 16,977 | (6,572) | 773 | |||
Beginning Balance at Dec. 31, 2020 | (6,867) | $ (301) | 6 | 6,894 | $ (320) | (7,103) | (6,664) | $ 19 | 4,348 | 0 | 17,050 | (7,194) | (5,508) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (1,250) | (1,250) | (1,215) | ||||||||||
Other comprehensive income, net | $ 67 | 67 | 66 | 66 | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate202006Member | ||||||||||||
Issuance of AAG common stock pursuant to an at-the-market offering, net of offering | $ 316 | 316 | |||||||||||
Issuance of PSP2 Warrants (see Note 1(b)) | 65 | 65 | |||||||||||
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes | (13) | (13) | |||||||||||
Share-based compensation expense | 38 | 38 | 38 | 38 | |||||||||
Ending Balance at Mar. 31, 2021 | $ (7,945) | $ 6 | $ 6,980 | $ (7,036) | $ (7,895) | $ 3,237 | $ 0 | $ 17,088 | $ (7,128) | $ (6,723) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of shares of AAG common stock pursuant to a public stock offering (in shares) | 18,194,573 | |
Purchase and retirement of common stock (in shares) | 6,378,025 | |
Dividends declared on common stock (in dollars per share) | $ 0 | $ 0.10 |
Issuance of shares of common stock pursuant to employee stock plans (in shares) | 1,700,380 | 1,062,052 |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits. Certain prior period amounts have been reclassified to conform to the current year presentation. See Note 10 for further information. (b) Impact of Coronavirus (COVID-19) COVID-19 has been declared a global health pandemic by the World Health Organization. COVID-19 has surfaced in nearly all regions of the world, which has driven the implementation of significant, government-imposed measures to prevent or reduce its spread, including travel restrictions, testing regimes, closing of borders, “stay at home” orders and business closures . As a result, we have experienced an unprecedented decline in the demand for air travel, which has resulted in a material deterioration in our revenues. While global vaccination efforts are underway and demand for air travel has begun to return, the continued impact of COVID-19, including any increases in infection rates and renewed governmental action to slow the spread of COVID-19 such as has occurred throughout Western Europe and Latin America in the first quarter of 2021, cannot be estimated. We have taken aggressive actions to mitigate the effects of the COVID-19 pandemic on our business, including deep capacity reductions, structural changes to our fleet, cost reductions, and steps to preserve cash and improve our overall liquidity position. We remain extremely focused on taking all self-help measures available to manage our business during this unprecedented time, consistent with the terms of the financial assistance we have received from the U.S. Government under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law). Capacity Reductions We have significantly reduced our capacity (as measured by available seat miles), with first quarter of 2021 flying down 39.2% year-over-year. Domestic capacity in the first quarter of 2021 was down 36.8% while international capacity was down 45.1% year-over-year. While demand for domestic and short-haul international markets has begun to return, uncertainty continues to exist. We will continue to match our forward capacity with observed booking trends for future travel and make further adjustments to our capacity as needed. Cost Reductions We have reduced our 2021 operating expenditures as a result of permanent non-volume cost reductions. These reductions include labor productivity enhancements, management salaries and benefits and other permanent cost reductions. In the first quarter of 2021, an additional 1,600 represented team members opted in to a voluntary early retirement program. Liquidity As of March 31, 2021, we had $17.3 billion in total available liquidity, consisting of $14.0 billion in unrestricted cash and short-term investments, $2.8 billion in an undrawn capacity under revolving credit facilities and a total of $454 million in undrawn short-term revolving and other facilities. During the first quarter of 2021, we completed the following financing transactions (see Note 5 for further information): • issued $3.5 billion in aggregate principal amount of 5.50% Senior Secured Notes due 2026 and $3.0 billion in aggregate principal amount of 5.75% Senior Secured Notes due 2029 and entered into a $3.5 billion senior secured term loan facility (the AAdvantage Term Loan Facility) of which the full amount of term loans was drawn at closing; • repaid in full $750 million under the 2013 Revolving Facility, $1.6 billion under the 2014 Revolving Facility and $450 million under the April 2016 Revolving Facility, all of which was borrowed in April 2020 in response to the COVID-19 pandemic; • repaid the $550 million of outstanding loans under the $7.5 billion secured term loan facility with the U.S. Department of Treasury (Treasury) (the Treasury Loan Agreement) and terminated the Treasury Loan Agreement; • issued 18.2 million shares of AAG common stock at an average price of $17.59 per share pursuant to an at-the-market offering for net proceeds of $316 million; and • raised $99 million principally from aircraft sale-leaseback transactions. In addition to the foregoing financings, we received an aggregate of approximately $3.1 billion in financial assistance through the payroll support program (PSP2) established under the PSP Extension Law, all of which was received by the end of March 2021. In connection with our receipt of this financial assistance, AAG issued a promissory note (the PSP2 Promissory Note) to Treasury for $896 million in aggregate principal amount and warrants to purchase up to an aggregate of approximately 5.7 million shares (the PSP2 Warrant Shares) of AAG common stock. See below for further discussion on PSP2. A significant portion of our debt financing agreements contain covenants requiring us to maintain an aggregate of at least $2.0 billion of unrestricted cash and cash equivalents and amounts available to be drawn under revolving credit facilities and/or contain loan to value, collateral coverage and/or debt service coverage ratio covenants. Given the above actions and our current assumptions about the future impact of the COVID-19 pandemic on travel demand, which could be materially different due to the inherent uncertainties of the current operating environment, we expect to meet our cash obligations as well as remain in compliance with the debt covenants in our existing financing agreements for the next 12 months based on our current level of unrestricted cash and short-term investments, our anticipated access to liquidity (including via proceeds from financings and funds from government assistance to be obtained pursuant to the American Rescue Plan Act of 2021, as amended (the ARP)), and projected cash flows from operations . PSP2 On January 15, 2021 (the PSP2 Closing Date), American, Envoy Air Inc. (Envoy), Piedmont Airlines, Inc. (Piedmont) and PSA Airlines, Inc. (PSA and together with American, Envoy and Piedmont, the Subsidiaries), entered into a Payroll Support Program Extension Agreement (the PSP2 Agreement) with Treasury, with respect to PSP2 provided pursuant to the PSP Extension Law. In connection with our entry into the PSP2 Agreement, on the PSP2 Closing Date, AAG also entered into a warrant agreement (the PSP2 Warrant Agreement) with Treasury and issued the PSP2 Promissory Note to Treasury, with the Subsidiaries as guarantors. PSP2 Agreement In connection with PSP2, we are required to comply with the relevant provisions of the PSP Extension Law, which are substantially similar as the restrictions contained in the Payroll Support Program Agreement entered into by the Subsidiaries with Treasury in connection with the payroll support program established under the CARES Act, but are in effect for a longer time period. These provisions include the requirement that funds provided pursuant to the PSP2 Agreement be used exclusively for the continuation of payment of eligible employee wages, salaries and benefits, the requirement against involuntary furloughs and reductions in employee pay rates and benefits through March 31, 2021, the provisions that prohibit the repurchase of AAG common stock, and the payment of common stock dividends through at least March 31, 2022, the provisions that restrict the payment of certain executive compensation until at least October 1, 2022, as well as a requirement to recall employees involuntarily terminated or furloughed after September 30, 2020. As was the case with PSP1, the PSP2 Agreement also imposes substantial reporting obligations on us. Pursuant to the PSP2 Agreement, Treasury provided us financial assistance in two installments (each prior installment and any future installment disbursement, an Installment) totaling approximately $3.1 billion in the aggregate. As partial compensation to the U.S. Government for the provision of financial assistance under PSP2, AAG issued the PSP2 Promissory Note in the aggregate principal amount of $896 million and issued warrants (each a PSP2 Warrant and, collectively, the PSP2 Warrants) to Treasury to purchase up to an aggregate of approximately 5.7 million shares of AAG common stock. For accounting purposes, the $3.1 billion of aggregate financial assistance we received pursuant to the PSP2 Agreement is allocated to the PSP2 Promissory Note, the PSP2 Warrants and the other PSP2 financial assistance (the PSP2 Financial Assistance). The aggregate principal amount of $896 million of the PSP2 Promissory Note was recorded as unsecured long-term debt, and the total fair value of the PSP2 Warrants of $65 million, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in the condensed consolidated balance sheet. The remaining amount of approximately $2.1 billion of PSP2 Financial Assistance was recognized as a credit to special items, net in the condensed consolidated statement of operations in the first quarter of 2021, the remaining period over which the continuation of payment of eligible employee wages, salaries and benefits was required. PSP2 Promissory Note As partial compensation to the U.S. Government for the provision of financial assistance under the PSP2 Agreement, AAG issued the PSP2 Promissory Note to Treasury, which provides for our unconditional promise to pay to Treasury the principal sum of $896 million, subject to an increase equal to 30% of the amount of any additional Installment disbursed under the PSP2 Agreement, and the guarantee of our obligations under the PSP2 Promissory Note by the Subsidiaries. The PSP2 Promissory Note bears interest on the outstanding principal amount at a rate equal to 1.00% per annum until the fifth anniversary of the PSP2 Closing Date and 2.00% plus an interest rate based on the secured overnight financing rate per annum or other benchmark replacement rate consistent with customary market conventions (but not to be less than 0.00%) thereafter until the tenth anniversary of the PSP2 Closing Date (the PSP2 Maturity Date), and interest accrued thereon will be payable in arrears on the last business day of March and September of each year, beginning on March 31, 2021. The aggregate principal amount outstanding under the PSP2 Promissory Note, together with all accrued and unpaid interest thereon and all other amounts payable under the PSP2 Promissory Note, will be due and payable on the PSP2 Maturity Date. We may, at any time and from time to time, voluntarily prepay amounts outstanding under the PSP2 Promissory Note, in whole or in part, without penalty or premium. Within 30 days of the occurrence of certain change of control triggering events, we are required to prepay the aggregate outstanding principal amount of the PSP2 Promissory Note at such time, together with any accrued interest or other amounts owing under the PSP2 Promissory Note at such time. The PSP2 Promissory Note is our senior unsecured obligation and each guarantee of the PSP2 Promissory Note is the senior unsecured obligation of each of the Subsidiaries, respectively. The PSP2 Promissory Note contains events of default, including cross-default with respect to acceleration or failure to pay at maturity other material indebtedness. Upon the occurrence of an event of default and subject to certain grace periods, the outstanding obligations under the PSP2 Promissory Note may, and in certain circumstances will automatically, be accelerated and become due and payable immediately. PSP2 Warrant Agreement and PSP2 Warrants As partial compensation to the U.S. Government for the provision of financial assistance under the PSP2 Agreement, and pursuant to the PSP2 Warrant Agreement, AAG issued the PSP2 Warrants to Treasury to purchase PSP2 Warrant Shares. The exercise price of the PSP2 Warrant Shares is $15.66 per share, subject to certain anti-dilution provisions provided for in the PSP2 Warrants. Pursuant to the PSP2 Warrant Agreement, AAG issued to Treasury PSP2 Warrants to purchase up to an aggregate of approximately 5.7 million shares of Common Stock based on the terms described herein and on the date of any increase of the principal amount of the PSP2 Promissory Note in connection with the disbursement of any additional Installment under the PSP2 Agreement, AAG will issue to Treasury an additional PSP2 Warrant for a number of shares of AAG common stock equal to 10% of such increase of the principal amount of the PSP2 Promissory Note, divided by $15.66, the exercise price of such shares. The PSP2 Warrants do not have any voting rights and are freely transferrable, with registration rights. Each PSP2 Warrant expires on the fifth anniversary of the date of issuance of such PSP2 Warrant. The PSP2 Warrants will be exercisable either through net share settlement or cash, at our option. The PSP2 Warrants were and will be issued solely as compensation to the U.S. Government related to entry into the PSP2 Agreement. No separate proceeds (apart from the financial assistance described above) were received upon issuance of the PSP2 Warrants or will be received upon exercise thereof. (c) Recent Accounting Pronouncements ASU 2020-06: Accounting for Convertible Instruments and Contracts In An Entity's Own Equity (the New Convertible Debt Standard) The New Convertible Debt Standard simplifies the accounting for certain convertible instruments by removing the separation models for convertible debt with a cash conversion feature and for convertible instruments with a beneficial conversion feature. As a result, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, the New Convertible Debt Standard amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The treasury stock method is no longer available. Entities may adopt the New Convertible Debt Standard using either a full or modified retrospective approach, and it is effective for interim and annual reporting periods beginning after December 15, 2021. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2020. The New Convertible Debt Standard is applicable to our 6.50% convertible senior notes due 2025 (the Convertible Notes). We early adopted the New Convertible Debt Standard as of January 1, 2021 using the modified retrospective method to recognize our Convertible Notes as a single liability instrument. As of January 1, 2021, we recorded a $415 million ($320 million net of tax) reduction to additional paid-in capital to remove the equity component of the Convertible Notes from our balance sheet and a $19 million cumulative effect adjustment credit, net of tax, to retained deficit related to non-cash debt discount amortization recognized in periods prior to adoption resulting in a corresponding reduction of $389 million to the debt discount associated with the Convertible Notes. ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740) This standard simplifies the accounting and disclosure requirements for income taxes by clarifying the existing guidance to improve consistency in the application of Accounting Standards Codification 740. This standard also removed the requirement to calculate income tax expense for the stand-alone financial statements of wholly-owned subsidiaries that are not subject to income tax. We adopted this standard effective January 1, 2021, and it did not have a material impact on our condensed consolidated financial statements. |
American Airlines, Inc. | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2020. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits. Certain prior period amounts have been reclassified to conform to the current year presentation. See Note 9 for further information. (b) Impact of Coronavirus (COVID-19) COVID-19 has been declared a global health pandemic by the World Health Organization. COVID-19 has surfaced in nearly all regions of the world, which has driven the implementation of significant, government-imposed measures to prevent or reduce its spread, including travel restrictions, testing regimes, closing of borders, “stay at home” orders and business closures . As a result, American has experienced an unprecedented decline in the demand for air travel, which has resulted in a material deterioration in its revenues. While global vaccination efforts are underway and demand for air travel has begun to return, the continued impact of COVID-19, including any increases in infection rates and renewed governmental action to slow the spread of COVID-19 such as has occurred throughout Western Europe and Latin America in the first quarter of 2021, cannot be estimated. American has taken aggressive actions to mitigate the effects of the COVID-19 pandemic on its business, including deep capacity reductions, structural changes to its fleet, cost reductions, and steps to preserve cash and improve its overall liquidity position. American remains extremely focused on taking all self-help measures available to manage its business during this unprecedented time, consistent with the terms of the financial assistance it has received from the U.S. Government under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law). Capacity Reductions American has significantly reduced its capacity (as measured by available seat miles), with first quarter of 2021 flying down 39.2% year-over-year. Domestic capacity in the first quarter of 2021 was down 36.8% while international capacity was down 45.1% year-over-year. While demand for domestic and short-haul international markets has begun to return, uncertainty continues to exist. American will continue to match its forward capacity with observed booking trends for future travel and make further adjustments to American's capacity as needed. Cost Reductions American has reduced its 2021 operating expenditures as a result of permanent non-volume cost reductions. These reductions include labor productivity enhancements, management salaries and benefits and other permanent cost reductions. In the first quarter of 2021, an additional 1,600 represented team members opted in to a voluntary early retirement program. Liquidity As of March 31, 2021, American had $17.3 billion in total available liquidity, consisting of $14.0 billion in unrestricted cash and short-term investments, $2.8 billion in an undrawn capacity under revolving credit facilities and a total of $454 million in undrawn short-term revolving and other facilities. During the first quarter of 2021, American completed the following financing transactions (see Note 4 for further information): • issued $3.5 billion in aggregate principal amount of 5.50% Senior Secured Notes due 2026 and $3.0 billion in aggregate principal amount of 5.75% Senior Secured Notes due 2029 and entered into a $3.5 billion senior secured term loan facility (the AAdvantage Term Loan Facility) of which the full amount of term loans was drawn at closing; • repaid in full $750 million under the 2013 Revolving Facility, $1.6 billion under the 2014 Revolving Facility and $450 million under the April 2016 Revolving Facility, all of which was borrowed in April 2020 in response to the COVID-19 pandemic; • repaid the $550 million of outstanding loans under the $7.5 billion secured term loan facility with the U.S. Department of Treasury (Treasury) (the Treasury Loan Agreement) and terminated the Treasury Loan Agreement; and • raised $99 million principally from aircraft sale-leaseback transactions. In addition to the foregoing financings, AAG and the Subsidiaries (as defined below) received an aggregate of approximately $3.1 billion in financial assistance through the payroll support program (PSP2) established under the PSP Extension Law, all of which was received by the end of March 2021. In connection with the receipt by AAG and the Subsidiaries of this financial assistance, AAG issued a promissory note (the PSP2 Promissory Note) to Treasury for $896 million in aggregate principal amount and warrants to purchase up to an aggregate of approximately 5.7 million shares (the PSP2 Warrant Shares) of AAG common stock. See below for further discussion on PSP2. A significant portion of American’s debt financing agreements contain covenants requiring it to maintain an aggregate of at least $2.0 billion of unrestricted cash and cash equivalents and amounts available to be drawn under revolving credit facilities and/or contain loan to value, collateral coverage and/or debt service coverage ratio covenants. Given the above actions and American’s current assumptions about the future impact of the COVID-19 pandemic on travel demand, which could be materially different due to the inherent uncertainties of the current operating environment, American expects to meet its cash obligations as well as remain in compliance with the debt covenants in its existing financing agreements for the next 12 months based on its current level of unrestricted cash and short-term investments, its anticipated access to liquidity (including via proceeds from financings and funds from government assistance to be obtained pursuant to the American Rescue Plan Act of 2021, as amended (the ARP)), and projected cash flows from operations . PSP2 On January 15, 2021 (the PSP2 Closing Date), American, Envoy Air Inc. (Envoy), Piedmont Airlines, Inc. (Piedmont) and PSA Airlines, Inc. (PSA and together with American, Envoy and Piedmont, the Subsidiaries), entered into a Payroll Support Program Extension Agreement (the PSP2 Agreement) with Treasury, with respect to PSP2 provided pursuant to the PSP Extension Law. In connection with the Subsidiaries’ entry into the PSP2 Agreement, on the PSP2 Closing Date, AAG also entered into a warrant agreement (the PSP2 Warrant Agreement) with Treasury and issued the PSP2 Promissory Note to Treasury, with the Subsidiaries as guarantors. PSP2 Agreement In connection with PSP2, AAG and the Subsidiaries are required to comply with the relevant provisions of the PSP Extension Law, which are substantially similar as the restrictions contained in the Payroll Support Program Agreement entered into by the Subsidiaries with Treasury in connection with the payroll support program established under the CARES Act, but are in effect for a longer time period. These provisions include the requirement that funds provided pursuant to the PSP2 Agreement be used exclusively for the continuation of payment of eligible employee wages, salaries and benefits, the requirement against involuntary furloughs and reductions in employee pay rates and benefits through March 31, 2021, the provisions that prohibit the repurchase of AAG common stock, and the payment of common stock dividends through at least March 31, 2022, the provisions that restrict the payment of certain executive compensation until at least October 1, 2022, as well as a requirement to recall employees involuntarily terminated or furloughed after September 30, 2020. As was the case with PSP1, the PSP2 Agreement also imposes substantial reporting obligations on AAG and its Subsidiaries. Pursuant to the PSP2 Agreement, Treasury provided AAG and its Subsidiaries financial assistance in two installments (each prior installment and any future installment disbursement, an Installment) totaling approximately $3.1 billion in the aggregate. As partial compensation to the U.S. Government for the provision of financial assistance under PSP2, AAG issued the PSP2 Promissory Note in the aggregate principal amount of $896 million and issued warrants (each a PSP2 Warrant and, collectively, the PSP2 Warrants) to Treasury to purchase up to an aggregate of approximately 5.7 million shares of AAG common stock. For accounting purposes, the $3.1 billion of aggregate financial assistance AAG and the Subsidiaries received pursuant to the PSP2 Agreement is allocated to the PSP2 Promissory Note, the PSP2 Warrants and the other PSP2 financial assistance (the PSP2 Financial Assistance). The aggregate principal amount of $896 million of the PSP2 Promissory Note was recorded as unsecured long-term debt, and the total fair value of the PSP2 Warrants of $65 million, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in AAG's condensed consolidated balance sheet. The remaining amount of approximately $2.1 billion of PSP2 Financial Assistance was recognized as a credit to special items, net in the condensed consolidated statement of operations in the first quarter of 2021, the remaining period over which the continuation of payment of eligible employee wages, salaries and benefits was required. PSP2 Promissory Note As partial compensation to the U.S. Government for the provision of financial assistance under the PSP2 Agreement, AAG issued the PSP2 Promissory Note to Treasury, which provides for AAG’s unconditional promise to pay to Treasury the principal sum of $896 million, subject to an increase equal to 30% of the amount of any additional Installment disbursed under the PSP2 Agreement, and the guarantee of AAG’s obligations under the PSP2 Promissory Note by the Subsidiaries. The PSP2 Promissory Note bears interest on the outstanding principal amount at a rate equal to 1.00% per annum until the fifth anniversary of the PSP2 Closing Date and 2.00% plus an interest rate based on the secured overnight financing rate per annum or other benchmark replacement rate consistent with customary market conventions (but not to be less than 0.00%) thereafter until the tenth anniversary of the PSP2 Closing Date (the PSP2 Maturity Date), and interest accrued thereon will be payable in arrears on the last business day of March and September of each year, beginning on March 31, 2021. The aggregate principal amount outstanding under the PSP2 Promissory Note, together with all accrued and unpaid interest thereon and all other amounts payable under the PSP2 Promissory Note, will be due and payable on the PSP2 Maturity Date. AAG may, at any time and from time to time, voluntarily prepay amounts outstanding under the PSP2 Promissory Note, in whole or in part, without penalty or premium. Within 30 days of the occurrence of certain change of control triggering events, AAG is required to prepay the aggregate outstanding principal amount of the PSP2 Promissory Note at such time, together with any accrued interest or other amounts owing under the PSP2 Promissory Note at such time. The PSP2 Promissory Note is AAG’s senior unsecured obligation and each guarantee of the PSP2 Promissory Note is the senior unsecured obligation of each of the Subsidiaries, respectively. The PSP2 Promissory Note contains events of default, including cross-default with respect to acceleration or failure to pay at maturity other material indebtedness. Upon the occurrence of an event of default and subject to certain grace periods, the outstanding obligations under the PSP2 Promissory Note may, and in certain circumstances will automatically, be accelerated and become due and payable immediately. PSP2 Warrant Agreement and PSP2 Warrants As partial compensation to the U.S. Government for the provision of financial assistance under the PSP2 Agreement, and pursuant to the PSP2 Warrant Agreement, AAG issued the PSP2 Warrants to Treasury to purchase PSP2 Warrant Shares. The exercise price of the PSP2 Warrant Shares is $15.66 per share, subject to certain anti-dilution provisions provided for in the PSP2 Warrants. Pursuant to the PSP2 Warrant Agreement, AAG issued to Treasury PSP2 Warrants to purchase up to an aggregate of approximately 5.7 million shares of Common Stock based on the terms described herein and on the date of any increase of the principal amount of the PSP2 Promissory Note in connection with the disbursement of any additional Installment under the PSP2 Agreement, AAG will issue to Treasury an additional PSP2 Warrant for a number of shares of AAG common stock equal to 10% of such increase of the principal amount of the PSP2 Promissory Note, divided by $15.66, the exercise price of such shares. The PSP2 Warrants do not have any voting rights and are freely transferrable, with registration rights. Each PSP2 Warrant expires on the fifth anniversary of the date of issuance of such PSP2 Warrant. The PSP2 Warrants will be exercisable either through net share settlement or cash, at AAG’s option. The PSP2 Warrants were and will be issued solely as compensation to the U.S. Government related to entry into the PSP2 Agreement. No separate proceeds (apart from the financial assistance described above) were received upon issuance of the PSP2 Warrants or will be received upon exercise thereof. (c) Recent Accounting Pronouncement Accounting Standards Update 2019-12: Simplifying the Accounting for Income Taxes (Topic 740) This standard simplifies the accounting and disclosure requirements for income taxes by clarifying the existing guidance to improve consistency in the application of Accounting Standards Codification 740. This standard also removed the requirement to calculate income tax expense for the stand-alone financial statements of wholly-owned subsidiaries that are not subject to income tax. American adopted this standard effective January 1, 2021, and it did not have a material impact on its condensed consolidated financial statements. |
Special Items, Net
Special Items, Net | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Special Items, Net | Special Items, Net Special items, net in the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended March 31, 2021 2020 PSP2 Financial Assistance (1) $ (1,882) $ — Severance expenses (2) 168 205 Mark-to-market adjustments on bankruptcy obligations, net (3) 6 (50) Fleet impairment (4) — 744 Labor contract expenses (5) — 218 Other operating special items, net — 15 Mainline operating special items, net (1,708) 1,132 PSP2 Financial Assistance (1) (244) — Fleet impairment (4) 27 93 Severance expenses (2) 2 — Regional operating special items, net (215) 93 Operating special items, net (1,923) 1,225 Mark-to-market adjustments on equity and other investments, net (6) (49) 180 Debt refinancing, extinguishment and other, net 26 37 Nonoperating special items, net (23) 217 (1) PSP2 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP2 Agreement. See Note 1(b) for further information. (2) Severance expenses include salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments related to our voluntary early retirement programs were approximately $170 million during the first quarter of 2021. (3) Bankruptcy obligations that will be settled in shares of our common stock are marked-to-market based on our stock price. (4) Fleet impairment resulted from our decision to retire certain aircraft earlier than planned driven primarily by the severe decline in air travel due to the COVID-19 pandemic. In the first quarter of 2021, we retired our remaining fleet of Embraer 140 aircraft resulting in a $27 million non-cash write-down of these aircraft. In the first quarter of 2020, we retired our Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $764 million non-cash write-down of these aircraft and associated spare parts and $73 million in cash charges primarily for impairment of ROU assets and lease return costs. (5) Labor contract expenses primarily related to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with our equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments. |
American Airlines, Inc. | |
Restructuring Cost and Reserve [Line Items] | |
Special Items, Net | Special Items, Net Special items, net in the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended March 31, 2021 2020 PSP2 Financial Assistance (1) $ (1,882) $ — Severance expenses (2) 168 205 Mark-to-market adjustments on bankruptcy obligations, net (3) 6 (50) Fleet impairment (4) — 744 Labor contract expenses (5) — 218 Other operating special items, net — 15 Mainline operating special items, net (1,708) 1,132 PSP2 Financial Assistance (1) (244) — Fleet impairment (4) 27 93 Regional operating special items, net (217) 93 Operating special items, net (1,925) 1,225 Mark-to-market adjustments on equity and other investments, net (6) (49) 180 Debt refinancing, extinguishment and other, net 26 37 Nonoperating special items, net (23) 217 (1) PSP2 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP2 Agreement. See Note 1(b) for further information. (2) Severance expenses include salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments related to American's voluntary early retirement programs were approximately $170 million during the first quarter of 2021. (3) Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG's stock price. (4) Fleet impairment resulted from American's decision to retire certain aircraft earlier than planned driven primarily by the severe decline in air travel due to the COVID-19 pandemic. In the first quarter of 2021, American retired its remaining fleet of Embraer 140 aircraft resulting in a $27 million non-cash write-down of these aircraft. In the first quarter of 2020, American retired its Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $764 million non-cash write-down of these aircraft and associated spare parts and $73 million in cash charges primarily for impairment of ROU assets and lease return costs. (5) Labor contract expenses primarily related to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American's equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments. |
Loss Per Common Share
Loss Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | Loss Per Common Share The following table sets forth the computation of basic and diluted loss per common share (EPS) (in millions, except share and per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted EPS: Net loss $ (1,250) $ (2,241) Weighted average common shares outstanding (in thousands) 634,609 425,713 Basic and diluted EPS $ (1.97) $ (5.26) Securities that could potentially dilute EPS in the future, and which were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive, are as follows (in thousands): Three Months Ended March 31, 2021 2020 6.50% convertible senior notes 61,728 — PSP1 Warrants 4,957 — Restricted stock unit awards 3,255 4,934 Treasury Loan Warrants 1,545 — PSP2 Warrants 520 — |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Entity Information [Line Items] | |
Revenue Recognition | Revenue Recognition Revenue The following are the significant categories comprising our reported operating revenues (in millions): Three Months Ended March 31, 2021 2020 Passenger revenue: Passenger travel $ 2,893 $ 7,079 Loyalty revenue - travel (1) 286 602 Total passenger revenue 3,179 7,681 Cargo 315 147 Other: Loyalty revenue - marketing services (2) 457 571 Other revenue 57 116 Total other revenue 514 687 Total operating revenues $ 4,008 $ 8,515 (1) Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. (2) During the three months ended March 31, 2021 and 2020, cash payments from co-branded credit card and other partners was $1.0 billion and $1.3 billion, respectively. The following is our total passenger revenue by geographic region (in millions): Three Months Ended March 31, 2021 2020 Domestic $ 2,655 $ 5,780 Latin America 482 1,180 Atlantic 22 523 Pacific 20 198 Total passenger revenue $ 3,179 $ 7,681 We attribute passenger revenue by geographic region based upon the origin and destination of each flight segment. Contract Balances Our significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future travel and other non-air travel awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets. March 31, 2021 December 31, 2020 (In millions) Loyalty program liability $ 9,378 $ 9,195 Air traffic liability 5,598 4,757 Total $ 14,976 $ 13,952 The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions): Balance at December 31, 2020 $ 9,195 Deferral of revenue 490 Recognition of revenue (1) (307) Balance at March 31, 2021 (2) $ 9,378 (1) Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period. (2) Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. In response to the COVID-19 pandemic, we suspended the expiration of mileage credits through June 30, 2021 and eliminated mileage reinstatement fees for canceled award tickets. As of March 31, 2021, our current loyalty program liability was $2.3 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to the COVID-19 pandemic, we will continue to monitor redemption patterns and may adjust our estimates in the future. |
American Airlines, Inc. | |
Entity Information [Line Items] | |
Revenue Recognition | Revenue Recognition Revenue The following are the significant categories comprising American's reported operating revenues (in millions): Three Months Ended March 31, 2021 2020 Passenger revenue: Passenger travel $ 2,893 $ 7,079 Loyalty revenue - travel (1) 286 602 Total passenger revenue 3,179 7,681 Cargo 315 147 Other: Loyalty revenue - marketing services (2) 457 571 Other revenue 57 115 Total other revenue 514 686 Total operating revenues $ 4,008 $ 8,514 (1) Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. (2) During the three months ended March 31, 2021 and 2020, cash payments from co-branded credit card and other partners was $1.0 billion and $1.3 billion, respectively. The following is American's total passenger revenue by geographic region (in millions): Three Months Ended March 31, 2021 2020 Domestic $ 2,655 $ 5,780 Latin America 482 1,180 Atlantic 22 523 Pacific 20 198 Total passenger revenue $ 3,179 $ 7,681 American attributes passenger revenue by geographic region based upon the origin and destination of each flight segment. Contract Balances American's significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future travel and other non-air travel awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets. March 31, 2021 December 31, 2020 (In millions) Loyalty program liability $ 9,378 $ 9,195 Air traffic liability 5,598 4,757 Total $ 14,976 $ 13,952 The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions): Balance at December 31, 2020 $ 9,195 Deferral of revenue 490 Recognition of revenue (1) (307) Balance at March 31, 2021 (2) $ 9,378 (1) Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period. (2) Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. In response to the COVID-19 pandemic, American suspended the expiration of mileage credits through June 30, 2021 and eliminated mileage reinstatement fees for canceled award tickets. As of March 31, 2021, American's current loyalty program liability was $2.3 billion and represents American's current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to the COVID-19 pandemic, American will continue to monitor redemption patterns and may adjust its estimates in the future. The air traffic liability principally represents tickets sold for future travel on American and partner airlines, as well as estimated future refunds and exchanges of tickets sold for past travel. The balance in American's air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the three months ended March 31, 2021, $838 million of revenue was recognized in passenger revenue that was included in American's air traffic liability at December 31, 2020. In response to the COVID-19 pandemic, American extended the contract duration for certain tickets to March 31, 2022, principally those tickets which were scheduled to expire from March 1, 2020 through March 31, 2021. Additionally, American has eliminated change fees for most domestic and international tickets. As of March 31, 2021, the air traffic liability included approximately $2.1 billion of travel credits related to these unused tickets. Accordingly, any revenue associated with these tickets will be recognized within the next 12 months. Given this change in contract duration and uncertainty surrounding the future demand for air travel, American's estimates of revenue that will be recognized from the air traffic liability for future flown or unused tickets as well as American's estimates of refunds may be subject to variability and differ from historical experience. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instrument [Line Items] | |
Debt | Debt Long-term debt included in the condensed consolidated balance sheets consisted of (in millions): March 31, 2021 December 31, 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.86%, installments through 2025 $ 1,788 $ 1,788 2013 Revolving Facility — 750 2014 Term Loan Facility, variable interest rate of 1.86%, installments through 2027 1,208 1,220 2014 Revolving Facility — 1,643 April 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 960 960 April 2016 Revolving Facility — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 1,200 1,200 11.75% senior secured notes, interest only payments until due in July 2025 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 200 200 Treasury Term Loan Facility — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.5%, installments beginning in July 2023 through April 2028 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 8.39%, averaging 3.95%, maturing from 2021 to 2032 10,652 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.28% to 5.83%, averaging 1.87%, maturing from 2021 to 2032 4,156 4,417 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 8.00%, maturing from 2021 to 2036 1,064 1,064 34,728 28,755 Unsecured PSP1 Promissory Note 1,765 1,765 PSP2 Promissory Note 896 — 6.50% convertible senior notes, interest only payments until due in July 2025 1,000 1,000 5.000% senior notes, interest only payments until due in June 2022 750 750 3.75% senior notes, interest only payments until due in March 2025 500 500 4,911 4,015 Total long-term debt 39,639 32,770 Less: Total unamortized debt discount, premium and issuance costs 515 749 Less: Current maturities 2,339 2,697 Long-term debt, net of current maturities $ 36,785 $ 29,324 As of March 31, 2021, the maximum availability under our revolving credit and other facilities is as follows (in millions): 2013 Revolving Facility $ 750 2014 Revolving Facility 1,643 April 2016 Revolving Facility 450 Short-term Revolving and Other Facilities 454 Total $ 3,297 American has an undrawn $400 million short-term revolving credit facility it entered into in December 2019, which was set to expire at the end of December 2020 but which has been extended through the beginning of July 2021. American has the option to extend further this short-term revolving credit facility to January 2022 and, if extended, the available amount thereunder for the period from July 2021 to January 2022 shall be increased to $500 million. American also currently has approximately $54 million of available borrowing base under a cargo receivables facility that was entered into in December 2020. The December 2016 Credit Facilities provide for a revolving credit facility that may be established thereunder in the future. Secured financings are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots and certain pre-delivery payments, as well as certain intellectual property and loyalty program assets. 6.50% Convertible Senior Notes At March 31, 2021, the if-converted value of the Convertible Notes exceeded the principal amount by $475 million. The last reported sale price per share of our common stock (as defined in the indenture governing our Convertible Notes, the Convertible Notes Indenture) exceeded 130% of the conversion price of the Convertible Notes for each of at least 20 trading days during the 30 consecutive trading days ending on March 31, 2021. Accordingly, pursuant to the terms of the Convertible Notes Indenture, the holders of the Convertible Notes may convert at their option at any time during the quarter ending June 30, 2021. Each $1,000 principal amount of Convertible Notes is convertible at a rate of 61.7284 shares of our common stock, subject to adjustment as provided in the Convertible Notes Indenture. We may settle conversions by paying or delivering, as applicable, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. 2021 Financing Activities 2013, 2014 and April 2016 Revolving Facilities In March 2021, American repaid in full the $750 million of revolving loans outstanding under the 2013 Revolving Facility, the $1.6 billion of revolving loans outstanding under the 2014 Revolving Facility and the $450 million of revolving loans outstanding under the April 2016 Revolving Facility. Following the March 2021 repayment, American is able to draw upon the commitments under these revolving facilities again as needed upon the terms of the underlying credit agreements or leave them undrawn, in each case, until such commitments expire, which is currently scheduled to occur in 2024 for substantially all of such commitments. As of March 31, 2021, there were no borrowings or letters of credit outstanding under the 2013 Revolving Facility, the 2014 Revolving Facility or the April 2016 Revolving Facility. PSP2 Promissory Note As partial compensation to the U.S. Government for the provision of financial assistance under the PSP2 Agreement, AAG issued the PSP2 Promissory Note to Treasury, which provides for our unconditional promise to pay to Treasury the principal sum of $896 million, subject to an increase equal to 30% of the amount of any additional Installment disbursed under the PSP2 Agreement, and the guarantee of our obligations under the PSP2 Promissory Note by the Subsidiaries. The PSP2 Promissory Note bears interest on the outstanding principal amount at a rate equal to 1.00% per annum until the fifth anniversary of the PSP2 Closing Date and 2.00% plus an interest rate based on the secured overnight financing rate per annum or other benchmark replacement rate consistent with customary market conventions (but not to be less than 0.00%) thereafter until the tenth anniversary of the PSP2 Closing Date (the PSP2 Maturity Date), and interest accrued thereon will be payable in arrears on the last business day of March and September of each year, beginning on March 31, 2021. The aggregate principal amount outstanding under the PSP2 Promissory Note, together with all accrued and unpaid interest thereon and all other amounts payable under the PSP2 Promissory Note, will be due and payable on the PSP2 Maturity Date. We may, at any time and from time to time, voluntarily prepay amounts outstanding under the PSP2 Promissory Note, in whole or in part, without penalty or premium. Within 30 days of the occurrence of certain change of control triggering events, we are required to prepay the aggregate outstanding principal amount of the PSP2 Promissory Note at such time, together with any accrued interest or other amounts owing under the PSP2 Promissory Note at such time. The PSP2 Promissory Note is our senior unsecured obligation and each guarantee of the PSP2 Promissory Note is the senior unsecured obligation of each of the Subsidiaries, respectively. The PSP2 Promissory Note contains events of default, including cross-default with respect to acceleration or failure to pay at maturity other material indebtedness. Upon the occurrence of an event of default and subject to certain grace periods, the outstanding obligations under the PSP2 Promissory Note may, and in certain circumstances will automatically, be accelerated and become due and payable immediately. AAdvantage Financing On March 24, 2021 (the AAdvantage Financing Closing Date), American and AAdvantage Loyalty IP Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of American (Loyalty Issuer and, together with American, the AAdvantage Issuers), completed the offering of $3.5 billion aggregate principal amount of 5.50% Senior Secured Notes due 2026 (the 2026 Notes) and $3.0 billion aggregate principal amount of 5.75% Senior Secured Notes due 2029 (the 2029 Notes, and together with the 2026 Notes, the AAdvantage Notes). The AAdvantage Notes are fully and unconditionally guaranteed (the AAdvantage Note Guarantees) on a senior unsecured basis by AAG and fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by AAdvantage Holdings 1, Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and a direct wholly owned subsidiary of American, and AAdvantage Holdings 2, Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of American and the direct parent of Loyalty Issuer (HoldCo2 and, together with AAdvantage Holdings 1, Ltd., the SPV Guarantors, and the SPV Guarantors together with AAG, the AAdvantage Guarantors). The AAdvantage Notes were issued pursuant to an indenture, dated as of March 24, 2021 (the AAdvantage Indenture), by and among the AAdvantage Issuers, the AAdvantage Guarantors and Wilmington Trust, National Association, as trustee and as collateral custodian. Concurrent with the issuance of the AAdvantage Notes, the AAdvantage Issuers, as co-borrowers, entered into a term loan credit and guaranty agreement, dated March 24, 2021, with Barclays Bank PLC, as administrative agent, Wilmington Trust, National Association, as collateral administrator, and the lenders party thereto, providing for a $3.5 billion term loan facility (the AAdvantage Term Loan Facility and collectively with the AAdvantage Notes, the AAdvantage Financing) and pursuant to which the full $3.5 billion of term loans (the AAdvantage Loans) were drawn on the AAdvantage Financing Closing Date. The AAdvantage Loans are fully and unconditionally guaranteed (together with the AAdvantage Note Guarantees, the AAdvantage Guarantees) by the AAdvantage Guarantors. Subject to certain permitted liens and other exceptions, the AAdvantage Notes, AAdvantage Loans and AAdvantage Guarantees provided by the SPV Guarantors will be secured by a first-priority security interest in, and pledge of, various agreements with respect to the AAdvantage program (the AAdvantage Agreements) (including all payments thereunder) and rights under an intercompany agreement and certain IP Licenses (as defined below), certain rights under the AAdvantage program, certain deposit accounts that will receive cash under the AAdvantage Agreements, certain reserve accounts, the equity of each of Loyalty Issuer and the SPV Guarantors and substantially all other assets of Loyalty Issuer and the SPV Guarantors (collectively, the AAdvantage Collateral). Payment Terms of the AAdvantage Notes and AAdvantage Loans under the AAdvantage Term Loan Facility Interest on the AAdvantage Notes is payable in cash, quarterly in arrears on the 20th day of each January, April, July and October (each, an AAdvantage Payment Date), beginning July 20, 2021. The 2026 Notes will mature on April 20, 2026, and the 2029 Notes will mature on April 20, 2029. The outstanding principal on the 2026 Notes will be repaid in quarterly installments of approximately $292 million on each AAdvantage Payment Date, beginning on July 20, 2023. The outstanding principal on the 2029 Notes will be repaid in quarterly installments of $250 million on each AAdvantage Payment Date, beginning on July 20, 2026. The AAdvantage Issuers may redeem the AAdvantage Notes, at their option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the AAdvantage Notes redeemed plus a “make-whole” premium, together with accrued and unpaid interest to the date of redemption. The scheduled maturity date of the AAdvantage Loans under the AAdvantage Term Loan Facility is April 20, 2028. The AAdvantage Loans bear interest at a variable rate equal to LIBOR (but not less than 0.75% per annum), plus a margin of 4.75% per annum, payable on each AAdvantage Payment Date. The outstanding principal on the AAdvantage Loans will be repaid in quarterly installments of $175 million, on each AAdvantage Payment Date beginning with the AAdvantage Payment Date in July 2023. These amortization payments (as well as those for the AAdvantage Notes) will be subject to the occurrence of certain early amortization events, including the failure to satisfy a minimum debt service coverage ratio at specified determination dates. Prepayment of some or all of the AAdvantage Loans outstanding under the AAdvantage Term Loan Facility is permitted, although payment of an applicable premium is required as specified in the AAdvantage Term Loan Facility. The AAdvantage Indenture and the AAdvantage Term Loan Facility contain mandatory prepayment provisions triggered upon (i) the issuance or incurrence by Loyalty Issuer or the SPV Guarantors of certain indebtedness or (ii) the receipt by American or its subsidiaries of net proceeds from pre-paid frequent flyer (i.e., AAdvantage) mile purchases exceeding $500 million, with prepayment required only in respect of net proceeds from such purchases exceeding $505 million in the aggregate. Each of these prepayments would also require payment of an applicable premium. Certain other events, including the occurrence of a change of control with respect to AAG and certain AAdvantage Collateral sales exceeding a specified threshold, will also trigger mandatory repurchase or mandatory prepayment provisions under the AAdvantage Indenture and the AAdvantage Term Loan Facility, respectively. Other Terms of the AAdvantage Indenture and the AAdvantage Term Loan Facility The AAdvantage Indenture and the AAdvantage Term Loan Facility contain certain covenants that limit the ability of Loyalty Issuer, the SPV Guarantors and, in certain circumstances, American and AAG, to among other things, (i) incur additional indebtedness and make restricted payments, (ii) incur certain liens on the AAdvantage Collateral, (iii) merge, consolidate or sell substantially all of their assets, (iv) dispose of the AAdvantage Collateral, (v) sell pre-paid frequent flyer (i.e. AAdvantage) miles in excess of $550 million in the aggregate, and (vi) terminate, amend, waive, supplement or modify the IP Licenses, or exercise rights and remedies thereunder, except under certain circumstances. American and Loyalty Issuer are also prohibited from substantially reducing the AAdvantage program business or modifying the terms of the AAdvantage program in a manner that would reasonably be expected to materially impair repayment of the AAdvantage Financing obligations (described as a Payment Material Adverse Effect in the AAdvantage Indenture and the AAdvantage Term Loan Facility), and AAG and its subsidiaries are prohibited from changing the policies and procedures of the AAdvantage program in a manner that would reasonably be expected to have a Payment Material Adverse Effect or operating a competing loyalty program. Notwithstanding these restrictions, the AAdvantage program is expected to operate as it has in the past, and the entry into the AAdvantage Financing is not expected to have any impact on the benefits offered to AAdvantage members. In addition, subject to certain exceptions, the AAdvantage Indenture and the AAdvantage Term Loan Facility restrict the ability of American, Loyalty Issuer or any Guarantor to terminate, or modify certain terms within, the intercompany agreement governing the relationship between American and Loyalty Issuer with respect to the AAdvantage program. The AAdvantage Indenture and the AAdvantage Term Loan Facility also require the AAdvantage Issuers to comply with certain affirmative covenants, including (i) certain reporting requirements and (ii) the use of commercially reasonable efforts to cause sufficient counterparties to AAdvantage Agreements to direct payments with respect to the AAdvantage program into a collections account, such that at least 90% of such cash receipts in a quarterly reporting period are deposited directly into this collection account, with amounts to be distributed from this collection account for the payment of fees, principal and interest on the AAdvantage Notes and the AAdvantage Loans pursuant to a payment waterfall described in the AAdvantage Indenture and the AAdvantage Term Loan Facility, respectively. In addition, the AAdvantage Indenture and the AAdvantage Term Loan Facility require AAG to maintain minimum liquidity, defined as the sum of (a) unrestricted cash and cash equivalents and (b) the aggregate principal amount committed and available to be drawn under all of AAG's revolving credit and other facilities, at the close of any business day of at least $2.0 billion. Subject to certain materiality thresholds, qualifications, exceptions, “baskets” and grace and cure periods, the AAdvantage Indenture and the AAdvantage Term Loan Facility contain various events of default, including payment defaults, covenant defaults, cross-defaults to certain indebtedness, termination of certain agreements related to the AAdvantage program, bankruptcy events of Loyalty Issuer or any SPV Guarantor, and a change of control of Loyalty Issuer or any SPV Guarantor. A bankruptcy event of American is not itself an event of default; following an American bankruptcy, an event of default would only occur if American failed to satisfy certain enumerated bankruptcy case milestones, including an assumption of the AAdvantage Financing by a certain date. Upon the occurrence of an event of default, the outstanding obligations under the AAdvantage Indenture and the AAdvantage Term Loan Facility may (or, with respect to the bankruptcy events noted above, shall) be accelerated and become due and payable immediately. Terms of Certain Intercompany Agreements Related to the AAdvantage Financing In connection with the issuance of the AAdvantage Notes and entry into the AAdvantage Term Loan Facility, American, Loyalty Issuer and the SPV Guarantors entered into a series of transactions that resulted in the transfer to Loyalty Issuer of, among other things, American’s rights to certain data and other intellectual property used in the AAdvantage program (subject to certain exceptions) (such assets, the Transferred AAdvantage IP) and certain rights of American under specified AAdvantage Agreements. Loyalty Issuer has entered into a license agreement with HoldCo2 pursuant to which Loyalty Issuer has granted to HoldCo2 an exclusive, irrevocable (subject to certain termination rights), perpetual, worldwide, royalty-bearing license to use the Transferred AAdvantage IP (the HoldCo2 License), and HoldCo2 has in turn granted to American an exclusive, irrevocable (subject to certain termination rights), perpetual, worldwide, royalty-bearing sublicense to use the Transferred AAdvantage IP (together with the HoldCo2 License, the IP Licenses). The IP Licenses would be terminated, and American’s right to use the Transferred AAdvantage IP would cease, upon specified termination events, including, but not limited to, the occurrence of an event of default under the AAdvantage Indenture or the AAdvantage Term Loan Facility. In certain circumstances, such a termination would trigger a liquidated damages payment in an amount that is greater than the initial principal amount of the AAdvantage Notes and the AAdvantage Loans. In addition, proceeds from the AAdvantage Financing were loaned by Loyalty Issuer to American pursuant to an intercompany note that was guaranteed by AAG. The borrowings under this intercompany note are payable on demand by Loyalty Issuer or, after the occurrence and during the continuance of an event of default under the AAdvantage Financing, by the master collateral agent under the AAdvantage Financing. Treasury Loan Agreement On September 25, 2020, American and AAG entered into a Loan and Guarantee Agreement (the Treasury Loan Agreement) with Treasury, which provided for a secured term loan facility (the Treasury Term Loan Facility) that permitted American to borrow up to $5.5 billion. Subsequently, on October 21, 2020, American and AAG entered into an amendment to the Treasury Loan Agreement, which increased the borrowing amount to up to $7.5 billion. American had borrowed $550 million under the Treasury Term Loan Facility in September 2020. On March 24, 2021, American used proceeds from the AAdvantage Financing to prepay in full the $550 million outstanding under the Treasury Term Loan Facility and terminated the Treasury Loan Agreement. |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Debt | Debt Long-term debt included in the condensed consolidated balance sheets consisted of (in millions): March 31, 2021 December 31, 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.86%, installments through 2025 $ 1,788 $ 1,788 2013 Revolving Facility — 750 2014 Term Loan Facility, variable interest rate of 1.86%, installments through 2027 1,208 1,220 2014 Revolving Facility — 1,643 April 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 960 960 April 2016 Revolving Facility — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 1,200 1,200 11.75% senior secured notes, interest only payments until due in July 2025 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 200 200 Treasury Term Loan Facility — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.5%, installments beginning in July 2023 through April 2028 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 8.39%, averaging 3.95%, maturing from 2021 to 2032 10,652 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.28% to 5.83%, averaging 1.87%, maturing from 2021 to 2032 4,156 4,417 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 5.38%, maturing from 2021 to 2036 1,040 1,040 Total long-term debt 34,704 28,731 Less: Total unamortized debt discount, premium and issuance costs 479 321 Less: Current maturities 2,342 2,700 Long-term debt, net of current maturities $ 31,883 $ 25,710 As of March 31, 2021, the maximum availability under American's revolving credit and other facilities is as follows (in millions): 2013 Revolving Facility $ 750 2014 Revolving Facility 1,643 April 2016 Revolving Facility 450 Short-term Revolving and Other Facilities 454 Total $ 3,297 American has an undrawn $400 million short-term revolving credit facility it entered into in December 2019, which was set to expire at the end of December 2020 but which has been extended through the beginning of July 2021. American has the option to extend further this short-term revolving credit facility to January 2022 and, if extended, the available amount thereunder for the period from July 2021 to January 2022 shall be increased to $500 million. American also currently has approximately $54 million of available borrowing base under a cargo receivables facility that was entered into in December 2020. The December 2016 Credit Facilities provide for a revolving credit facility that may be established thereunder in the future. Secured financings are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots and certain pre-delivery payments, as well as certain intellectual property and loyalty program assets. 2021 Financing Activities 2013, 2014 and April 2016 Revolving Facilities In March 2021, American repaid in full the $750 million of revolving loans outstanding under the 2013 Revolving Facility, the $1.6 billion of revolving loans outstanding under the 2014 Revolving Facility and the $450 million of revolving loans outstanding under the April 2016 Revolving Facility. Following the March 2021 repayment, American is able to draw upon the commitments under these revolving facilities again as needed upon the terms of the underlying credit agreements or leave them undrawn, in each case, until such commitments expire, which is currently scheduled to occur in 2024 for substantially all of such commitments. As of March 31, 2021, there were no borrowings or letters of credit outstanding under the 2013 Revolving Facility, the 2014 Revolving Facility or the April 2016 Revolving Facility. AAdvantage Financing On March 24, 2021 (the AAdvantage Financing Closing Date), American and AAdvantage Loyalty IP Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of American (Loyalty Issuer and, together with American, the AAdvantage Issuers), completed the offering of $3.5 billion aggregate principal amount of 5.50% Senior Secured Notes due 2026 (the 2026 Notes) and $3.0 billion aggregate principal amount of 5.75% Senior Secured Notes due 2029 (the 2029 Notes, and together with the 2026 Notes, the AAdvantage Notes). The AAdvantage Notes are fully and unconditionally guaranteed (the AAdvantage Note Guarantees) on a senior unsecured basis by AAG and fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by AAdvantage Holdings 1, Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and a direct wholly owned subsidiary of American, and AAdvantage Holdings 2, Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of American and the direct parent of Loyalty Issuer (HoldCo2 and, together with AAdvantage Holdings 1, Ltd., the SPV Guarantors, and the SPV Guarantors together with AAG, the AAdvantage Guarantors). The AAdvantage Notes were issued pursuant to an indenture, dated as of March 24, 2021 (the AAdvantage Indenture), by and among the AAdvantage Issuers, the AAdvantage Guarantors and Wilmington Trust, National Association, as trustee and as collateral custodian. Concurrent with the issuance of the AAdvantage Notes, the AAdvantage Issuers, as co-borrowers, entered into a term loan credit and guaranty agreement, dated March 24, 2021, with Barclays Bank PLC, as administrative agent, Wilmington Trust, National Association, as collateral administrator, and the lenders party thereto, providing for a $3.5 billion term loan facility (the AAdvantage Term Loan Facility and collectively with the AAdvantage Notes, the AAdvantage Financing) and pursuant to which the full $3.5 billion of term loans (the AAdvantage Loans) were drawn on the AAdvantage Financing Closing Date. The AAdvantage Loans are fully and unconditionally guaranteed (together with the AAdvantage Note Guarantees, the AAdvantage Guarantees) by the AAdvantage Guarantors. Subject to certain permitted liens and other exceptions, the AAdvantage Notes, AAdvantage Loans and AAdvantage Guarantees provided by the SPV Guarantors will be secured by a first-priority security interest in, and pledge of, various agreements with respect to the AAdvantage program (the AAdvantage Agreements) (including all payments thereunder) and rights under an intercompany agreement and certain IP Licenses (as defined below), certain rights under the AAdvantage program, certain deposit accounts that will receive cash under the AAdvantage Agreements, certain reserve accounts, the equity of each of Loyalty Issuer and the SPV Guarantors and substantially all other assets of Loyalty Issuer and the SPV Guarantors (collectively, the AAdvantage Collateral). Payment Terms of the AAdvantage Notes and AAdvantage Loans under the AAdvantage Term Loan Facility Interest on the AAdvantage Notes is payable in cash, quarterly in arrears on the 20th day of each January, April, July and October (each, an AAdvantage Payment Date), beginning July 20, 2021. The 2026 Notes will mature on April 20, 2026, and the 2029 Notes will mature on April 20, 2029. The outstanding principal on the 2026 Notes will be repaid in quarterly installments of approximately $292 million on each AAdvantage Payment Date, beginning on July 20, 2023. The outstanding principal on the 2029 Notes will be repaid in quarterly installments of $250 million on each AAdvantage Payment Date, beginning on July 20, 2026. The AAdvantage Issuers may redeem the AAdvantage Notes, at their option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the AAdvantage Notes redeemed plus a “make-whole” premium, together with accrued and unpaid interest to the date of redemption. The scheduled maturity date of the AAdvantage Loans under the AAdvantage Term Loan Facility is April 20, 2028. The AAdvantage Loans bear interest at a variable rate equal to LIBOR (but not less than 0.75% per annum), plus a margin of 4.75% per annum, payable on each AAdvantage Payment Date. The outstanding principal on the AAdvantage Loans will be repaid in quarterly installments of $175 million, on each AAdvantage Payment Date beginning with the AAdvantage Payment Date in July 2023. These amortization payments (as well as those for the AAdvantage Notes) will be subject to the occurrence of certain early amortization events, including the failure to satisfy a minimum debt service coverage ratio at specified determination dates. Prepayment of some or all of the AAdvantage Loans outstanding under the AAdvantage Term Loan Facility is permitted, although payment of an applicable premium is required as specified in the AAdvantage Term Loan Facility. The AAdvantage Indenture and the AAdvantage Term Loan Facility contain mandatory prepayment provisions triggered upon (i) the issuance or incurrence by Loyalty Issuer or the SPV Guarantors of certain indebtedness or (ii) the receipt by American or its subsidiaries of net proceeds from pre-paid frequent flyer (i.e., AAdvantage) mile purchases exceeding $500 million, with prepayment required only in respect of net proceeds from such purchases exceeding $505 million in the aggregate. Each of these prepayments would also require payment of an applicable premium. Certain other events, including the occurrence of a change of control with respect to AAG and certain AAdvantage Collateral sales exceeding a specified threshold, will also trigger mandatory repurchase or mandatory prepayment provisions under the AAdvantage Indenture and the AAdvantage Term Loan Facility, respectively. Other Terms of the AAdvantage Indenture and the AAdvantage Term Loan Facility The AAdvantage Indenture and the AAdvantage Term Loan Facility contain certain covenants that limit the ability of Loyalty Issuer, the SPV Guarantors and, in certain circumstances, American and AAG, to among other things, (i) incur additional indebtedness and make restricted payments, (ii) incur certain liens on the AAdvantage Collateral, (iii) merge, consolidate or sell substantially all of their assets, (iv) dispose of the AAdvantage Collateral, (v) sell pre-paid frequent flyer (i.e. AAdvantage) miles in excess of $550 million in the aggregate, and (vi) terminate, amend, waive, supplement or modify the IP Licenses, or exercise rights and remedies thereunder, except under certain circumstances. American and Loyalty Issuer are also prohibited from substantially reducing the AAdvantage program business or modifying the terms of the AAdvantage program in a manner that would reasonably be expected to materially impair repayment of the AAdvantage Financing obligations (described as a Payment Material Adverse Effect in the AAdvantage Indenture and the AAdvantage Term Loan Facility), and AAG and its subsidiaries are prohibited from changing the policies and procedures of the AAdvantage program in a manner that would reasonably be expected to have a Payment Material Adverse Effect or operating a competing loyalty program. Notwithstanding these restrictions, the AAdvantage program is expected to operate as it has in the past, and the entry into the AAdvantage Financing is not expected to have any impact on the benefits offered to AAdvantage members. In addition, subject to certain exceptions, the AAdvantage Indenture and the AAdvantage Term Loan Facility restrict the ability of American, Loyalty Issuer or any Guarantor to terminate, or modify certain terms within, the intercompany agreement governing the relationship between American and Loyalty Issuer with respect to the AAdvantage program. The AAdvantage Indenture and the AAdvantage Term Loan Facility also require the AAdvantage Issuers to comply with certain affirmative covenants, including (i) certain reporting requirements and (ii) the use of commercially reasonable efforts to cause sufficient counterparties to AAdvantage Agreements to direct payments with respect to the AAdvantage program into a collections account, such that at least 90% of such cash receipts in a quarterly reporting period are deposited directly into this collection account, with amounts to be distributed from this collection account for the payment of fees, principal and interest on the AAdvantage Notes and the AAdvantage Loans pursuant to a payment waterfall described in the AAdvantage Indenture and the AAdvantage Term Loan Facility, respectively. In addition, the AAdvantage Indenture and the AAdvantage Term Loan Facility require AAG to maintain minimum liquidity, defined as the sum of (a) unrestricted cash and cash equivalents and (b) the aggregate principal amount committed and available to be drawn under all of AAG's revolving credit and other facilities, at the close of any business day of at least $2.0 billion. Subject to certain materiality thresholds, qualifications, exceptions, “baskets” and grace and cure periods, the AAdvantage Indenture and the AAdvantage Term Loan Facility contain various events of default, including payment defaults, covenant defaults, cross-defaults to certain indebtedness, termination of certain agreements related to the AAdvantage program, bankruptcy events of Loyalty Issuer or any SPV Guarantor, and a change of control of Loyalty Issuer or any SPV Guarantor. A bankruptcy event of American is not itself an event of default; following an American bankruptcy, an event of default would only occur if American failed to satisfy certain enumerated bankruptcy case milestones, including an assumption of the AAdvantage Financing by a certain date. Upon the occurrence of an event of default, the outstanding obligations under the AAdvantage Indenture and the AAdvantage Term Loan Facility may (or, with respect to the bankruptcy events noted above, shall) be accelerated and become due and payable immediately. Terms of Certain Intercompany Agreements Related to the AAdvantage Financing In connection with the issuance of the AAdvantage Notes and entry into the AAdvantage Term Loan Facility, American, Loyalty Issuer and the SPV Guarantors entered into a series of transactions that resulted in the transfer to Loyalty Issuer of, among other things, American’s rights to certain data and other intellectual property used in the AAdvantage program (subject to certain exceptions) (such assets, the Transferred AAdvantage IP) and certain rights of American under specified AAdvantage Agreements. Loyalty Issuer has entered into a license agreement with HoldCo2 pursuant to which Loyalty Issuer has granted to HoldCo2 an exclusive, irrevocable (subject to certain termination rights), perpetual, worldwide, royalty-bearing license to use the Transferred AAdvantage IP (the HoldCo2 License), and HoldCo2 has in turn granted to American an exclusive, irrevocable (subject to certain termination rights), perpetual, worldwide, royalty-bearing sublicense to use the Transferred AAdvantage IP (together with the HoldCo2 License, the IP Licenses). The IP Licenses would be terminated, and American’s right to use the Transferred AAdvantage IP would cease, upon specified termination events, including, but not limited to, the occurrence of an event of default under the AAdvantage Indenture or the AAdvantage Term Loan Facility. In certain circumstances, such a termination would trigger a liquidated damages payment in an amount that is greater than the initial principal amount of the AAdvantage Notes and the AAdvantage Loans. In addition, proceeds from the AAdvantage Financing were loaned by Loyalty Issuer to American pursuant to an intercompany note that was guaranteed by AAG. The borrowings under this intercompany note are payable on demand by Loyalty Issuer or, after the occurrence and during the continuance of an event of default under the AAdvantage Financing, by the master collateral agent under the AAdvantage Financing. Treasury Loan Agreement On September 25, 2020, American and AAG entered into a Loan and Guarantee Agreement (the Treasury Loan Agreement) with Treasury, which provided for a secured term loan facility (the Treasury Term Loan Facility) that permitted American to borrow up to $5.5 billion. Subsequently, on October 21, 2020, American and AAG entered into an amendment to the Treasury Loan Agreement, which increased the borrowing amount to up to $7.5 billion. American had borrowed $550 million under the Treasury Term Loan Facility in September 2020. On March 24, 2021, American used proceeds from the AAdvantage Financing to prepay in full the $550 million outstanding under the Treasury Term Loan Facility and terminated the Treasury Loan Agreement. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes At December 31, 2020, we had approximately $16.5 billion of federal net operating losses (NOLs) available to reduce future federal taxable income, of which $8.5 billion will expire beginning in 2023 if unused and $8.0 billion can be carried forward indefinitely (NOL Carryforwards). We also had approximately $5.0 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2020, which will expire in taxable years 2020 through 2040 if unused. Our ability to use our NOL 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, 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 presently have a $34 million valuation allowance on certain net deferred tax assets related to state NOL Carryforwards. There can be no assurance that an additional valuation allowance on our net deferred tax assets will not be required. Such valuation allowance could be material. During the three months ended March 31, 2021 and 2020, we recorded an income tax benefit of $323 million and $649 million, respectively. |
American Airlines, Inc. | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes At December 31, 2020, American had approximately $16.5 billion of federal net operating losses (NOLs) available to reduce future federal taxable income, of which $8.9 billion will expire beginning in 2023 if unused and $7.6 billion can be carried forward indefinitely (NOL Carryforwards). American is a member of AAG’s consolidated federal and certain state income tax returns. The amount of federal NOL Carryforwards available in those returns is $16.5 billion to reduce AAG's future federal taxable income. American also had approximately $5.0 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2020, which will expire in taxable years 2020 through 2040 if unused. American's ability to use its NOL 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 presently has a $24 million valuation allowance on certain net deferred tax assets related to state NOL Carryforwards. There can be no assurance that an additional valuation allowance on American's net deferred tax assets will not be required. Such valuation allowance could be material. During the three months ended March 31, 2021 and 2020, American recorded an income tax benefit of $314 million and $628 million, respectively. |
Fair Value Measurements and Oth
Fair Value Measurements and Other Investments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements and Other Investments | Fair Value Measurements and Other Investments Assets Measured at Fair Value on a Recurring Basis We utilize the market approach to measure the fair value of our financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Our short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2021. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of March 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 6,662 $ 6,662 $ — $ — Corporate obligations 4,123 — 4,123 — Bank notes/certificates of deposit/time deposits 2,257 — 2,257 — Repurchase agreements 720 — 720 — 13,762 6,662 7,100 — Restricted cash and short-term investments (1), (3) 806 606 200 — Long-term investments (4) 201 201 — — Total $ 14,769 $ 7,469 $ 7,300 $ — (1) All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses. (2) Our short-term investments mature in one year or less. (3) Restricted cash and short-term investments primarily include money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of Terminal 8 at JFK as well as collateral associated with the payment of certain fees and interest in respect of the AAdvantage Financing and collateral held to support workers' compensation obligations. (4) Long-term investments primarily include our equity investment in China Southern Airlines, in which we presently own a 1.8% equity interest, and are classified in other assets on the condensed consolidated balance sheet. Fair Value of Debt The fair value of our long-term debt was estimated using quoted market prices or discounted cash flow analyses, based on our current estimated incremental borrowing rates for similar types of borrowing arrangements. If our long-term debt was measured at fair value, it would have been classified as Level 2 except for $2.7 billion and $2.3 billion as of March 31, 2021 and December 31, 2020, respectively, which would have been classified as Level 3 in the fair value hierarchy. The fair value of our Convertible Notes was $1.7 billion and $1.2 billion as of March 31, 2021 and December 31, 2020, respectively. The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 39,124 $ 40,325 $ 32,021 $ 30,454 |
American Airlines, Inc. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements and Other Investments | Fair Value Measurements and Other Investments Assets Measured at Fair Value on a Recurring Basis American utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. American’s short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2021. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of March 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 6,648 $ 6,648 $ — $ — Corporate obligations 4,123 — 4,123 — Bank notes/certificates of deposit/time deposits 2,257 — 2,257 — Repurchase agreements 720 — 720 — 13,748 6,648 7,100 — Restricted cash and short-term investments (1), (3) 806 606 200 — Long-term investments (4) 201 201 — — Total $ 14,755 $ 7,455 $ 7,300 $ — (1) All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses. (2) American’s short-term investments mature in one year or less. (3) Restricted cash and short-term investments primarily include money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of Terminal 8 at JFK as well as collateral associated with the payment of certain fees and interest in respect of the AAdvantage Financing and collateral held to support workers' compensation obligations. (4) Long-term investments primarily include American's equity investment in China Southern Airlines, in which American presently owns a 1.8% equity interest, and are classified in other assets on the condensed consolidated balance sheet. Fair Value of Debt The fair value of American’s long-term debt was estimated using quoted market prices or discounted cash flow analyses, based on American’s current estimated incremental borrowing rates for similar types of borrowing arrangements. If American’s long-term debt was measured at fair value, it would have been classified as Level 2 except for $550 million as of December 31, 2020, which would have been classified as Level 3 in the fair value hierarchy. The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 34,225 $ 35,328 $ 28,410 $ 27,193 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plans | Employee Benefit Plans The following table provides the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Three Months Ended March 31, 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 2 $ 1 Interest cost 131 153 6 7 Expected return on assets (272) (252) (3) (4) Special termination benefits — — 139 — Amortization of: Prior service cost (benefit) 7 7 (3) (54) Unrecognized net loss (gain) 53 41 (6) (6) Net periodic benefit cost (income) $ (80) $ (50) $ 135 $ (56) Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen. The service cost component of net periodic benefit cost (income) is included in operating expenses, the cost for the special termination benefits is included in special items, net and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations. During the first quarter of 2021, we remeasured our retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. For the three months ended March 31, 2021, we recognized a $139 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $139 million as of March 31, 2021. In January 2021, we made $241 million in contributions to our pension plans, including a contribution of $130 million for the 2020 calendar year that was permitted to be deferred to January 4, 2021 as provided under the CARES Act. On March 11, 2021, the ARP was enacted, which included certain funding relief provisions for single employer qualified retirement benefit pension plans such as those sponsored by us. Based on our current understanding of the ARP provisions applicable to our pension plans, we will have no additional funding requirements for 2021. |
American Airlines, Inc. | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plans | Employee Benefit Plans The following table provides the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Three Months Ended March 31, 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 2 $ 1 Interest cost 130 152 6 7 Expected return on assets (270) (251) (3) (4) Special termination benefits — — 139 — Amortization of: Prior service cost (benefit) 7 7 (3) (54) Unrecognized net loss (gain) 52 41 (6) (6) Net periodic benefit cost (income) $ (80) $ (50) $ 135 $ (56) Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen. The service cost component of net periodic benefit cost (income) is included in operating expenses, the cost for the special termination benefits is included in special items, net and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations. During the first quarter of 2021, American remeasured its retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted in to voluntary early retirement programs offered as a result of reductions to its operation due to the COVID-19 pandemic. For the three months ended March 31, 2021, American recognized a $139 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $139 million as of March 31, 2021. In January 2021, American made $241 million in contributions to its pension plans, including a contribution of $130 million for the 2020 calendar year that was permitted to be deferred to January 4, 2021 as provided under the CARES Act. On March 11, 2021, the ARP was enacted, which included certain funding relief provisions for single employer qualified retirement benefit pension plans such as those sponsored by American. Based on American's current understanding of the ARP provisions applicable to its pension plans, American will have no additional funding requirements for 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (AOCI) are as follows (in millions): Pension, Unrealized Gain (Loss) on Investments Income Tax Benefit (Provision) (1) Total Balance at December 31, 2020 $ (6,236) $ (2) $ (865) $ (7,103) Other comprehensive income (loss) before reclassifications 35 — (8) 27 Amounts reclassified from AOCI 51 — (11) (2) 40 Net current-period other comprehensive income (loss) 86 — (19) 67 Balance at March 31, 2021 $ (6,150) $ (2) $ (884) $ (7,036) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net loss until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax benefit on the condensed consolidated statement of operations. Reclassifications out of AOCI are as follows (in millions): Amounts reclassified from AOCI Affected line items on the AOCI Components Three Months Ended March 31, 2021 2020 Amortization of pension, retiree medical Prior service cost (benefit) $ 3 $ (36) Nonoperating other income (expense), net Actuarial loss 37 27 Nonoperating other income (expense), net Total reclassifications for the period, $ 40 $ (9) |
American Airlines, Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (AOCI) are as follows (in millions): Pension, Unrealized Gain (Loss) on Investments Income Tax Benefit (Provision) (1) Total Balance at December 31, 2020 $ (6,215) $ (2) $ (977) $ (7,194) Other comprehensive income (loss) before reclassifications 35 — (8) 27 Amounts reclassified from AOCI 50 — (11) (2) 39 Net current-period other comprehensive income (loss) 85 — (19) 66 Balance at March 31, 2021 $ (6,130) $ (2) $ (996) $ (7,128) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net loss until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax benefit on the condensed consolidated statement of operations. Reclassifications out of AOCI are as follows (in millions): Amounts reclassified from AOCI Affected line items on the condensed consolidated statements of operations AOCI Components Three Months Ended March 31, 2021 2020 Amortization of pension, retiree medical Prior service cost (benefit) $ 3 $ (36) Nonoperating other income (expense), net Actuarial loss 36 27 Nonoperating other income (expense), net Total reclassifications for the period, $ 39 $ (9) |
Regional Expenses
Regional Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Regional Expenses [Line Items] | |
Regional Expenses | Regional Expenses Our regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include our wholly-owned regional carriers, as well as third-party regional carriers. Substantially all of our regional carrier arrangements are in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations. Beginning in the first quarter of 2021, aircraft fuel and related taxes as well as certain salaries, wages and benefits, other rent and landing fees, selling and other expenses are no longer allocated to regional expenses on our condensed consolidated statements of operations. The first quarter of 2020 condensed consolidated statement of operations has been recast to conform to the 2021 presentation. This statement of operations presentation change has no impact on total operating expenses or net loss. Regional expenses for the three months ended March 31, 2021 and 2020 include $81 million and $83 million of depreciation and amortization, respectively, and $2 million and $6 million of aircraft rent, respectively. During the three months ended March 31, 2021 and 2020, we recognized $127 million and $150 million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). We hold a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic. |
American Airlines, Inc. | |
Regional Expenses [Line Items] | |
Regional Expenses | Regional Expenses American's regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include AAG's wholly-owned regional carriers, as well as third-party regional carriers. Substantially all of American's regional carrier arrangements are in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations. Beginning in the first quarter of 2021, aircraft fuel and related taxes as well as certain salaries, wages and benefits, other rent and landing fees, selling and other expenses are no longer allocated to regional expenses on American's condensed consolidated statements of operations. The first quarter of 2020 condensed consolidated statement of operations has been recast to conform to the 2021 presentation. This statement of operations presentation change has no impact on total operating expenses or net loss. Regional expenses for the three months ended March 31, 2021 and 2020 include $68 million and $70 million of depreciation and amortization, respectively, and $2 million and $6 million of aircraft rent, respectively. During the three months ended March 31, 2021 and 2020, American recognized $127 million and $150 million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). American holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
American Airlines, Inc. | |
Entity Information [Line Items] | |
Transactions with Related Parties | Transactions with Related Parties The following represents the net receivables (payables) to related parties (in millions): March 31, 2021 December 31, 2020 AAG (1) $ 8,822 $ 9,940 AAG’s wholly-owned subsidiaries (2) (2,175) (2,063) Total $ 6,647 $ 7,877 (1) The decrease in American’s net related party receivable from AAG is primarily due to cash received from the proceeds of AAG financing transactions including the PSP2 Promissory Note and the issuance of shares of AAG common stock pursuant to an at-the-market offering. (2) The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2021 | |
Long-term Purchase Commitment [Line Items] | |
Legal Proceedings | Legal Proceedings Chapter 11 Cases . On November 29, 2011, AMR Corporation (AMR), American, and certain of AMR’s other direct and indirect domestic subsidiaries (the Debtors) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). On October 21, 2013, the Bankruptcy Court entered an order approving and confirming the Debtors’ fourth amended joint plan of reorganization (as amended, the Plan). On the Effective Date, December 9, 2013, the Debtors consummated their reorganization pursuant to the Plan and completed the acquisition of US Airways Group, Inc. by AMR (the Merger). Pursuant to rulings of the Bankruptcy Court, the Plan established a disputed claims reserve (the Disputed Claims Reserve) to hold shares of AAG common stock reserved for issuance to disputed claimholders at the Effective Date that ultimately become holders of allowed claims. The shares of AAG common stock issued to the Disputed Claims Reserve were originally issued on December 13, 2013 and have at all times since been included in the number of shares issued and outstanding as reported from time to time in our quarterly and annual reports, including for calculating earnings per common share. As disputed claims are resolved, the claimants receive distributions of shares from the Disputed Claims Reserve. We are not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution in the Disputed Claims Reserve are not sufficient to fully pay any additional allowed unsecured claims. If any of the reserved shares remain undistributed upon resolution of all remaining disputed claims, such shares will not be returned to us but rather will be distributed to former AMR stockholders and former convertible noteholders treated as stockholders under the Plan. As of March 31, 2021, the Disputed Claims Reserve held approximately 4.8 million shares of AAG common stock. Private Party Antitrust Action Related to Passenger Capacity. We, along with Delta Air Lines, Inc., Southwest Airlines Co., United Airlines, Inc. and, in the case of litigation filed in Canada, Air Canada, were named as defendants in approximately 100 putative class action lawsuits alleging unlawful agreements with respect to air passenger capacity. The U.S. lawsuits were consolidated in the Federal District Court for the District of Columbia (the DC Court). On June 15, 2018, we reached a settlement agreement with the plaintiffs in the amount of $45 million to resolve all class claims in the U.S. lawsuits. That settlement was approved by the DC Court on May 13, 2019, however three parties who objected to the settlement have appealed that decision to the United States Court of Appeals for the District of Columbia. We believe these appeals are without merit and intend to vigorously defend against them. Private Party Antitrust Action Related to the Merger . On August 6, 2013, a lawsuit captioned Carolyn Fjord, et al., v. AMR Corporation, et al., was filed in the Bankruptcy Court. The complaint named as defendants US Airways Group, Inc., US Airways, Inc., AMR and American, alleged that the effect of the Merger may be to create a monopoly in violation of Section 7 of the Clayton Antitrust Act, and sought injunctive relief and/or divestiture. On November 27, 2013, the Bankruptcy Court denied plaintiffs’ motion to preliminarily enjoin the Merger. On August 29, 2018, the Bankruptcy Court denied in part defendants' motion for summary judgment, and fully denied plaintiffs' cross-motion for summary judgment. The parties' evidentiary cases were presented before the Bankruptcy Court in a bench trial in March 2019 and the parties submitted proposed findings of fact and conclusions of law and made closing arguments in April 2019. On January 29, 2021, the Bankruptcy Court published its decision finding in our favor. The plaintiffs have appealed this ruling. We believe this lawsuit is without merit and intend to continue to vigorously defend against the allegations, including plaintiffs' appeal of the Bankruptcy Court's January 29, 2021 ruling. General . In addition to the specifically identified legal proceedings, we and our subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within our control. Therefore, although we will vigorously defend ourselves in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on us are uncertain but could be material. |
American Airlines, Inc. | |
Long-term Purchase Commitment [Line Items] | |
Legal Proceedings | Legal Proceedings Chapter 11 Cases . On November 29, 2011, AMR Corporation (AMR), American, and certain of AMR’s other direct and indirect domestic subsidiaries (the Debtors) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). On October 21, 2013, the Bankruptcy Court entered an order approving and confirming the Debtors’ fourth amended joint plan of reorganization (as amended, the Plan). On the Effective Date, December 9, 2013, the Debtors consummated their reorganization pursuant to the Plan and completed the acquisition of US Airways Group, Inc. by AMR (the Merger). Pursuant to rulings of the Bankruptcy Court, the Plan established a disputed claims reserve (the Disputed Claims Reserve) to hold shares of AAG common stock reserved for issuance to disputed claimholders at the Effective Date that ultimately become holders of allowed claims. The shares of AAG common stock issued to the Disputed Claims Reserve were originally issued on December 13, 2013 and have at all times since been included in the number of shares issued and outstanding as reported by AAG from time to time in its quarterly and annual reports, including for calculating earnings per common share. As disputed claims are resolved, the claimants receive distributions of shares from the Disputed Claims Reserve. American is not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution in the Disputed Claims Reserve are not sufficient to fully pay any additional allowed unsecured claims. If any of the reserved shares remain undistributed upon resolution of all remaining disputed claims, such shares will not be returned to AAG but rather will be distributed to former AMR stockholders and former convertible noteholders treated as stockholders under the Plan. As of March 31, 2021, the Disputed Claims Reserve held approximately 4.8 million shares of AAG common stock. Private Party Antitrust Action Related to Passenger Capacity. American, along with Delta Air Lines, Inc., Southwest Airlines Co., United Airlines, Inc. and, in the case of litigation filed in Canada, Air Canada, were named as defendants in approximately 100 putative class action lawsuits alleging unlawful agreements with respect to air passenger capacity. The U.S. lawsuits were consolidated in the Federal District Court for the District of Columbia (the DC Court). On June 15, 2018, American reached a settlement agreement with the plaintiffs in the amount of $45 million to resolve all class claims in the U.S. lawsuits. That settlement was approved by the DC Court on May 13, 2019, however three parties who objected to the settlement have appealed that decision to the United States Court of Appeals for the District of Columbia. American believes these appeals are without merit and intends to vigorously defend against them. Private Party Antitrust Action Related to the Merger . On August 6, 2013, a lawsuit captioned Carolyn Fjord, et al., v. AMR Corporation, et al., was filed in the Bankruptcy Court. The complaint named as defendants US Airways Group, Inc., US Airways, Inc., AMR and American, alleged that the effect of the Merger may be to create a monopoly in violation of Section 7 of the Clayton Antitrust Act, and sought injunctive relief and/or divestiture. On November 27, 2013, the Bankruptcy Court denied plaintiffs’ motion to preliminarily enjoin the Merger. On August 29, 2018, the Bankruptcy Court denied in part defendants' motion for summary judgment, and fully denied plaintiffs' cross-motion for summary judgment. The parties' evidentiary cases were presented before the Bankruptcy Court in a bench trial in March 2019 and the parties submitted proposed findings of fact and conclusions of law and made closing arguments in April 2019. On January 29, 2021, the Bankruptcy Court published its decision finding in American’s favor. The plaintiffs have appealed this ruling. American believes this lawsuit is without merit and intends to continue to vigorously defend against the allegations, including plaintiffs' appeal of the Bankruptcy Court's January 29, 2021 ruling. |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits. Certain prior period amounts have been reclassified to conform to the current year presentation. See Note 10 for further information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2020-06: Accounting for Convertible Instruments and Contracts In An Entity's Own Equity (the New Convertible Debt Standard) The New Convertible Debt Standard simplifies the accounting for certain convertible instruments by removing the separation models for convertible debt with a cash conversion feature and for convertible instruments with a beneficial conversion feature. As a result, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, the New Convertible Debt Standard amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The treasury stock method is no longer available. Entities may adopt the New Convertible Debt Standard using either a full or modified retrospective approach, and it is effective for interim and annual reporting periods beginning after December 15, 2021. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2020. The New Convertible Debt Standard is applicable to our 6.50% convertible senior notes due 2025 (the Convertible Notes). We early adopted the New Convertible Debt Standard as of January 1, 2021 using the modified retrospective method to recognize our Convertible Notes as a single liability instrument. As of January 1, 2021, we recorded a $415 million ($320 million net of tax) reduction to additional paid-in capital to remove the equity component of the Convertible Notes from our balance sheet and a $19 million cumulative effect adjustment credit, net of tax, to retained deficit related to non-cash debt discount amortization recognized in periods prior to adoption resulting in a corresponding reduction of $389 million to the debt discount associated with the Convertible Notes. ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740) This standard simplifies the accounting and disclosure requirements for income taxes by clarifying the existing guidance to improve consistency in the application of Accounting Standards Codification 740. This standard also removed the requirement to calculate income tax expense for the stand-alone financial statements of wholly-owned subsidiaries that are not subject to income tax. We adopted this standard effective January 1, 2021, and it did not have a material impact on our condensed consolidated financial statements. |
American Airlines, Inc. | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2020. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits. Certain prior period amounts have been reclassified to conform to the current year presentation. See Note 9 for further information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncement Accounting Standards Update 2019-12: Simplifying the Accounting for Income Taxes (Topic 740) This standard simplifies the accounting and disclosure requirements for income taxes by clarifying the existing guidance to improve consistency in the application of Accounting Standards Codification 740. This standard also removed the requirement to calculate income tax expense for the stand-alone financial statements of wholly-owned subsidiaries that are not subject to income tax. American adopted this standard effective January 1, 2021, and it did not have a material impact on its condensed consolidated financial statements. |
Special Items, Net (Tables)
Special Items, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Components of Special Items, Net in Condensed Consolidated Statements of Operations | Special items, net in the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended March 31, 2021 2020 PSP2 Financial Assistance (1) $ (1,882) $ — Severance expenses (2) 168 205 Mark-to-market adjustments on bankruptcy obligations, net (3) 6 (50) Fleet impairment (4) — 744 Labor contract expenses (5) — 218 Other operating special items, net — 15 Mainline operating special items, net (1,708) 1,132 PSP2 Financial Assistance (1) (244) — Fleet impairment (4) 27 93 Severance expenses (2) 2 — Regional operating special items, net (215) 93 Operating special items, net (1,923) 1,225 Mark-to-market adjustments on equity and other investments, net (6) (49) 180 Debt refinancing, extinguishment and other, net 26 37 Nonoperating special items, net (23) 217 (1) PSP2 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP2 Agreement. See Note 1(b) for further information. (2) Severance expenses include salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments related to our voluntary early retirement programs were approximately $170 million during the first quarter of 2021. (3) Bankruptcy obligations that will be settled in shares of our common stock are marked-to-market based on our stock price. (4) Fleet impairment resulted from our decision to retire certain aircraft earlier than planned driven primarily by the severe decline in air travel due to the COVID-19 pandemic. In the first quarter of 2021, we retired our remaining fleet of Embraer 140 aircraft resulting in a $27 million non-cash write-down of these aircraft. In the first quarter of 2020, we retired our Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $764 million non-cash write-down of these aircraft and associated spare parts and $73 million in cash charges primarily for impairment of ROU assets and lease return costs. (5) Labor contract expenses primarily related to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with our equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments. |
American Airlines, Inc. | |
Restructuring Cost and Reserve [Line Items] | |
Components of Special Items, Net in Condensed Consolidated Statements of Operations | Special items, net in the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended March 31, 2021 2020 PSP2 Financial Assistance (1) $ (1,882) $ — Severance expenses (2) 168 205 Mark-to-market adjustments on bankruptcy obligations, net (3) 6 (50) Fleet impairment (4) — 744 Labor contract expenses (5) — 218 Other operating special items, net — 15 Mainline operating special items, net (1,708) 1,132 PSP2 Financial Assistance (1) (244) — Fleet impairment (4) 27 93 Regional operating special items, net (217) 93 Operating special items, net (1,925) 1,225 Mark-to-market adjustments on equity and other investments, net (6) (49) 180 Debt refinancing, extinguishment and other, net 26 37 Nonoperating special items, net (23) 217 (1) PSP2 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP2 Agreement. See Note 1(b) for further information. (2) Severance expenses include salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments related to American's voluntary early retirement programs were approximately $170 million during the first quarter of 2021. (3) Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG's stock price. (4) Fleet impairment resulted from American's decision to retire certain aircraft earlier than planned driven primarily by the severe decline in air travel due to the COVID-19 pandemic. In the first quarter of 2021, American retired its remaining fleet of Embraer 140 aircraft resulting in a $27 million non-cash write-down of these aircraft. In the first quarter of 2020, American retired its Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $764 million non-cash write-down of these aircraft and associated spare parts and $73 million in cash charges primarily for impairment of ROU assets and lease return costs. (5) Labor contract expenses primarily related to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American's equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments. |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Common Share | The following table sets forth the computation of basic and diluted loss per common share (EPS) (in millions, except share and per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted EPS: Net loss $ (1,250) $ (2,241) Weighted average common shares outstanding (in thousands) 634,609 425,713 Basic and diluted EPS $ (1.97) $ (5.26) |
Anti-Dilutive Securities Excluded From Calculation of Diluted EPS | Securities that could potentially dilute EPS in the future, and which were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive, are as follows (in thousands): Three Months Ended March 31, 2021 2020 6.50% convertible senior notes 61,728 — PSP1 Warrants 4,957 — Restricted stock unit awards 3,255 4,934 Treasury Loan Warrants 1,545 — PSP2 Warrants 520 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Entity Information [Line Items] | |
Disaggregation of Revenue | The following are the significant categories comprising our reported operating revenues (in millions): Three Months Ended March 31, 2021 2020 Passenger revenue: Passenger travel $ 2,893 $ 7,079 Loyalty revenue - travel (1) 286 602 Total passenger revenue 3,179 7,681 Cargo 315 147 Other: Loyalty revenue - marketing services (2) 457 571 Other revenue 57 116 Total other revenue 514 687 Total operating revenues $ 4,008 $ 8,515 (1) Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. (2) During the three months ended March 31, 2021 and 2020, cash payments from co-branded credit card and other partners was $1.0 billion and $1.3 billion, respectively. The following is our total passenger revenue by geographic region (in millions): Three Months Ended March 31, 2021 2020 Domestic $ 2,655 $ 5,780 Latin America 482 1,180 Atlantic 22 523 Pacific 20 198 Total passenger revenue $ 3,179 $ 7,681 |
Schedule of Contract Liabilities | March 31, 2021 December 31, 2020 (In millions) Loyalty program liability $ 9,378 $ 9,195 Air traffic liability 5,598 4,757 Total $ 14,976 $ 13,952 The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions): Balance at December 31, 2020 $ 9,195 Deferral of revenue 490 Recognition of revenue (1) (307) Balance at March 31, 2021 (2) $ 9,378 (1) Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period. |
American Airlines, Inc. | |
Entity Information [Line Items] | |
Disaggregation of Revenue | The following are the significant categories comprising American's reported operating revenues (in millions): Three Months Ended March 31, 2021 2020 Passenger revenue: Passenger travel $ 2,893 $ 7,079 Loyalty revenue - travel (1) 286 602 Total passenger revenue 3,179 7,681 Cargo 315 147 Other: Loyalty revenue - marketing services (2) 457 571 Other revenue 57 115 Total other revenue 514 686 Total operating revenues $ 4,008 $ 8,514 (1) Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. (2) During the three months ended March 31, 2021 and 2020, cash payments from co-branded credit card and other partners was $1.0 billion and $1.3 billion, respectively. The following is American's total passenger revenue by geographic region (in millions): Three Months Ended March 31, 2021 2020 Domestic $ 2,655 $ 5,780 Latin America 482 1,180 Atlantic 22 523 Pacific 20 198 Total passenger revenue $ 3,179 $ 7,681 |
Schedule of Contract Liabilities | March 31, 2021 December 31, 2020 (In millions) Loyalty program liability $ 9,378 $ 9,195 Air traffic liability 5,598 4,757 Total $ 14,976 $ 13,952 The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions): Balance at December 31, 2020 $ 9,195 Deferral of revenue 490 Recognition of revenue (1) (307) Balance at March 31, 2021 (2) $ 9,378 (1) Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instrument [Line Items] | |
Schedule of Long-Term Debt | Long-term debt included in the condensed consolidated balance sheets consisted of (in millions): March 31, 2021 December 31, 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.86%, installments through 2025 $ 1,788 $ 1,788 2013 Revolving Facility — 750 2014 Term Loan Facility, variable interest rate of 1.86%, installments through 2027 1,208 1,220 2014 Revolving Facility — 1,643 April 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 960 960 April 2016 Revolving Facility — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 1,200 1,200 11.75% senior secured notes, interest only payments until due in July 2025 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 200 200 Treasury Term Loan Facility — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.5%, installments beginning in July 2023 through April 2028 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 8.39%, averaging 3.95%, maturing from 2021 to 2032 10,652 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.28% to 5.83%, averaging 1.87%, maturing from 2021 to 2032 4,156 4,417 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 8.00%, maturing from 2021 to 2036 1,064 1,064 34,728 28,755 Unsecured PSP1 Promissory Note 1,765 1,765 PSP2 Promissory Note 896 — 6.50% convertible senior notes, interest only payments until due in July 2025 1,000 1,000 5.000% senior notes, interest only payments until due in June 2022 750 750 3.75% senior notes, interest only payments until due in March 2025 500 500 4,911 4,015 Total long-term debt 39,639 32,770 Less: Total unamortized debt discount, premium and issuance costs 515 749 Less: Current maturities 2,339 2,697 Long-term debt, net of current maturities $ 36,785 $ 29,324 |
Schedule of Line of Credit | As of March 31, 2021, the maximum availability under our revolving credit and other facilities is as follows (in millions): 2013 Revolving Facility $ 750 2014 Revolving Facility 1,643 April 2016 Revolving Facility 450 Short-term Revolving and Other Facilities 454 Total $ 3,297 |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Schedule of Long-Term Debt | Long-term debt included in the condensed consolidated balance sheets consisted of (in millions): March 31, 2021 December 31, 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.86%, installments through 2025 $ 1,788 $ 1,788 2013 Revolving Facility — 750 2014 Term Loan Facility, variable interest rate of 1.86%, installments through 2027 1,208 1,220 2014 Revolving Facility — 1,643 April 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 960 960 April 2016 Revolving Facility — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 1,200 1,200 11.75% senior secured notes, interest only payments until due in July 2025 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 200 200 Treasury Term Loan Facility — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.5%, installments beginning in July 2023 through April 2028 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 8.39%, averaging 3.95%, maturing from 2021 to 2032 10,652 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.28% to 5.83%, averaging 1.87%, maturing from 2021 to 2032 4,156 4,417 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 5.38%, maturing from 2021 to 2036 1,040 1,040 Total long-term debt 34,704 28,731 Less: Total unamortized debt discount, premium and issuance costs 479 321 Less: Current maturities 2,342 2,700 Long-term debt, net of current maturities $ 31,883 $ 25,710 |
Schedule of Line of Credit | As of March 31, 2021, the maximum availability under American's revolving credit and other facilities is as follows (in millions): 2013 Revolving Facility $ 750 2014 Revolving Facility 1,643 April 2016 Revolving Facility 450 Short-term Revolving and Other Facilities 454 Total $ 3,297 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of March 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 6,662 $ 6,662 $ — $ — Corporate obligations 4,123 — 4,123 — Bank notes/certificates of deposit/time deposits 2,257 — 2,257 — Repurchase agreements 720 — 720 — 13,762 6,662 7,100 — Restricted cash and short-term investments (1), (3) 806 606 200 — Long-term investments (4) 201 201 — — Total $ 14,769 $ 7,469 $ 7,300 $ — (1) All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses. (2) Our short-term investments mature in one year or less. (3) Restricted cash and short-term investments primarily include money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of Terminal 8 at JFK as well as collateral associated with the payment of certain fees and interest in respect of the AAdvantage Financing and collateral held to support workers' compensation obligations. (4) Long-term investments primarily include our equity investment in China Southern Airlines, in which we presently own a 1.8% equity interest, and are classified in other assets on the condensed consolidated balance sheet. |
Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities | The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 39,124 $ 40,325 $ 32,021 $ 30,454 |
American Airlines, Inc. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of March 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 6,648 $ 6,648 $ — $ — Corporate obligations 4,123 — 4,123 — Bank notes/certificates of deposit/time deposits 2,257 — 2,257 — Repurchase agreements 720 — 720 — 13,748 6,648 7,100 — Restricted cash and short-term investments (1), (3) 806 606 200 — Long-term investments (4) 201 201 — — Total $ 14,755 $ 7,455 $ 7,300 $ — (1) All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses. (2) American’s short-term investments mature in one year or less. (3) Restricted cash and short-term investments primarily include money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of Terminal 8 at JFK as well as collateral associated with the payment of certain fees and interest in respect of the AAdvantage Financing and collateral held to support workers' compensation obligations. (4) Long-term investments primarily include American's equity investment in China Southern Airlines, in which American presently owns a 1.8% equity interest, and are classified in other assets on the condensed consolidated balance sheet. |
Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities | The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 34,225 $ 35,328 $ 28,410 $ 27,193 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Benefit Cost (Income) | The following table provides the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Three Months Ended March 31, 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 2 $ 1 Interest cost 131 153 6 7 Expected return on assets (272) (252) (3) (4) Special termination benefits — — 139 — Amortization of: Prior service cost (benefit) 7 7 (3) (54) Unrecognized net loss (gain) 53 41 (6) (6) Net periodic benefit cost (income) $ (80) $ (50) $ 135 $ (56) |
American Airlines, Inc. | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Benefit Cost (Income) | The following table provides the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Three Months Ended March 31, 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 2 $ 1 Interest cost 130 152 6 7 Expected return on assets (270) (251) (3) (4) Special termination benefits — — 139 — Amortization of: Prior service cost (benefit) 7 7 (3) (54) Unrecognized net loss (gain) 52 41 (6) (6) Net periodic benefit cost (income) $ (80) $ (50) $ 135 $ (56) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss (AOCI) are as follows (in millions): Pension, Unrealized Gain (Loss) on Investments Income Tax Benefit (Provision) (1) Total Balance at December 31, 2020 $ (6,236) $ (2) $ (865) $ (7,103) Other comprehensive income (loss) before reclassifications 35 — (8) 27 Amounts reclassified from AOCI 51 — (11) (2) 40 Net current-period other comprehensive income (loss) 86 — (19) 67 Balance at March 31, 2021 $ (6,150) $ (2) $ (884) $ (7,036) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net loss until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax benefit on the condensed consolidated statement of operations. |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCI are as follows (in millions): Amounts reclassified from AOCI Affected line items on the AOCI Components Three Months Ended March 31, 2021 2020 Amortization of pension, retiree medical Prior service cost (benefit) $ 3 $ (36) Nonoperating other income (expense), net Actuarial loss 37 27 Nonoperating other income (expense), net Total reclassifications for the period, $ 40 $ (9) |
American Airlines, Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss (AOCI) are as follows (in millions): Pension, Unrealized Gain (Loss) on Investments Income Tax Benefit (Provision) (1) Total Balance at December 31, 2020 $ (6,215) $ (2) $ (977) $ (7,194) Other comprehensive income (loss) before reclassifications 35 — (8) 27 Amounts reclassified from AOCI 50 — (11) (2) 39 Net current-period other comprehensive income (loss) 85 — (19) 66 Balance at March 31, 2021 $ (6,130) $ (2) $ (996) $ (7,128) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net loss until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax benefit on the condensed consolidated statement of operations. |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCI are as follows (in millions): Amounts reclassified from AOCI Affected line items on the condensed consolidated statements of operations AOCI Components Three Months Ended March 31, 2021 2020 Amortization of pension, retiree medical Prior service cost (benefit) $ 3 $ (36) Nonoperating other income (expense), net Actuarial loss 36 27 Nonoperating other income (expense), net Total reclassifications for the period, $ 39 $ (9) |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
American Airlines, Inc. | |
Entity Information [Line Items] | |
Summary of Net Receivables (Payables) to Related Parties | The following represents the net receivables (payables) to related parties (in millions): March 31, 2021 December 31, 2020 AAG (1) $ 8,822 $ 9,940 AAG’s wholly-owned subsidiaries (2) (2,175) (2,063) Total $ 6,647 $ 7,877 (1) The decrease in American’s net related party receivable from AAG is primarily due to cash received from the proceeds of AAG financing transactions including the PSP2 Promissory Note and the issuance of shares of AAG common stock pursuant to an at-the-market offering. (2) The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle. |
Basis of Presentation and Rec_3
Basis of Presentation and Recent Accounting Pronouncements (Details) | Jan. 15, 2021USD ($)$ / sharesshares | Jan. 31, 2021USD ($) | Mar. 31, 2021USD ($)member$ / sharesshares | Mar. 24, 2021USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 21, 2020USD ($) | Sep. 25, 2020USD ($) | Jun. 30, 2020 |
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Decrease in flying compared to prior year period (in percentage) | 39.20% | ||||||||
Decrease in domestic capacity in percentage | 36.80% | ||||||||
Decrease in international capacity in percentage | 45.10% | ||||||||
Number of team members opting for early retirement or long-term paid leave (more than) | member | 1,600 | ||||||||
Available liquidity | $ 17,300,000,000 | ||||||||
Unrestricted cash and short-term investments | 14,000,000,000 | ||||||||
Line of credit facility, remaining borrowing capacity | $ 3,297,000,000 | ||||||||
Issuance of shares of AAG common stock pursuant to a public stock offering (in shares) | shares | 18,194,573 | ||||||||
Minimum liquidity | $ 2,000,000,000 | ||||||||
Retained deficit | $ (7,895,000,000) | $ (6,664,000,000) | |||||||
At-The-Market Offering | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Issuance of shares of AAG common stock pursuant to a public stock offering (in shares) | shares | 18,200,000 | ||||||||
Price per share (in dollars per share) | $ / shares | $ 17.59 | ||||||||
Proceeds from issuance of common stock | $ 316,000,000 | ||||||||
US Department of the Treasury, CARES Act, Payroll Support Program Two | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Financial assistance received under the CARES Act | $ 3,100,000,000 | $ 3,100,000,000 | |||||||
Payroll Support Program Promissory Note Two, CARES Act | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | $ 896,000,000 | $ 896,000,000 | |||||||
Warrants, number of warrant shares of common stock | shares | 5,700,000 | 5,700,000 | |||||||
Increase in debt instrument face amount for each disbursement received | 30.00% | ||||||||
Prepayment term, number of days of the occurrence of triggering event | 30 days | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 15.66 | ||||||||
Additional warrants, percentage of borrowing | 0.10 | ||||||||
Payroll Support Program Promissory Note Two, CARES Act | Interest Rate First Five Years | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Stated interest rate | 1.00% | ||||||||
Payroll Support Program Promissory Note Two, CARES Act | Interest Rate Years Six Through Ten | Secured Overnight Financing Rate or Other | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||
Basis spread on variable rate, floor | 0.00% | ||||||||
PSP2 Warrants | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | $ 65,000,000 | ||||||||
Other PSP2 Financial Assistance, CARES Act | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | 2,100,000,000 | ||||||||
Financial assistance received under the CARES Act | $ 2,100,000,000 | ||||||||
Senior Notes | 5.50% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | $ 3,500,000,000 | $ 3,500,000,000 | |||||||
Stated interest rate | 5.50% | 5.50% | |||||||
Senior Notes | 5.75% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | $ 3,000,000,000 | $ 3,000,000,000 | |||||||
Stated interest rate | 5.75% | 5.75% | |||||||
Senior Notes | Term Loan Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | $ 3,500,000,000 | ||||||||
Senior Notes | 6.50% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Debt instrument, face amount | 1,000,000,000 | ||||||||
Stated interest rate | 6.50% | ||||||||
Senior Notes | 6.50% Senior Notes | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Equity component of convertible debt issued, net of tax and offering costs | 415,000,000 | ||||||||
Reduction of additional paid in capital, equity component of convertible debt, net of tax and offering costs | $ 320,000,000 | ||||||||
Retained deficit | $ 19,000,000 | ||||||||
Reduction of unamortized discount | $ 389,000,000 | ||||||||
Secured Debt | 5.50% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Stated interest rate | 5.50% | ||||||||
Secured Debt | 5.75% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Stated interest rate | 5.75% | ||||||||
Revolving Credit Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | $ 2,800,000,000 | ||||||||
Revolving Credit Facility | Short-term Revolving and Other Facilities | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 454,000,000 | ||||||||
Revolving Credit Facility | 2013 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 750,000,000 | ||||||||
Debt instrument, face amount | 0 | ||||||||
Revolving Credit Facility | 2014 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | ||||||||
Debt instrument, face amount | 0 | ||||||||
Revolving Credit Facility | April 2016 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 450,000,000 | ||||||||
Debt instrument, face amount | 0 | ||||||||
American Airlines, Inc. | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Available liquidity | 17,300,000,000 | ||||||||
Unrestricted cash and short-term investments | 14,000,000,000 | ||||||||
Line of credit facility, remaining borrowing capacity | 3,297,000,000 | ||||||||
Retained deficit | $ (6,723,000,000) | $ (5,508,000,000) | |||||||
American Airlines, Inc. | Secured Debt | 5.50% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Stated interest rate | 5.50% | ||||||||
American Airlines, Inc. | Secured Debt | 5.75% Senior Notes | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Stated interest rate | 5.75% | ||||||||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Proceeds from sale-leaseback transactions | $ 99,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 2,800,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | Short-term Revolving and Other Facilities | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 454,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | 2013 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 750,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | 2014 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | April 2016 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | 450,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | 2013 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Repayments of long-term debt | 750,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | 2014 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Repayments of long-term debt | 1,600,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | April 2016 Revolving Facility | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Repayments of long-term debt | 450,000,000 | ||||||||
American Airlines, Inc. | Line of Credit | Treasury Loan Agreement, CARES Act | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Repayments of long-term debt | 550,000,000 | ||||||||
Line of credit facility, maximum borrowing capacity | $ 7,500,000,000 | $ 7,500,000,000 | $ 5,500,000,000 |
Special Items, Net (Details)
Special Items, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Operating special items, net | $ (1,923) | $ 1,225 |
Mark-to-market adjustments on equity and other investments, net | (49) | 180 |
Debt refinancing, extinguishment and other, net | 26 | 37 |
Nonoperating special items, net | (23) | 217 |
Payments for salary and medical costs | 170 | |
Write-down of aircraft and spare parts | 27 | 764 |
Write-offs of ROU assets and lease return costs | 73 | |
American Airlines, Inc. | ||
Restructuring Cost and Reserve [Line Items] | ||
Operating special items, net | (1,925) | 1,225 |
Mark-to-market adjustments on equity and other investments, net | (49) | 180 |
Debt refinancing, extinguishment and other, net | 26 | 37 |
Nonoperating special items, net | (23) | 217 |
Payments for salary and medical costs | 170 | |
Write-down of aircraft and spare parts | 27 | 764 |
Write-offs of ROU assets and lease return costs | 73 | |
Mainline | ||
Restructuring Cost and Reserve [Line Items] | ||
PSP2 Financial Assistance | (1,882) | 0 |
Severance expenses | 168 | 205 |
Mark-to-market adjustments on bankruptcy obligations, net | 6 | (50) |
Fleet impairment | 0 | 744 |
Labor contract expenses | 0 | 218 |
Other operating special items, net | 0 | 15 |
Operating special items, net | (1,708) | 1,132 |
Mainline | American Airlines, Inc. | ||
Restructuring Cost and Reserve [Line Items] | ||
PSP2 Financial Assistance | (1,882) | 0 |
Severance expenses | 168 | 205 |
Mark-to-market adjustments on bankruptcy obligations, net | 6 | (50) |
Fleet impairment | 0 | 744 |
Labor contract expenses | 0 | 218 |
Other operating special items, net | 0 | 15 |
Operating special items, net | (1,708) | 1,132 |
Regional Carrier | ||
Restructuring Cost and Reserve [Line Items] | ||
PSP2 Financial Assistance | (244) | 0 |
Severance expenses | 2 | 0 |
Fleet impairment | 27 | 93 |
Operating special items, net | (215) | 93 |
Regional Carrier | American Airlines, Inc. | ||
Restructuring Cost and Reserve [Line Items] | ||
PSP2 Financial Assistance | (244) | 0 |
Fleet impairment | 27 | 93 |
Operating special items, net | $ (217) | $ 93 |
Loss Per Common Share (Details)
Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic and diluted EPS: | ||
Net loss | $ (1,250) | $ (2,241) |
Basic (in shares) | 634,609 | 425,713 |
Diluted (in shares) | 634,609 | 425,713 |
Basic EPS (in dollars per share) | $ (1.97) | $ (5.26) |
Diluted EPS (in dollars per share) | $ (1.97) | $ (5.26) |
Restricted stock unit awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 3,255 | 4,934 |
Warrant | PSP1 Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 4,957 | 0 |
Warrant | Treasury Loan Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 1,545 | 0 |
Warrant | PSP2 Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 520 | 0 |
6.50% convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 61,728 | 0 |
Revenue Recognition - Significa
Revenue Recognition - Significant Categories of Reported Operating Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Operating revenues | $ 4,008 | $ 8,515 |
Passenger | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 3,179 | 7,681 |
Passenger travel | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 2,893 | 7,079 |
Loyalty revenue - travel | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 286 | 602 |
Cargo | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 315 | 147 |
Other | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 514 | 687 |
Loyalty revenue - marketing services | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 457 | 571 |
Co-branded credit card and other partners | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 1,000 | 1,300 |
Other revenue | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 57 | 116 |
American Airlines, Inc. | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 4,008 | 8,514 |
American Airlines, Inc. | Passenger | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 3,179 | 7,681 |
American Airlines, Inc. | Passenger travel | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 2,893 | 7,079 |
American Airlines, Inc. | Loyalty revenue - travel | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 286 | 602 |
American Airlines, Inc. | Cargo | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 315 | 147 |
American Airlines, Inc. | Other | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 514 | 686 |
American Airlines, Inc. | Loyalty revenue - marketing services | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 457 | 571 |
American Airlines, Inc. | Co-branded credit card and other partners | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | 1,000 | 1,300 |
American Airlines, Inc. | Other revenue | ||
Revenue from External Customer [Line Items] | ||
Operating revenues | $ 57 | $ 115 |
Revenue Recognition - Passenger
Revenue Recognition - Passenger Revenue by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Airline Destination Disclosure [Line Items] | ||
Operating revenues | $ 4,008 | $ 8,515 |
Passenger | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 3,179 | 7,681 |
Passenger | Domestic | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 2,655 | 5,780 |
Passenger | Latin America | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 482 | 1,180 |
Passenger | Atlantic | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 22 | 523 |
Passenger | Pacific | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 20 | 198 |
American Airlines, Inc. | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 4,008 | 8,514 |
American Airlines, Inc. | Passenger | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 3,179 | 7,681 |
American Airlines, Inc. | Passenger | Domestic | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 2,655 | 5,780 |
American Airlines, Inc. | Passenger | Latin America | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 482 | 1,180 |
American Airlines, Inc. | Passenger | Atlantic | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | 22 | 523 |
American Airlines, Inc. | Passenger | Pacific | ||
Airline Destination Disclosure [Line Items] | ||
Operating revenues | $ 20 | $ 198 |
Revenue Recognition - Signifi_2
Revenue Recognition - Significant Contract Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | $ 14,976 | $ 13,952 |
Loyalty program liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 9,378 | 9,195 |
Air traffic liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 5,598 | 4,757 |
American Airlines, Inc. | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 14,976 | 13,952 |
American Airlines, Inc. | Loyalty program liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 9,378 | 9,195 |
American Airlines, Inc. | Air traffic liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | $ 5,598 | $ 4,757 |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Loyalty Program Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 13,952 | |
Ending balance | 14,976 | |
Loyalty program liability | ||
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 9,195 | |
Deferral of revenue | 490 | |
Recognition of revenue | (307) | |
Ending balance | $ 9,378 | |
Inactive period before expiration of mileage credits | 18 months | |
Deferred revenue, current | $ 2,323 | $ 2,033 |
Revenue recognition term | 12 months | |
American Airlines, Inc. | ||
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 13,952 | |
Ending balance | 14,976 | |
American Airlines, Inc. | Loyalty program liability | ||
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 9,195 | |
Deferral of revenue | 490 | |
Recognition of revenue | (307) | |
Ending balance | 9,378 | |
Deferred revenue, current | $ 2,323 | $ 2,033 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - Air traffic liability $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Disaggregation of Revenue [Line Items] | |
Contract term | one year |
Revenue recognition term | 12 months |
Recognition of revenue | $ 838 |
Travel credits related to unused tickets | $ 2,100 |
New revenue recognition term in response to Covid-19 | 12 months |
American Airlines, Inc. | |
Disaggregation of Revenue [Line Items] | |
Recognition of revenue | $ 838 |
Debt - Components of Long-Term
Debt - Components of Long-Term Debt (Details) - USD ($) | Mar. 31, 2021 | Mar. 24, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 39,639,000,000 | $ 32,770,000,000 | |
Less: Total unamortized debt discount, premium and issuance costs | 515,000,000 | 749,000,000 | |
Less: Current maturities | 2,339,000,000 | 2,697,000,000 | |
Long-term debt, net of current maturities | 36,785,000,000 | 29,324,000,000 | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 34,728,000,000 | 28,755,000,000 | |
Secured Debt | 2013 Revolving Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,788,000,000 | 1,788,000,000 | |
Variable interest rate | 1.86% | ||
Secured Debt | 2013 Revolving Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 750,000,000 | |
Secured Debt | 2014 Revolving Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,208,000,000 | 1,220,000,000 | |
Variable interest rate | 1.86% | ||
Secured Debt | 2014 Revolving Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 1,643,000,000 | |
Secured Debt | April 2016 Revolving Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 960,000,000 | 960,000,000 | |
Variable interest rate | 2.11% | ||
Secured Debt | April 2016 Revolving Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 450,000,000 | |
Secured Debt | December 2016 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,200,000,000 | 1,200,000,000 | |
Variable interest rate | 2.11% | ||
Secured Debt | 11.75% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 2,500,000,000 | 2,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 11.75% | ||
Secured Debt | 10.75% Senior Secured Notes, IP Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.75% | ||
Secured Debt | 10.75% Senior Secured Notes, LGA/DCA Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 200,000,000 | 200,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.75% | ||
Secured Debt | Treasury Loan Agreement, CARES Act | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 550,000,000 | |
Secured Debt | 5.50% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,500,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
Secured Debt | 5.75% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,000,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||
Secured Debt | AAdvantage Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,500,000,000 | $ 3,500,000,000 | 0 |
Variable interest rate | 5.50% | ||
Secured Debt | AAdvantage Term Loan Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 0.75% | ||
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 10,652,000,000 | 11,013,000,000 | |
Average interest rate | 3.95% | ||
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.39% | ||
Secured Debt | Equipment Loans and Other Notes Payable | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 4,156,000,000 | 4,417,000,000 | |
Average interest rate | 1.87% | ||
Secured Debt | Equipment Loans and Other Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.28% | ||
Secured Debt | Equipment Loans and Other Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.83% | ||
Secured Debt | Special Facility Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,064,000,000 | 1,064,000,000 | |
Secured Debt | Special Facility Revenue Bonds | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Secured Debt | Special Facility Revenue Bonds | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 4,911,000,000 | 4,015,000,000 | |
Unsecured Debt | Payroll Support Program Promissory Note One, CARES Act | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 1,765,000,000 | 1,765,000,000 | |
Unsecured Debt | Payroll Support Program Promissory Note Two, CARES Act | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 896,000,000 | 0 | |
Unsecured Debt | 6.50% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||
Unsecured Debt | 5.000% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 750,000,000 | 750,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Unsecured Debt | 3.75% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 500,000,000 | 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||
American Airlines, Inc. | |||
Debt Instrument [Line Items] | |||
Less: Total unamortized debt discount, premium and issuance costs | $ 479,000,000 | 321,000,000 | |
Less: Current maturities | 2,342,000,000 | 2,700,000,000 | |
Long-term debt, net of current maturities | 31,883,000,000 | 25,710,000,000 | |
American Airlines, Inc. | Secured Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 34,704,000,000 | 28,731,000,000 | |
American Airlines, Inc. | Secured Debt | 2013 Revolving Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,788,000,000 | 1,788,000,000 | |
Variable interest rate | 1.86% | ||
American Airlines, Inc. | Secured Debt | 2013 Revolving Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 750,000,000 | |
American Airlines, Inc. | Secured Debt | 2014 Revolving Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,208,000,000 | 1,220,000,000 | |
Variable interest rate | 1.86% | ||
American Airlines, Inc. | Secured Debt | 2014 Revolving Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 1,643,000,000 | |
American Airlines, Inc. | Secured Debt | April 2016 Revolving Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 960,000,000 | 960,000,000 | |
Variable interest rate | 2.11% | ||
American Airlines, Inc. | Secured Debt | April 2016 Revolving Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 450,000,000 | |
American Airlines, Inc. | Secured Debt | December 2016 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,200,000,000 | 1,200,000,000 | |
Variable interest rate | 2.11% | ||
American Airlines, Inc. | Secured Debt | 11.75% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 2,500,000,000 | 2,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 11.75% | ||
American Airlines, Inc. | Secured Debt | 10.75% Senior Secured Notes, IP Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.75% | ||
American Airlines, Inc. | Secured Debt | 10.75% Senior Secured Notes, LGA/DCA Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 200,000,000 | 200,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.75% | ||
American Airlines, Inc. | Secured Debt | Treasury Loan Agreement, CARES Act | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 550,000,000 | |
American Airlines, Inc. | Secured Debt | 5.50% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,500,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
American Airlines, Inc. | Secured Debt | 5.75% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,000,000,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||
American Airlines, Inc. | Secured Debt | AAdvantage Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,500,000,000 | 0 | |
Variable interest rate | 5.50% | ||
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 10,652,000,000 | 11,013,000,000 | |
Average interest rate | 3.95% | ||
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.39% | ||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 4,156,000,000 | 4,417,000,000 | |
Average interest rate | 1.87% | ||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.28% | ||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.83% | ||
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,040,000,000 | $ 1,040,000,000 | |
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.38% |
Debt - Schedule of Line of Cred
Debt - Schedule of Line of Credit (Details) $ in Millions | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 3,297 |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 3,297 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 2,800 |
Revolving Credit Facility | 2013 Revolving Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 750 |
Revolving Credit Facility | 2014 Revolving Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 1,643 |
Revolving Credit Facility | April 2016 Revolving Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 450 |
Revolving Credit Facility | Short-term Revolving and Other Facilities | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 454 |
Revolving Credit Facility | American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 2,800 |
Revolving Credit Facility | American Airlines, Inc. | 2013 Revolving Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 750 |
Revolving Credit Facility | American Airlines, Inc. | 2014 Revolving Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 1,643 |
Revolving Credit Facility | American Airlines, Inc. | April 2016 Revolving Facility | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 450 |
Revolving Credit Facility | American Airlines, Inc. | Short-term Revolving and Other Facilities | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 454 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 20, 2026USD ($) | Jul. 31, 2023USD ($) | Jul. 20, 2023USD ($) | Mar. 24, 2021USD ($) | Jan. 15, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Oct. 21, 2020USD ($) | Sep. 25, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | $ 3,297,000,000 | ||||||||||
Total long-term debt | 39,639,000,000 | $ 32,770,000,000 | |||||||||
Payroll Support Program Promissory Note Two, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 896,000,000 | $ 896,000,000 | |||||||||
Increase in debt instrument face amount for each disbursement received | 30.00% | ||||||||||
Prepayment term, number of days of the occurrence of triggering event | 30 days | ||||||||||
Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 34,728,000,000 | 28,755,000,000 | |||||||||
Secured Debt | 2013 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 1,788,000,000 | 1,788,000,000 | |||||||||
Variable interest rate | 1.86% | ||||||||||
Secured Debt | 2014 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 1,208,000,000 | 1,220,000,000 | |||||||||
Variable interest rate | 1.86% | ||||||||||
Secured Debt | April 2016 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 960,000,000 | 960,000,000 | |||||||||
Variable interest rate | 2.11% | ||||||||||
Secured Debt | 5.50% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.50% | ||||||||||
Total long-term debt | $ 3,500,000,000 | 0 | |||||||||
Secured Debt | 5.75% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.75% | ||||||||||
Total long-term debt | $ 3,000,000,000 | 0 | |||||||||
Secured Debt | AAdvantage Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 3,500,000,000 | $ 3,500,000,000 | 0 | ||||||||
Debt redemption price percentage | 100.00% | ||||||||||
Variable interest rate | 5.50% | ||||||||||
Mandatory prepayment trigger, net proceeds from pre-paid frequent flyer | 500,000,000 | ||||||||||
Mandatory prepayment amount, threshold net proceeds from pre-paid frequent flyer | 505,000,000 | ||||||||||
Covenant terms, threshold net proceeds from pre-paid frequent flyer | $ 550,000,000 | ||||||||||
Percentage of cash receipts saved in collection account (at least) | 0.90 | ||||||||||
Covenant terms, minimum liquidity | $ 2,000,000,000 | ||||||||||
Secured Debt | AAdvantage Term Loan Facility | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate | 0.75% | ||||||||||
Secured Debt | LIBOR | AAdvantage Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 4.75% | ||||||||||
Senior Notes | 6.50% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 6.50% | ||||||||||
If-converted value in excess of principal amount | $ 475,000,000 | ||||||||||
Conversion terms, percentage sales price exceeds conversion price | 130.00% | ||||||||||
Conversion ratio | 0.0617284 | ||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||
Senior Notes | 5.50% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.50% | 5.50% | |||||||||
Debt instrument, face amount | $ 3,500,000,000 | $ 3,500,000,000 | |||||||||
Senior Notes | 5.75% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.75% | 5.75% | |||||||||
Debt instrument, face amount | $ 3,000,000,000 | $ 3,000,000,000 | |||||||||
Senior Notes | Forecast | 5.50% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Quarterly installments | $ 292,000,000 | ||||||||||
Senior Notes | Forecast | 5.75% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Quarterly installments | $ 250,000,000 | ||||||||||
Senior Notes | Forecast | AAdvantage Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Quarterly installments | $ 175,000,000 | ||||||||||
Line of Credit | Treasury Loan Agreement, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of debt | $ 550,000,000 | ||||||||||
Line of Credit | Secured Debt | Treasury Loan Agreement, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 550,000,000 | |||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 2,800,000,000 | ||||||||||
Revolving Credit Facility | 2013 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 750,000,000 | ||||||||||
Repayments of debt | 750,000,000 | ||||||||||
Debt instrument, face amount | 0 | ||||||||||
Revolving Credit Facility | 2014 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | ||||||||||
Repayments of debt | 1,600,000,000 | ||||||||||
Debt instrument, face amount | 0 | ||||||||||
Revolving Credit Facility | April 2016 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 450,000,000 | ||||||||||
Repayments of debt | 450,000,000 | ||||||||||
Debt instrument, face amount | 0 | ||||||||||
Revolving Credit Facility | Secured Debt | 2013 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 750,000,000 | |||||||||
Revolving Credit Facility | Secured Debt | 2014 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 1,643,000,000 | |||||||||
Revolving Credit Facility | Secured Debt | April 2016 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 450,000,000 | |||||||||
Interest Rate First Five Years | Payroll Support Program Promissory Note Two, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 1.00% | ||||||||||
Interest Rate Years Six Through Ten | Secured Overnight Financing Rate or Other | Payroll Support Program Promissory Note Two, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||
Basis spread on variable rate, floor | 0.00% | ||||||||||
American Airlines, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 3,297,000,000 | ||||||||||
American Airlines, Inc. | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 34,704,000,000 | 28,731,000,000 | |||||||||
American Airlines, Inc. | Secured Debt | 2013 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 1,788,000,000 | 1,788,000,000 | |||||||||
Variable interest rate | 1.86% | ||||||||||
American Airlines, Inc. | Secured Debt | 2014 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 1,208,000,000 | 1,220,000,000 | |||||||||
Variable interest rate | 1.86% | ||||||||||
American Airlines, Inc. | Secured Debt | April 2016 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 960,000,000 | 960,000,000 | |||||||||
Variable interest rate | 2.11% | ||||||||||
American Airlines, Inc. | Secured Debt | 5.50% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.50% | ||||||||||
Total long-term debt | $ 3,500,000,000 | 0 | |||||||||
American Airlines, Inc. | Secured Debt | 5.75% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 5.75% | ||||||||||
Total long-term debt | $ 3,000,000,000 | 0 | |||||||||
American Airlines, Inc. | Secured Debt | AAdvantage Term Loan Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 3,500,000,000 | 0 | |||||||||
Variable interest rate | 5.50% | ||||||||||
American Airlines, Inc. | Line of Credit | Treasury Loan Agreement, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 7,500,000,000 | $ 7,500,000,000 | $ 5,500,000,000 | ||||||||
Borrowings from credit facilities | $ 550,000,000 | ||||||||||
American Airlines, Inc. | Line of Credit | Secured Debt | Treasury Loan Agreement, CARES Act | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 550,000,000 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 2,800,000,000 | ||||||||||
American Airlines, Inc. | Revolving Credit Facility | 2013 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 750,000,000 | ||||||||||
American Airlines, Inc. | Revolving Credit Facility | 2014 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | ||||||||||
American Airlines, Inc. | Revolving Credit Facility | April 2016 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 450,000,000 | ||||||||||
American Airlines, Inc. | Revolving Credit Facility | Other Short-term Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 400,000,000 | ||||||||||
Line of credit facility, maximum borrowing capacity, with election of option to extend | 500,000,000 | ||||||||||
American Airlines, Inc. | Revolving Credit Facility | Cargo Receivable Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, remaining borrowing capacity | 54,000,000 | ||||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | 2013 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 750,000,000 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | 2014 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | 0 | 1,643,000,000 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | April 2016 Revolving Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total long-term debt | $ 0 | $ 450,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
Deferred tax assets, valuation allowance | $ 34 | ||
Income tax benefit | (323) | $ (649) | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards | $ 16,500 | ||
NOL carryforward subject to expiration | 8,500 | ||
NOL carryforward not subject to expiration | 8,000 | ||
State | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards | 5,000 | ||
American Airlines, Inc. | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax assets, valuation allowance | 24 | ||
Income tax benefit | $ (314) | $ (628) | |
American Airlines, Inc. | Federal | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards | 16,500 | ||
NOL carryforward subject to expiration | 8,900 | ||
NOL carryforward not subject to expiration | 7,600 | ||
American Airlines, Inc. | State | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards | $ 5,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 13,762 | $ 6,619 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13,762 | |
Restricted cash and short-term investments | 806 | |
Long-term investments | 201 | |
Total | 14,769 | |
Recurring | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,662 | |
Recurring | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,123 | |
Recurring | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,257 | |
Recurring | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 720 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,662 | |
Restricted cash and short-term investments | 606 | |
Long-term investments | 201 | |
Total | 7,469 | |
Recurring | Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,662 | |
Recurring | Level 1 | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 1 | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 1 | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 7,100 | |
Restricted cash and short-term investments | 200 | |
Long-term investments | 0 | |
Total | 7,300 | |
Recurring | Level 2 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 2 | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,123 | |
Recurring | Level 2 | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,257 | |
Recurring | Level 2 | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 720 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Restricted cash and short-term investments | 0 | |
Long-term investments | 0 | |
Total | 0 | |
Recurring | Level 3 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 3 | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 3 | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Recurring | Level 3 | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13,748 | $ 6,617 |
American Airlines, Inc. | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13,748 | |
Restricted cash and short-term investments | 806 | |
Long-term investments | 201 | |
Total | 14,755 | |
American Airlines, Inc. | Recurring | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,648 | |
American Airlines, Inc. | Recurring | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,123 | |
American Airlines, Inc. | Recurring | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,257 | |
American Airlines, Inc. | Recurring | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 720 | |
American Airlines, Inc. | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,648 | |
Restricted cash and short-term investments | 606 | |
Long-term investments | 201 | |
Total | 7,455 | |
American Airlines, Inc. | Recurring | Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 6,648 | |
American Airlines, Inc. | Recurring | Level 1 | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 1 | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 1 | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 7,100 | |
Restricted cash and short-term investments | 200 | |
Long-term investments | 0 | |
Total | 7,300 | |
American Airlines, Inc. | Recurring | Level 2 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 2 | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,123 | |
American Airlines, Inc. | Recurring | Level 2 | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,257 | |
American Airlines, Inc. | Recurring | Level 2 | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 720 | |
American Airlines, Inc. | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Restricted cash and short-term investments | 0 | |
Long-term investments | 0 | |
Total | 0 | |
American Airlines, Inc. | Recurring | Level 3 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 3 | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 3 | Bank Notes / Certificates of Deposit / Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Level 3 | Repurchase Agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | |
China Southern Airlines | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Ownership percentage | 1.80% | |
China Southern Airlines | American Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Ownership percentage | 1.80% |
Fair Value Measurements and O_2
Fair Value Measurements and Other Investments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 2,700 | $ 2,300 |
Level 3 | American Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 550 | |
Level 2 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 40,325 | 30,454 |
Level 2 | Convertible Note | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 1,700 | 1,200 |
Level 2 | American Airlines, Inc. | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 35,328 | $ 27,193 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 39,124 | $ 32,021 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 40,325 | 30,454 |
American Airlines, Inc. | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 34,225 | 28,410 |
American Airlines, Inc. | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 35,328 | $ 27,193 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1 | $ 1 |
Interest cost | 131 | 153 |
Expected return on assets | (272) | (252) |
Special termination benefits | 0 | 0 |
Amortization of: | ||
Prior service cost (benefit) | 7 | 7 |
Unrecognized net loss (gain) | 53 | 41 |
Net periodic benefit cost (income) | (80) | (50) |
Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 6 | 7 |
Expected return on assets | (3) | (4) |
Special termination benefits | 139 | 0 |
Amortization of: | ||
Prior service cost (benefit) | (3) | (54) |
Unrecognized net loss (gain) | (6) | (6) |
Net periodic benefit cost (income) | 135 | (56) |
American Airlines, Inc. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 130 | 152 |
Expected return on assets | (270) | (251) |
Special termination benefits | 0 | 0 |
Amortization of: | ||
Prior service cost (benefit) | 7 | 7 |
Unrecognized net loss (gain) | 52 | 41 |
Net periodic benefit cost (income) | (80) | (50) |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 6 | 7 |
Expected return on assets | (3) | (4) |
Special termination benefits | 139 | 0 |
Amortization of: | ||
Prior service cost (benefit) | (3) | (54) |
Unrecognized net loss (gain) | (6) | (6) |
Net periodic benefit cost (income) | $ 135 | $ (56) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retiree Medical and Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Special termination benefits | $ (139) | $ 0 | |
Retiree Medical and Other Postretirement Benefits | American Airlines, Inc. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Special termination benefits | (139) | 0 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Special termination benefits | 0 | 0 | |
Defined benefit plan, contributed amount | $ 241 | ||
Contributions expected to be deferred under CARES Act | 130 | ||
Pension Benefits | American Airlines, Inc. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Special termination benefits | $ 0 | $ 0 | |
Defined benefit plan, contributed amount | 241 | ||
Contributions expected to be deferred under CARES Act | $ 130 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI tax, attributable to parent [Roll Forward] | ||
Beginning balance, tax | $ (865) | |
Other comprehensive loss before reclassifications, tax | (8) | |
Amounts reclassified from AOCI, tax | (11) | |
Net current-period other comprehensive income (loss), tax | (19) | |
Ending balance, tax | (884) | |
AOCI attributable to parent, net of tax [Roll Forward] | ||
Beginning balance, net of tax | (7,103) | |
Other comprehensive loss before reclassifications, net of tax | 27 | |
Amounts reclassified from AOCI, net of tax | 40 | |
Total other comprehensive income (loss), net of tax | 67 | $ (149) |
Ending balance, net of tax | (7,036) | |
Pension, Retiree Medical and Other Postretirement Benefits | ||
AOCI attributable to parent, before tax [Roll Forward] | ||
Beginning balance, before tax | (6,236) | |
Other comprehensive loss before reclassifications, before tax | 35 | |
Amounts reclassified from AOCI, before tax | 51 | |
Net current-period other comprehensive income (loss), before tax | 86 | |
Ending balance, before tax | (6,150) | |
Unrealized Gain (Loss) on Investments | ||
AOCI attributable to parent, before tax [Roll Forward] | ||
Beginning balance, before tax | (2) | |
Other comprehensive loss before reclassifications, before tax | 0 | |
Amounts reclassified from AOCI, before tax | 0 | |
Net current-period other comprehensive income (loss), before tax | 0 | |
Ending balance, before tax | (2) | |
American Airlines, Inc. | ||
AOCI tax, attributable to parent [Roll Forward] | ||
Beginning balance, tax | (977) | |
Other comprehensive loss before reclassifications, tax | (8) | |
Amounts reclassified from AOCI, tax | (11) | |
Net current-period other comprehensive income (loss), tax | (19) | |
Ending balance, tax | (996) | |
AOCI attributable to parent, net of tax [Roll Forward] | ||
Beginning balance, net of tax | (7,194) | |
Other comprehensive loss before reclassifications, net of tax | 27 | |
Amounts reclassified from AOCI, net of tax | 39 | |
Total other comprehensive income (loss), net of tax | 66 | $ (149) |
Ending balance, net of tax | (7,128) | |
American Airlines, Inc. | Pension, Retiree Medical and Other Postretirement Benefits | ||
AOCI attributable to parent, before tax [Roll Forward] | ||
Beginning balance, before tax | (6,215) | |
Other comprehensive loss before reclassifications, before tax | 35 | |
Amounts reclassified from AOCI, before tax | 50 | |
Net current-period other comprehensive income (loss), before tax | 85 | |
Ending balance, before tax | (6,130) | |
American Airlines, Inc. | Unrealized Gain (Loss) on Investments | ||
AOCI attributable to parent, before tax [Roll Forward] | ||
Beginning balance, before tax | (2) | |
Other comprehensive loss before reclassifications, before tax | 0 | |
Amounts reclassified from AOCI, before tax | 0 | |
Net current-period other comprehensive income (loss), before tax | 0 | |
Ending balance, before tax | $ (2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating other income (expense), net | $ 258 | $ 341 |
Net income (loss) | 1,250 | 2,241 |
American Airlines, Inc. | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating other income (expense), net | 215 | 261 |
Net income (loss) | 1,215 | 2,169 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | 40 | (9) |
Reclassification out of Accumulated Other Comprehensive Income | Prior service cost (benefit) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating other income (expense), net | 3 | (36) |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating other income (expense), net | 37 | 27 |
Reclassification out of Accumulated Other Comprehensive Income | American Airlines, Inc. | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | 39 | (9) |
Reclassification out of Accumulated Other Comprehensive Income | American Airlines, Inc. | Prior service cost (benefit) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating other income (expense), net | 3 | (36) |
Reclassification out of Accumulated Other Comprehensive Income | American Airlines, Inc. | Actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating other income (expense), net | $ 36 | $ 27 |
Regional Expenses (Details)
Regional Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Regional Expenses [Line Items] | ||
Depreciation and amortization | $ 478 | $ 560 |
Aircraft rent | 351 | 334 |
American Airlines, Inc. | ||
Regional Expenses [Line Items] | ||
Depreciation and amortization | 478 | 560 |
Aircraft rent | 351 | 334 |
Regional Carrier | ||
Regional Expenses [Line Items] | ||
Depreciation and amortization | 81 | 83 |
Aircraft rent | 2 | 6 |
Regional Carrier | American Airlines, Inc. | ||
Regional Expenses [Line Items] | ||
Depreciation and amortization | 68 | 70 |
Aircraft rent | 2 | 6 |
Regional Carrier | Republic Airline Inc. | ||
Regional Expenses [Line Items] | ||
Capacity purchases from third-party regional carriers | 127 | 150 |
Regional Carrier | Republic Airline Inc. | American Airlines, Inc. | ||
Regional Expenses [Line Items] | ||
Capacity purchases from third-party regional carriers | $ 127 | $ 150 |
Republic Airways Holdings, Inc. | American Airlines, Inc. | ||
Regional Expenses [Line Items] | ||
Ownership percentage | 25.00% |
Transactions with Related Par_3
Transactions with Related Parties (Details) - American Airlines, Inc. - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Receivables from related parties, net | $ 6,647 | $ 7,877 |
AAG | ||
Related Party Transaction [Line Items] | ||
Receivables from related parties, net | 8,822 | 9,940 |
AAG's wholly-owned subsidiaries | ||
Related Party Transaction [Line Items] | ||
Receivables from related parties, net | $ (2,175) | $ (2,063) |
Legal Proceedings (Details)
Legal Proceedings (Details) shares in Millions, $ in Millions | Jun. 15, 2018USD ($)lawsuit | Mar. 31, 2021shares |
Long-term Purchase Commitment [Line Items] | ||
Common stock held in Disputed Claims reserve (in shares) | shares | 4.8 | |
Number of putative class action lawsuits | lawsuit | 100 | |
Preliminary settlement amount | $ | $ 45 | |
American Airlines, Inc. | ||
Long-term Purchase Commitment [Line Items] | ||
Common stock held in Disputed Claims reserve (in shares) | shares | 4.8 | |
Number of putative class action lawsuits | lawsuit | 100 | |
Preliminary settlement amount | $ | $ 45 |