Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-8400 | ||
Entity Registrant Name | American Airlines Group Inc. | ||
Entity Central Index Key | 0000006201 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 649,160,117 | ||
Entity Public Float | $ 13.6 | ||
Documents Incorporated by Reference | Portions of the proxy statement related to American Airlines Group Inc.’s 2022 Annual Meeting of Stockholders, which proxy statement will be filed under the Securities Exchange Act of 1934 within 120 days of the end of American Airlines Group Inc.’s fiscal year ended December 31, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | AAL | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock Purchase Rights | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
American Airlines, Inc. | |||
Document Information [Line Items] | |||
Entity File Number | 1-2691 | ||
Entity Registrant Name | American Airlines, Inc. | ||
Entity Central Index Key | 0000004515 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-1502798 | ||
Entity Address, Address Line One | 1 Skyview Drive, | ||
Entity Address, City or Town | Fort Worth, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76155 | ||
City Area Code | (682) | ||
Local Phone Number | 278-9000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 1,000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | Dallas, TX |
Auditor Firm ID | 185 |
American Airlines, Inc. | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | Dallas, TX |
Auditor Firm ID | 185 |
Consolidated Statements of Oper
Consolidated Statements of Operations - American Airlines Group Inc. - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenues: | |||
Total operating revenues | $ 29,882 | $ 17,337 | $ 45,768 |
Operating expenses: | |||
Aircraft fuel and related taxes | 6,792 | 3,402 | 9,395 |
Salaries, wages and benefits | 11,817 | 11,229 | 12,895 |
Regional expenses | 3,204 | 2,962 | 3,985 |
Maintenance, materials and repairs | 1,979 | 1,585 | 2,381 |
Other rent and landing fees | 2,619 | 2,004 | 2,672 |
Aircraft rent | 1,425 | 1,341 | 1,326 |
Selling expenses | 1,098 | 666 | 2,004 |
Depreciation and amortization | 2,019 | 2,040 | 1,982 |
Special items, net | (4,006) | (657) | 635 |
Other | 3,994 | 3,186 | 5,428 |
Total operating expenses | 30,941 | 27,758 | 42,703 |
Operating income (loss) | (1,059) | (10,421) | 3,065 |
Nonoperating income (expense): | |||
Interest income | 18 | 41 | 127 |
Interest expense, net | (1,800) | (1,227) | (1,095) |
Other income, net | 293 | 154 | 159 |
Total nonoperating expense, net | (1,489) | (1,032) | (809) |
Income (loss) before income taxes | (2,548) | (11,453) | 2,256 |
Income tax provision (benefit) | (555) | (2,568) | 570 |
Net income (loss) | $ (1,993) | $ (8,885) | $ 1,686 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (3.09) | $ (18.36) | $ 3.80 |
Diluted (in dollars per share) | $ (3.09) | $ (18.36) | $ 3.79 |
Weighted average shares outstanding: | |||
Basic (in shares) | 644,015 | 483,888 | 443,363 |
Diluted (in shares) | 644,015 | 483,888 | 444,269 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0.10 | $ 0.40 |
Passenger | |||
Operating revenues: | |||
Total operating revenues | $ 26,063 | $ 14,518 | $ 42,010 |
Cargo | |||
Operating revenues: | |||
Total operating revenues | 1,314 | 769 | 863 |
Other | |||
Operating revenues: | |||
Total operating revenues | $ 2,505 | $ 2,050 | $ 2,895 |
Consolidated Statements of Op_2
Consolidated Statements of Operations - American Airlines, Inc. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenues: | |||
Total operating revenues | $ 29,882 | $ 17,337 | $ 45,768 |
Operating expenses: | |||
Aircraft fuel and related taxes | 6,792 | 3,402 | 9,395 |
Salaries, wages and benefits | 11,817 | 11,229 | 12,895 |
Regional expenses | 3,204 | 2,962 | 3,985 |
Maintenance, materials and repairs | 1,979 | 1,585 | 2,381 |
Other rent and landing fees | 2,619 | 2,004 | 2,672 |
Aircraft rent | 1,425 | 1,341 | 1,326 |
Selling expenses | 1,098 | 666 | 2,004 |
Depreciation and amortization | 2,019 | 2,040 | 1,982 |
Special items, net | (4,006) | (657) | 635 |
Other | 3,994 | 3,186 | 5,428 |
Total operating expenses | 30,941 | 27,758 | 42,703 |
Operating loss | (1,059) | (10,421) | 3,065 |
Nonoperating income (expense): | |||
Interest income | 18 | 41 | 127 |
Interest expense, net | (1,800) | (1,227) | (1,095) |
Other income, net | 293 | 154 | 159 |
Total nonoperating expense, net | (1,489) | (1,032) | (809) |
Income (loss) before income taxes | (2,548) | (11,453) | 2,256 |
Income tax provision (benefit) | (555) | (2,568) | 570 |
Net income (loss) | (1,993) | (8,885) | 1,686 |
Passenger | |||
Operating revenues: | |||
Total operating revenues | 26,063 | 14,518 | 42,010 |
Cargo | |||
Operating revenues: | |||
Total operating revenues | 1,314 | 769 | 863 |
Other | |||
Operating revenues: | |||
Total operating revenues | 2,505 | 2,050 | 2,895 |
American Airlines, Inc. | |||
Operating revenues: | |||
Total operating revenues | 29,880 | 17,335 | 45,761 |
Operating expenses: | |||
Aircraft fuel and related taxes | 6,792 | 3,402 | 9,395 |
Salaries, wages and benefits | 11,811 | 11,224 | 12,886 |
Regional expenses | 3,111 | 2,746 | 4,002 |
Maintenance, materials and repairs | 1,979 | 1,585 | 2,381 |
Other rent and landing fees | 2,619 | 2,004 | 2,672 |
Aircraft rent | 1,425 | 1,341 | 1,326 |
Selling expenses | 1,098 | 666 | 2,004 |
Depreciation and amortization | 2,019 | 2,040 | 1,982 |
Special items, net | (4,006) | (657) | 635 |
Other | 3,993 | 3,208 | 5,431 |
Total operating expenses | 30,841 | 27,559 | 42,714 |
Operating loss | (961) | (10,224) | 3,047 |
Nonoperating income (expense): | |||
Interest income | 34 | 337 | 515 |
Interest expense, net | (1,642) | (1,171) | (1,109) |
Other income, net | 292 | 155 | 152 |
Total nonoperating expense, net | (1,316) | (679) | (442) |
Income (loss) before income taxes | (2,277) | (10,903) | 2,605 |
Income tax provision (benefit) | (500) | (2,453) | 633 |
Net income (loss) | (1,777) | (8,450) | 1,972 |
American Airlines, Inc. | Passenger | |||
Operating revenues: | |||
Total operating revenues | 26,063 | 14,518 | 42,010 |
American Airlines, Inc. | Cargo | |||
Operating revenues: | |||
Total operating revenues | 1,314 | 769 | 863 |
American Airlines, Inc. | Other | |||
Operating revenues: | |||
Total operating revenues | $ 2,503 | $ 2,048 | $ 2,888 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - American Airlines Group Inc. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (1,993) | $ (8,885) | $ 1,686 |
Other comprehensive income (loss), net of tax: | |||
Pension, retiree medical and other postretirement benefits | 1,161 | (772) | (438) |
Investments | 0 | 0 | 3 |
Total other comprehensive income (loss), net of tax | 1,161 | (772) | (435) |
Total comprehensive income (loss) | $ (832) | $ (9,657) | $ 1,251 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) - American Airlines, Inc. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income (loss) | $ (1,993) | $ (8,885) | $ 1,686 |
Other comprehensive income (loss), net of tax: | |||
Pension, retiree medical and other postretirement benefits | 1,161 | (772) | (438) |
Investments | 0 | 0 | 3 |
Other comprehensive loss, net | 1,161 | (772) | (435) |
Total comprehensive income (loss) | (832) | (9,657) | 1,251 |
American Airlines, Inc. | |||
Net income (loss) | (1,777) | (8,450) | 1,972 |
Other comprehensive income (loss), net of tax: | |||
Pension, retiree medical and other postretirement benefits | 1,153 | (771) | (434) |
Investments | 0 | 0 | 3 |
Other comprehensive loss, net | 1,153 | (771) | (431) |
Total comprehensive income (loss) | $ (624) | $ (9,221) | $ 1,541 |
Consolidated Balance Sheets - A
Consolidated Balance Sheets - American Airlines Group Inc. - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash | $ 273 | $ 245 | $ 280 | |
Short-term investments | 12,158 | 6,619 | ||
Restricted cash and short-term investments | 990 | 609 | ||
Accounts receivable, net | 1,505 | 1,342 | ||
Aircraft fuel, spare parts and supplies, net | 1,795 | 1,614 | ||
Prepaid expenses and other | 615 | 666 | ||
Total current assets | 17,336 | 11,095 | ||
Operating property and equipment | ||||
Flight equipment | 37,856 | 37,816 | ||
Ground property and equipment | 9,335 | 9,194 | ||
Equipment purchase deposits | 517 | 1,446 | ||
Total property and equipment, at cost | 47,708 | 48,456 | ||
Less accumulated depreciation and amortization | (18,171) | (16,757) | ||
Total property and equipment, net | 29,537 | 31,699 | ||
Operating lease right-of-use assets | 7,850 | 8,039 | ||
Other assets | ||||
Goodwill | 4,091 | 4,091 | ||
Intangibles, net of accumulated amortization of $786 and $745, respectively | 1,988 | 2,029 | ||
Deferred tax asset | 3,556 | 3,239 | ||
Other assets | 2,109 | 1,816 | ||
Total other assets | 11,744 | 11,175 | ||
Total assets | 66,467 | 62,008 | ||
Current liabilities | ||||
Current maturities of long-term debt and finance leases | 2,489 | 2,797 | ||
Accounts payable | 1,772 | 1,196 | ||
Accrued salaries and wages | 1,489 | 1,716 | ||
Operating lease liabilities | 1,507 | 1,651 | ||
Other accrued liabilities | 2,766 | 2,419 | ||
Total current liabilities | 19,006 | 16,569 | ||
Noncurrent liabilities | ||||
Long-term debt and finance leases, net of current maturities | 35,571 | 29,796 | ||
Pension and postretirement benefits | 5,053 | 7,069 | ||
Loyalty program liability | 6,239 | 7,162 | ||
Operating lease liabilities | 6,610 | 6,777 | ||
Other liabilities | 1,328 | 1,502 | ||
Total noncurrent liabilities | 54,801 | 52,306 | ||
Commitments and contingencies | ||||
Stockholders' equity (deficit) | ||||
Common stock | 6 | 6 | ||
Additional paid-in capital | 7,234 | 6,894 | ||
Accumulated other comprehensive loss | (5,942) | (7,103) | (6,331) | |
Retained deficit | (8,638) | (6,664) | ||
Total stockholders' deficit | (7,340) | (6,867) | $ (118) | $ (169) |
Total liabilities and stockholders’ equity (deficit) | 66,467 | 62,008 | ||
Air traffic liability | ||||
Current liabilities | ||||
Deferred revenue, current | 6,087 | 4,757 | ||
Loyalty program liability | ||||
Current liabilities | ||||
Deferred revenue, current | $ 2,896 | $ 2,033 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - American Airlines Group Inc. (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization of intangibles | $ 786 | $ 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) | 647,727,595 | 621,479,522 |
Common stock, shares outstanding (in shares) | 647,727,595 | 621,479,522 |
Consolidated Balance Sheets -_3
Consolidated Balance Sheets - American Airlines, Inc. - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 273 | $ 245 |
Short-term investments | 12,158 | 6,619 |
Restricted cash and short-term investments | 990 | 609 |
Accounts receivable, net | 1,505 | 1,342 |
Aircraft fuel, spare parts and supplies, net | 1,795 | 1,614 |
Prepaid expenses and other | 615 | 666 |
Total current assets | 17,336 | 11,095 |
Operating property and equipment | ||
Flight equipment | 37,856 | 37,816 |
Ground property and equipment | 9,335 | 9,194 |
Equipment purchase deposits | 517 | 1,446 |
Total property and equipment, at cost | 47,708 | 48,456 |
Less accumulated depreciation and amortization | (18,171) | (16,757) |
Total property and equipment, net | 29,537 | 31,699 |
Operating lease right-of-use assets | 7,850 | 8,039 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $786 and $745, respectively | 1,988 | 2,029 |
Deferred tax asset | 3,556 | 3,239 |
Other assets | 2,109 | 1,816 |
Total other assets | 11,744 | 11,175 |
Total assets | 66,467 | 62,008 |
Current liabilities | ||
Current maturities of long-term debt and finance leases | 2,489 | 2,797 |
Accounts payable | 1,772 | 1,196 |
Accrued salaries and wages | 1,489 | 1,716 |
Operating lease liabilities | 1,507 | 1,651 |
Other accrued liabilities | 2,766 | 2,419 |
Total current liabilities | 19,006 | 16,569 |
Noncurrent liabilities | ||
Long-term debt and finance leases, net of current maturities | 35,571 | 29,796 |
Pension and postretirement benefits | 5,053 | 7,069 |
Loyalty program liability | 6,239 | 7,162 |
Operating lease liabilities | 6,610 | 6,777 |
Other liabilities | 1,328 | 1,502 |
Total noncurrent liabilities | 54,801 | 52,306 |
Commitments and contingencies | ||
Stockholders' equity (deficit) | ||
Common stock | 6 | 6 |
Additional paid-in capital | 7,234 | 6,894 |
Accumulated other comprehensive loss | (5,942) | (7,103) |
Retained deficit | (8,638) | (6,664) |
Total stockholders’ equity (deficit) | (7,340) | (6,867) |
Total liabilities and stockholders’ equity (deficit) | 66,467 | 62,008 |
Air traffic liability | ||
Current liabilities | ||
Deferred revenue, current | 6,087 | 4,757 |
Loyalty program liability | ||
Current liabilities | ||
Deferred revenue, current | 2,896 | 2,033 |
American Airlines, Inc. | ||
Current assets | ||
Cash | 265 | 231 |
Short-term investments | 12,155 | 6,617 |
Restricted cash and short-term investments | 990 | 609 |
Accounts receivable, net | 1,484 | 1,334 |
Receivables from related parties, net | 5,547 | 7,877 |
Aircraft fuel, spare parts and supplies, net | 1,692 | 1,520 |
Prepaid expenses and other | 579 | 633 |
Total current assets | 22,712 | 18,821 |
Operating property and equipment | ||
Flight equipment | 37,520 | 37,485 |
Ground property and equipment | 8,966 | 8,836 |
Equipment purchase deposits | 517 | 1,446 |
Total property and equipment, at cost | 47,003 | 47,767 |
Less accumulated depreciation and amortization | (17,770) | (16,393) |
Total property and equipment, net | 29,233 | 31,374 |
Operating lease right-of-use assets | 7,810 | 7,994 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $786 and $745, respectively | 1,988 | 2,029 |
Deferred tax asset | 3,408 | 3,235 |
Other assets | 1,903 | 1,671 |
Total other assets | 11,390 | 11,026 |
Total assets | 71,145 | 69,215 |
Current liabilities | ||
Current maturities of long-term debt and finance leases | 1,742 | 2,800 |
Accounts payable | 1,630 | 1,116 |
Accrued salaries and wages | 1,385 | 1,661 |
Operating lease liabilities | 1,496 | 1,641 |
Other accrued liabilities | 2,628 | 2,300 |
Total current liabilities | 17,864 | 16,308 |
Noncurrent liabilities | ||
Long-term debt and finance leases, net of current maturities | 30,352 | 26,182 |
Pension and postretirement benefits | 5,020 | 7,027 |
Loyalty program liability | 6,239 | 7,162 |
Operating lease liabilities | 6,578 | 6,739 |
Other liabilities | 1,266 | 1,449 |
Total noncurrent liabilities | 49,455 | 48,559 |
Commitments and contingencies | ||
Stockholders' equity (deficit) | ||
Common stock | 0 | 0 |
Additional paid-in capital | 17,152 | 17,050 |
Accumulated other comprehensive loss | (6,041) | (7,194) |
Retained deficit | (7,285) | (5,508) |
Total stockholders’ equity (deficit) | 3,826 | 4,348 |
Total liabilities and stockholders’ equity (deficit) | 71,145 | 69,215 |
American Airlines, Inc. | Air traffic liability | ||
Current liabilities | ||
Deferred revenue, current | 6,087 | 4,757 |
American Airlines, Inc. | Loyalty program liability | ||
Current liabilities | ||
Deferred revenue, current | $ 2,896 | $ 2,033 |
Consolidated Balance Sheets -_4
Consolidated Balance Sheets - American Airlines, Inc. (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated amortization of intangibles | $ 786 | $ 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) | 647,727,595 | 621,479,522 |
Common stock, shares outstanding (in shares) | 647,727,595 | 621,479,522 |
American Airlines, Inc. | ||
Accumulated amortization of intangibles | $ 786 | $ 745 |
Common stock, par value (in dollars per share) | $ 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 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - American Airlines Group Inc. - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ (1,993) | $ (8,885) | $ 1,686 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 2,335 | 2,370 | 2,318 | |||
Net gains from sale of property and equipment and sale-leaseback transactions | (22) | (95) | (112) | |||
Special items, net non-cash | 83 | 1,599 | 376 | |||
Pension and postretirement | (321) | (319) | (178) | |||
Deferred income tax provision (benefit) | (555) | (2,568) | 560 | |||
Share-based compensation | 98 | 91 | 94 | |||
Other, net | 38 | 47 | (62) | |||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in accounts receivable | (304) | 538 | 73 | |||
Increase in other assets | (402) | (38) | (373) | |||
Increase (decrease) in accounts payable and accrued liabilities | 461 | (626) | 327 | |||
Contributions to pension plans | (247) | (9) | (1,230) | |||
Increase (decrease) in other liabilities | 139 | 823 | (209) | |||
Net cash provided by (used in) operating activities | 704 | (6,543) | 3,815 | |||
Cash flows from investing activities: | ||||||
Capital expenditures, net of aircraft purchase deposit returns | (208) | (1,958) | (4,268) | |||
Airport construction projects, net of reimbursements | (204) | (173) | (98) | |||
Proceeds from sale of property and equipment | 193 | 351 | 54 | |||
Proceeds from sale-leaseback transactions | 181 | 665 | 850 | |||
Purchases of short-term investments | (19,454) | (5,873) | (3,184) | |||
Sales of short-term investments | 13,923 | 2,803 | 4,144 | |||
Increase in restricted short-term investments | (401) | (308) | (3) | |||
Purchase of equity investment | (28) | 0 | 0 | |||
Proceeds on sale of equity investment | 5 | 41 | 0 | |||
Proceeds from vendor | 0 | 90 | 250 | |||
Other investing activities | 10 | 20 | 12 | |||
Net cash used in investing activities | (5,983) | (4,342) | (2,243) | |||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 12,190 | 11,780 | 3,960 | |||
Payments on long-term debt and finance leases | (7,343) | (3,535) | (4,190) | |||
Proceeds from issuance of equity | 460 | 2,970 | 0 | |||
Deferred financing costs | (209) | (93) | (61) | |||
Treasury stock repurchases and shares withheld for taxes pursuant to employee stock plans | (18) | (173) | (1,097) | |||
Dividend payments | 0 | (43) | (178) | |||
Other financing activities | 208 | 88 | (2) | |||
Net cash provided by (used in) financing activities | 5,288 | 10,994 | (1,568) | |||
Net increase in cash and restricted cash | 9 | 109 | 4 | |||
Cash and restricted cash at beginning of year | 399 | [1] | 290 | [1] | 286 | |
Cash and restricted cash at end of year | [1] | 408 | 399 | 290 | ||
Air traffic liability | ||||||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in customer liabilities | 1,454 | (51) | 469 | |||
Loyalty program liability | ||||||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in customer liabilities | $ (60) | $ 580 | $ 76 | |||
[1] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the consolidated balance sheets: Cash $ 273 $ 245 $ 280 Restricted cash included in restricted cash and short-term investments 135 154 10 Total cash and restricted cash $ 408 $ 399 $ 290 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - American Airlines Group Inc. (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Statement of Cash Flows [Abstract] | |||||||
Cash | $ 273 | $ 245 | $ 280 | ||||
Restricted cash included in restricted cash and short-term investments | 135 | 154 | 10 | ||||
Total cash and restricted cash | $ 408 | [1] | $ 399 | [1] | $ 290 | [1] | $ 286 |
[1] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the consolidated balance sheets: Cash $ 273 $ 245 $ 280 Restricted cash included in restricted cash and short-term investments 135 154 10 Total cash and restricted cash $ 408 $ 399 $ 290 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - American Airlines, Inc. - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ (1,993) | $ (8,885) | $ 1,686 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 2,335 | 2,370 | 2,318 | |||
Net gains from sale of property and equipment and sale-leaseback transactions | (22) | (95) | (112) | |||
Special items, net non-cash | 83 | 1,599 | 376 | |||
Pension and postretirement | (321) | (319) | (178) | |||
Deferred income tax provision (benefit) | (555) | (2,568) | 560 | |||
Share-based compensation | 98 | 91 | 94 | |||
Other, net | 38 | 47 | (62) | |||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in accounts receivable | (304) | 538 | 73 | |||
Increase in other assets | (402) | (38) | (373) | |||
Increase (decrease) in accounts payable and accrued liabilities | 461 | (626) | 327 | |||
Contributions to pension plans | (247) | (9) | (1,230) | |||
Increase (decrease) in other liabilities | 139 | 823 | (209) | |||
Net cash provided by (used in) operating activities | 704 | (6,543) | 3,815 | |||
Cash flows from investing activities: | ||||||
Capital expenditures, net of aircraft purchase deposit returns | (208) | (1,958) | (4,268) | |||
Airport construction projects, net of reimbursements | (204) | (173) | (98) | |||
Proceeds from sale of property and equipment | 193 | 351 | 54 | |||
Proceeds from sale-leaseback transactions | 181 | 665 | 850 | |||
Purchases of short-term investments | (19,454) | (5,873) | (3,184) | |||
Sales of short-term investments | 13,923 | 2,803 | 4,144 | |||
Increase in restricted short-term investments | (401) | (308) | (3) | |||
Purchase of equity investment | (28) | 0 | 0 | |||
Proceeds on sale of equity investment | 5 | 41 | 0 | |||
Proceeds from vendor | 0 | 90 | 250 | |||
Other investing activities | 10 | 20 | 12 | |||
Net cash used in investing activities | (5,983) | (4,342) | (2,243) | |||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 12,190 | 11,780 | 3,960 | |||
Payments on long-term debt and finance leases | (7,343) | (3,535) | (4,190) | |||
Deferred financing costs | (209) | (93) | (61) | |||
Other financing activities | 208 | 88 | (2) | |||
Net cash provided by (used in) financing activities | 5,288 | 10,994 | (1,568) | |||
Net increase in cash and restricted cash | 9 | 109 | 4 | |||
Cash and restricted cash at beginning of year | 399 | [1] | 290 | [1] | 286 | |
Cash and restricted cash at end of year | [1] | 408 | 399 | 290 | ||
American Airlines, Inc. | ||||||
Cash flows from operating activities: | ||||||
Net income (loss) | (1,777) | (8,450) | 1,972 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 2,282 | 2,313 | 2,267 | |||
Net gains from sale of property and equipment and sale-leaseback transactions | (26) | (98) | (109) | |||
Special items, net non-cash | 83 | 1,588 | 384 | |||
Pension and postretirement | (320) | (319) | (178) | |||
Deferred income tax provision (benefit) | (500) | (2,453) | 623 | |||
Share-based compensation | 95 | 91 | 94 | |||
Other, net | 24 | 14 | (56) | |||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in accounts receivable | (290) | 595 | 130 | |||
Increase in other assets | (370) | 42 | (321) | |||
Increase (decrease) in accounts payable and accrued liabilities | 335 | (619) | 273 | |||
Decrease (increase) in receivables from related parties, net | 1,857 | 4,134 | (1,772) | |||
Contributions to pension plans | (247) | (6) | (1,224) | |||
Increase (decrease) in other liabilities | 650 | 1,210 | (199) | |||
Net cash provided by (used in) operating activities | 3,190 | (1,429) | 2,429 | |||
Cash flows from investing activities: | ||||||
Capital expenditures, net of aircraft purchase deposit returns | (169) | (1,922) | (4,156) | |||
Airport construction projects, net of reimbursements | (204) | (173) | (98) | |||
Proceeds from sale of property and equipment | 192 | 351 | 49 | |||
Proceeds from sale-leaseback transactions | 181 | 665 | 850 | |||
Purchases of short-term investments | (19,454) | (5,874) | (3,184) | |||
Sales of short-term investments | 13,923 | 2,803 | 4,144 | |||
Increase in restricted short-term investments | (401) | (308) | (3) | |||
Purchase of equity investment | (28) | 0 | 0 | |||
Proceeds on sale of equity investment | 5 | 41 | 0 | |||
Proceeds from vendor | 0 | 90 | 250 | |||
Other investing activities | 10 | 19 | 2 | |||
Net cash used in investing activities | (5,945) | (4,308) | (2,146) | |||
Cash flows from financing activities: | ||||||
Proceeds from issuance of long-term debt | 10,209 | 8,959 | 3,210 | |||
Payments on long-term debt and finance leases | (7,320) | (3,029) | (3,440) | |||
Deferred financing costs | (207) | (85) | (52) | |||
Other financing activities | 88 | 0 | 0 | |||
Net cash provided by (used in) financing activities | 2,770 | 5,845 | (282) | |||
Net increase in cash and restricted cash | 15 | 108 | 1 | |||
Cash and restricted cash at beginning of year | 385 | [2] | 277 | [2] | 276 | |
Cash and restricted cash at end of year | [2] | 400 | 385 | 277 | ||
Air traffic liability | ||||||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in customer liabilities | 1,454 | (51) | 469 | |||
Air traffic liability | American Airlines, Inc. | ||||||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in customer liabilities | 1,454 | (51) | 469 | |||
Loyalty program liability | ||||||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in customer liabilities | (60) | 580 | 76 | |||
Loyalty program liability | American Airlines, Inc. | ||||||
Changes in operating assets and liabilities: | ||||||
Increase (decrease) in customer liabilities | $ (60) | $ 580 | $ 76 | |||
[1] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the consolidated balance sheets: Cash $ 273 $ 245 $ 280 Restricted cash included in restricted cash and short-term investments 135 154 10 Total cash and restricted cash $ 408 $ 399 $ 290 | |||||
[2] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the consolidated balance sheets: Cash $ 265 $ 231 $ 267 Restricted cash included in restricted cash and short-term investments 135 154 10 Total cash and restricted cash $ 400 $ 385 $ 277 |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows - American Airlines, Inc. (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash | $ 273 | $ 245 | $ 280 | |
Restricted cash included in restricted cash and short-term investments | 135 | 154 | 10 | |
Total cash and restricted cash | [1] | 408 | 399 | 290 |
American Airlines, Inc. | ||||
Cash | 265 | 231 | 267 | |
Restricted cash included in restricted cash and short-term investments | 135 | 154 | 10 | |
Total cash and restricted cash | [2] | $ 400 | $ 385 | $ 277 |
[1] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the consolidated balance sheets: Cash $ 273 $ 245 $ 280 Restricted cash included in restricted cash and short-term investments 135 154 10 Total cash and restricted cash $ 408 $ 399 $ 290 | |||
[2] | The following table provides a reconciliation of cash and restricted cash to amounts reported within the consolidated balance sheets: Cash $ 265 $ 231 $ 267 Restricted cash included in restricted cash and short-term investments 135 154 10 Total cash and restricted cash $ 400 $ 385 $ 277 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - American Airlines Group Inc. - USD ($) $ in Millions | Total | Public Stock Offering | At-the-market Offering | PSP1 Warrant | Treasury Loan Warrants | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Common StockPublic Stock Offering | Common StockAt-the-market Offering | Additional Paid-in Capital | Additional Paid-in CapitalPublic Stock Offering | Additional Paid-in CapitalAt-the-market Offering | Additional Paid-in CapitalPSP1 Warrant | Additional Paid-in CapitalTreasury Loan Warrants | 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 |
Beginning Balance at Dec. 31, 2018 | $ (169) | $ 5 | $ 4,964 | $ (5,896) | $ 758 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 1,686 | 1,686 | ||||||||||||||||
Other comprehensive loss, net | (435) | (435) | ||||||||||||||||
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes | (25) | (25) | ||||||||||||||||
Purchase and retirement of AAG common stock | (1,096) | (1) | (1,095) | |||||||||||||||
Dividends declared on AAG common stock | (180) | (180) | ||||||||||||||||
Settlement of single-dip unsecured claims held in Disputed Claims Reserve (DCR) | 7 | 7 | ||||||||||||||||
Share-based compensation expense | 94 | 94 | ||||||||||||||||
Ending Balance at Dec. 31, 2019 | (118) | 4 | 3,945 | (6,331) | 2,264 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (8,885) | (8,885) | ||||||||||||||||
Other comprehensive loss, net | (772) | (772) | ||||||||||||||||
Issuance of warrants | $ 63 | $ 25 | $ 63 | $ 25 | ||||||||||||||
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes | (15) | (15) | ||||||||||||||||
Issuance of AAG common stock, net of offering costs | $ 1,687 | $ 869 | $ 1 | $ 1 | $ 1,686 | $ 868 | ||||||||||||
Equity component of convertible debt issued, net of tax and offering costs | 320 | 320 | ||||||||||||||||
Purchase and retirement of AAG common stock | (145) | 0 | (145) | |||||||||||||||
Dividends declared on AAG common stock | (43) | (43) | ||||||||||||||||
Settlement of single-dip unsecured claims held in Disputed Claims Reserve (DCR) | 56 | 56 | ||||||||||||||||
Share-based compensation expense | 91 | 91 | ||||||||||||||||
Ending Balance at Dec. 31, 2020 | (6,867) | $ (301) | 6 | 6,894 | $ (320) | (7,103) | (6,664) | $ 19 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (1,993) | (1,993) | ||||||||||||||||
Other comprehensive loss, net | 1,161 | 1,161 | ||||||||||||||||
Issuance of warrants | 121 | 121 | ||||||||||||||||
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes | $ (18) | (18) | ||||||||||||||||
Issuance of AAG common stock, net of offering costs | $ 460 | $ 0 | $ 460 | |||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | |||||||||||||||||
Settlement of single-dip unsecured claims held in DCR and retirement of 259,878 shares of AAG common stock | $ (1) | (1) | ||||||||||||||||
Share-based compensation expense | 98 | 98 | ||||||||||||||||
Ending Balance at Dec. 31, 2021 | $ (7,340) | $ 6 | $ 7,234 | $ (5,942) | $ (8,638) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Deficit) - American Airlines Group Inc. (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Issuance of shares of common stock pursuant to employee stock plans (in shares) | 2,357,187 | 1,603,554 | 1,682,202 |
Purchase and retirement of common stock (in shares) | 6,378,025 | 34,090,566 | |
Dividends declared on common stock (in dollars per share) | $ 0 | $ 0.10 | $ 0.40 |
Retirement of common stock (in shares) | 259,878 | ||
Public Stock Offering | |||
Issuance of shares of common stock, net of offering costs (in shares) | 129,490,000 | ||
At-the-market Offering | |||
Issuance of shares of common stock, net of offering costs (in shares) | 24,150,764 | 68,561,487 |
Consolidated Statements of St_3
Consolidated Statements of Stockholders' Equity (Deficit) - American Airlines, Inc. - USD ($) $ in Millions | Total | American Airlines, Inc. | Common Stock | Common StockAmerican Airlines, Inc. | Additional Paid-in Capital | Additional Paid-in CapitalAmerican Airlines, Inc. | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossAmerican Airlines, Inc. | Retained Earnings (Deficit) | Retained Earnings (Deficit)American Airlines, Inc. |
Beginning Balance at Dec. 31, 2018 | $ (169) | $ 11,770 | $ 5 | $ 0 | $ 4,964 | $ 16,802 | $ (5,896) | $ (5,992) | $ 758 | $ 960 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 1,686 | 1,972 | 1,686 | 1,972 | ||||||
Other comprehensive loss, net | (435) | (431) | (435) | (431) | ||||||
Share-based compensation expense | 94 | 94 | 94 | 94 | ||||||
Intercompany equity transfer | 17 | 7 | 10 | |||||||
Ending Balance at Dec. 31, 2019 | (118) | 13,422 | 4 | 0 | 3,945 | 16,903 | (6,331) | (6,423) | 2,264 | 2,942 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (8,885) | (8,450) | (8,885) | (8,450) | ||||||
Other comprehensive loss, net | (772) | (771) | (772) | (771) | ||||||
Share-based compensation expense | 91 | 91 | 91 | 91 | ||||||
Intercompany equity transfer | 56 | 56 | 0 | |||||||
Ending Balance at Dec. 31, 2020 | (6,867) | 4,348 | 6 | 0 | 6,894 | 17,050 | (7,103) | (7,194) | (6,664) | (5,508) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (1,993) | (1,777) | (1,993) | (1,777) | ||||||
Other comprehensive loss, net | 1,161 | 1,153 | 1,161 | 1,153 | ||||||
Share-based compensation expense | 98 | 95 | 98 | 95 | ||||||
Intercompany equity transfer | 7 | 7 | 0 | |||||||
Ending Balance at Dec. 31, 2021 | $ (7,340) | $ 3,826 | $ 6 | $ 0 | $ 7,234 | $ 17,152 | $ (5,942) | $ (6,041) | $ (8,638) | $ (7,285) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation American Airlines Group Inc. (we, us, our and similar terms, or AAG), a Delaware corporation, is a holding company whose primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its mainline operating subsidiary, American Airlines, Inc. (American) and its wholly-owned regional airline subsidiaries, Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc., that operate under the brand American Eagle. On December 9, 2013, a subsidiary of AMR Corporation (AMR) merged with and into US Airways Group, Inc. (US Airways Group), a Delaware corporation, which survived as a wholly-owned subsidiary of AAG, and AAG emerged from Chapter 11 (the Merger). Upon closing of the Merger and emergence from Chapter 11, AMR changed its name to American Airlines Group Inc. All significant intercompany transactions have been eliminated. 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, 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 (r) Regional Expenses below 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. Ongoing global vaccination efforts and the corresponding lifting of government restrictions in and between many markets resulted in a partial recovery in demand for air travel in 2021, which improved our revenues as compared to 2020. However, the return of demand was weaker than previous expectations and the speed and strength of this recovery remain uncertain, primarily due to the global rise in COVID-19 cases associated with the delta and omicron variants and the potential for continuation or reimposition of restrictions on global travel. The continued impact of the COVID-19 pandemic, including any increases in infection rates, new variants and renewed governmental action to slow the spread of COVID-19 cannot be estimated. We have taken aggressive actions since the beginning of the COVID-19 pandemic to mitigate its effects on our business, including capacity reductions, structural changes to our fleet, cost reductions including implementing voluntary leave and early retirement programs, and steps to preserve cash and improve our overall liquidity position, 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), Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law) and Section 7301 of the American Rescue Plan Act of 2021 (the ARP). Capacity Reductions Our capacity (as measured by available seat miles) continues to be reduced compared to pre-COVID-19 pandemic levels, with total capacity in 2021 down 24.7% as compared to 2019. Domestic capacity in 2021 was down 14.5% while international capacity was down 44.9% as compared to 2019. While demand for domestic and short-haul international markets has largely recovered to 2019 levels, uncertainty remains regarding the timing of a full recovery. 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 and other efficiency measures. These reductions include labor productivity enhancements, management salaries and benefits and other permanent cost reductions. Also, during the first quarter of 2021, approximately 1,600 represented team members opted into a voluntary early retirement program. Liquidity As of December 31, 2021, we had $15.8 billion in total available liquidity, consisting of $12.4 billion in unrestricted cash and short-term investments, $2.8 billion in undrawn capacity under revolving credit facilities and a total of $568 million in undrawn short-term revolving and other facilities. During 2021, we 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 the $3.5 billion 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 the second quarter of 2020 in response to the COVID-19 pandemic; • repaid the $550 million of outstanding loans under, and terminated, the $7.5 billion secured term loan facility with the U.S. Department of the Treasury (Treasury) (the Treasury Loan Agreement); • issued 24.2 million shares of AAG common stock at an average price of $19.26 per share pursuant to an at-the-market offering for net proceeds of $460 million (approximately $650 million of at-the-market authorization remains available at December 31, 2021); • issued approximately $150 million in special facility revenue bonds related to John F. Kennedy International Airport (JFK), of which $62 million was used to fund the redemption of other bonds related to JFK; • repaid in full $950 million of the outstanding balance under, and terminated, the April 2016 Spare Parts Term Loan Facility; • received approximately $94 million in proceeds from enhanced equipment trust certificates (EETCs) and other aircraft and flight equipment financing, all of which was used to repay existing indebtedness; and • received approximately $193 million of cash proceeds from the sale of property and equipment primarily related to aircraft fleets retired in 2020 and raised $181 million principally from aircraft sale-leaseback transactions. In addition to the foregoing financings, during 2021, we received an aggregate of approximately $3.5 billion in financial assistance through the payroll support program (PSP2) established under the PSP Extension Law. In connection with our receipt of this financial assistance, AAG issued a promissory note (the PSP2 Promissory Note) to Treasury for $1.0 billion in aggregate principal amount and warrants to purchase up to an aggregate of approximately 6.6 million shares (the PSP2 Warrant Shares) of AAG common stock. Also in 2021, we received an aggregate of approximately $3.3 billion in financial assistance through the payroll support program (PSP3) established under the ARP. In connection with our receipt of this financial assistance, AAG issued a promissory note (the PSP3 Promissory Note) to Treasury for $946 million in aggregate principal amount and warrants to purchase up to an aggregate of approximately 4.4 million shares (the PSP3 Warrant Shares) of AAG common stock. See below for further discussion on PSP2 and PSP3. 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 peak 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 projected cash flows from operations. PSP1 On April 20, 2020 (the PSP1 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 Agreement (the PSP1 Agreement) with Treasury, with respect to PSP1 provided pursuant to the CARES Act. In connection with our entry into the PSP1 Agreement, on the PSP1 Closing Date, AAG also entered into a warrant agreement (the PSP1 Warrant Agreement) with Treasury and issued the PSP1 Promissory Note to Treasury, with the Subsidiaries as guarantors (the Guarantors). PSP1 Agreement In connection with PSP1, we are required to comply with the relevant provisions of the CARES Act, including the requirement that funds provided pursuant to the PSP1 Agreement be used exclusively for the continuation of payment of eligible employee wages, salaries and benefits, the prohibition against involuntary furloughs and reductions in employee pay rates and benefits, which expired on September 30, 2020, the requirement that certain levels of commercial air service be maintained and the provisions that prohibit the repurchase of AAG common stock and the payment of common stock dividends through at least September 30, 2021, as well as the provisions that restrict the payment of certain executive compensation until March 24, 2022. The PSP1 Agreement also imposes substantial reporting obligations on us. These provisions were subsequently extended upon our entry into PSP2 and PSP3. In addition, we have entered into the Treasury Loan Agreement (as defined below) and, as a result, the stock repurchase, dividend and executive compensation restrictions imposed by the Treasury Loan Agreement will remain in place through the date that is one year after the secured loan provided under the Treasury Loan Agreement is fully repaid, which was in March 2021. See below for additional information on the Treasury Loan Agreement. Pursuant to the PSP1 Agreement, Treasury provided us financial assistance in an aggregate of approximately $6.0 billion. As partial compensation to the U.S. Government for the provision of financial assistance under PSP1, AAG issued the PSP1 Promissory Note in the aggregate principal amount of $1.8 billion and issued warrants (each a PSP1 Warrant and, collectively, the PSP1 Warrants) to Treasury to purchase up to an aggregate of approximately 14.1 million shares (the PSP1 Warrant Shares) of AAG common stock for an exercise price of $12.51 per share, subject to adjustment. See Note 4(g) for further information on the PSP1 Promissory Note and below for more information on the PSP1 Warrant Agreement and the PSP1 Warrants. For accounting purposes, the $6.0 billion of aggregate financial assistance we received pursuant to the PSP1 Agreement is allocated to the PSP1 Promissory Note, the PSP1 Warrants and other PSP1 financial assistance (the PSP1 Financial Assistance). The $1.8 billion aggregate principal amount of the PSP1 Promissory Note was recorded as unsecured long-term debt, and the $63 million total fair value of the PSP1 Warrants, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in the consolidated balance sheet. The remaining amount of approximately $4.2 billion of PSP1 Financial Assistance was recognized as a credit to special items, net in the consolidated statement of operations in the second and third quarters of 2020, the period over which the continuation of payment of eligible employee wages, salaries and benefits was required. PSP1 Warrant Agreement and PSP1 Warrants As partial compensation to the U.S. Government for the provision of financial assistance under the PSP1 Agreement, and pursuant to the PSP1 Warrant Agreement, AAG issued the PSP1 Warrants to Treasury to purchase PSP1 Warrant Shares. The exercise price of the PSP1 Warrant Shares is $12.51 per share, subject to certain anti-dilution provisions provided for in the PSP1 Warrants. Pursuant to the PSP1 Warrant Agreement, AAG issued to Treasury PSP1 Warrants to purchase up to an aggregate of approximately 14.1 million shares of AAG common stock for an exercise price of $12.51 per share, subject to adjustment. The PSP1 Warrants do not have any voting rights and are freely transferrable, with registration rights. Each PSP1 Warrant expires on the fifth anniversary of the date of issuance of such PSP1 Warrant. The PSP1 Warrants will be exercisable either through net share settlement or cash, at our option. The PSP1 Warrants were issued solely as compensation to the U.S. Government related to entry into the PSP1 Agreement. No separate proceeds (apart from the financial assistance described above) were received upon issuance of the PSP1 Warrants or will be received upon exercise thereof. Treasury Loan Agreement On September 25, 2020 (the Treasury Loan Closing Date), AAG and American 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, AAG and American entered into an amendment to the Treasury Loan Agreement, which increased the borrowing amount to up to $7.5 billion. In connection with our entry into the Treasury Loan Agreement, on the Treasury Loan Closing Date, AAG also entered into a warrant agreement (the Treasury Loan Warrant Agreement) with Treasury. In September 2020, American borrowed $550 million under the Treasury Term Loan Facility and on March 24, 2021, used proceeds from the AAdvantage Financing to prepay in full the $550 million of outstanding loans under the Treasury Term Loan Facility. Pursuant to the Treasury Loan Agreement, AAG issued to Treasury warrants (Treasury Loan Warrants) to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock (the Treasury Loan Warrant Shares). The exercise price of the Treasury Loan Warrant Shares is $12.51 per share, subject to certain anti-dilution provisions provided for in the Treasury Loan Warrant Agreement. For accounting purposes, the fair value for the Treasury Loan Warrant Shares is estimated using a Black-Scholes option pricing model and recorded in stockholders' equity with an offsetting debt discount to the Treasury Term Loan Facility in the consolidated balance sheet. The provisions of the Treasury Loan Warrants are substantially similar to the PSP1 Warrants. PSP2 On January 15, 2021 (the PSP2 Closing Date), the Subsidiaries, entered into a Payroll Support Program Extension Agreement (the PSP2 Agreement) with Treasury, with respect to PSP2 as 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 to 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 (the PSP1 Agreement), 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 prohibition against involuntary furloughs and reductions in employee pay rates and benefits, which expired on 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, and 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 an aggregate of approximately $3.5 billion. 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 $1.0 billion and issued warrants (each a PSP2 Warrant and, collectively, the PSP2 Warrants) to Treasury to purchase up to an aggregate of approximately 6.6 million shares of AAG common stock for an exercise price of $15.66 per share, subject to adjustment. See Note 4(g) for further information on the PSP2 Promissory Note and below for more information on the PSP2 Warrant Agreement and PSP2 Warrants. For accounting purposes, the $3.5 billion of aggregate financial assistance we received pursuant to the PSP2 Agreement is allocated to the PSP2 Promissory Note, the PSP2 Warrants and other PSP2 financial assistance (the PSP2 Financial Assistance). The $1.0 billion aggregate principal amount of the PSP2 Promissory Note was recorded as unsecured long-term debt, and the $76 million total fair value of the PSP2 Warrants, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in the consolidated balance sheet. The remaining amount of approximately $2.4 billion of PSP2 Financial Assistance was recognized as a credit to special items, net in the consolidated statement of operations in the first and second quarters of 2021, the period over which the continuation of payment of eligible employee wages, salaries and benefits was required. 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 6.6 million shares of AAG common stock for an exercise price of $15.66 per share, subject to adjustment. 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 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. PSP3 On April 23, 2021 (the PSP3 Closing Date), the Subsidiaries, entered into a Payroll Support Program 3 Agreement (the PSP3 Agreement) with Treasury, with respect to PSP3 as provided pursuant to the ARP. In connection with our entry into the PSP3 Agreement, on the PSP3 Closing Date, AAG also entered into a warrant agreement (the PSP3 Warrant Agreement) with Treasury and issued the PSP3 Promissory Note to Treasury, with the Subsidiaries as guarantors. PSP3 Agreement In connection with PSP3, we are required to comply with the relevant provisions of the ARP, which are substantially similar to the restrictions contained in the PSP1 Agreement, but are in effect for a longer time period. These provisions include the requirement that funds provided pursuant to the PSP3 Agreement be used exclusively for the continuation of payment of eligible employee wages, salaries and benefits, the prohibition against involuntary furloughs and reductions in employee pay rates and benefits, which expired on September 30, 2021, the provisions that prohibit the repurchase of AAG common stock and the payment of common stock dividends through at least September 30, 2022, and the provisions that restrict the payment of certain executive compensation until April 1, 2023. As was the case with PSP1 and PSP2, the PSP3 Agreement also imposes substantial reporting obligations on us. Pursuant to the PSP3 Agreement, Treasury provided us financial assistance in an aggregate of approximately $3.3 billion. As partial compensation to the U.S. Government for the provision of financial assistance under PSP3, AAG issued the PSP3 Promissory Note in the aggregate principal amount of $946 million and issued warrants (each a PSP3 Warrant and, collectively, the PSP3 Warrants) to Treasury to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock for an exercise price of $21.75 per share, subject to adjustment. See Note 4(g) for further information on the PSP3 Promissory Note and below for more information on the PSP3 Warrant Agreement and PSP3 Warrants. For accounting purposes, the $3.3 billion of aggregate financial assistance we received pursuant to the PSP3 Agreement is allocated to the PSP3 Promissory Note, the PSP3 Warrants and other PSP3 financial assistance (the PSP3 Financial Assistance). The $946 million aggregate principal amount of the PSP3 Promissory Note was recorded as unsecured long-term debt, and the $46 million total fair value of the PSP3 Warrants, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in the consolidated balance sheet. The remaining amount of approximately $2.3 billion of PSP3 Financial Assistance was recognized as a credit to special items, net in the consolidated statements of operations in the second and third quarters of 2021, the period over which the continuation of payment of eligible employee wages, salaries and benefits was required. PSP3 Warrant Agreement and PSP3 Warrants As partial compensation to the U.S. Government for the provision of financial assistance under the PSP3 Agreement, and pursuant to the PSP3 Warrant Agreement, AAG issued the PSP3 Warrants to Treasury to purchase PSP3 Warrant Shares. The exercise price of the PSP3 Warrant Shares is $21.75 per share, subject to certain anti-dilution provisions provided for in the PSP3 Warrants. Pursuant to the PSP3 Warrant Agreement, AAG issued to Treasury PSP3 Warrants to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock for an exercise price of $21.75 per share, subject to adjustment. The PSP3 Warrants do not have any voting rights and are freely transferrable, with registration rights. Each PSP3 Warrant expires on the fifth anniversary of the date of issuance of such PSP3 Warrant. The PSP3 Warrants will be exercisable either through net share settlement or cash, at our option. The PSP3 Warrants were issued solely as compensation to the U.S. Government related to entry into the PSP3 Agreement. No separate proceeds (apart from the financial assistance described above) were received upon issuance of the PSP3 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 the 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 consolidated 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. See Note 4(h) for additional information on 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 consolidated financial statements. ASU 2021-10: Disclosures by Business Entities about Government Assistance (Topic 832) This standard provides guidance on the disclosure requirements for business entities receiving government assistance. Specifically, entities are required to disclose information about the nature of the assistance received, including the related accounting, the affected line items on the financial statements and amounts, and the significant terms and conditions, including any commitments and contingencies. This standard is effective for annual periods beginning after December 15, 2021, and early adoption is permitted. We adopted this standard as of December 31, 2021. See (b) Impact of COVID-19 above for disclosure related to the financial assistance we have received from Treasury. (d) Investments Short-term investments primarily include debt securities and are classified as available-for-sale and stated at fair value. Realized gains and losses are recorded in nonoperating expense on our consolidated statements of operations. Unrealized gains and losses are recorded in accumulated other comprehensive loss on our consolidated balance sheets. For investments in an unrealized loss position, we determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. There have been no credit losses. Equity investments are accounted for under the equity method if we are able to exercise significant influence over an investee. Equity investments for which we do not have significant influence are recorded at fair value or at cost, if fair value is not readily determinable, with adjustments for observable changes in price or impairments (referred to as the measurement alternative). Our share of equity method investee’s financial results and changes in fair value are recorded in nonoperating other income, net on the consolidated statements of operations. See Note 8 for additional information related to our investments. (e) Restricted Cash and Short-term Investments We have restricted cash and short-term investments related primarily to collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK. (f) Aircraft Fuel, Spare Parts and Supplies, Net Aircraft fuel is recorded on a first-in, first-out basis. Spare parts and supplies are recorded at average costs less an allowance for obsolescence, which is recognized over the weighted average remaining useful life of the related fleet. We also provide an allowance for spare parts and supplies identified as excess or obsolete to reduce the carrying cost to the lower of cost or net realizable value. Aircraft fuel, spare parts and supplies are expensed when used. (g) Operating Property and Equipment Operating property and equipment is recorded at cost and depreciated or amortized to residual values over the asset’s estimated useful life or the lease term, whichever is less, using the straight-line method. Residual values for aircraft, engines and related rotable parts are generally 5% to 10% of original cost. Costs of major improvements that enhance the usefulness of the asset are capitalized and depreciated or amortized over the estimated useful life of the asset or the lease term, whichever is less. The estimated useful lives for the principal property and equipment classifications are as follows: Principal Property and Equipment Classification Estimated Useful Life Aircraft, engines and related rotable parts 20 – 30 years Buildings and improvements 5 – 30 years Furniture, fixtures and other equipment 3 – 10 years Capitalized software 5 – 10 years Total depreciation and amortization expense was $2.3 billion, $2.4 billion and $2.6 billion for the years ended December 31, 2021, 2020 and 2019, respectively. We assess impairment of operating property and equipment when events and circumstances indicate that the assets may be impaired. An impairment of an asset or group of assets exists only when the sum of the estimated undiscounted cash flows expected to be generated directly by the assets are less than the carrying value of the assets. We group assets principally by fleet-type when estimating future cash flows, which is generally the lowest level for which identifiable cash flows exist. Estimates of future cash flows are based on historical results adjusted to reflect management’s best estimate of future market and operating conditions, including our current fleet plan. If such assets are impaired, the impairment charge recognized is the amount by which the carrying value of the assets exceed their fair value. Fair value reflects management’s best estimate including inputs from published pricing guides and bids from third parties as well as contracted sales agreements when applicable. In 2021, we retired our remaining Embraer 140 fleet and recorded $27 million in non-cash special impairment charges reflecting the difference between the carrying values of these assets and their fair values. At December 31, 2021 and 2020, prepaid expense and other on the consolidated balance sheets included $29 million and $164 million, respectively, of retired aircraft that are expected to be sold in the next year, and other assets on the consolidated balance sheets included $383 million and $401 million, respectively, of nonoperating retired aircraft. (h) Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, current maturities of long-term debt and finance leases and long-term debt and finance leases, net of current maturities, on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising f |
American Airlines, Inc. | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation American Airlines, Inc. (American) is a Delaware corporation whose primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG), which owns all of American’s outstanding common stock, par value $1.00 per share. On December 9, 2013, a subsidiary of AMR Corporation (AMR) merged with and into US Airways Group, Inc. (US Airways Group), a Delaware corporation, which survived as a wholly-owned subsidiary of AAG, and AAG emerged from Chapter 11 (the Merger). Upon closing of the Merger and emergence from Chapter 11, AMR changed its name to American Airlines Group Inc. All significant intercompany transactions have been eliminated. 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, 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 (r) Regional Expenses below 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. Ongoing global vaccination efforts and the corresponding lifting of government restrictions in and between many markets resulted in a partial recovery in demand for air travel in 2021, which improved American’s revenues as compared to 2020. However, the return of demand was weaker than previous expectations and the speed and strength of this recovery remain uncertain, primarily due to the global rise in COVID-19 cases associated with the delta and omicron variants and the potential for continuation or reimposition of restrictions on global travel. The continued impact of the COVID-19 pandemic, including any increases in infection rates, new variants and renewed governmental action to slow the spread of COVID-19 cannot be estimated. American has taken aggressive actions since the beginning of the COVID-19 pandemic to mitigate its effects on its business, including capacity reductions, structural changes to its fleet, cost reductions including implementing voluntary leave and early retirement programs, and steps to preserve cash and improve its overall liquidity position, 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), Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law) and Section 7301 of the American Rescue Plan Act of 2021 (the ARP). Capacity Reductions American's capacity (as measured by available seat miles) continues to be reduced compared to pre-COVID-19 pandemic levels, with total capacity in 2021 down 24.7% as compared to 2019. Domestic capacity in 2021 was down 14.5% while international capacity was down 44.9% as compared to 2019. While demand for domestic and short-haul international markets has largely recovered to 2019 levels, uncertainty remains regarding the timing of a full recovery. 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 and other efficiency measures. These reductions include labor productivity enhancements, management salaries and benefits and other permanent cost reductions. Also, during the first quarter of 2021, approximately 1,600 represented team members opted into a voluntary early retirement program. Liquidity As of December 31, 2021, American had $15.8 billion in total available liquidity, consisting of $12.4 billion in unrestricted cash and short-term investments, $2.8 billion in undrawn capacity under revolving credit facilities and a total of $568 million in undrawn short-term revolving and other facilities. During 2021, American completed the following financing transactions (see Note 3 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 the $3.5 billion 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 the second quarter of 2020 in response to the COVID-19 pandemic; • repaid the $550 million of outstanding loans under, and terminated, the $7.5 billion secured term loan facility with the U.S. Department of the Treasury (Treasury) (the Treasury Loan Agreement); • issued approximately $150 million in special facility revenue bonds related to John F. Kennedy International Airport (JFK), of which $62 million was used to fund the redemption of other bonds related to JFK; • repaid in full $950 million of the outstanding balance under, and terminated, the April 2016 Spare Parts Term Loan Facility; • received approximately $94 million in proceeds from enhanced equipment trust certificates (EETCs) and other aircraft and flight equipment financing, all of which was used to repay existing indebtedness; and • received approximately $192 million of cash proceeds from the sale of property and equipment primarily related to aircraft fleets retired in 2020 and raised $181 million principally from aircraft sale-leaseback transactions. In addition to the foregoing financings, during 2021, AAG and the Subsidiaries (as defined below) received an aggregate of approximately $3.5 billion in financial assistance through the payroll support program (PSP2) established under the PSP Extension Law. In connection with AAG and the Subsidiaries receipt of this financial assistance, AAG issued a promissory note (the PSP2 Promissory Note) to Treasury for $1.0 billion in aggregate principal amount and warrants to purchase up to an aggregate of approximately 6.6 million shares (the PSP2 Warrant Shares) of AAG common stock. Also in 2021, AAG and the Subsidiaries received an aggregate of approximately $3.3 billion in financial assistance through the payroll support program (PSP3) established under the ARP. In connection with AAG and the Subsidiaries receipt of this financial assistance, AAG issued a promissory note (the PSP3 Promissory Note) to Treasury for $946 million in aggregate principal amount and warrants to purchase up to an aggregate of approximately 4.4 million shares (the PSP3 Warrant Shares) of AAG common stock. See below for further discussion on PSP2 and PSP3. 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 peak 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 projected cash flows from operations. PSP1 On April 20, 2020 (the PSP1 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 Agreement (the PSP1 Agreement) with Treasury, with respect to PSP1 provided pursuant to the CARES Act. In connection with AAG and the Subsidiaries’ entry into the PSP1 Agreement, on the PSP1 Closing Date, AAG also entered into a warrant agreement (the PSP1 Warrant Agreement) with Treasury and issued the PSP1 Promissory Note to Treasury, with the Subsidiaries as guarantors (the Guarantors). PSP1 Agreement In connection with PSP1, AAG and the Subsidiaries are required to comply with the relevant provisions of the CARES Act, including the requirement that funds provided pursuant to the PSP1 Agreement be used exclusively for the continuation of payment of eligible employee wages, salaries and benefits, the prohibition against involuntary furloughs and reductions in employee pay rates and benefits, which expired on September 30, 2020, the requirement that certain levels of commercial air service be maintained and the provisions that prohibit the repurchase of AAG common stock and the payment of common stock dividends through at least September 30, 2021, as well as the provisions that restrict the payment of certain executive compensation until March 24, 2022. The PSP1 Agreement also imposes substantial reporting obligations on AAG and the Subsidiaries. These provisions were subsequently extended upon the entry of AAG and its Subsidiaries into PSP2 and PSP3. In addition, AAG and the Subsidiaries have entered into the Treasury Loan Agreement (as defined below) and, as a result, the stock repurchase, dividend and executive compensation restrictions imposed by the Treasury Loan Agreement will remain in place through the date that is one year after the secured loan provided under the Treasury Loan Agreement is fully repaid, which was in March 2021. See below for additional information on the Treasury Loan Agreement. Pursuant to the PSP1 Agreement, Treasury provided to AAG and the Subsidiaries financial assistance in an aggregate of approximately $6.0 billion. As partial compensation to the U.S. Government for the provision of financial assistance under PSP1, AAG issued the PSP1 Promissory Note in the aggregate principal amount of $1.8 billion and issued warrants (each a PSP1 Warrant and, collectively, the PSP1 Warrants) to Treasury to purchase up to an aggregate of approximately 14.1 million shares (the PSP1 Warrant Shares) of AAG common stock for an exercise price of $12.51 per share, subject to adjustment. See below for more information on the PSP1 Warrant Agreement and the PSP1 Warrants. For accounting purposes, the $6.0 billion of aggregate financial assistance AAG and the Subsidiaries received pursuant to the PSP1 Agreement is allocated to the PSP1 Promissory Note, the PSP1 Warrants and other PSP1 financial assistance (the PSP1 Financial Assistance). The $1.8 billion aggregate principal amount of the PSP1 Promissory Note was recorded as unsecured long-term debt, and the $63 million total fair value of the PSP1 Warrants, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in the consolidated balance sheet. The remaining amount of approximately $4.2 billion of PSP1 Financial Assistance was recognized as a credit to special items, net in the consolidated statement of operations in the second and third quarters of 2020, the period over which the continuation of payment of eligible employee wages, salaries and benefits was required. PSP1 Warrant Agreement and PSP1 Warrants As partial compensation to the U.S. Government for the provision of financial assistance under the PSP1 Agreement, and pursuant to the PSP1 Warrant Agreement, AAG issued the PSP1 Warrants to Treasury to purchase PSP1 Warrant Shares. The exercise price of the PSP1 Warrant Shares is $12.51 per share, subject to certain anti-dilution provisions provided for in the PSP1 Warrants. Pursuant to the PSP1 Warrant Agreement, AAG issued to Treasury PSP1 Warrants to purchase up to an aggregate of approximately 14.1 million shares of AAG common stock for an exercise price of $12.51 per share, subject to adjustment. The PSP1 Warrants do not have any voting rights and are freely transferrable, with registration rights. Each PSP1 Warrant expires on the fifth anniversary of the date of issuance of such PSP1 Warrant. The PSP1 Warrants will be exercisable either through net share settlement or cash, at AAG’s option. The PSP1 Warrants were issued solely as compensation to the U.S. Government related to entry into the PSP1 Agreement. No separate proceeds (apart from the financial assistance described above) were received upon issuance of the PSP1 Warrants or will be received upon exercise thereof. Treasury Loan Agreement On September 25, 2020 (the Treasury Loan Closing Date), AAG and American 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, AAG and American entered into an amendment to the Treasury Loan Agreement, which increased the borrowing amount to up to $7.5 billion. In connection with AAG’s entry into the Treasury Loan Agreement, on the Treasury Loan Closing Date, AAG also entered into a warrant agreement (the Treasury Loan Warrant Agreement) with Treasury. In September 2020, American borrowed $550 million under the Treasury Term Loan Facility and on March 24, 2021, used proceeds from the AAdvantage Financing to prepay in full the $550 million of outstanding loans under the Treasury Term Loan Facility. Pursuant to the Treasury Loan Agreement, AAG issued to Treasury warrants (Treasury Loan Warrants) to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock (the Treasury Loan Warrant Shares). The exercise price of the Treasury Loan Warrant Shares is $12.51 per share, subject to certain anti-dilution provisions provided for in the Treasury Loan Warrant Agreement. For accounting purposes, the fair value for the Treasury Loan Warrant Shares is estimated using a Black-Scholes option pricing model and recorded in stockholders' equity with an offsetting debt discount to the Treasury Term Loan Facility in the consolidated balance sheet. The provisions of the Treasury Loan Warrants are substantially similar to the PSP1 Warrants. PSP2 On January 15, 2021 (the PSP2 Closing Date), the Subsidiaries, entered into a Payroll Support Program Extension Agreement (the PSP2 Agreement) with Treasury, with respect to PSP2 as provided pursuant to the PSP Extension Law. In connection with AAG and 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 to 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 (the PSP1 Agreement), 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 prohibition against involuntary furloughs and reductions in employee pay rates and benefits, which expired on 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, and 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 an aggregate of approximately $3.5 billion. 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 $1.0 billion and issued warrants (each a PSP2 Warrant and, collectively, the PSP2 Warrants) to Treasury to purchase up to an aggregate of approximately 6.6 million shares of AAG common stock for an exercise price of $15.66 per share, subject to adjustment. See below for more information on the PSP2 Warrant Agreement and PSP2 Warrants. For accounting purposes, the $3.5 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 other PSP2 financial assistance (the PSP2 Financial Assistance). The $1.0 billion aggregate principal amount of the PSP2 Promissory Note was recorded as unsecured long-term debt, and the $76 million total fair value of the PSP2 Warrants, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in AAG’s consolidated balance sheet. The remaining amount of approximately $2.4 billion of PSP2 Financial Assistance was recognized as a credit to special items, net in the consolidated statement of operations in the first and second quarters of 2021, the period over which the continuation of payment of eligible employee wages, salaries and benefits was required. 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 6.6 million shares of AAG common stock for an exercise price of $15.66 per share, subject to adjustment. 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 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. PSP3 On April 23, 2021 (the PSP3 Closing Date), the Subsidiaries, entered into a Payroll Support Program 3 Agreement (the PSP3 Agreement) with Treasury, with respect to PSP3 as provided pursuant to the ARP. In connection with AAG and the Subsidiaries’ entry into the PSP3 Agreement, on the PSP3 Closing Date, AAG also entered into a warrant agreement (the PSP3 Warrant Agreement) with Treasury and issued the PSP3 Promissory Note to Treasury, with the Subsidiaries as guarantors. PSP3 Agreement In connection with PSP3, AAG and the Subsidiaries are required to comply with the relevant provisions of the ARP, which are substantially similar to the restrictions contained in the PSP1 Agreement, but are in effect for a longer time period. These provisions include the requirement that funds provided pursuant to the PSP3 Agreement be used exclusively for the continuation of payment of eligible employee wages, salaries and benefits, the prohibition against involuntary furloughs and reductions in employee pay rates and benefits, which expired on September 30, 2021, the provisions that prohibit the repurchase of AAG common stock and the payment of common stock dividends through at least September 30, 2022, and the provisions that restrict the payment of certain executive compensation until April 1, 2023. As was the case with PSP1 and PSP2, the PSP3 Agreement also imposes substantial reporting obligations on AAG and the Subsidiaries. Pursuant to the PSP3 Agreement, Treasury provided AAG and the Subsidiaries financial assistance in an aggregate of approximately $3.3 billion. As partial compensation to the U.S. Government for the provision of financial assistance under PSP3, AAG issued the PSP3 Promissory Note in the aggregate principal amount of $946 million and issued warrants (each a PSP3 Warrant and, collectively, the PSP3 Warrants) to Treasury to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock for an exercise price of $21.75 per share, subject to adjustment. See below for more information on the PSP3 Warrant Agreement and PSP3 Warrants. For accounting purposes, the $3.3 billion of aggregate financial assistance AAG and the Subsidiaries received pursuant to the PSP3 Agreement is allocated to the PSP3 Promissory Note, the PSP3 Warrants and other PSP3 financial assistance (the PSP3 Financial Assistance). The $946 million aggregate principal amount of the PSP3 Promissory Note was recorded as unsecured long-term debt, and the $46 million total fair value of the PSP3 Warrants, estimated using a Black-Scholes option pricing model, was recorded in stockholders' deficit in AAG’s consolidated balance sheet. The remaining amount of approximately $2.3 billion of PSP3 Financial Assistance was recognized as a credit to special items, net in the consolidated statements of operations in the second and third quarters of 2021, the period over which the continuation of payment of eligible employee wages, salaries and benefits was required. PSP3 Warrant Agreement and PSP3 Warrants As partial compensation to the U.S. Government for the provision of financial assistance under the PSP3 Agreement, and pursuant to the PSP3 Warrant Agreement, AAG issued the PSP3 Warrants to Treasury to purchase PSP3 Warrant Shares. The exercise price of the PSP3 Warrant Shares is $21.75 per share, subject to certain anti-dilution provisions provided for in the PSP3 Warrants. Pursuant to the PSP3 Warrant Agreement, AAG issued to Treasury PSP3 Warrants to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock for an exercise price of $21.75 per share, subject to adjustment. The PSP3 Warrants do not have any voting rights and are freely transferrable, with registration rights. Each PSP3 Warrant expires on the fifth anniversary of the date of issuance of such PSP3 Warrant. The PSP3 Warrants will be exercisable either through net share settlement or cash, at AAG’s option. The PSP3 Warrants were issued solely as compensation to the U.S. Government related to entry into the PSP3 Agreement. No separate proceeds (apart from the financial assistance described above) were received upon issuance of the PSP3 Warrants or will be received upon exercise thereof. (c) Recent Accounting Pronouncements Accounting Standards Update (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. American adopted this standard effective January 1, 2021, and it did not have a material impact on its consolidated financial statements. ASU 2021-10: Disclosures by Business Entities about Government Assistance (Topic 832) This standard provides guidance on the disclosure requirements for business entities receiving government assistance. Specifically, entities are required to disclose information about the nature of the assistance received, including the related accounting, the affected line items on the financial statements and amounts, and the significant terms and conditions, including any commitments and contingencies. This standard is effective for annual periods beginning after December 15, 2021, and early adoption is permitted. American adopted this standard as of December 31, 2021. See (b) Impact of COVID-19 above for disclosure related to the financial assistance American received from Treasury. (d) Investments Short-term investments primarily include debt securities and are classified as available-for-sale and stated at fair value. Realized gains and losses are recorded in nonoperating expense on American’s consolidated statements of operations. Unrealized gains and losses are recorded in accumulated other comprehensive loss on American’s consolidated balance sheets. For investments in an unrealized loss position, American determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. There have been no credit losses. Equity investments are accounted for under the equity method if American is able to exercise significant influence over an investee. Equity investments for which American does not have significant influence are recorded at fair value or at cost, if fair value is not readily determinable, with adjustments for observable changes in price or impairments (referred to as the measurement alternative). American’s share of equity method investee’s financial results and changes in fair value are recorded in nonoperating other income, net on the consolidated statements of operations. See Note 7 for additional information related to American’s investments. (e) Restricted Cash and Short-term Investments American has restricted cash and short-term investments related primarily to collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK. (f) Aircraft Fuel, Spare Parts and Supplies, Net Aircraft fuel is recorded on a first-in, first-out basis. Spare parts and supplies are recorded at average costs less an allowance for obsolescence, which is recognized over the weighted average remaining useful life of the related fleet. American also provides an allowance for spare parts and supplies identified as excess or obsolete to reduce the carrying cost to the lower of cost or net realizable value. Aircraft fuel, spare parts and supplies are expensed when used. (g) Operating Property and Equipment Operating property and equipment is recorded at cost and depreciated or amortized to residual values over the asset’s estimated useful life or the lease term, whichever is less, using the straight-line method. Residual values for aircraft, engines and related rotable parts are generally 5% to 10% of original cost. Costs of major improvements that enhance the usefulness of the asset are capitalized and depreciated or amortized over the estimated useful life of the asset or the lease term, whichever is less. The estimated useful lives for the principal property and equipment classifications are as follows: Principal Property and Equipment Classification Estimated Useful Life Aircraft, engines and related rotable parts 20 – 30 years Buildings and improvements 5 – 30 years Furniture, fixtures and other equipment 3 – 10 years Capitalized software 5 – 10 years Total depreciation and amortization expense was $2.3 billion for each of the years ended December 31, 2021 and 2020, and $2.5 billion for the year ended December 31, 2019. American assesses impairment of operating property and equipment when events and circumstances indicate that the assets may be impaired. An impairment of an asset or group of assets exists only when the sum of the estimated undiscounted cash flows expected to be generated directly by the assets are less than the carrying value of the assets. American groups assets principally by fleet-type when estimating future cash flows, which is generally the lowest level for which identifiable cash flows exist. Estimates of future cash flows are based on historical results adjusted to reflect management’s best estimate of future market and operating conditions, including American’s current fleet plan. If such assets are impaired, the impairment charge recognized is the amount by which the carrying value of the assets exceed their fair value. Fair value reflects management’s best estimate including inputs from published pricing guides and bids from third parties as well as contracted sales agreements when applicable. In 2021, American retired its remaining Embraer 140 fleet and recorded $27 million in non-cash special impairment charges reflecting the difference between the carrying values of these assets and their fair values. At December 31, 2021 and 2020, prepaid expense and other on the consolidated balance sheets included $29 million and $164 million, respectively, of retired aircraft that are expected to be sold in the next year, and other assets on the consolidated balance sheets included $382 million and $400 million, respectively, of nonoperating retired aircraft. (h) Leases American determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities on American’s consolidated balance sheets. Finance leases are included in property and equipment, current maturities of long-term debt and finance leases and long-term debt and finance leases, net of current maturities, on American’s consolidated balance sheets. ROU assets represent American’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. American uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date , in determining the present value of lease payments. American gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. American’s lease term includes options to extend the lease when it is reasonably certain that it will exercise that option. Leases with a term of 12 months or less are not recorded on its consolidated balance sheets. American’s lease agreements do not contain any residual value guarantees. Under certain of American’s capacity purchase agreements with third-party regional carriers, American does not own the underlying aircraft. However, since American controls the marketing, scheduling, ticketing, pricing and seat inventories of these aircraft and therefore control the asset, the aircraft is deemed to be leased for accounting purposes. For these capacity purchase agreements, American accounts for the lease and non-lease components separately. The lease component consists of the aircraft and the non-lease components consist of services, such as the crew and maintenance. American allocates the consideration in the capacity purchase agreements to the lease and non-lease components using their estimated relative standalone prices. See Note 10(b) for additional information on its capacity purchase agreements . For real estate, American accounts for the lease and non-lease components as a single lease component. (i) Income Taxes Income tax |
Special Items, Net
Special Items, Net | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Special Items, Net | Special Items, Net Special items, net on our consolidated statements of operations consisted of the following (in millions): Year Ended December 31, 2021 2020 2019 PSP Financial Assistance (1) $ (4,162) $ (3,710) $ — Severance expenses (2) 168 1,408 11 Litigation reserve adjustments (19) — (53) Mark-to-market adjustments on bankruptcy obligations, net (3) (3) (49) (11) Fleet impairment (4) — 1,484 213 Labor contract expenses (5) — 228 — Fleet restructuring expenses (6) — — 271 Merger integration expenses (7) — — 191 Other operating special items, net 10 (18) 13 Mainline operating special items, net (4,006) (657) 635 PSP Financial Assistance (1) (539) (444) — Regional pilot retention program (8) 61 — — Fleet impairment (4) 27 117 — Severance expenses (2) 2 18 — Other operating special items, net — — 6 Regional operating special items, net (449) (309) 6 Operating special items, net (4,455) (966) 641 Mark-to-market adjustments on equity and other investments, net (9) 31 135 (5) Debt refinancing, extinguishment and other, net 29 35 8 Nonoperating special items, net 60 170 3 (1) The 2021 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP2 and PSP3 Agreements. See Note 1(b) for further information. The 2020 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP1 Agreement. (2) The 2021 and 2020 severance expenses include salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments primarily associated with our voluntary early retirement programs were approximately $520 million and $365 million in 2021 and 2020, respectively. The 2019 severance expenses primarily included costs associated with reductions of management and support staff team members. (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 charges resulted from the retirement of certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. In 2021, we retired our remaining Embraer 140 fleet resulting in a non-cash write-down of these regional aircraft. See Note 1(g) for further information related to these charges. In 2020, we retired our entire Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $1.5 billion non-cash write-down of mainline and regional aircraft and associated spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of our Embraer 190 fleet. (5) The 2020 labor contract expenses primarily related to one-time charges due to the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned. (7) Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems. (8) Our regional pilot retention program provides for, among other things, a cash retention bonus paid in the fourth quarter of 2021 to eligible captains at our wholly-owned regional airlines included on the pilot seniority list as of September 1, 2021. (9) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with our equity investments in China Southern Airlines Company Limited (China Southern Airlines) and in 2021, Vertical Aerospace Ltd. (Vertical), 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 on American’s consolidated statements of operations consisted of the following (in millions): Year Ended December 31, 2021 2020 2019 PSP Financial Assistance (1) $ (4,162) $ (3,710) $ — Severance expenses (2) 168 1,408 11 Litigation reserve adjustments (19) — (53) Mark-to-market adjustments on bankruptcy obligations, net (3) (3) (49) (11) Fleet impairment (4) — 1,484 213 Labor contract expenses (5) — 228 — Fleet restructuring expenses (6) — — 271 Merger integration expenses (7) — — 191 Other operating special items, net 10 (18) 13 Mainline operating special items, net (4,006) (657) 635 PSP Financial Assistance (1) (539) (444) — Fleet impairment (4) 27 106 — Regional operating special items, net (512) (338) — Operating special items, net (4,518) (995) 635 Mark-to-market adjustments on equity and other investments, net (8) 31 135 (5) Debt refinancing, extinguishment and other, net 29 35 16 Nonoperating special items, net 60 170 11 (1) The 2021 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP2 and PSP3 Agreements. See Note 1(b) for further information. The 2020 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP1 Agreement. (2) The 2021 and 2020 severance expenses include salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments primarily associated with American's voluntary early retirement programs were approximately $520 million and $365 million in 2021 and 2020, respectively. The 2019 severance expenses primarily included costs associated with reductions of management and support staff team members. (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 charges resulted from the retirement of certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. In 2021, American retired its remaining Embraer 140 fleet resulting in a non-cash write-down of these regional aircraft. See Note 1(g) for further information related to these charges. In 2020, American retired its entire Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $1.5 billion non-cash write-down of mainline and regional aircraft and associated spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of American’s Embraer 190 fleet. (5) The 2020 labor contract expenses primarily related to one-time charges due to the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned. (7) Merger integration expenses included costs associated with integration projects, principally American's technical operations, flight attendant, human resources and payroll systems. (8) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American’s equity investments in China Southern Airlines Company Limited (China Southern Airlines) and in 2021, Vertical Aerospace Ltd. (Vertical), and certain treasury rate lock derivative instruments. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share The following table sets forth the computation of basic and diluted earnings (loss) per common share (EPS) (in millions, except share and per share amounts): Year Ended December 31, 2021 2020 2019 Basic EPS: Net income (loss) $ (1,993) $ (8,885) $ 1,686 Weighted average common shares outstanding (in thousands) 644,015 483,888 443,363 Basic EPS $ (3.09) $ (18.36) $ 3.80 Diluted EPS: Net income (loss) for purposes of computing diluted EPS $ (1,993) $ (8,885) $ 1,686 Share computation for diluted EPS (in thousands): Basic weighted average common shares outstanding 644,015 483,888 443,363 Dilutive effect of stock awards and warrants — — 906 Diluted weighted average common shares outstanding 644,015 483,888 444,269 Diluted EPS $ (3.09) $ (18.36) $ 3.79 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): Year Ended December 31, 2021 2020 2019 6.50% convertible senior notes 61,728 31,882 — PSP1 Warrants 5,392 349 — Restricted stock unit awards 3,420 4,584 2,520 Treasury Loan Warrants 1,681 107 — PSP2 Warrants 1,300 — — |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Debt | Debt Long-term debt included on our consolidated balance sheets consisted of (in millions): December 31, 2021 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.85%, installments through 2025 (a) $ 1,770 $ 1,788 2013 Revolving Facility (a) — 750 2014 Term Loan Facility, variable interest rate of 1.85%, installments through 2027 (a) 1,208 1,220 2014 Revolving Facility (a) — 1,643 April 2016 Spare Parts Term Loan Facility (a) — 960 April 2016 Revolving Facility (a) — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 (a) 1,188 1,200 11.75% senior secured notes, interest only payments until due in July 2025 (b) 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 (b) 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 (b) 200 200 Treasury Term Loan Facility (c) — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (d) 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (d) 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.50%, installments beginning in July 2023 through April 2028 (d) 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 8.39%, averaging 3.84%, maturing from 2022 to 2034 (e) 9,357 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.27% to 4.64%, averaging 1.82%, maturing from 2022 to 2032 3,433 4,417 Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036 (f) 1,129 1,064 31,785 28,755 Unsecured PSP1 Promissory Note, interest only payments until due in April 2030 (g) 1,765 1,765 PSP2 Promissory Note, interest only payments until due in January 2031 (g) 1,035 — PSP3 Promissory Note, interest only payments until due in April 2031 (g) 946 — 6.50% convertible senior notes, interest only payments until due in July 2025 (h) 1,000 1,000 5.000% senior notes, interest only payments until due in June 2022 (i) 750 750 3.75% senior notes, interest only payments until due in March 2025 (i) 500 500 5,996 4,015 Total long-term debt 37,781 32,770 Less: Total unamortized debt discount, premium and issuance costs 458 749 Less: Current maturities 2,315 2,697 Long-term debt, net of current maturities $ 35,008 $ 29,324 As of December 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 568 Total $ 3,411 American has an undrawn $500 million short-term revolving credit facility, which was set to expire at the beginning of January 2022 but which has been extended through the beginning of January 2023. Beginning January 2, 2022, the available amount thereunder decreased to $150 million. American also currently has approximately $68 million of available borrowing base under a cargo receivables facility that was entered into in December 2020 and is set to expire in December 2022. The December 2016 Credit Facilities provide for a revolving credit facility that may be established thereunder in the future. Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets. At December 31, 2021, the maturities of long-term debt are as follows (in millions): 2022 $ 2,387 2023 4,167 2024 3,467 2025 9,249 2026 4,412 2027 and thereafter 14,099 Total $ 37,781 (a) 2013, 2014, April 2016 and December 2016 Credit Facilities 2013 Credit Facilities In November 2019, American and AAG entered into the Sixth Amendment to Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated as of May 21, 2015 (as previously amended, the 2013 Credit Agreement; the revolving credit facility established thereunder, the 2013 Revolving Facility; the term loan facility established thereunder, the 2013 Term Loan Facility; and the 2013 Revolving Facility together with the 2013 Term Loan Facility, the 2013 Credit Facilities), which reduced the total aggregate commitments under the 2013 Revolving Facility to $750 million from $1.0 billion. In addition, certain lenders party to the 2013 Credit Agreement extended the maturity date of their commitments under the 2013 Revolving Facility to October 2024 from October 2023. In March 2021, American repaid in full the $750 million of outstanding revolving loans under the 2013 Revolving Facility that was drawn in April 2020. Following the March 2021 repayment, American is able to draw upon the commitment under the 2013 Revolving Facility again as needed upon the terms of the 2013 Credit Agreement or leave it undrawn, in each case, until such commitment expires, which is currently scheduled to occur in October 2024. As of December 31, 2021, there were no borrowings or letters of credit outstanding under the 2013 Revolving Facility. 2014 Credit Facilities In November 2019, American and AAG entered into the Seventh Amendment to Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated as of April 20, 2015 (as previously amended, the 2014 Credit Agreement; the revolving credit facility established thereunder, the 2014 Revolving Facility; the term loan facility established thereunder, the 2014 Term Loan Facility; and the 2014 Revolving Facility together with the 2014 Term Loan Facility, the 2014 Credit Facilities), which increased the total aggregate commitments under the 2014 Revolving Facility to $1.6 billion from $1.5 billion. In addition, certain lenders party to the 2014 Credit Agreement extended the maturity date of their commitments under the 2014 Revolving Facility to October 2024 from October 2023. In January 2020, American and AAG entered into the Eighth Amendment to the 2014 Credit Agreement, pursuant to which American refinanced the 2014 Term Loan Facility, increasing the total aggregate principal amount outstanding to $1.2 billion, reducing the LIBOR margin from 2.00% to 1.75%, with a LIBOR floor of 0%, and reducing the base rate margin from 1.00% to 0.75%. In addition, the maturity date for the 2014 Term Loan Facility was extended to January 2027 from October 2021. In March 2021, American repaid in full the $1.6 billion of outstanding revolving loans under the 2014 Revolving Facility that was drawn in April and May 2020. Following the March 2021 repayment, American is able to draw upon the commitment under the 2014 Revolving Facility again as needed upon the terms of the 2014 Credit Agreement or leave it undrawn, in each case, until such commitment expires, which is currently scheduled to occur in October 2024. As of December 31, 2021, there were no borrowings or letters of credit outstanding under the 2014 Revolving Facility. April 2016 Credit Facilities In November 2019, American and AAG entered into the Fifth Amendment to Credit and Guaranty Agreement, amending the Credit and Guaranty Agreement dated as of April 29, 2016 (as previously amended, the April 2016 Credit Agreement; the revolving credit facility established thereunder, the April 2016 Revolving Facility; the term loan facility established thereunder, the April 2016 Spare Parts Term Loan Facility; and the April 2016 Revolving Facility together with the April 2016 Spare Parts Term Loan Facility, the April 2016 Credit Facilities), which increased the total aggregate commitments under the April 2016 Revolving Facility to $450 million from $300 million. In addition, certain lenders party to the April 2016 Credit Agreement extended the maturity date of their commitments under the April 2016 Revolving Facility to October 2024 from October 2023. In March 2021, American repaid in full the $450 million of outstanding revolving loans under the April 2016 Revolving Facility that was drawn in April 2020. Following the March 2021 repayment, American is able to draw upon the commitment under the April 2016 Revolving Facility again as needed upon the terms of the April 2016 Credit Agreement or leave it undrawn, in each case, until such commitment expires, which is currently scheduled to occur in October 2024. On July 22, 2021, American repaid in full the $950 million aggregate principal amount of outstanding term loans under, and terminated, the April 2016 Spare Parts Term Loan Facility. The April 2016 Revolving Facility, in an available aggregate principal amount of $450 million, remains in place. As of December 31, 2021, there were no borrowings outstanding under the April 2016 Revolving Facility. December 2016 Credit Facilities In December 2016, American and AAG entered into the Amended and Restated Credit and Guaranty Agreement, dated as of December 15, 2016 (as amended, the December 2016 Credit Agreement; the term loan facility established thereunder, the December 2016 Term Loan Facility; and together with the revolving credit facility that may be established thereunder in the future, the December 2016 Credit Facilities). Certain details of our 2013 Credit Facilities, 2014 Credit Facilities, April 2016 Credit Facilities and December 2016 Credit Facilities (collectively referred to as the Credit Facilities) are shown in the table below as of December 31, 2021: 2013 Credit Facilities 2014 Credit Facilities April 2016 Credit Facilities December 2016 Credit Facilities 2013 Term Loan 2013 2014 Term Loan 2014 April 2016 December 2016 Term Loan Aggregate principal issued $1,919 $750 $1,280 $1,643 $450 $1,250 Principal outstanding or $1,770 $— $1,208 $— $— $1,188 Maturity date June 2025 October 2024 January 2027 October 2024 October 2024 December 2023 LIBOR margin 1.75% 2.00% 1.75% 2.00% 2.00% 2.00% The term loans under each of the Credit Facilities are repayable in annual installments in an amount equal to 1.00% of the aggregate principal amount issued, with any unpaid balance due on the respective maturity dates. Voluntary prepayments may be made by American at any time. The 2013 Revolving Facility, 2014 Revolving Facility and April 2016 Revolving Facility provide that American may from time to time borrow, repay and reborrow loans thereunder. The 2013 Revolving Facility and 2014 Revolving Facility have the ability to issue letters of credit thereunder in an aggregate amount outstanding at any time up to $100 million and $200 million, respectively. The 2013 Revolving Facility, 2014 Revolving Facility and April 2016 Revolving Facility are each subject to an undrawn annual fee of 0.63%. Subject to certain limitations and exceptions, the Credit Facilities are secured by collateral, including certain spare parts, slots, route authorities, simulators and leasehold rights. American has the ability to make future modifications to the collateral pledged, subject to certain restrictions. American’s obligations under the Credit Facilities are guaranteed by AAG. American is required to maintain a certain minimum ratio of appraised value of the collateral to the outstanding loans as further described below in “Certain Covenants.” The Credit Facilities contain events of default customary for similar financings, including cross default to other material indebtedness. Upon the occurrence of an event of default, the outstanding obligations may be accelerated and become due and payable immediately. In addition, if a “change of control” occurs, American will (absent an amendment or waiver) be required to repay at par the loans outstanding under the Credit Facilities and terminate the 2013 Revolving Facility, 2014 Revolving Facility and April 2016 Revolving Facility and any revolving credit facility established under the December 2016 Credit Facilities. The Credit Facilities also include covenants that, among other things, require AAG 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 limit the ability of AAG and its restricted subsidiaries to pay dividends and make certain other payments, make certain investments, incur additional indebtedness, incur liens on the collateral, dispose of the collateral, enter into certain affiliate transactions and engage in certain business activities, in each case subject to certain exceptions. (b) Senior Secured Notes 11.75% Senior Secured Notes In June 2020, American issued $2.5 billion aggregate principal amount of 11.75% senior secured notes due 2025 (the 11.75% Senior Secured Notes) at a price equal to 99% of their aggregate principal amount. The 11.75% Senior Secured Notes bear interest at a rate of 11.75% per annum (subject to increase if the collateral coverage ratio described below is not met). Interest on the 11.75% Senior Secured Notes is payable semiannually in arrears on January 15 and July 15 of each year, which began on January 15, 2021. The 11.75% Senior Secured Notes will mature on July 15, 2025. The obligations of American under the 11.75% Senior Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by AAG. The 11.75% Senior Secured Notes were issued pursuant to an indenture, dated as of June 30, 2020 (the 11.75% Senior Secured Notes Indenture), by and among American, AAG and Wilmington Trust, National Association, as trustee (the 11.75% Senior Secured Notes Trustee). The 11.75% Senior Secured Notes are American’s senior secured obligations. Subject to certain limitations and exceptions, the 11.75% Senior Secured Notes are secured on a first-lien basis by security interests in certain assets, rights and properties utilized by American in providing its scheduled air carrier services to and from certain airports in the United States and certain airports in Australia, Canada, the Caribbean, Central America, China, Hong Kong, Japan, Mexico, South Korea, and Switzerland (collectively, the First Lien 11.75% Senior Secured Notes Collateral). American’s obligations with respect to the 11.75% Senior Secured Notes are also secured on a second-lien basis by security interests in certain assets, rights and properties utilized by American in providing its scheduled air carrier services to and from certain airports in the United States and certain airports in the European Union and the United Kingdom (collectively, the Second Lien 11.75% Senior Secured Notes Collateral and together with the First Lien 11.75% Senior Secured Notes Collateral, the 11.75% Senior Secured Notes Collateral). American may be required to pledge additional collateral in the future under the terms of the 11.75% Senior Secured Notes, and in certain circumstances may elect to pledge additional collateral as a replacement for existing collateral. The Second Lien 11.75% Senior Secured Notes Collateral also secures the 2014 Credit Facilities on a first-lien basis. American may redeem the 11.75% Senior Secured Notes, 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 11.75% Senior Secured Notes being redeemed plus a make whole premium, together with accrued and unpaid interest thereon, if any, to (but not including) the redemption date. In the event of a specified change of control, each holder of 11.75% Senior Secured Notes may require American to repurchase its 11.75% Senior Secured Notes in whole or in part at a repurchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, if any, to (but not including) the repurchase date. American is required to deliver an appraisal of the First Lien 11.75% Senior Secured Notes Collateral and officer’s certificate on a semi-annual basis demonstrating the calculation of a collateral coverage ratio in relation to the First Lien 11.75% Senior Secured Notes Collateral as of the end of each semi-annual period based on such appraisal. If American fails to deliver the officer’s certificate in a timely manner or the collateral coverage ratio is less than 1.6 to 1.0 as of the end of the semi-annual period, then, subject to an opportunity to cure the deficiency in the collateral coverage ratio, American will be required to pay special interest in an additional amount equal to 2.0% per annum of the outstanding principal amount of the 11.75% Senior Secured Notes until the collateral coverage ratio is established to be at least 1.6 to 1.0. The 11.75% Senior Secured Notes Indenture contains covenants that, among other things, restrict the ability of AAG and the ability of its restricted subsidiaries (including American) to: (i) pay dividends, redeem or repurchase stock or make other distributions or restricted payments, (ii) incur liens on the 11.75% Senior Secured Notes Collateral and dispose of or release the 11.75% Senior Secured Notes Collateral, (iii) repay subordinated indebtedness, (iv) make certain loans and investments, (v) incur indebtedness or issue preferred stock, (vi) merge, consolidate or sell assets, (vii) undergo certain change of control transactions, and (viii) designate subsidiaries as unrestricted. These covenants are subject to a number of important exceptions and qualifications set forth in the 11.75% Senior Secured Notes Indenture. Upon the occurrence of any event of default (other than certain bankruptcy or insolvency or reorganization events affecting AAG or certain of its subsidiaries, including American), the 11.75% Senior Secured Notes may be declared to be due and payable immediately. Upon the occurrence of certain bankruptcy, insolvency or reorganization events affecting American or certain of its subsidiaries (including American), all outstanding 11.75% Senior Secured Notes will become due and payable immediately without further action or notice on the part of the 11.75% Senior Secured Notes Trustee or any holder of the 11.75% Senior Secured Notes. 10.75% Senior Secured Notes On September 25, 2020 (the 10.75% Senior Secured Notes Closing Date), American issued $1.0 billion in initial principal amount of senior secured IP notes (the IP Notes) and $200 million in initial principal amount of senior secured LGA/DCA notes (the LGA/DCA Notes and together with the IP Notes, the 10.75% Senior Secured Notes). The obligations of American under the 10.75% Senior Secured Notes are fully and unconditionally guaranteed (the 10.75% Senior Secured Notes Guarantees) on a senior unsecured basis by AAG. The 10.75% Senior Secured Notes bear interest at a rate of 10.75% per annum in cash. For any interest period on or prior to September 1, 2022, American may, at its election, pay interest at a rate of 12.00% per annum payable one-half in cash and one-half in kind. Interest on the 10.75% Senior Secured Notes is payable semiannually in arrears on September 1 and March 1 of each year, which began on March 1, 2021. The 10.75% Senior Secured Notes will mature on February 15, 2026. The 10.75% Senior Secured Notes were each issued pursuant to a separate indenture, dated as of September 25, 2020 (individually, the IP Notes Indenture and the LGA/DCA Notes Indenture and collectively, the 10.75% Senior Secured Notes Indentures), by and among American, AAG and Wilmington Trust, National Association, as trustee and as collateral trustee (the 10.75% Senior Secured Notes Trustee). The IP Notes are secured by a first lien security interest on certain intellectual property of American, including the “American Airlines” trademark and the “aa.com” domain name in the United States and certain foreign jurisdictions (the IP Collateral), and a second lien on certain slots related to American’s operations at New York LaGuardia and Ronald Reagan Washington National airports and certain other assets (the LGA/DCA Collateral and together with the IP Collateral, the 10.75% Senior Secured Notes Collateral). Subject to certain conditions, American will be permitted to incur up to $4.0 billion of additional pari passu debt and unlimited second lien debt secured by the IP Collateral securing the IP Notes. The LGA/DCA Notes are secured by a first lien security interest in the LGA/DCA Collateral. American may be required to pledge additional collateral in the future under the terms of the 10.75% Senior Secured Notes, and in certain circumstances may elect to pledge additional collateral including as a replacement for existing collateral. The LGA/DCA Collateral also secures on a first-lien basis the December 2016 Credit Facilities. On or prior to the fourth anniversary of the 10.75% Senior Secured Notes Closing Date, American may redeem all or any part of the 10.75% Senior Secured Notes, at its option, at a redemption price equal to 100% of the principal amount of the 10.75% Senior Secured Notes redeemed plus a make whole premium, together with accrued and unpaid interest thereon, if any. After the fourth anniversary of the 10.75% Senior Secured Notes Closing Date and on or prior to the fifth anniversary of the 10.75% Senior Secured Notes Closing Date, American may redeem all or any part of the 10.75% Senior Secured Notes, at its option, at a redemption price equal to 105.375% of the principal amount of the 10.75% Senior Secured Notes redeemed, together with accrued and unpaid interest thereon, if any. After the fifth anniversary of the 10.75% Senior Secured Notes Closing Date, American may redeem all or any part of the 10.75% Senior Secured Notes, at its option, at par, together with accrued and unpaid interest thereon, if any. In the event of a specified change of control, each holder of 10.75% Senior Secured Notes may require American to repurchase its 10.75% Senior Secured Notes, in whole or in part, at a repurchase price of 101% of the aggregate principal amount of the 10.75% Senior Secured Notes so repurchased, plus accrued and unpaid interest thereon, if any, to (but not including) the repurchase date. The 10.75% Senior Secured Notes Indentures contain covenants that, among other things, restrict the ability of AAG and the ability of its restricted subsidiaries (including American) to: (i) pay dividends, redeem or repurchase stock or make other distributions or restricted payments, (ii) incur liens on the 10.75% Senior Secured Notes Collateral and dispose of or release the 10.75% Senior Secured Notes Collateral, (iii) repay subordinated indebtedness, (iv) make certain loans and investments, (v) incur indebtedness or issue preferred stock, (vi) merge, consolidate or sell assets, and (vii) designate subsidiaries as unrestricted. In addition, the 10.75% Senior Secured Notes Indentures include covenants that require AAG to maintain (a) 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 (b) a certain minimum ratio of appraised value of the collateral to outstanding debt secured thereby on a first lien basis as further described below in “Certain Covenants.” These covenants are subject to a number of important exceptions and qualifications set forth in the 10.75% Senior Secured Notes Indentures. Upon the occurrence of any event of default (other than certain bankruptcy or insolvency or reorganization events affecting AAG or certain of its subsidiaries, including American), the 10.75% Senior Secured Notes may be declared to be due and payable immediately. Upon the occurrence of certain bankruptcy, insolvency or reorganization events affecting AAG or certain of its subsidiaries (including American), all outstanding 10.75% Senior Secured Notes will become due and payable immediately without further action or notice on the part of the 10.75% Senior Secured Notes Trustee or any holder of the 10.75% Senior Secured Notes. (c) 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. In September 2020, American borrowed $550 million under the Treasury Term Loan Facility, and on March 24, 2021, used proceeds from the AAdvantage Financing to prepay in full the $550 million of outstanding loans under the Treasury Term Loan Facility and terminated the Treasury Loan Agreement. (d) AAdvantage Financing On March 24, 2021 (the AAdvantage Financing Closing Date), American and AAdvantage Loyalty IP Ltd., a 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 Cayman Islands exempted company incorporated with limited liability and a direct wholly-owned subsidiary of American, and AAdvantage Holdings 2, Ltd., a 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 Original SPV Guarantors), and as of August 27, 2021, certain Luxembourg limited liability companies and partnerships that are direct or indirect subsidiaries of Loyalty Issuer including Madrid IP Lux HoldCo SCS, a Luxembourg common limited partnership (Madrid IP SCS) (collectively, the Madrid SPV Guarantors and, together with the Original SPV Guarantors, 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 certain IP Licenses (as defined below), 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 including Transferred AAdvantage IP (as defined below) (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), which began on 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 $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 sales exceeding $505 million. 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 each of 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. The AAdvantage Indenture and the AAdvantage Term Loan Facility also require the AAdvantage Issuers to comply with certain affirmative covenants |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Debt | Debt Long-term debt included on American’s consolidated balance sheets consisted of (in millions): December 31, 2021 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.85%, installments through 2025 (a) $ 1,770 $ 1,788 2013 Revolving Facility (a) — 750 2014 Term Loan Facility, variable interest rate of 1.85%, installments through 2027 (a) 1,208 1,220 2014 Revolving Facility (a) — 1,643 April 2016 Spare Parts Term Loan Facility (a) — 960 April 2016 Revolving Facility (a) — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 (a) 1,188 1,200 11.75% senior secured notes, interest only payments until due in July 2025 (b) 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 (b) 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 (b) 200 200 Treasury Term Loan Facility (c) — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (d) 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (d) 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.50%, installments beginning in July 2023 through April 2028 (d) 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 8.39%, averaging 3.84%, maturing from 2022 to 2034 (e) 9,357 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.27% to 4.64%, averaging 1.82%, maturing from 2022 to 2032 3,433 4,417 Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036 (f) 1,129 1,040 Total long-term debt 31,785 28,731 Less: Total unamortized debt discount, premium and issuance costs 428 321 Less: Current maturities 1,568 2,700 Long-term debt, net of current maturities $ 29,789 $ 25,710 As of December 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 568 Total $ 3,411 American has an undrawn $500 million short-term revolving credit facility, which was set to expire at the beginning of January 2022 but which has been extended through the beginning of January 2023. Beginning January 2, 2022, the available amount thereunder decreased to $150 million. American also currently has approximately $68 million of available borrowing base under a cargo receivables facility that was entered into in December 2020 and is set to expire in December 2022. The December 2016 Credit Facilities provide for a revolving credit facility that may be established thereunder in the future. Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, aircraft spare parts, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets. At December 31, 2021, the maturities of long-term debt are as follows (in millions): 2022 $ 1,637 2023 4,167 2024 3,467 2025 7,749 2026 4,412 2027 and thereafter 10,353 Total $ 31,785 (a) 2013, 2014, April 2016 and December 2016 Credit Facilities 2013 Credit Facilities In November 2019, American and AAG entered into the Sixth Amendment to Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated as of May 21, 2015 (as previously amended, the 2013 Credit Agreement; the revolving credit facility established thereunder, the 2013 Revolving Facility; the term loan facility established thereunder, the 2013 Term Loan Facility; and the 2013 Revolving Facility together with the 2013 Term Loan Facility, the 2013 Credit Facilities), which reduced the total aggregate commitments under the 2013 Revolving Facility to $750 million from $1.0 billion. In addition, certain lenders party to the 2013 Credit Agreement extended the maturity date of their commitments under the 2013 Revolving Facility to October 2024 from October 2023. In March 2021, American repaid in full the $750 million of outstanding revolving loans under the 2013 Revolving Facility that was drawn in April 2020. Following the March 2021 repayment, American is able to draw upon the commitment under the 2013 Revolving Facility again as needed upon the terms of the 2013 Credit Agreement or leave it undrawn, in each case, until such commitment expires, which is currently scheduled to occur in October 2024. As of December 31, 2021, there were no borrowings or letters of credit outstanding under the 2013 Revolving Facility. 2014 Credit Facilities In November 2019, American and AAG entered into the Seventh Amendment to Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated as of April 20, 2015 (as previously amended, the 2014 Credit Agreement; the revolving credit facility established thereunder, the 2014 Revolving Facility; the term loan facility established thereunder, the 2014 Term Loan Facility; and the 2014 Revolving Facility together with the 2014 Term Loan Facility, the 2014 Credit Facilities), which increased the total aggregate commitments under the 2014 Revolving Facility to $1.6 billion from $1.5 billion. In addition, certain lenders party to the 2014 Credit Agreement extended the maturity date of their commitments under the 2014 Revolving Facility to October 2024 from October 2023. In January 2020, American and AAG entered into the Eighth Amendment to the 2014 Credit Agreement, pursuant to which American refinanced the 2014 Term Loan Facility, increasing the total aggregate principal amount outstanding to $1.2 billion, reducing the LIBOR margin from 2.00% to 1.75%, with a LIBOR floor of 0%, and reducing the base rate margin from 1.00% to 0.75%. In addition, the maturity date for the 2014 Term Loan Facility was extended to January 2027 from October 2021. In March 2021, American repaid in full the $1.6 billion of outstanding revolving loans under the 2014 Revolving Facility that was drawn in April and May 2020. Following the March 2021 repayment, American is able to draw upon the commitment under the 2014 Revolving Facility again as needed upon the terms of the 2014 Credit Agreement or leave it undrawn, in each case, until such commitment expires, which is currently scheduled to occur in October 2024. As of December 31, 2021, there were no borrowings or letters of credit outstanding under the 2014 Revolving Facility. April 2016 Credit Facilities In November 2019, American and AAG entered into the Fifth Amendment to Credit and Guaranty Agreement, amending the Credit and Guaranty Agreement dated as of April 29, 2016 (as previously amended, the April 2016 Credit Agreement; the revolving credit facility established thereunder, the April 2016 Revolving Facility; the term loan facility established thereunder, the April 2016 Spare Parts Term Loan Facility; and the April 2016 Revolving Facility together with the April 2016 Spare Parts Term Loan Facility, the April 2016 Credit Facilities), which increased the total aggregate commitments under the April 2016 Revolving Facility to $450 million from $300 million. In addition, certain lenders party to the April 2016 Credit Agreement extended the maturity date of their commitments under the April 2016 Revolving Facility to October 2024 from October 2023. In March 2021, American repaid in full the $450 million of outstanding revolving loans under the April 2016 Revolving Facility that was drawn in April 2020. Following the March 2021 repayment, American is able to draw upon the commitment under the April 2016 Revolving Facility again as needed upon the terms of the April 2016 Credit Agreement or leave it undrawn, in each case, until such commitment expires, which is currently scheduled to occur in October 2024. On July 22, 2021, American repaid in full the $950 million aggregate principal amount of outstanding term loans under, and terminated, the April 2016 Spare Parts Term Loan Facility. The April 2016 Revolving Facility, in an available aggregate principal amount of $450 million, remains in place. As of December 31, 2021, there were no borrowings outstanding under the April 2016 Revolving Facility. December 2016 Credit Facilities In December 2016, American and AAG entered into the Amended and Restated Credit and Guaranty Agreement, dated as of December 15, 2016 (as amended, the December 2016 Credit Agreement; the term loan facility established thereunder, the December 2016 Term Loan Facility; and together with the revolving credit facility that may be established thereunder in the future, the December 2016 Credit Facilities). Certain details of American’s 2013 Credit Facilities, 2014 Credit Facilities, April 2016 Credit Facilities and December 2016 Credit Facilities (collectively referred to as the Credit Facilities) are shown in the table below as of December 31, 2021: 2013 Credit Facilities 2014 Credit Facilities April 2016 Credit Facilities December 2016 Credit Facilities 2013 Term Loan 2013 2014 Term Loan 2014 April 2016 December 2016 Term Loan Aggregate principal issued $1,919 $750 $1,280 $1,643 $450 $1,250 Principal outstanding or $1,770 $— $1,208 $— $— $1,188 Maturity date June 2025 October 2024 January 2027 October 2024 October 2024 December 2023 LIBOR margin 1.75% 2.00% 1.75% 2.00% 2.00% 2.00% The term loans under each of the Credit Facilities are repayable in annual installments in an amount equal to 1.00% of the aggregate principal amount issued, with any unpaid balance due on the respective maturity dates. Voluntary prepayments may be made by American at any time. The 2013 Revolving Facility, 2014 Revolving Facility and April 2016 Revolving Facility provide that American may from time to time borrow, repay and reborrow loans thereunder. The 2013 Revolving Facility and 2014 Revolving Facility have the ability to issue letters of credit thereunder in an aggregate amount outstanding at any time up to $100 million and $200 million, respectively. The 2013 Revolving Facility, 2014 Revolving Facility and April 2016 Revolving Facility are each subject to an undrawn annual fee of 0.63%. Subject to certain limitations and exceptions, the Credit Facilities are secured by collateral, including certain spare parts, slots, route authorities, simulators and leasehold rights. American has the ability to make future modifications to the collateral pledged, subject to certain restrictions. American’s obligations under the Credit Facilities are guaranteed by AAG. American is required to maintain a certain minimum ratio of appraised value of the collateral to the outstanding loans as further described below in “Certain Covenants.” The Credit Facilities contain events of default customary for similar financings, including cross default to other material indebtedness. Upon the occurrence of an event of default, the outstanding obligations may be accelerated and become due and payable immediately. In addition, if a “change of control” occurs, American will (absent an amendment or waiver) be required to repay at par the loans outstanding under the Credit Facilities and terminate the 2013 Revolving Facility, 2014 Revolving Facility and April 2016 Revolving Facility and any revolving credit facility established under the December 2016 Credit Facilities. The Credit Facilities also include covenants that, among other things, require AAG 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 limit the ability of AAG and its restricted subsidiaries to pay dividends and make certain other payments, make certain investments, incur additional indebtedness, incur liens on the collateral, dispose of the collateral, enter into certain affiliate transactions and engage in certain business activities, in each case subject to certain exceptions. (b) Senior Secured Notes 11.75% Senior Secured Notes In June 2020, American issued $2.5 billion aggregate principal amount of 11.75% senior secured notes due 2025 (the 11.75% Senior Secured Notes) at a price equal to 99% of their aggregate principal amount. The 11.75% Senior Secured Notes bear interest at a rate of 11.75% per annum (subject to increase if the collateral coverage ratio described below is not met). Interest on the 11.75% Senior Secured Notes is payable semiannually in arrears on January 15 and July 15 of each year, which began on January 15, 2021. The 11.75% Senior Secured Notes will mature on July 15, 2025. The obligations of American under the 11.75% Senior Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by AAG. The 11.75% Senior Secured Notes were issued pursuant to an indenture, dated as of June 30, 2020 (the 11.75% Senior Secured Notes Indenture), by and among American, AAG and Wilmington Trust, National Association, as trustee (the 11.75% Senior Secured Notes Trustee). The 11.75% Senior Secured Notes are American’s senior secured obligations. Subject to certain limitations and exceptions, the 11.75% Senior Secured Notes are secured on a first-lien basis by security interests in certain assets, rights and properties utilized by American in providing its scheduled air carrier services to and from certain airports in the United States and certain airports in Australia, Canada, the Caribbean, Central America, China, Hong Kong, Japan, Mexico, South Korea, and Switzerland (collectively, the First Lien 11.75% Senior Secured Notes Collateral). American’s obligations with respect to the 11.75% Senior Secured Notes are also secured on a second-lien basis by security interests in certain assets, rights and properties utilized by American in providing its scheduled air carrier services to and from certain airports in the United States and certain airports in the European Union and the United Kingdom (collectively, the Second Lien 11.75% Senior Secured Notes Collateral and together with the First Lien 11.75% Senior Secured Notes Collateral, the 11.75% Senior Secured Notes Collateral). American may be required to pledge additional collateral in the future under the terms of the 11.75% Senior Secured Notes, and in certain circumstances may elect to pledge additional collateral as a replacement for existing collateral. The Second Lien 11.75% Senior Secured Notes Collateral also secures the 2014 Credit Facilities on a first-lien basis. American may redeem the 11.75% Senior Secured Notes, 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 11.75% Senior Secured Notes being redeemed plus a make whole premium, together with accrued and unpaid interest thereon, if any, to (but not including) the redemption date. In the event of a specified change of control, each holder of 11.75% Senior Secured Notes may require American to repurchase its 11.75% Senior Secured Notes in whole or in part at a repurchase price of 101% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, if any, to (but not including) the repurchase date. American is required to deliver an appraisal of the First Lien 11.75% Senior Secured Notes Collateral and officer’s certificate on a semi-annual basis demonstrating the calculation of a collateral coverage ratio in relation to the First Lien 11.75% Senior Secured Notes Collateral as of the end of each semi-annual period based on such appraisal. If American fails to deliver the officer’s certificate in a timely manner or the collateral coverage ratio is less than 1.6 to 1.0 as of the end of the semi-annual period, then, subject to an opportunity to cure the deficiency in the collateral coverage ratio, American will be required to pay special interest in an additional amount equal to 2.0% per annum of the outstanding principal amount of the 11.75% Senior Secured Notes until the collateral coverage ratio is established to be at least 1.6 to 1.0. The 11.75% Senior Secured Notes Indenture contains covenants that, among other things, restrict the ability of AAG and the ability of its restricted subsidiaries (including American) to: (i) pay dividends, redeem or repurchase stock or make other distributions or restricted payments, (ii) incur liens on the 11.75% Senior Secured Notes Collateral and dispose of or release the 11.75% Senior Secured Notes Collateral, (iii) repay subordinated indebtedness, (iv) make certain loans and investments, (v) incur indebtedness or issue preferred stock, (vi) merge, consolidate or sell assets, (vii) undergo certain change of control transactions, and (viii) designate subsidiaries as unrestricted. These covenants are subject to a number of important exceptions and qualifications set forth in the 11.75% Senior Secured Notes Indenture. Upon the occurrence of any event of default (other than certain bankruptcy or insolvency or reorganization events affecting AAG or certain of its subsidiaries, including American), the 11.75% Senior Secured Notes may be declared to be due and payable immediately. Upon the occurrence of certain bankruptcy, insolvency or reorganization events affecting American or certain of its subsidiaries (including American), all outstanding 11.75% Senior Secured Notes will become due and payable immediately without further action or notice on the part of the 11.75% Senior Secured Notes Trustee or any holder of the 11.75% Senior Secured Notes. 10.75% Senior Secured Notes On September 25, 2020 (the 10.75% Senior Secured Notes Closing Date), American issued $1.0 billion in initial principal amount of senior secured IP notes (the IP Notes) and $200 million in initial principal amount of senior secured LGA/DCA notes (the LGA/DCA Notes and together with the IP Notes, the 10.75% Senior Secured Notes). The obligations of American under the 10.75% Senior Secured Notes are fully and unconditionally guaranteed (the 10.75% Senior Secured Notes Guarantees) on a senior unsecured basis by AAG. The 10.75% Senior Secured Notes bear interest at a rate of 10.75% per annum in cash. For any interest period on or prior to September 1, 2022, American may, at its election, pay interest at a rate of 12.00% per annum payable one-half in cash and one-half in kind. Interest on the 10.75% Senior Secured Notes is payable semiannually in arrears on September 1 and March 1 of each year, which began on March 1, 2021. The 10.75% Senior Secured Notes will mature on February 15, 2026. The 10.75% Senior Secured Notes were each issued pursuant to a separate indenture, dated as of September 25, 2020 (individually, the IP Notes Indenture and the LGA/DCA Notes Indenture and collectively, the 10.75% Senior Secured Notes Indentures), by and among American, AAG and Wilmington Trust, National Association, as trustee and as collateral trustee (the 10.75% Senior Secured Notes Trustee). The IP Notes are secured by a first lien security interest on certain intellectual property of American, including the “American Airlines” trademark and the “aa.com” domain name in the United States and certain foreign jurisdictions (the IP Collateral), and a second lien on certain slots related to American’s operations at New York LaGuardia and Ronald Reagan Washington National airports and certain other assets (the LGA/DCA Collateral and together with the IP Collateral, the 10.75% Senior Secured Notes Collateral). Subject to certain conditions, American will be permitted to incur up to $4.0 billion of additional pari passu debt and unlimited second lien debt secured by the IP Collateral securing the IP Notes. The LGA/DCA Notes are secured by a first lien security interest in the LGA/DCA Collateral. American may be required to pledge additional collateral in the future under the terms of the 10.75% Senior Secured Notes, and in certain circumstances may elect to pledge additional collateral including as a replacement for existing collateral. The LGA/DCA Collateral also secures on a first-lien basis the December 2016 Credit Facilities. On or prior to the fourth anniversary of the 10.75% Senior Secured Notes Closing Date, American may redeem all or any part of the 10.75% Senior Secured Notes, at its option, at a redemption price equal to 100% of the principal amount of the 10.75% Senior Secured Notes redeemed plus a make whole premium, together with accrued and unpaid interest thereon, if any. After the fourth anniversary of the 10.75% Senior Secured Notes Closing Date and on or prior to the fifth anniversary of the 10.75% Senior Secured Notes Closing Date, American may redeem all or any part of the 10.75% Senior Secured Notes, at its option, at a redemption price equal to 105.375% of the principal amount of the 10.75% Senior Secured Notes redeemed, together with accrued and unpaid interest thereon, if any. After the fifth anniversary of the 10.75% Senior Secured Notes Closing Date, American may redeem all or any part of the 10.75% Senior Secured Notes, at its option, at par, together with accrued and unpaid interest thereon, if any. In the event of a specified change of control, each holder of 10.75% Senior Secured Notes may require American to repurchase its 10.75% Senior Secured Notes, in whole or in part, at a repurchase price of 101% of the aggregate principal amount of the 10.75% Senior Secured Notes so repurchased, plus accrued and unpaid interest thereon, if any, to (but not including) the repurchase date. The 10.75% Senior Secured Notes Indentures contain covenants that, among other things, restrict the ability of AAG and the ability of its restricted subsidiaries (including American) to: (i) pay dividends, redeem or repurchase stock or make other distributions or restricted payments, (ii) incur liens on the 10.75% Senior Secured Notes Collateral and dispose of or release the 10.75% Senior Secured Notes Collateral, (iii) repay subordinated indebtedness, (iv) make certain loans and investments, (v) incur indebtedness or issue preferred stock, (vi) merge, consolidate or sell assets, and (vii) designate subsidiaries as unrestricted. In addition, the 10.75% Senior Secured Notes Indentures include covenants that require AAG to maintain (a) 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 (b) a certain minimum ratio of appraised value of the collateral to outstanding debt secured thereby on a first lien basis as further described below in “Certain Covenants.” These covenants are subject to a number of important exceptions and qualifications set forth in the 10.75% Senior Secured Notes Indentures. Upon the occurrence of any event of default (other than certain bankruptcy or insolvency or reorganization events affecting AAG or certain of its subsidiaries, including American), the 10.75% Senior Secured Notes may be declared to be due and payable immediately. Upon the occurrence of certain bankruptcy, insolvency or reorganization events affecting AAG or certain of its subsidiaries (including American), all outstanding 10.75% Senior Secured Notes will become due and payable immediately without further action or notice on the part of the 10.75% Senior Secured Notes Trustee or any holder of the 10.75% Senior Secured Notes. (c) 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. In September 2020, American borrowed $550 million under the Treasury Term Loan Facility, and on March 24, 2021, used proceeds from the AAdvantage Financing to prepay in full the $550 million of outstanding loans under the Treasury Term Loan Facility and terminated the Treasury Loan Agreement. (d) AAdvantage Financing On March 24, 2021 (the AAdvantage Financing Closing Date), American and AAdvantage Loyalty IP Ltd., a 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 Cayman Islands exempted company incorporated with limited liability and a direct wholly-owned subsidiary of American, and AAdvantage Holdings 2, Ltd., a 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 Original SPV Guarantors), and as of August 27, 2021, certain Luxembourg limited liability companies and partnerships that are direct or indirect subsidiaries of Loyalty Issuer including Madrid IP Lux HoldCo SCS, a Luxembourg common limited partnership (Madrid IP SCS) (collectively, the Madrid SPV Guarantors and, together with the Original SPV Guarantors, 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 certain IP Licenses (as defined below), 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 including Transferred AAdvantage IP (as defined below) (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), which began on 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 $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 sales exceeding $505 million. 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 each of 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. The AAdvantage Indenture and the AAdvantage Term Loan Facility also require the AAdvantage Issuers to comply with certain affirmative covenants, including the requirement to use commercially reasonable efforts to cause sufficient counterparties to AAdvantage Agreements to direct at least 90% of payments with respect to the AAdvantage program on a quarterly basis into a collections account, for application to 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 I |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |
Leases | Leases We lease certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2021, we operated 696 leased aircraft, with remaining terms ranging from less than one year to 12 years. At each airport where we conduct flight operations, we have agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with our level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on our consolidated balance sheets as a ROU asset or a lease liability. Additionally, at our hub locations and in certain other cities we serve, we lease administrative offices, catering, cargo, training, maintenance and other facilities. The components of lease expense were as follows (in millions): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 2,012 $ 1,957 $ 2,027 Finance lease cost: Amortization of assets 107 92 79 Interest on lease liabilities 44 38 43 Variable lease cost 2,471 1,801 2,558 Total net lease cost $ 4,634 $ 3,888 $ 4,707 Included in the table above is $190 million, $172 million and $236 million of operating lease cost under our capacity purchase agreement with Republic for the years ended December 31, 2021, 2020 and 2019, respectively. We hold a 25% equity interest in Republic Holdings, the parent company of Republic. Additionally, not included in the table above, we recognized $109 million in cash special charges in 2020 related to the impairment of ROU assets and lease return costs resulting from our decision to retire certain leased aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2021 2020 Operating leases: Operating lease ROU assets $ 7,850 $ 8,039 Current operating lease liabilities $ 1,507 $ 1,651 Noncurrent operating lease liabilities 6,610 6,777 Total operating lease liabilities $ 8,117 $ 8,428 Finance leases: Property and equipment, at cost $ 1,201 $ 1,021 Accumulated amortization (653) (539) Property and equipment, net $ 548 $ 482 Current finance lease liabilities $ 174 $ 100 Noncurrent finance lease liabilities 563 472 Total finance lease liabilities $ 737 $ 572 Weighted average remaining lease term (in years): Operating leases 7.6 7.4 Finance leases 4.6 5.4 Weighted average discount rate: Operating leases 6.3 % 5.6 % Finance leases 6.1 % 6.3 % Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,053 $ 2,028 $ 2,013 Operating cash flows from finance leases 37 39 43 Financing cash flows from finance leases 126 114 83 Non-cash transactions: ROU assets acquired through operating leases 1,386 917 1,145 Property and equipment acquired through finance leases 180 11 20 Operating lease conversion to finance lease 102 5 41 Gain on sale leaseback transactions, net 25 107 107 Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,929 $ 215 2023 1,791 183 2024 1,410 180 2025 1,039 113 2026 762 87 2027 and thereafter 3,614 77 Total lease payments 10,545 855 Less: Imputed interest (2,428) (118) Total lease obligations 8,117 737 Less: Current obligations (1,507) (174) Long-term lease obligations $ 6,610 $ 563 As of December 31, 2021, we had additional operating lease commitments that have not yet commenced of approximately $1.8 billion for 18 Boeing 787 Family aircraft scheduled to be delivered in 2022 through 2024 with lease terms of 10 years. |
Leases | Leases We lease certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2021, we operated 696 leased aircraft, with remaining terms ranging from less than one year to 12 years. At each airport where we conduct flight operations, we have agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with our level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on our consolidated balance sheets as a ROU asset or a lease liability. Additionally, at our hub locations and in certain other cities we serve, we lease administrative offices, catering, cargo, training, maintenance and other facilities. The components of lease expense were as follows (in millions): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 2,012 $ 1,957 $ 2,027 Finance lease cost: Amortization of assets 107 92 79 Interest on lease liabilities 44 38 43 Variable lease cost 2,471 1,801 2,558 Total net lease cost $ 4,634 $ 3,888 $ 4,707 Included in the table above is $190 million, $172 million and $236 million of operating lease cost under our capacity purchase agreement with Republic for the years ended December 31, 2021, 2020 and 2019, respectively. We hold a 25% equity interest in Republic Holdings, the parent company of Republic. Additionally, not included in the table above, we recognized $109 million in cash special charges in 2020 related to the impairment of ROU assets and lease return costs resulting from our decision to retire certain leased aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2021 2020 Operating leases: Operating lease ROU assets $ 7,850 $ 8,039 Current operating lease liabilities $ 1,507 $ 1,651 Noncurrent operating lease liabilities 6,610 6,777 Total operating lease liabilities $ 8,117 $ 8,428 Finance leases: Property and equipment, at cost $ 1,201 $ 1,021 Accumulated amortization (653) (539) Property and equipment, net $ 548 $ 482 Current finance lease liabilities $ 174 $ 100 Noncurrent finance lease liabilities 563 472 Total finance lease liabilities $ 737 $ 572 Weighted average remaining lease term (in years): Operating leases 7.6 7.4 Finance leases 4.6 5.4 Weighted average discount rate: Operating leases 6.3 % 5.6 % Finance leases 6.1 % 6.3 % Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,053 $ 2,028 $ 2,013 Operating cash flows from finance leases 37 39 43 Financing cash flows from finance leases 126 114 83 Non-cash transactions: ROU assets acquired through operating leases 1,386 917 1,145 Property and equipment acquired through finance leases 180 11 20 Operating lease conversion to finance lease 102 5 41 Gain on sale leaseback transactions, net 25 107 107 Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,929 $ 215 2023 1,791 183 2024 1,410 180 2025 1,039 113 2026 762 87 2027 and thereafter 3,614 77 Total lease payments 10,545 855 Less: Imputed interest (2,428) (118) Total lease obligations 8,117 737 Less: Current obligations (1,507) (174) Long-term lease obligations $ 6,610 $ 563 As of December 31, 2021, we had additional operating lease commitments that have not yet commenced of approximately $1.8 billion for 18 Boeing 787 Family aircraft scheduled to be delivered in 2022 through 2024 with lease terms of 10 years. |
American Airlines, Inc. | |
Lessee, Lease, Description [Line Items] | |
Leases | Leases American leases certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2021, American operated 696 leased aircraft, with remaining terms ranging from less than one year to 12 years. At each airport where American conducts flight operations, American has agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with American’s level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on American’s consolidated balance sheets as a ROU asset or a lease liability. Additionally, at American’s hub locations and in certain other cities it serves, American leases administrative offices, catering, cargo, training, maintenance and other facilities. The components of lease expense were as follows (in millions): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 1,998 $ 1,943 $ 2,012 Finance lease cost: Amortization of assets 107 92 79 Interest on lease liabilities 44 38 43 Variable lease cost 2,461 1,786 2,542 Total net lease cost $ 4,610 $ 3,859 $ 4,676 Included in the table above is $190 million, $172 million and $236 million of operating lease cost under American’s capacity purchase agreement with Republic for the years ended December 31, 2021, 2020 and 2019, respectively. American holds a 25% equity interest in Republic Holdings, the parent company of Republic. Additionally, not included in the table above, American recognized $109 million in cash special charges in 2020 related to the impairment of ROU assets and lease return costs resulting from its decision to retire certain leased aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2021 2020 Operating leases: Operating lease ROU assets $ 7,810 $ 7,994 Current operating lease liabilities $ 1,496 $ 1,641 Noncurrent operating lease liabilities 6,578 6,739 Total operating lease liabilities $ 8,074 $ 8,380 Finance leases: Property and equipment, at cost $ 1,201 $ 1,021 Accumulated amortization (653) (539) Property and equipment, net $ 548 $ 482 Current finance lease liabilities $ 174 $ 100 Noncurrent finance lease liabilities 563 472 Total finance lease liabilities $ 737 $ 572 Weighted average remaining lease term (in years): Operating leases 7.6 7.4 Finance leases 4.6 5.4 Weighted average discount rate: Operating leases 6.2 % 5.6 % Finance leases 6.1 % 6.3 % Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,040 $ 2,015 $ 1,996 Operating cash flows from finance leases 37 39 43 Financing cash flows from finance leases 126 114 83 Non-cash transactions: ROU assets acquired through operating leases 1,381 898 1,144 Property and equipment acquired through finance leases 180 11 20 Operating lease conversion to finance lease 102 5 41 Gain on sale leaseback transactions, net 25 107 107 Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,912 $ 215 2023 1,777 183 2024 1,398 180 2025 1,032 113 2026 757 87 2027 and thereafter 3,600 77 Total lease payments 10,476 855 Less: Imputed interest (2,402) (118) Total lease obligations 8,074 737 Less: Current obligations (1,496) (174) Long-term lease obligations $ 6,578 $ 563 As of December 31, 2021, American had additional operating lease commitments that have not yet commenced of approximately $1.8 billion for 18 Boeing 787 Family aircraft scheduled to be delivered in 2022 through 2024 with lease terms of 10 years. |
Leases | Leases American leases certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2021, American operated 696 leased aircraft, with remaining terms ranging from less than one year to 12 years. At each airport where American conducts flight operations, American has agreements, generally with a governmental unit or authority, for the use of passenger, operations and baggage handling space as well as runways and taxiways. These agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with American’s level of operations and the operations of the airport. Because of the variable nature of these rates, these leases are not recorded on American’s consolidated balance sheets as a ROU asset or a lease liability. Additionally, at American’s hub locations and in certain other cities it serves, American leases administrative offices, catering, cargo, training, maintenance and other facilities. The components of lease expense were as follows (in millions): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 1,998 $ 1,943 $ 2,012 Finance lease cost: Amortization of assets 107 92 79 Interest on lease liabilities 44 38 43 Variable lease cost 2,461 1,786 2,542 Total net lease cost $ 4,610 $ 3,859 $ 4,676 Included in the table above is $190 million, $172 million and $236 million of operating lease cost under American’s capacity purchase agreement with Republic for the years ended December 31, 2021, 2020 and 2019, respectively. American holds a 25% equity interest in Republic Holdings, the parent company of Republic. Additionally, not included in the table above, American recognized $109 million in cash special charges in 2020 related to the impairment of ROU assets and lease return costs resulting from its decision to retire certain leased aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2021 2020 Operating leases: Operating lease ROU assets $ 7,810 $ 7,994 Current operating lease liabilities $ 1,496 $ 1,641 Noncurrent operating lease liabilities 6,578 6,739 Total operating lease liabilities $ 8,074 $ 8,380 Finance leases: Property and equipment, at cost $ 1,201 $ 1,021 Accumulated amortization (653) (539) Property and equipment, net $ 548 $ 482 Current finance lease liabilities $ 174 $ 100 Noncurrent finance lease liabilities 563 472 Total finance lease liabilities $ 737 $ 572 Weighted average remaining lease term (in years): Operating leases 7.6 7.4 Finance leases 4.6 5.4 Weighted average discount rate: Operating leases 6.2 % 5.6 % Finance leases 6.1 % 6.3 % Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,040 $ 2,015 $ 1,996 Operating cash flows from finance leases 37 39 43 Financing cash flows from finance leases 126 114 83 Non-cash transactions: ROU assets acquired through operating leases 1,381 898 1,144 Property and equipment acquired through finance leases 180 11 20 Operating lease conversion to finance lease 102 5 41 Gain on sale leaseback transactions, net 25 107 107 Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,912 $ 215 2023 1,777 183 2024 1,398 180 2025 1,032 113 2026 757 87 2027 and thereafter 3,600 77 Total lease payments 10,476 855 Less: Imputed interest (2,402) (118) Total lease obligations 8,074 737 Less: Current obligations (1,496) (174) Long-term lease obligations $ 6,578 $ 563 As of December 31, 2021, American had additional operating lease commitments that have not yet commenced of approximately $1.8 billion for 18 Boeing 787 Family aircraft scheduled to be delivered in 2022 through 2024 with lease terms of 10 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes The significant components of the income tax provision (benefit) were (in millions): Year Ended December 31, 2021 2020 2019 Current income tax provision: State and Local $ — $ — $ 2 Foreign — — 8 Current income tax provision — — 10 Deferred income tax provision (benefit): Federal (508) (2,335) 498 State and Local (47) (233) 62 Deferred income tax provision (benefit) (555) (2,568) 560 Total income tax provision (benefit) $ (555) $ (2,568) $ 570 The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions): Year Ended December 31, 2021 2020 2019 Statutory income tax provision (benefit) $ (535) $ (2,405) $ 474 State income tax provision (benefit), net of federal tax effect (37) (183) 47 Book expenses not deductible for tax purposes 23 22 31 Foreign income taxes, net of federal tax effect — — 8 Change in valuation allowance — — 4 Other, net (6) (2) 6 Income tax provision (benefit) $ (555) $ (2,568) $ 570 The components of our deferred tax assets and liabilities were (in millions): December 31, 2021 2020 Deferred tax assets: Operating loss and other carryforwards $ 4,612 $ 4,027 Loyalty program liability 1,903 1,977 Leases 1,833 1,913 Pensions 941 1,405 Postretirement benefits other than pensions 214 203 Rent expense 92 96 Reorganization items 24 28 Other 760 847 Total deferred tax assets 10,379 10,496 Valuation allowance (34) (34) Net deferred tax assets 10,345 10,462 Deferred tax liabilities: Accelerated depreciation and amortization (4,747) (5,028) Leases (1,767) (1,818) Other (284) (386) Total deferred tax liabilities (6,798) (7,232) Net deferred tax asset $ 3,547 $ 3,230 At December 31, 2021, we had approximately $17.2 billion of gross federal net operating losses (NOLs) and $3.0 billion of other carryforwards available to reduce future federal taxable income, of which $6.9 billion will expire beginning in 2024 if unused and $13.3 billion can be carried forward indefinitely. We also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2021, which will expire in taxable years 2021 through 2041 if unused. Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs, 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. Our ability to deduct our NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 where an “ownership change” has occurred. Substantially all of our remaining federal NOL carryforwards attributable to US Airways Group are subject to limitation under Section 382; however, our ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes. Our ability to utilize any new NOL carryforwards arising after the ownership changes is not affected by the annual limitation rules imposed by Section 382 unless another ownership change occurs. Under the Section 382 limitation, cumulative stock ownership changes among material stockholders exceeding 50% during a rolling three-year period can potentially limit our future use of NOLs and tax credits. In 2021, we recorded an income tax benefit of $555 million, with an effective rate of approximately 22%, which was substantially non-cash. Substantially all of our loss before income taxes is attributable to the United States. We file our tax returns as prescribed by the tax laws of the jurisdictions in which we operate. Our 2018 through 2020 tax years are still subject to examination by the Internal Revenue Service. Various state and foreign jurisdiction tax years remain open to examination and we are under examination, in administrative appeals, or engaged in tax litigation in certain jurisdictions. We believe that the effect of any assessments will not be material to our consolidated financial statements. The amount of, and changes to, our uncertain tax positions were not material in any of the years presented. We accrue interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively. |
American Airlines, Inc. | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes The significant components of the income tax provision (benefit) were (in millions): Year Ended December 31, 2021 2020 2019 Current income tax provision: State and Local $ — $ — $ 2 Foreign — — 8 Current income tax provision — — 10 Deferred income tax provision (benefit): Federal (453) (2,224) 567 State and Local (47) (229) 56 Deferred income tax provision (benefit) (500) (2,453) 623 Total income tax provision (benefit) $ (500) $ (2,453) $ 633 The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions): Year Ended December 31, 2021 2020 2019 Statutory income tax provision (benefit) $ (478) $ (2,290) $ 547 State income tax provision (benefit), net of federal tax effect (37) (181) 41 Book expenses not deductible for tax purposes 21 20 29 Foreign income taxes, net of federal tax effect — — 8 Change in valuation allowance — — 5 Other, net (6) (2) 3 Income tax provision (benefit) $ (500) $ (2,453) $ 633 The components of American’s deferred tax assets and liabilities were (in millions): December 31, 2021 2020 Deferred tax assets: Operating loss and other carryforwards $ 4,476 $ 3,944 Loyalty program liability 1,903 1,977 Leases 1,822 1,904 Pensions 934 1,397 Postretirement benefits other than pensions 215 203 Rent expense 92 96 Reorganization items 24 28 Other 710 796 Total deferred tax assets 10,176 10,345 Valuation allowance (24) (24) Net deferred tax assets 10,152 10,321 Deferred tax liabilities: Accelerated depreciation and amortization (4,715) (4,992) Leases (1,758) (1,809) Other (279) (294) Total deferred tax liabilities (6,752) (7,095) Net deferred tax asset $ 3,400 $ 3,226 At December 31, 2021, American had approximately $17.1 billion of gross federal net operating losses (NOLs) and $2.4 billion of other carryforwards available to reduce future federal taxable income, of which $7.3 billion will expire beginning in 2024 if unused and $12.2 billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2021, which will expire in taxable years 2021 through 2041 if unused. American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include the NOLs, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. American 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. American’s ability to deduct its NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 where an “ownership change” has occurred. Substantially all of American’s remaining federal NOL carryforwards attributable to US Airways Group are subject to limitation under Section 382; however, American’s ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes. American’s ability to utilize any new NOL carryforwards arising after the ownership changes is not affected by the annual limitation rules imposed by Section 382 unless another ownership change occurs. Under the Section 382 limitation, cumulative stock ownership changes among material stockholders exceeding 50% during a rolling three-year period can potentially limit American’s future use of NOLs and tax credits. In 2021, American recorded an income tax benefit of $500 million, with an effective rate of approximately 22%, which was substantially non-cash. Substantially all of American’s loss before income taxes is attributable to the United States. American files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. American’s 2018 through 2020 tax years are still subject to examination by the Internal Revenue Service. Various state and foreign jurisdiction tax years remain open to examination and American is under examination, in administrative appeals, or engaged in tax litigation in certain jurisdictions. American believes that the effect of any assessments will not be material to its consolidated financial statements. The amount of, and changes to, American’s uncertain tax positions were not material in any of the years presented. American accrues interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively. |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Risk Management | Risk Management Our economic prospects are heavily dependent upon two variables we cannot control: general economic conditions and the price of fuel. Due to the discretionary nature of business and leisure travel spending and the highly competitive nature of the airline industry, our revenues are heavily influenced by the condition of the U.S. economy and economies in other regions of the world. Unfavorable conditions in these broader economies have resulted, and may result in the future, in decreased passenger demand for air travel, changes in booking practices and related reactions by our competitors, all of which in turn have had, and may have in the future, a strong negative effect on our business. In particular, the ongoing COVID-19 pandemic and associated decline in economic activity and increase in unemployment levels have had and are expected to continue to have a severe and prolonged effect on the global economy generally and, in turn, is expected to depress demand for air travel into the foreseeable future. Due to the uncertainty surrounding the duration and severity of this pandemic, we can provide no assurance as to when and at what pace demand for air travel will return to pre-COVID-19 pandemic levels, if at all. Accordingly, we cannot predict the ultimate impact of the COVID-19 pandemic on our business, financial condition and results of operations. In addition, during challenging economic times, actions by our competitors to increase their revenues can have an adverse impact on our revenues. Our operating results are materially impacted by changes in the availability, price volatility and cost of aircraft fuel, which represents one of the largest single cost items in our business. Aircraft fuel prices have in the past, and may in the future, experience substantial volatility. Because of the amount of fuel needed to operate our business, even a relatively small increase or decrease in the price of aircraft fuel can have a material effect on our operating results and liquidity. These additional factors could impact our results of operations, financial performance and liquidity: (a) Credit Risk Our accounts receivable relate primarily to our contracts with airline and non-airline business partners, including our co-branded credit card partners, and to tickets sold to individual passengers primarily through the use of major credit cards. Receivables from our business partners are typically settled within 30 days. Receivables from ticket sales are short-term, mostly settled within seven days after sale. All accounts receivable are reported net of an allowance for credit losses, which have been minimal. We consider past and future financial and qualitative factors when establishing the allowance for credit losses. We do not believe we are subject to any significant concentration of credit risk. (b) Interest Rate Risk We have exposure to market risk associated with changes in interest rates related primarily to our LIBOR variable-rate debt obligations. Interest rates on $10.9 billion principal amount of long-term debt as of December 31, 2021 are subject to adjustment to reflect changes in floating interest rates. The weighted average effective interest rate on our variable-rate debt was 3.0% at December 31, 2021. We currently do not have an interest rate hedge program to hedge our exposure to floating interest rates on our variable-rate debt obligations. On July 27, 2017, the U.K. Financial Conduct Authority (the authority that regulates LIBOR) announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month, and 12-month) was subsequently extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023. It is unclear whether new methods of calculating LIBOR will be established such that it continues to exist after 2023. Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable market benchmark, what rate or rates may become acceptable alternatives to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments. The replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on our long-term debt to be different or higher than expected. (c) Foreign Currency Risk We are exposed to the effect of foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated transactions. Our largest exposure comes from the British pound sterling, Euro, Chinese yuan, Canadian dollar and various Latin American currencies, primarily the Brazilian real. We do not currently have a foreign currency hedge program. |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Risk Management | Risk Management American’s economic prospects are heavily dependent upon two variables it cannot control: general economic conditions and the price of fuel. Due to the discretionary nature of business and leisure travel spending and the highly competitive nature of the airline industry, American’s revenues are heavily influenced by the condition of the U.S. economy and economies in other regions of the world. Unfavorable conditions in these broader economies have resulted, and may result in the future, in decreased passenger demand for air travel, changes in booking practices and related reactions by American’s competitors, all of which in turn have had, and may have in the future, a strong negative effect on American’s business. In particular, the ongoing COVID-19 pandemic and associated decline in economic activity and increase in unemployment levels have had and are expected to continue to have a severe and prolonged effect on the global economy generally and, in turn, is expected to depress demand for air travel into the foreseeable future. Due to the uncertainty surrounding the duration and severity of this pandemic, American can provide no assurance as to when and at what pace demand for air travel will return to pre-COVID-19 pandemic levels, if at all. Accordingly, American cannot predict the ultimate impact of the COVID-19 pandemic on its business, financial condition and results of operations. In addition, during challenging economic times, actions by its competitors to increase their revenues can have an adverse impact on American’s revenues. American’s operating results are materially impacted by changes in the availability, price volatility and cost of aircraft fuel, which represents one of the largest single cost items in American’s business. Aircraft fuel prices have in the past, and may in the future, experience substantial volatility. Because of the amount of fuel needed to operate American’s business, even a relatively small increase or decrease in the price of aircraft fuel can have a material effect on American’s operating results and liquidity. These additional factors could impact American’s results of operations, financial performance and liquidity: (a) Credit Risk American’s accounts receivable relate primarily to its contracts with airline and non-airline business partners, including its co-branded credit card partners, and to tickets sold to individual passengers primarily through the use of major credit cards. Receivables from American’s business partners are typically settled within 30 days. Receivables from ticket sales are short-term, mostly settled within seven days after sale. All accounts receivable are reported net of an allowance for credit losses, which have been minimal. American considers past and future financial and qualitative factors when establishing the allowance for credit losses. American does not believe it is subject to any significant concentration of credit risk. (b) Interest Rate Risk American has exposure to market risk associated with changes in interest rates related primarily to its LIBOR variable-rate debt obligations. Interest rates on $10.9 billion principal amount of long-term debt as of December 31, 2021 are subject to adjustment to reflect changes in floating interest rates. The weighted average effective interest rate on American’s variable-rate debt was 3.0% at December 31, 2021. American currently does not have an interest rate hedge program to hedge its exposure to floating interest rates on its variable-rate debt obligations. On July 27, 2017, the U.K. Financial Conduct Authority (the authority that regulates LIBOR) announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month, and 12-month) was subsequently extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023. It is unclear whether new methods of calculating LIBOR will be established such that it continues to exist after 2023. Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable market benchmark, what rate or rates may become acceptable alternatives to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments. The replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on American’s long-term debt to be different or higher than expected. (c) Foreign Currency Risk American is exposed to the effect of foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated transactions. American’s largest exposure comes from the British pound sterling, Euro, Chinese yuan, Canadian dollar and various Latin American currencies, primarily the Brazilian real. American does not currently have a foreign currency hedge program. |
Fair Value Measurements and Oth
Fair Value Measurements and Other Investments | 12 Months Ended |
Dec. 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 Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (i.e. an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. Accounting standards include disclosure requirements around fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: • Level 1 – Observable inputs such as quoted prices in active markets; • Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our financial assets. If quoted market prices are not available, we measure fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. 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, restricted cash and restricted 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 year ended December 31, 2021. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of December 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 108 $ 108 $ — $ — Corporate obligations 8,665 — 8,665 — Bank notes/certificates of deposit/time deposits 2,195 — 2,195 — Repurchase agreements 1,190 — 1,190 — 12,158 108 12,050 — Restricted cash and short-term investments (1), (3) 990 654 336 — Long-term investments (4) 239 239 — — Total $ 13,387 $ 1,001 $ 12,386 $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Short-term investments (1) : Money market funds $ 247 $ 247 $ — $ — Corporate obligations 3,449 — 3,449 — Bank notes/certificates of deposit/time deposits 2,168 — 2,168 — Repurchase agreements 755 — 755 — 6,619 247 6,372 — Restricted cash and short-term investments (1), (3) 609 448 161 — Long-term investments (4) 161 161 — — Total $ 7,389 $ 856 $ 6,533 $ — (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 as of December 31, 2021 mature in one year or less. (3) Restricted cash and short-term investments primarily include collateral held to support workers' compensation obligations and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK, and as of December 31, 2021, also include collateral associated with the payment of interest for the AAdvantage Financing. (4) Long-term investments primarily include our equity investment in China Southern Airlines and as of December 31, 2021, our long-term investments also include Vertical. These investments are reflected in other assets on our consolidated balance sheets. See “Other Investments” below for further information on our equity investments. 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 $3.7 billion and $2.3 billion as of December 31, 2021 and December 31, 2020, respectively, which would have been classified as Level 3 in the fair value hierarchy. The fair value of the Convertible Notes, which would have been classified as Level 2, was $1.4 billion and $1.2 billion as of December 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): December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 37,323 $ 38,567 $ 32,021 $ 30,454 Other Investments An important part of our strategy to expand our network has been to initiate or expand our commercial relationships with other airlines, such as by entering into global alliance, joint business and codeshare relationships, and, in certain instances, by making an equity investment in another airline or other companies. Republic Holdings We have an approximate 25% ownership interest in Republic Holdings, which we received in 2017 in consideration for our unsecured claim in the Republic Holdings bankruptcy case. This ownership interest is accounted for under the equity method and our portion of Republic Holdings’ financial results is recognized within nonoperating other income, net on the consolidated statements of operations and the investment is reflected within other assets on our consolidated balance sheets. China Southern In the third quarter of 2017, we acquired 2.7% of the outstanding shares of China Southern for $203 million. At December 31, 2021, we owned a 1.8% equity interest in China Southern. This ownership interest is accounted for at fair value based on China Southern’s stock price and mark-to-market adjustments are recorded to nonoperating other income, net on the consolidated statement of operations. Vertical In the fourth quarter of 2021, we invested $25 million to acquire 5.4%, or 11.25 million, of the outstanding shares of Vertical with an initial aggregate value of $113 million, of which $88 million was non-cash. In connection with this investment, we entered into a memorandum of understanding (MOU) with Vertical to pre-order (subject to certain conditions and future agreed upon milestones) up to 250 electric vertical take-off and landing (eVTOL) aircraft, with an option to order an additional 100 eVTOL aircraft. Pursuant to the MOU, we received warrants to purchase 1.75 million shares of Vertical common stock at $0.0001 per share, each time we place a legally binding commitment for 50 eVTOL aircraft, up to a maximum aggregate amount of 8.75 million shares. Our investment in Vertical is reflected within other assets on our consolidated balance sheet. The $88 million non-cash portion of the fair value of equity securities received from Vertical is included as a deferred credit within other liabilities on the consolidated balance sheet and will be recognized as a reduction to the cost of eVTOL aircraft received in future periods or, if no legally binding commitment for eVTOL aircraft is entered into, will be recognized into income. Our investment in Vertical is accounted for at fair value based on Vertical’s stock price and mark-to-market adjustments are recorded to nonoperating other income, net on the consolidated statement of operations. |
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 Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (i.e. an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. Accounting standards include disclosure requirements around fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: • Level 1 – Observable inputs such as quoted prices in active markets; • Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. When available, American uses quoted market prices to determine the fair value of its financial assets. If quoted market prices are not available, American measures fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. 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, restricted cash and restricted 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 year ended December 31, 2021. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of December 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 106 $ 106 $ — $ — Corporate obligations 8,665 — 8,665 — Bank notes/certificates of deposit/time deposits 2,194 — 2,194 — Repurchase agreements 1,190 — 1,190 — 12,155 106 12,049 — Restricted cash and short-term investments (1), (3) 990 654 336 — Long-term investments (4) 239 239 — — Total $ 13,384 $ 999 $ 12,385 $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Short-term investments (1) : Money market funds $ 245 $ 245 $ — $ — Corporate obligations 3,449 — 3,449 — Bank notes/certificates of deposit/time deposits 2,168 — 2,168 — Repurchase agreements 755 — 755 — 6,617 245 6,372 — Restricted cash and short-term investments (1), (3) 609 448 161 — Long-term investments (4) 161 161 — — Total $ 7,387 $ 854 $ 6,533 $ — (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 as of December 31, 2021 mature in one year or less. (3) Restricted cash and short-term investments primarily include collateral held to support workers' compensation obligations and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK, and as of December 31, 2021, also include collateral associated with the payment of interest for the AAdvantage Financing. (4) Long-term investments primarily include American's equity investment in China Southern Airlines and as of December 31, 2021, American’s long-term investments also include Vertical. These investments are reflected in other assets on American’s consolidated balance sheets. See “Other Investments” below for further information on American’s equity investments. 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): December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 31,357 $ 32,999 $ 28,410 $ 27,193 Other Investments An important part of American’s strategy to expand its network has been to initiate or expand its commercial relationships with other airlines, such as by entering into global alliance, joint business and codeshare relationships, and, in certain instances, by making an equity investment in another airline or other companies. Republic Holdings American has an approximate 25% ownership interest in Republic Holdings, which it received in 2017 in consideration for its unsecured claim in the Republic Holdings bankruptcy case. This ownership interest is accounted for under the equity method and American’s portion of Republic Holdings’ financial results is recognized within nonoperating other income, net on the consolidated statements of operations and the investment is reflected within other assets on its consolidated balance sheets. China Southern In the third quarter of 2017, American acquired 2.7% of the outstanding shares of China Southern for $203 million. At December 31, 2021, American owned a 1.8% equity interest in China Southern. This ownership interest is accounted for at fair value based on China Southern’s stock price and mark-to-market adjustments are recorded to nonoperating other income, net on the consolidated statement of operations. Vertical In the fourth quarter of 2021, American invested $25 million to acquire 5.4%, or 11.25 million, of the outstanding shares of Vertical with an initial aggregate value of $113 million, of which $88 million was non-cash. In connection with this investment, American entered into a memorandum of understanding (MOU) with Vertical to pre-order (subject to certain conditions and future agreed upon milestones) up to 250 electric vertical take-off and landing (eVTOL) aircraft, with an option to order an additional 100 eVTOL aircraft. Pursuant to the MOU, American received warrants to purchase 1.75 million shares of Vertical common stock at $0.0001 per share each time American places a legally binding commitment for 50 eVTOL aircraft, up to a maximum aggregate amount of 8.75 million shares. American’s investment in Vertical is reflected within other assets on its consolidated balance sheet. The $88 million non-cash portion of the fair value of equity securities received from Vertical is included as a deferred credit within other liabilities on the consolidated balance sheet and will be recognized as a reduction to the cost of eVTOL aircraft received in future periods or, if no legally binding commitment for eVTOL aircraft is entered into, will be recognized into income. American’s investment in Vertical is accounted for at fair value based on Vertical’s stock price and mark-to-market adjustments are recorded to nonoperating other income, net on the consolidated statement of operations. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen and we began providing enhanced benefits under our defined contribution pension plans for certain employee groups. We use a December 31 measurement date for all of our defined benefit pension plans. We also provide certain retiree medical and other postretirement benefits, including health care and life insurance benefits, to retired employees. Effective November 1, 2012, we modified our retiree medical and other postretirement benefits plans to eliminate the company subsidy for employees who retire on or after November 1, 2012. As a result of modifications to our retiree medical and other postretirement benefits plans in 2012, we recognized a negative plan amendment of $1.9 billion, which was included as a component of prior service benefit in accumulated other comprehensive income (loss) (AOCI) and was amortized over the future service life of the active plan participants for whom the benefit was eliminated. This prior service benefit was fully amortized as of December 31, 2020. Effective January 1, 2021, health coverage under our retiree medical benefit program that is currently provided to certain retirees age 65 and over who retired prior to November 1, 2012, transitioned from a self-insured plan to a fully-insured Medicare Advantage plan. Benefits coverage has not been reduced and cost shared has not changed as a result of this transition. Due to this transition, as of December 31, 2020, we recognized a negative plan amendment of $313 million to reduce our benefit obligation, which was included as a component of prior service cost in AOCI and will be amortized over the average remaining life expectancy of all retirees, or approximately 13 years. As of December 31, 2021, $195 million of prior service cost remains to be amortized. Benefit Obligations, Fair Value of Plan Assets and Funded Status The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2021 and 2020: Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Benefit obligation at beginning of period $ 19,812 $ 18,358 $ 1,046 $ 824 Service cost 4 2 12 8 Interest cost 526 615 30 30 Actuarial (gain) loss (1), (2) (609) 1,613 (57) 46 Special termination benefits (3) — — 139 410 Plan amendments (4) — — — (195) Settlements (1) (36) — — Benefit payments (822) (740) (72) (77) Benefit obligation at end of period $ 18,910 $ 19,812 $ 1,098 $ 1,046 Fair value of plan assets at beginning of period $ 13,557 $ 12,897 $ 170 $ 204 Actual return on plan assets 1,710 1,427 21 13 Employer contributions (5) 247 9 48 30 Settlements (1) (36) — — Benefit payments (822) (740) (72) (77) Fair value of plan assets at end of period $ 14,691 $ 13,557 $ 167 $ 170 Funded status at end of period $ (4,219) $ (6,255) $ (931) $ (876) (1) The 2021 and 2020 pension actuarial (gain) loss primarily relates to the change in our weighted average discount rate assumption. (2) The 2021 and 2020 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to the change in our weighted average discount rate assumption and, in 2021, plan experience adjustments. (3) During the first quarter of 2021 and the third quarter of 2020, we remeasured our retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted into voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. As a result, during 2021, we recognized a $139 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $139 million, and during 2020, we recognized a $410 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $410 million. (4) Principally relates to the transition of our retiree medical benefit program from a self-insured plan to a fully-insured Medicare Advantage plan as discussed above. (5) 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. Balance Sheet Position Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) As of December 31, Current liability $ 7 $ 7 $ 90 $ 55 Noncurrent liability 4,212 6,248 841 821 Total liabilities $ 4,219 $ 6,255 $ 931 $ 876 Net actuarial loss (gain) $ 5,252 $ 6,700 $ (396) $ (358) Prior service cost (benefit) 47 75 (167) (181) Total accumulated other comprehensive loss (income), pre-tax $ 5,299 $ 6,775 $ (563) $ (539) Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits 2021 2020 (In millions) Projected benefit obligation $ 18,910 $ 19,812 Fair value of plan assets 14,691 13,557 Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Accumulated benefit obligation $ 18,899 $ 19,799 $ — $ — Accumulated postretirement benefit obligation — — 1,098 1,046 Fair value of plan assets 14,691 13,557 167 170 Net Periodic Benefit Cost (Income) Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 (In millions) Defined benefit plans: Service cost $ 4 $ 2 $ 2 $ 12 $ 8 $ 3 Interest cost 526 615 703 30 30 33 Expected return on assets (1,084) (1,010) (815) (12) (11) (15) Special termination benefits — — — 139 410 — Settlements — 12 — — — — Amortization of: Prior service cost (benefit) 28 30 28 (13) (135) (236) Unrecognized net loss (gain) 212 164 150 (24) (24) (31) Net periodic benefit cost (income) $ (314) $ (187) $ 68 $ 132 $ 278 $ (246) 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, net on our consolidated statements of operations. Assumptions The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost (income) for the periods presented: Pension Benefits Retiree Medical and 2021 2020 2021 2020 Benefit obligations: Weighted average discount rate 3.0% 2.7% 2.8% 2.4% Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 Net periodic benefit cost (income): Weighted average discount rate 2.7% 3.4% 4.4% 2.4% 3.2% 4.3% Weighted average expected rate of return on plan assets 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% Weighted average health care cost trend rate assumed for next year (1) N/A N/A N/A 4.8% 4.0% 3.7% (1) The weighted average health care cost trend rate at December 31, 2021 is assumed to decline gradually to 3.9% by 2028 and remain level thereafter. As of December 31, 2021, our estimate of the long-term rate of return on plan assets was 8.0% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last ten years, current and expected market conditions, and expected value to be generated through active management and securities lending programs. Minimum Contributions We are required to make minimum contributions to our defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as underfunding rules specific to countries where we maintain defined benefit plans. On March 11, 2021, the ARP was enacted, which included funding relief provisions benefiting single employer qualified retirement benefit pension plans such as those sponsored by us. Based on the ARP provisions applicable to our pension plans, we will have no additional funding requirements until 2023. Our funding obligations will depend on the performance of our investments held in trust by the pension plans, interest rates for determining liabilities, the amount of and timing of any supplemental contributions and our actuarial experience. Benefit Payments The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions): 2022 2023 2024 2025 2026 2027-2031 Pension benefits $ 864 $ 898 $ 933 $ 966 $ 994 $ 5,225 Retiree medical and other postretirement benefits 114 109 103 99 95 390 Plan Assets The objectives of our investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers. Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving the funded position with the potential risk that the funded position would decline. The current strategic target asset allocation is as follows: Asset Class/Sub-Class Allowed Range Equity 45% - 80% Public: U.S. Large 10% - 40% U.S. Small/Mid 2% - 10% International 10% - 25% International Small/Mid 0% - 10% Emerging Markets 2% - 15% Alternative Investments 5% - 30% Fixed Income 20% - 55% Public: U.S. Long Duration 15% - 45% High Yield and Emerging Markets 0% - 10% Private Income 0% - 15% Other 0% - 5% Cash Equivalents 0% - 20% U.S. long duration bonds are used to partially hedge the assets from declines in interest rates. Public equity as well as high yield fixed income securities are used to provide diversification and are expected to generate higher returns over the long-term than U.S. long duration bonds. Alternative (private) investments are used to provide expected returns in excess of the public markets over the long-term. The pension plan’s master trust also participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. These programs are subject to market risk. Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. Investments in limited partnerships are carried at estimated net asset value as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Common/collective trusts are valued at net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. No changes in valuation techniques or inputs occurred during the year. Benefit Plan Assets Measured at Fair Value on a Recurring Basis The fair value of our pension plan assets at December 31, 2021 and 2020, by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 76 $ — $ — $ 76 Equity securities: International markets (a), (b) 2,166 — 4 2,170 Large-cap companies (b) 1,860 — — 1,860 Mid-cap companies (b) 449 — — 449 Small-cap companies (b) 84 2 — 86 Mutual funds/exchange traded funds (c) 263 — — 263 Fixed income: Corporate debt (d) — 2,847 — 2,847 Government securities (e) — 1,128 — 1,128 U.S. municipal securities — 19 — 19 Alternative instruments: Private market partnerships (f) — — 52 52 Private market partnerships measured at net asset value (f), (g) — — — 2,827 Common/collective trusts (h) — 337 — 337 Common/collective trusts measured at net asset value (g), (h) — — — 2,514 Insurance group annuity contracts — — 2 2 Other investments — 3 — 3 Dividend and interest receivable 45 — — 45 Due from brokers for sale of securities – net 10 — — 10 Other receivables – net 3 — — 3 Total $ 4,956 $ 4,336 $ 58 $ 14,691 (a) Holdings are diversified as follows: 14% United Kingdom, 10% Ireland, 10% Japan, 9% Switzerland, 7% France, 6% Germany, 12% emerging markets and the remaining 32% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Investment includes holdings invested 70% in U.S. treasuries and corporate bonds, 17% in equity securities of international companies and 13% in equity securities of large-cap, mid-cap and small-cap U.S. companies. (d) Includes approximately 81% investments in corporate debt with a S&P rating lower than A and 19% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. (e) Includes approximately 94% investments in U.S. domestic government securities and 6% in emerging market government securities. There are no significant foreign currency risks within this classification. (f) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (g) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (h) Investment includes 31% in a common/collective trust investing in large market capitalization equity securities within the U.S., 29% in three common/collective trusts investing in emerging country equity securities, 22% in a common/collective trust investing in equity securities of companies located outside the U.S., 11% in a collective interest trust investing primarily in short-term securities, 6% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 40 $ — $ — $ 40 Equity securities: International markets (a), (b) 2,282 — — 2,282 Large-cap companies (b) 2,085 — — 2,085 Mid-cap companies (b) 428 — — 428 Small-cap companies (b) 73 1 — 74 Mutual funds (c) 80 — — 80 Fixed income: Corporate debt (d) — 3,026 — 3,026 Government securities (e) — 1,010 — 1,010 U.S. municipal securities — 30 — 30 Alternative instruments: Private market partnerships (f) — — 15 15 Private market partnerships measured at net asset value (f), (g) — — — 1,791 Common/collective trusts (h) — 259 — 259 Common/collective trusts measured at net asset value (g), (h) — — — 2,384 Insurance group annuity contracts — — 2 2 Dividend and interest receivable 49 — — 49 Due from brokers for sale of securities – net 1 — — 1 Other receivables – net 1 — — 1 Total $ 5,039 $ 4,326 $ 17 $ 13,557 (a) Holdings are diversified as follows: 11% Switzerland, 11% Ireland, 10% United Kingdom, 9% France, 8% Japan, 7% Germany, 6% Netherlands, 13% emerging markets and the remaining 25% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Investment includes mutual funds invested 39% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 35% in U.S. treasuries and corporate bonds and 26% in equity securities of international companies. (d) Includes approximately 77% investments in corporate debt with a S&P rating lower than A and 23% investments in corporate debt with a S&P rating A or higher. Holdings include 89% U.S. companies, 9% international companies and 2% emerging market companies. (e) Includes approximately 89% investments in U.S. domestic government securities, 9% in emerging market government securities and 2% in international government securities. There are no significant foreign currency risks within this classification. (f) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (g) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (h) Investment includes 34% in a common/collective trust investing in large market capitalization equity securities within the U.S., 30% in three common/collective trusts investing in emerging country equity securities, 21% in a common/collective trust investing in equity securities of companies located outside the U.S., 9% in a collective interest trust investing primarily in short-term securities, 5% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. Changes in fair value measurements of Level 3 investments during the years ended December 31, 2021 and 2020, were as follows (in millions): 2021 2020 Balance at beginning of year $ 17 $ 12 Actual gain on plan assets: Relating to assets still held at the reporting date 10 1 Purchases 32 4 Sales (1) — Balance at end of year $ 58 $ 17 The fair value of our retiree medical and other postretirement benefits plans’ assets by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 163 — 163 Total $ 4 $ 163 $ — $ 167 Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 166 — 166 Total $ 4 $ 166 $ — $ 170 Investments in the retiree medical and other postretirement benefits plans’ mutual funds are valued by quoted prices on the active market, which is fair value, and represents the net asset value of the shares of such funds as of the close of business at the end of the period. Net asset value is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination. The AAL Class mutual funds are offered only to benefit plans of American, therefore, trading is restricted only to American, resulting in a fair value classification of Level 2. Investments included approximately 24% and 25% of investments in non-U.S. common stocks in 2021 and 2020, respectively. Defined Contribution and Multiemployer Plans The costs associated with our defined contribution plans were $920 million for the year ended December 31, 2021 and $860 million for each of the years ended December 31, 2020 and 2019. We participate in the International Association of Machinists & Aerospace Workers (IAM) National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the IAM Pension Fund). Our contributions to the IAM Pension Fund were $43 million, $40 million and $32 million for the years ended December 31, 2021, 2020 and 2019, respectively. The IAM Pension Fund reported $494 million in employers’ contributions for the year ended December 31, 2020, which is the most recent year for which such information is available. For 2020, our contributions represented more than 5% of total contributions to the IAM Pension Fund. On March 29, 2019, the actuary for the IAM Pension Fund certified that the fund was in “endangered” status despite reporting a funded status of over 80%. Additionally, the IAM Pension Fund’s Board voluntarily elected to enter into “critical” status on April 17, 2019. Upon entry into critical status, the IAM Pension Fund was required by law to adopt a rehabilitation plan aimed at restoring the financial health of the pension plan and did so on April 17, 2019 (the Rehabilitation Plan). Under the Rehabilitation Plan, we were subject to an immaterial contribution surcharge, which ceased to apply June 14, 2019 upon our mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to our contribution rate. This contribution schedule will remain in effect through the earlier of December 31, 2031 or the date the IAM Pension Fund emerges from critical status. Profit Sharing Program We accrue 5% of our pre-tax income excluding net special items for our profit sharing program. As a result of our pre-tax loss excluding net special items, there will not be a payout for 2021 under our profit sharing program. |
American Airlines, Inc. | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plans | Employee Benefit Plans American sponsors defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen and American began providing enhanced benefits under its defined contribution pension plans for certain employee groups. American uses a December 31 measurement date for all of its defined benefit pension plans. American also provides certain retiree medical and other postretirement benefits, including health care and life insurance benefits, to retired employees. Effective November 1, 2012, American modified its retiree medical and other postretirement benefits plans to eliminate the company subsidy for employees who retire on or after November 1, 2012. As a result of modifications to its retiree medical and other postretirement benefits plans in 2012, American recognized a negative plan amendment of $1.9 billion, which was included as a component of prior service benefit in accumulated other comprehensive income (loss) (AOCI) and was amortized over the future service life of the active plan participants for whom the benefit was eliminated. This prior service benefit was fully amortized as of December 31, 2020. Effective January 1, 2021, health coverage under American’s retiree medical benefit program that is currently provided to certain retirees age 65 and over who retired prior to November 1, 2012, transitioned from a self-insured plan to a fully-insured Medicare Advantage plan. Benefits coverage has not been reduced and cost shared has not changed as a result of this transition. Due to this transition, as of December 31, 2020, American recognized a negative plan amendment of $313 million to reduce its benefit obligation, which was included as a component of prior service cost in AOCI and will be amortized over the average remaining life expectancy of all retirees, or approximately 13 years. As of December 31, 2021, $195 million of prior service cost remains to be amortized. Benefit Obligations, Fair Value of Plan Assets and Funded Status The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2021 and 2020: Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Benefit obligation at beginning of period $ 19,690 $ 18,246 $ 1,046 $ 824 Service cost 3 2 12 8 Interest cost 523 611 30 30 Actuarial (gain) loss (1), (2) (606) 1,603 (57) 46 Special termination benefits (3) — — 139 410 Plan amendments (4) — — — (195) Settlements (1) (36) — — Benefit payments (818) (736) (72) (77) Benefit obligation at end of period $ 18,791 $ 19,690 $ 1,098 $ 1,046 Fair value of plan assets at beginning of period $ 13,477 $ 12,829 $ 170 $ 204 Actual return on plan assets 1,700 1,414 21 13 Employer contributions (5) 247 6 48 30 Settlements (1) (36) — — Benefit payments (818) (736) (72) (77) Fair value of plan assets at end of period $ 14,605 $ 13,477 $ 167 $ 170 Funded status at end of period $ (4,186) $ (6,213) $ (931) $ (876) (1) The 2021 and 2020 pension actuarial (gain) loss primarily relates to the change in American’s weighted average discount rate assumption. (2) The 2021 and 2020 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to the change in American’s weighted average discount rate assumption and, in 2021, plan experience adjustments. (3) During the first quarter of 2021 and the third quarter of 2020, American remeasured its retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted into voluntary early retirement programs offered as a result of reductions to its operation due to the COVID-19 pandemic. As a result, during 2021, American recognized a $139 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $139 million and during 2020 American recognized a $410 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $410 million. (4) Principally relates to the transition of American’s retiree medical benefit program from a self-insured plan to a fully-insured Medicare Advantage plan as discussed above. (5) 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. Balance Sheet Position Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) As of December 31, Current liability $ 7 $ 7 $ 90 $ 55 Noncurrent liability 4,179 6,206 841 821 Total liabilities $ 4,186 $ 6,213 $ 931 $ 876 Net actuarial loss (gain) $ 5,241 $ 6,679 $ (396) $ (358) Prior service cost (benefit) 46 75 (167) (181) Total accumulated other comprehensive loss (income), pre-tax $ 5,287 $ 6,754 $ (563) $ (539) Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits 2021 2020 (In millions) Projected benefit obligation $ 18,791 $ 19,690 Fair value of plan assets 14,605 13,477 Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Accumulated benefit obligation $ 18,782 $ 19,678 $ — $ — Accumulated postretirement benefit obligation — — 1,098 1,046 Fair value of plan assets 14,605 13,477 167 170 Net Periodic Benefit Cost (Income) Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 (In millions) Defined benefit plans: Service cost $ 3 $ 2 $ 2 $ 12 $ 8 $ 3 Interest cost 523 611 699 30 30 33 Expected return on assets (1,078) (1,005) (811) (12) (11) (15) Special termination benefits — — — 139 410 — Settlements — 12 — — — — Amortization of: Prior service cost (benefit) 28 29 28 (13) (135) (236) Unrecognized net loss (gain) 211 164 150 (24) (24) (31) Net periodic benefit cost (income) $ (313) $ (187) $ 68 $ 132 $ 278 $ (246) 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, net on American’s consolidated statements of operations. Assumptions The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost (income) for the periods presented: Pension Benefits Retiree Medical and 2021 2020 2021 2020 Benefit obligations: Weighted average discount rate 3.0% 2.7% 2.8% 2.4% Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 Net periodic benefit cost (income): Weighted average discount rate 2.7% 3.4% 4.4% 2.4% 3.2% 4.3% Weighted average expected rate of return on plan assets 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% Weighted average health care cost trend rate assumed for next year (1) N/A N/A N/A 4.8% 4.0% 3.7% (1) The weighted average health care cost trend rate at December 31, 2021 is assumed to decline gradually to 3.9% by 2028 and remain level thereafter. As of December 31, 2021, American’s estimate of the long-term rate of return on plan assets was 8.0% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last ten years, current and expected market conditions, and expected value to be generated through active management and securities lending programs. Minimum Contributions American is required to make minimum contributions to its defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as underfunding rules specific to countries where American maintains defined benefit plans. On March 11, 2021, the ARP was enacted, which included funding relief provisions benefiting single employer qualified retirement benefit pension plans such as those sponsored by American. Based on the ARP provisions applicable to its pension plans, American will have no additional funding requirements until 2023. American’s funding obligations will depend on the performance of American’s investments held in trust by the pension plans, interest rates for determining liabilities, the amount of and timing of any supplemental contributions and American’s actuarial experience. Benefit Payments The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions): 2022 2023 2024 2025 2026 2027-2031 Pension benefits $ 860 $ 893 $ 928 $ 961 $ 989 $ 5,194 Retiree medical and other postretirement benefits 114 109 103 99 95 390 Plan Assets The objectives of American’s investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers. Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving the funded position with the potential risk that the funded position would decline. The current strategic target asset allocation is as follows: Asset Class/Sub-Class Allowed Range Equity 45% - 80% Public: U.S. Large 10% - 40% U.S. Small/Mid 2% - 10% International 10% - 25% International Small/Mid 0% - 10% Emerging Markets 2% - 15% Alternative Investments 5% - 30% Fixed Income 20% - 55% Public: U.S. Long Duration 15% - 45% High Yield and Emerging Markets 0% - 10% Private Income 0% - 15% Other 0% - 5% Cash Equivalents 0% - 20% U.S. long duration bonds are used to partially hedge the assets from declines in interest rates. Public equity as well as high yield fixed income securities are used to provide diversification and are expected to generate higher returns over the long-term than U.S. long duration bonds. Alternative (private) investments are used to provide expected returns in excess of the public markets over the long-term. The pension plan’s master trust also participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. These programs are subject to market risk. Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. Investments in limited partnerships are carried at estimated net asset value as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Common/collective trusts are valued at net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. No changes in valuation techniques or inputs occurred during the year. Benefit Plan Assets Measured at Fair Value on a Recurring Basis The fair value of American’s pension plan assets at December 31, 2021 and 2020, by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 76 $ — $ — $ 76 Equity securities: International markets (a), (b) 2,166 — 4 2,170 Large-cap companies (b) 1,860 — — 1,860 Mid-cap companies (b) 449 — — 449 Small-cap companies (b) 84 2 — 86 Mutual funds/exchange traded funds (c) 177 — — 177 Fixed income: Corporate debt (d) — 2,847 — 2,847 Government securities (e) — 1,128 — 1,128 U.S. municipal securities — 19 — 19 Alternative instruments: Private market partnerships (f) — — 52 52 Private market partnerships measured at net asset value (f), (g) — — — 2,827 Common/collective trusts (h) — 337 — 337 Common/collective trusts measured at net asset value (g), (h) — — — 2,514 Insurance group annuity contracts — — 2 2 Other investments — 3 — 3 Dividend and interest receivable 45 — — 45 Due from brokers for sale of securities – net 10 — — 10 Other receivables – net 3 — — 3 Total $ 4,870 $ 4,336 $ 58 $ 14,605 (a) Holdings are diversified as follows: 14% United Kingdom, 10% Ireland, 10% Japan, 9% Switzerland, 7% France, 6% Germany, 12% emerging markets and the remaining 32% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Investment includes holdings invested 86% in U.S. treasuries and corporate bonds and 14% in equity securities of international companies. (d) Includes approximately 81% investments in corporate debt with a S&P rating lower than A and 19% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. (e) Includes approximately 94% investments in U.S. domestic government securities and 6% in emerging market government securities. There are no significant foreign currency risks within this classification. (f) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (g) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (h) Investment includes 31% in a common/collective trust investing in large market capitalization equity securities within the U.S., 29% in three common/collective trusts investing in emerging country equity securities, 22% in a common/collective trust investing in equity securities of companies located outside the U.S., 11% in a collective interest trust investing primarily in short-term securities, 6% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 40 $ — $ — $ 40 Equity securities: International markets (a), (b) 2,282 — — 2,282 Large-cap companies (b) 2,085 — — 2,085 Mid-cap companies (b) 428 — — 428 Small-cap companies (b) 73 1 — 74 Fixed income: Corporate debt (c) — 3,026 — 3,026 Government securities (d) — 1,010 — 1,010 U.S. municipal securities — 30 — 30 Alternative instruments: Private market partnerships (e) — — 15 15 Private market partnerships measured at net asset value (e), (f) — — — 1,791 Common/collective trusts (g) — 259 — 259 Common/collective trusts measured at net asset value (f), (g) — — — 2,384 Insurance group annuity contracts — — 2 2 Dividend and interest receivable 49 — — 49 Due from brokers for sale of securities – net 1 — — 1 Other receivables – net 1 — — 1 Total $ 4,959 $ 4,326 $ 17 $ 13,477 (a) Holdings are diversified as follows: 11% Switzerland, 11% Ireland, 10% United Kingdom, 9% France, 8% Japan, 7% Germany, 6% Netherlands, 13% emerging markets and the remaining 25% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Includes approximately 77% investments in corporate debt with a S&P rating lower than A and 23% investments in corporate debt with a S&P rating A or higher. Holdings include 89% U.S. companies, 9% international companies and 2% emerging market companies. (d) Includes approximately 89% investments in U.S. domestic government securities, 9% in emerging market government securities and 2% in international government securities. There are no significant foreign currency risks within this classification. (e) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (f) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (g) Investment includes 34% in a common/collective trust investing in large market capitalization equity securities within the U.S., 30% in three common/collective trusts investing in emerging country equity securities, 21% in a common/collective trust investing in equity securities of companies located outside the U.S., 9% in a collective interest trust investing primarily in short-term securities, 5% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. Changes in fair value measurements of Level 3 investments during the years ended December 31, 2021 and 2020, were as follows (in millions): 2021 2020 Balance at beginning of year $ 17 $ 12 Actual gain on plan assets: Relating to assets still held at the reporting date 10 1 Purchases 32 4 Sales (1) — Balance at end of year $ 58 $ 17 The fair value of American’s retiree medical and other postretirement benefits plans’ assets by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 163 — 163 Total $ 4 $ 163 $ — $ 167 Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 166 — 166 Total $ 4 $ 166 $ — $ 170 Investments in the retiree medical and other postretirement benefits plans’ mutual funds are valued by quoted prices on the active market, which is fair value, and represents the net asset value of the shares of such funds as of the close of business at the end of the period. Net asset value is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination. The AAL Class mutual funds are offered only to benefit plans of American, therefore, trading is restricted only to American, resulting in a fair value classification of Level 2. Investments included approximately 24% and 25% of investments in non-U.S. common stocks in 2021 and 2020, respectively. Defined Contribution and Multiemployer Plans The costs associated with American’s defined contribution plans were $893 million, $835 million and $836 million for the years ended December 31, 2021, 2020 and 2019, respectively. American participates in the International Association of Machinists & Aerospace Workers (IAM) National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the IAM Pension Fund). American’s contributions to the IAM Pension Fund were $43 million, $40 million and $32 million for the years ended December 31, 2021, 2020 and 2019, respectively. The IAM Pension Fund reported $494 million in employers’ contributions for the year ended December 31, 2020, which is the most recent year for which such information is available. For 2020, American’s contributions represented more than 5% of total contributions to the IAM Pension Fund. On March 29, 2019, the actuary for the IAM Pension Fund certified that the fund was in “endangered” status despite reporting a funded status of over 80%. Additionally, the IAM Pension Fund’s Board voluntarily elected to enter into “critical” status on April 17, 2019. Upon entry into critical status, the IAM Pension Fund was required by law to adopt a rehabilitation plan aimed at restoring the financial health of the pension plan and did so on April 17, 2019 (the Rehabilitation Plan). Under the Rehabilitation Plan, American was subject to an immaterial contribution surcharge, which ceased to apply June 14, 2019 upon American’s mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to its contribution rate. This contribution schedule will remain in effect through the earlier of December 31, 2031 or the date the IAM Pension Fund emerges from critical status. Profit Sharing Program American accrues 5% of its pre-tax income excluding net special items for its profit sharing program. As a result of American’s pre-tax loss excluding net special items, there will not be a payout for 2021 under its profit sharing program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of AOCI are as follows (in millions): Pension, Unrealized Loss on Investments Income Tax (1) Total Balance at December 31, 2019 $ (5,238) $ (2) $ (1,091) $ (6,331) Other comprehensive income (loss) before reclassifications (1,045) — 236 (809) Amounts reclassified from AOCI 47 — (10) (2) 37 Net current-period other comprehensive income (loss) (998) — 226 (772) Balance at December 31, 2020 (6,236) (2) (865) (7,103) Other comprehensive income (loss) before reclassifications 1,297 — (293) 1,004 Amounts reclassified from AOCI 203 — (46) (2) 157 Net current-period other comprehensive income (loss) 1,500 — (339) 1,161 Balance at December 31, 2021 $ (4,736) $ (2) $ (1,204) $ (5,942) (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 our consolidated statements of operations. Reclassifications out of AOCI for the years ended December 31, 2021 and 2020 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the Year Ended December 31, AOCI Components 2021 2020 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ 11 $ (81) Nonoperating other income, net Actuarial loss 146 118 Nonoperating other income, net Total reclassifications for the period, net of tax $ 157 $ 37 Amounts allocated to other comprehensive income (loss) for income taxes will remain in AOCI until we cease all related activities, such as termination of the pension plan. |
American Airlines, Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of AOCI are as follows (in millions): Pension, Unrealized Loss on Investments Income Tax (1) Total Balance at December 31, 2019 $ (5,218) $ (2) $ (1,203) $ (6,423) Other comprehensive income (loss) before reclassifications (1,043) — 236 (807) Amounts reclassified from AOCI 46 — (10) (2) 36 Net current-period other comprehensive income (loss) (997) — 226 (771) Balance at December 31, 2020 (6,215) (2) (977) (7,194) Other comprehensive income (loss) before reclassifications 1,289 — (292) 997 Amounts reclassified from AOCI 202 — (46) (2) 156 Net current-period other comprehensive income (loss) 1,491 — (338) 1,153 Balance at December 31, 2021 $ (4,724) $ (2) $ (1,315) $ (6,041) (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 American’s consolidated statements of operations. Reclassifications out of AOCI for the years ended December 31, 2021 and 2020 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the Year Ended December 31, AOCI Components 2021 2020 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ 11 $ (82) Nonoperating other income, net Actuarial loss 145 118 Nonoperating other income, net Total reclassifications for the period, net of tax $ 156 $ 36 Amounts allocated to other comprehensive income (loss) for income taxes will remain in AOCI until American ceases all related activities, such as termination of the pension plan. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Line Items] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees (a) Aircraft, Engine and Other Purchase Commitments Under all of our aircraft and engine purchase agreements, our total future commitments as of December 31, 2021 are expected to be as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Payments for aircraft and engine commitments (1) $ 1,987 $ 1,851 $ 3,358 $ 3,535 $ 1,663 $ 688 $ 13,082 (1) These amounts are net of purchase deposits currently held by the manufacturers. Our purchase deposits held by all manufacturers totaled $517 million and $1.4 billion as of December 31, 2021 and December 31, 2020, respectively. Due to the uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent our most current estimate; however, the actual delivery schedule may differ from the table above, potentially materially. On January 31, 2022, we entered into an amended purchase agreement with The Boeing Company (Boeing) pursuant to which we agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options. We also intend to exercise purchase options for an additional seven aircraft in 2022, bringing our total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024. In addition, we entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023. Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027. The table above reflects our purchase commitments after giving effect to these amendments and assumes our exercise of the seven 737 MAX Family aircraft purchase options mentioned above. Additionally, the amounts in the table exclude 10 and three Boeing 787-8 aircraft scheduled to be delivered in 2022 and 2023, respectively, and four and one Boeing 787-9 aircraft scheduled to be delivered in 2023 and 2024, respectively, for which we have obtained committed lease financing. See Note 5 for information regarding this operating lease commitment. Additionally, we have purchase commitments related to aircraft fuel, flight equipment maintenance, construction projects and information technology support as follows (approximately): $4.4 billion in 2022, $1.8 billion in 2023, $1.4 billion in 2024, $154 million in 2025, $610 million in 2026 and $942 million in 2027 and thereafter. (b) Capacity Purchase Agreements with Third-Party Regional Carriers American has capacity purchase agreements with third-party regional carriers. The capacity purchase agreements provide that all revenues, including passenger, in-flight, ancillary, mail and freight revenues, go to American. American controls marketing, scheduling, ticketing, pricing and seat inventories. In return, American agrees to pay predetermined fees to these airlines for operating an agreed-upon number of aircraft, without regard to the number of passengers on board. In addition, these agreements provide that American either reimburses or pays 100% of certain variable costs, such as airport landing fees, fuel and passenger liability insurance. As of December 31, 2021, American’s capacity purchase agreements with third-party regional carriers had expiration dates ranging from 2022 to 2033, with rights of American to extend the respective terms of certain agreements. As of December 31, 2021, American’s minimum obligations under its capacity purchase agreements with third-party regional carriers are as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Minimum obligations under capacity purchase agreements with third-party regional carriers (1) $ 1,495 $ 1,834 $ 1,875 $ 1,729 $ 1,123 $ 2,317 $ 10,373 (1) Represents minimum payments under capacity purchase agreements with third-party regional carriers, which are estimates of costs based on assumed minimum levels of flying under the capacity purchase agreements and American’s actual payments could differ materially. Excludes payments for the lease of certain aircraft under capacity purchase agreements, which are reflected in the operating lease obligations in Note 5. (c) Airport Redevelopment Los Angeles International Airport (LAX) From time to time, airports where we have operations engage in construction projects, often substantial, that result in new or improved facilities that are ultimately funded through increases in the rent and other occupancy costs payable by airlines using the airport. Unlike this construction and funding model, we are managing a project at LAX where we have legal title to the assets during construction. In 2018, we executed a lease agreement with Los Angeles World Airports (LAWA), which owns and operates LAX, in connection with a $1.6 billion modernization project related to LAX Terminals 4 and 5. Construction, which started in October 2018 and is expected to be completed in 2028, will occur in a phased approach. The modernization project will include a unified departure hall to the entranceway of Terminals 4 and 5, reconfigured ticket counter and check-in areas with seamless access to security screening areas, 10 new security screening lanes with automated technology in addition to the existing Terminal 5 lanes, and a new Terminal 4 South concourse with more open and upgraded amenities at gate areas. The project will also include renovated break rooms, multi-use meeting rooms and team gathering spaces throughout the terminals to support our team members at LAX. As each phase is completed and ready for use, the assets will be sold and transferred to LAWA, including the site improvements and non-proprietary improvements. As we control the assets during construction, they are recognized on our balance sheet until the assets are sold and transferred to LAWA. As of December 31, 2021, we have incurred approximately $338 million in costs relating to the LAX modernization project, of which $112 million, $114 million and $98 million were incurred during 2021, 2020 and 2019, respectively, and have been included within operating property and equipment on our consolidated balance sheets and included within airport construction projects, net of reimbursements on our consolidated statements of cash flows. As of December 31, 2021, we have sold and transferred $132 million of non-proprietary improvements to LAWA, of which $21 million occurred during 2021. For non-proprietary improvements which are not yet ready for use, any cash payments received from LAWA will be reflected as a financial liability. As of December 31, 2021, we have received $88 million in cash proceeds for non-proprietary improvements which are not yet ready for use, and therefore have not been sold and transferred back to LAWA. These proceeds are currently included in other accrued liabilities on our consolidated balance sheet and are reflected as financing activities on our consolidated statement of cash flows. JFK In January 2020, American and British Airways announced the start of construction projects to upgrade New York's JFK Terminal 8 (the Terminal). The renovation projects at the Terminal include: (i) the reconfiguration or elimination of certain existing gates and the construction of widebody gates, (ii) the construction of approximately 51,000 square feet of new terminal building space and the refurbishment of 73,300 square feet of existing terminal space, (iii) the expansion of the baggage system capacity of the Terminal, (iv) improvements to the premium passenger lounges, check-in and, potentially, security access areas, and (v) bathroom refreshment, new signage, and other upgrades. The construction project is currently scheduled to be completed in 2023 and is estimated to cost $439 million. In 2021, $118 million was spent on construction projects to upgrade the Terminal and has been included in airport construction projects, net of reimbursements on our consolidated statement of cash flows. (d) Off-Balance Sheet Arrangements Pass-Through Trusts American currently has 344 owned aircraft, 11 leased aircraft and 60 owned spare aircraft engines, which in each case were financed with EETCs issued by pass-through trusts. These trusts are off-balance sheet entities, the primary purpose of which is to finance the acquisition of flight equipment or to permit issuance of debt backed by existing flight equipment. In the case of aircraft EETCs, rather than finance each aircraft separately when such aircraft is purchased, delivered or refinanced, these trusts allow American to raise the financing for a number of aircraft at one time and, if applicable, place such funds in escrow pending a future purchase, delivery or refinancing of the relevant aircraft. Similarly, in the case of the spare engine EETCs, the trusts allow American to use its existing pool of spare engines to raise financing under a single facility. The trusts have also been structured to provide for certain credit enhancements, such as liquidity facilities to cover certain interest payments, that reduce the risks to the purchasers of the trust certificates and, as a result, reduce the cost of aircraft financing to American. Each trust covers a set number of aircraft or spare engines scheduled to be delivered, financed or refinanced upon the issuance of the EETC or within a specific period of time thereafter. At the time of each covered aircraft or spare engine financing, the relevant trust used the proceeds of the issuance of the EETC (which may have been available at the time of issuance thereof or held in escrow until financing of the applicable aircraft following its delivery) to purchase equipment notes relating to the financed aircraft or engines. The equipment notes are issued, at American’s election, in connection with a mortgage financing of the aircraft or spare engines or, in certain cases, by a separate owner trust in connection with a leveraged lease financing of the aircraft. In the case of a leveraged lease financing, the owner trust then leases the aircraft to American. In both cases, the equipment notes are secured by a security interest in the aircraft or engines, as applicable. The pass-through trust certificates are not direct obligations of, nor are they guaranteed by, AAG or American. However, in the case of mortgage financings, the equipment notes issued to the trusts are direct obligations of American and, in certain instances, have been guaranteed by AAG. As of December 31, 2021, $9.4 billion associated with these mortgage financings is reflected as debt in the accompanying consolidated balance sheet. With respect to leveraged leases, American evaluated whether the leases had characteristics of a variable interest entity. American concluded the leasing entities met the criteria for variable interest entities; however, American concluded it is not the primary beneficiary under these leasing arrangements and accounts for the majority of its EETC leveraged lease financings as operating leases. American’s total future payments to the trusts of each of the relevant EETCs under these leveraged lease financings are $20 million as of December 31, 2021, which are reflected in the operating lease obligations in Note 5. Letters of Credit and Other We provide financial assurance, such as letters of credit, surety bonds or restricted cash and investments, primarily to support projected workers’ compensation obligations and airport commitments. As of December 31, 2021, we had $439 million of letters of credit and surety bonds securing various obligations, of which $94 million is collateralized with our restricted cash. The letters of credit and surety bonds that are subject to expiration will expire on various dates through 2025. (e) Legal Proceedings Chapter 11 Cases . On November 29, 2011, 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 Merger. The Plan established a DCR 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 DCR 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 DCR. We are not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution in the DCR are not sufficient to pay any additional allowed unsecured claims. On November 29, 2021, the Bankruptcy Court granted our motion to close the bankruptcy case. The motion authorized us to settle various bankruptcy-related claims, distribute excess reserved funds held in the DCR, excluding shares set aside for an earlier settlement of a claim that cannot be distributed until all appeals are final, and to close the Chapter 11 cases. On December 7, 2021, in accordance with the approval granted by the Bankruptcy Court, we distributed approximately 4.5 million shares of AAG common stock from the DCR to former AMR stockholders, to former convertible noteholders treated as stockholders under the Plan and to claimants. As of December 31, 2021, 0.3 million shares of AAG common stock remain in the DCR to be available to resolve an outstanding claim. 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, 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 to the U.S. District Court, which remains pending. We believe this lawsuit is without merit and intend to continue to vigorously defend against it, including against plaintiffs' appeal of the Bankruptcy Court's January 29, 2021 ruling. Government Antitrust Action Related to the Northeast Alliance. On September 21, 2021, the United States Department of Justice (DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue Airways Corporation (JetBlue) alleging that American and JetBlue violated U.S. antitrust laws in connection with the previously disclosed Northeast Alliance (NEA) arrangement. We believe the complaint is without merit and intend to defend against it vigorously. Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and JetBlue in January 2021, at the conclusion of the DOT’s review of the NEA (DOT Agreement) . The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to DOJ to resolve the antitrust concerns that DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. 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. (f) Guarantees and Indemnifications We are party to many routine contracts in which we provide general indemnities in the normal course of business to third parties for various risks. We are not able to estimate the potential amount of any liability resulting from the indemnities. These indemnities are discussed in the following paragraphs. In our aircraft financing agreements, we generally indemnify the financing parties, trustees acting on their behalf and other relevant parties against liabilities (including certain taxes) resulting from the financing, manufacture, design, ownership, operation and maintenance of the aircraft regardless of whether these liabilities (including certain taxes) relate to the negligence of the indemnified parties. Our loan agreements and other LIBOR-based financing transactions (including certain leveraged aircraft leases) generally obligate us to reimburse the applicable lender for incremental costs due to a change in law that imposes (i) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (ii) any tax, duty or other charge with respect to the loan (except standard income tax) or (iii) capital adequacy requirements. In addition, our loan agreements and other financing arrangements typically contain a withholding tax provision that requires us to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. In certain transactions, including certain aircraft financing leases and loans, the lessors, lenders and/or other parties have rights to terminate the transaction based on changes in foreign tax law, illegality or certain other events or circumstances. In such a case, we may be required to make a lump sum payment to terminate the relevant transaction. We have general indemnity clauses in many of our airport and other real estate leases where we as lessee indemnify the lessor (and related parties) against liabilities related to our use of the leased property. Generally, these indemnifications cover liabilities resulting from the negligence of the indemnified parties, but not liabilities resulting from the gross negligence or willful misconduct of the indemnified parties. In addition, we provide environmental indemnities in many of these leases for contamination related to our use of the leased property. Under certain contracts with third parties, we indemnify the third-party against legal liability arising out of an action by the third-party, or certain other parties. The terms of these contracts vary and the potential exposure under these indemnities cannot be determined. We have liability insurance protecting us for some of the obligations we have undertaken under these indemnities. American is required to make principal and interest payments for certain special facility revenue bonds issued by municipalities primarily to build or improve airport facilities and purchase equipment, which are leased to American. The payment of principal and interest of certain special facility revenue bonds is guaranteed by AAG. As of December 31, 2021, the remaining lease payments through 2035 guaranteeing the principal and interest on these bonds are $555 million and the current carrying amount of the associated operating lease liability in the accompanying consolidated balance sheet is $321 million. As of December 31, 2021, AAG had issued guarantees covering approximately $19.8 billion of American’s secured debt (and interest thereon), including the Credit Facilities, the AAdvantage Financing, certain EETC financings and $1.1 billion of American’s special facility revenue bonds (and interest thereon). (g) Credit Card Processing Agreements We have agreements with companies that process customer credit card transactions for the sale of air travel and other services. Our agreements allow these credit card processing companies, under certain conditions, to hold an amount of our cash (referred to as a holdback) equal to all or a portion of advance ticket sales that have been processed by that company, but for which we have not yet provided the air transportation. These holdback requirements can be modified at the discretion of the credit card processing companies upon the occurrence of specific events, including material adverse changes in our financial condition or the triggering of a liquidity covenant. These credit card processing companies are not currently entitled to maintain any holdbacks. The imposition of holdback requirements would reduce our liquidity. (h) Labor Negotiations As of December 31, 2021, we employed approximately 123,400 active full-time equivalent (FTE) employees, of which 26,600 were employed by our wholly-owned regional subsidiaries. Of the total active FTE employees, 86% are covered by collective bargaining agreements (CBAs) with various labor unions and 45% are covered by CBAs that are currently amendable or that will become amendable within one year. Joint collective bargaining agreements covering our mainline pilots, flight attendants, passenger service, flight simulator engineers and dispatchers are now amendable. The CBAs covering certain employee groups at our wholly-owned regional subsidiaries are also amendable. |
American Airlines, Inc. | |
Commitments and Contingencies [Line Items] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees (a) Aircraft, Engine and Other Purchase Commitments Under all of American’s aircraft and engine purchase agreements, its total future commitments as of December 31, 2021 are expected to be as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Payments for aircraft and engine commitments (1) $ 1,987 $ 1,851 $ 3,358 $ 3,535 $ 1,663 $ 688 $ 13,082 (1) These amounts are net of purchase deposits currently held by the manufacturers. American’s purchase deposits held by all manufacturers totaled $517 million and $1.4 billion as of December 31, 2021 and December 31, 2020, respectively. Due to the uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent American’s most current estimate; however, the actual delivery schedule may differ from the table above, potentially materially. On January 31, 2022, American entered into an amended purchase agreement with The Boeing Company (Boeing) pursuant to which it agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options. American also intends to exercise purchase options for an additional seven aircraft in 2022, bringing its total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024. In addition, American entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023. Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027. The table above reflects American’s purchase commitments after giving effect to these amendments and assumes American’s exercise of the seven 737 MAX Family aircraft purchase options mentioned above. Additionally, the amounts in the table exclude 10 and three Boeing 787-8 aircraft scheduled to be delivered in 2022 and 2023, respectively, and four and one Boeing 787-9 aircraft scheduled to be delivered in 2023 and 2024, respectively, for which American has obtained committed lease financing. See Note 4 for information regarding this operating lease commitment. Additionally, American has purchase commitments related to aircraft fuel, flight equipment maintenance, construction projects and information technology support as follows (approximately): $4.4 billion in 2022, $1.8 billion in 2023, $1.4 billion in 2024, $154 million in 2025, $610 million in 2026 and $942 million in 2027 and thereafter. (b) Capacity Purchase Agreements with Third-Party Regional Carriers American has capacity purchase agreements with third-party regional carriers. The capacity purchase agreements provide that all revenues, including passenger, in-flight, ancillary, mail and freight revenues, go to American. American controls marketing, scheduling, ticketing, pricing and seat inventories. In return, American agrees to pay predetermined fees to these airlines for operating an agreed-upon number of aircraft, without regard to the number of passengers on board. In addition, these agreements provide that American either reimburses or pays 100% of certain variable costs, such as airport landing fees, fuel and passenger liability insurance. As of December 31, 2021, American’s capacity purchase agreements with third-party regional carriers had expiration dates ranging from 2022 to 2033, with rights of American to extend the respective terms of certain agreements. As of December 31, 2021, American’s minimum obligations under its capacity purchase agreements with third-party regional carriers are as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Minimum obligations under capacity purchase agreements with third-party regional carriers (1) $ 1,495 $ 1,834 $ 1,875 $ 1,729 $ 1,123 $ 2,317 $ 10,373 (1) Represents minimum payments under capacity purchase agreements with third-party regional carriers, which are estimates of costs based on assumed minimum levels of flying under the capacity purchase agreements and American’s actual payments could differ materially. Excludes payments for the lease of certain aircraft under capacity purchase agreements, which are reflected in the operating lease obligations in Note 4. (c) Airport Redevelopment Los Angeles International Airport (LAX) From time to time, airports where American has operations engage in construction projects, often substantial, that result in new or improved facilities that are ultimately funded through increases in the rent and other occupancy costs payable by airlines using the airport. Unlike this construction and funding model, American is managing a project at LAX where it has legal title to the assets during construction. In 2018, American executed a lease agreement with Los Angeles World Airports (LAWA), which owns and operates LAX, in connection with a $1.6 billion modernization project related to LAX Terminals 4 and 5. Construction, which started in October 2018 and is expected to be completed in 2028, will occur in a phased approach. The modernization project will include a unified departure hall to the entranceway of Terminals 4 and 5, reconfigured ticket counter and check-in areas with seamless access to security screening areas, 10 new security screening lanes with automated technology in addition to the existing Terminal 5 lanes, and a new Terminal 4 South concourse with more open and upgraded amenities at gate areas. The project will also include renovated break rooms, multi-use meeting rooms and team gathering spaces throughout the terminals to support American’s team members at LAX. As each phase is completed and ready for use, the assets will be sold and transferred to LAWA, including the site improvements and non-proprietary improvements. As American controls the assets during construction, they are recognized on its balance sheet until the assets are sold and transferred to LAWA. As of December 31, 2021, American has incurred approximately $338 million in costs relating to the LAX modernization project, of which $112 million, $114 million and $98 million were incurred during 2021, 2020 and 2019, respectively, and have been included within operating property and equipment on its consolidated balance sheets and included within airport construction projects, net of reimbursements on its consolidated statements of cash flows. As of December 31, 2021, American has sold and transferred $132 million of non-proprietary improvements to LAWA, of which $21 million occurred during 2021. For non-proprietary improvements which are not yet ready for use, any cash payments received from LAWA will be reflected as a financial liability. As of December 31, 2021, American has received $88 million in cash proceeds for non-proprietary improvements which are not yet ready for use, and therefore have not been sold and transferred back to LAWA. These proceeds are currently included in other accrued liabilities on American’s consolidated balance sheet and are reflected as financing activities on its consolidated statement of cash flows. JFK In January 2020, American and British Airways announced the start of construction projects to upgrade New York's JFK Terminal 8 (the Terminal). The renovation projects at the Terminal include: (i) the reconfiguration or elimination of certain existing gates and the construction of widebody gates, (ii) the construction of approximately 51,000 square feet of new terminal building space and the refurbishment of 73,300 square feet of existing terminal space, (iii) the expansion of the baggage system capacity of the Terminal, (iv) improvements to the premium passenger lounges, check-in and, potentially, security access areas, and (v) bathroom refreshment, new signage, and other upgrades. The construction project is currently scheduled to be completed in 2023 and is estimated to cost $439 million. In 2021, $118 million was spent on construction projects to upgrade the Terminal and has been included in airport construction projects, net of reimbursements on American’s consolidated statement of cash flows. (d) Off-Balance Sheet Arrangements Pass-Through Trusts American currently has 344 owned aircraft, 11 leased aircraft and 60 owned spare aircraft engines, which in each case were financed with EETCs issued by pass-through trusts. These trusts are off-balance sheet entities, the primary purpose of which is to finance the acquisition of flight equipment or to permit issuance of debt backed by existing flight equipment. In the case of aircraft EETCs, rather than finance each aircraft separately when such aircraft is purchased, delivered or refinanced, these trusts allow American to raise the financing for a number of aircraft at one time and, if applicable, place such funds in escrow pending a future purchase, delivery or refinancing of the relevant aircraft. Similarly, in the case of the spare engine EETCs, the trusts allow American to use its existing pool of spare engines to raise financing under a single facility. The trusts have also been structured to provide for certain credit enhancements, such as liquidity facilities to cover certain interest payments, that reduce the risks to the purchasers of the trust certificates and, as a result, reduce the cost of aircraft financing to American. Each trust covers a set number of aircraft or spare engines scheduled to be delivered, financed or refinanced upon the issuance of the EETC or within a specific period of time thereafter. At the time of each covered aircraft or spare engine financing, the relevant trust used the proceeds of the issuance of the EETC (which may have been available at the time of issuance thereof or held in escrow until financing of the applicable aircraft following its delivery) to purchase equipment notes relating to the financed aircraft or engines. The equipment notes are issued, at American’s election, in connection with a mortgage financing of the aircraft or spare engines or, in certain cases, by a separate owner trust in connection with a leveraged lease financing of the aircraft. In the case of a leveraged lease financing, the owner trust then leases the aircraft to American. In both cases, the equipment notes are secured by a security interest in the aircraft or engines, as applicable. The pass-through trust certificates are not direct obligations of, nor are they guaranteed by, AAG or American. However, in the case of mortgage financings, the equipment notes issued to the trusts are direct obligations of American and, in certain instances, have been guaranteed by AAG. As of December 31, 2021, $9.4 billion associated with these mortgage financings is reflected as debt in the accompanying consolidated balance sheet. With respect to leveraged leases, American evaluated whether the leases had characteristics of a variable interest entity. American concluded the leasing entities met the criteria for variable interest entities; however, American concluded it is not the primary beneficiary under these leasing arrangements and accounts for the majority of its EETC leveraged lease financings as operating leases. American’s total future payments to the trusts of each of the relevant EETCs under these leveraged lease financings are $20 million as of December 31, 2021, which are reflected in the operating lease obligations in Note 4. Letters of Credit and Other American provides financial assurance, such as letters of credit, surety bonds or restricted cash and investments, primarily to support projected workers’ compensation obligations and airport commitments. As of December 31, 2021, American had $439 million of letters of credit and surety bonds securing various obligations, of which $94 million is collateralized with American’s restricted cash. The letters of credit and surety bonds that are subject to expiration will expire on various dates through 2025. (e) Legal Proceedings Chapter 11 Cases . On November 29, 2011, 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 Merger. The Plan established a disputed claims reserve (DCR) 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 DCR 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 DCR. American is not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution in the DCR are not sufficient to pay any additional allowed unsecured claims. On November 29, 2021, the Bankruptcy Court granted American’s motion to close the bankruptcy case. The motion authorized American to settle various bankruptcy-related claims, distribute excess reserved funds held in the DCR, excluding shares set aside for an earlier settlement of a claim that cannot be distributed until all appeals are final, and to close the Chapter 11 cases. On December 7, 2021, in accordance with the approval granted by the Bankruptcy Court, American distributed approximately 4.5 million shares of AAG common stock from the DCR to former AMR stockholders, to former convertible noteholders treated as stockholders under the Plan and to claimants. As of December 31, 2021, 0.3 million shares of AAG common stock remain in the DCR to be available to resolve an outstanding claim. 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, 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 to the U.S. District Court, which remains pending. American believes this lawsuit is without merit and intends to continue to vigorously defend against it, including against plaintiffs' appeal of the Bankruptcy Court's January 29, 2021 ruling. Government Antitrust Action Related to the Northeast Alliance. On September 21, 2021, the United States Department of Justice (DOJ), joined by Attorneys General from six states and the District of Columbia, filed an antitrust complaint against American and JetBlue Airways Corporation (JetBlue) alleging that American and JetBlue violated U.S. antitrust laws in connection with the previously disclosed Northeast Alliance (NEA) arrangement. American believes this complaint is without merit and intends to defend against it vigorously. Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and JetBlue in January 2021, at the conclusion of the DOT’s review of the NEA (DOT Agreement) . The DOT Clarification Notice stated, among other things, that the DOT Agreement remains in force during the pendency of the DOJ action against the NEA and, while the DOT retains independent statutory authority to prohibit unfair methods of competition in air transportation, the DOT intends to defer to DOJ to resolve the antitrust concerns that DOJ has identified with respect to the NEA. The DOT simultaneously published a Notice Staying Proceeding in relation to a complaint by Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. General . In addition to the specifically identified legal proceedings, American and its 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 American’s control. Therefore, although American will vigorously defend itself in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on American are uncertain but could be material. (f) Guarantees and Indemnifications American is a party to many routine contracts in which it provides general indemnities in the normal course of business to third parties for various risks. American is not able to estimate the potential amount of any liability resulting from the indemnities. These indemnities are discussed in the following paragraphs. In its aircraft financing agreements, American generally indemnifies the financing parties, trustees acting on their behalf and other relevant parties against liabilities (including certain taxes) resulting from the financing, manufacture, design, ownership, operation and maintenance of the aircraft regardless of whether these liabilities (including certain taxes) relate to the negligence of the indemnified parties. American’s loan agreements and other LIBOR-based financing transactions (including certain leveraged aircraft leases) generally obligate American to reimburse the applicable lender for incremental costs due to a change in law that imposes (i) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (ii) any tax, duty or other charge with respect to the loan (except standard income tax) or (iii) capital adequacy requirements. In addition, American’s loan agreements and other financing arrangements typically contain a withholding tax provision that requires American to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. In certain transactions, including certain aircraft financing leases and loans, the lessors, lenders and/or other parties have rights to terminate the transaction based on changes in foreign tax law, illegality or certain other events or circumstances. In such a case, American may be required to make a lump sum payment to terminate the relevant transaction. American has general indemnity clauses in many of its airport and other real estate leases where American as lessee indemnifies the lessor (and related parties) against liabilities related to American’s use of the leased property. Generally, these indemnifications cover liabilities resulting from the negligence of the indemnified parties, but not liabilities resulting from the gross negligence or willful misconduct of the indemnified parties. In addition, American provides environmental indemnities in many of these leases for contamination related to American’s use of the leased property. Under certain contracts with third parties, American indemnifies the third-party against legal liability arising out of an action by the third-party, or certain other parties. The terms of these contracts vary and the potential exposure under these indemnities cannot be determined. American has liability insurance protecting American for some of the obligations it has undertaken under these indemnities. American is required to make principal and interest payments for certain special facility revenue bonds issued by municipalities primarily to build or improve airport facilities and purchase equipment, which are leased to American. The payment of principal and interest of certain special facility revenue bonds is guaranteed by American. As of December 31, 2021, the remaining lease payments through 2035 guaranteeing the principal and interest on these bonds are $555 million and the current carrying amount of the associated operating lease liability in the accompanying consolidated balance sheet is $321 million. As of December 31, 2021, American had issued guarantees covering AAG’s $1.8 billion aggregate principal amount of the PSP1 Promissory Note due April 2030, $1.0 billion aggregate principal amount of the PSP2 Promissory Note due January 2031, $946 million aggregate principal amount of the PSP3 Promissory Note due April 2031, $1.0 billion aggregate principal amount of 6.50% convertible senior notes due July 2025, $750 million aggregate principal amount of 5.000% senior notes due June 2022 and $500 million aggregate principal amount of 3.75% senior notes due March 2025. (g) Credit Card Processing Agreements American has agreements with companies that process customer credit card transactions for the sale of air travel and other services. American’s agreements allow these credit card processing companies, under certain conditions, to hold an amount of its cash (referred to as a holdback) equal to all or a portion of advance ticket sales that have been processed by that company, but for which American has not yet provided the air transportation. These holdback requirements can be modified at the discretion of the credit card processing companies upon the occurrence of specific events, including material adverse changes in American’s financial condition or the triggering of a liquidity covenant. These credit card processing companies are not currently entitled to maintain any holdbacks. The imposition of holdback requirements would reduce American’s liquidity. (h) Labor Negotiations As of December 31, 2021, American employed approximately 96,800 active full-time equivalent (FTE) employees. Of the total active FTE employees, 87% are covered by collective bargaining agreements (CBAs) with various labor unions and 54% are covered by CBAs that are currently amendable or that will become amendable within one year. Joint collective bargaining agreements covering American’s mainline pilots, flight attendants, passenger service, flight simulator engineers and dispatchers are now amendable. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Other Significant Noncash Transactions [Line Items] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental disclosure of cash flow information and non-cash investing and financing activities are as follows (in millions): Year Ended December 31, 2021 2020 2019 Non-cash investing and financing activities: Equity investment $ 88 $ — $ — Settlement of bankruptcy obligations (1) 56 7 Deferred financing costs paid through issuance of debt — 17 — Supplemental information: Interest paid, net 1,632 944 1,111 Income taxes paid 3 6 8 |
American Airlines, Inc. | |
Other Significant Noncash Transactions [Line Items] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental disclosure of cash flow information and non-cash investing and financing activities are as follows (in millions): Year Ended December 31, 2021 2020 2019 Non-cash investing and financing activities: Equity investment $ 88 $ — $ — Settlement of bankruptcy obligations 4 56 7 Deferred financing costs paid through issuance of debt — 17 — Supplemental information: Interest paid, net 1,481 877 1,025 Income taxes paid 2 6 8 |
Operating Segments and Related
Operating Segments and Related Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |
Operating Segments and Related Disclosures | Operating Segments and Related Disclosures We are managed as a single business unit that provides air transportation for passengers and cargo. This allows us to benefit from an integrated revenue pricing and route network that includes American and our wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle. The flight equipment of all these carriers is combined to form one fleet that is deployed through a single route scheduling system. Financial information and annual operational plans and forecasts are prepared and reviewed by the chief operating decision maker at the consolidated level. When making operational decisions, the chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but is indifferent to the results of the individual regional carriers. The objective in making operational decisions is to maximize consolidated financial results, not the individual results of American or American Eagle. See Note 1(l) for our passenger revenue by geographic region. Our tangible assets consist primarily of flight equipment, which are mobile across geographic markets and, therefore, have not been allocated. |
American Airlines, Inc. | |
Segment Reporting Information [Line Items] | |
Operating Segments and Related Disclosures | Operating Segments and Related DisclosuresAmerican is managed as a single business unit that provides air transportation for passengers and cargo. This allows it to benefit from an integrated revenue pricing and route network that includes American and AAG’s wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle. The flight equipment of all these carriers is combined to form one fleet that is deployed through a single route scheduling system. Financial information and annual operational plans and forecasts are prepared and reviewed by the chief operating decision maker at the consolidated level. When making operational decisions, the chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but is indifferent to the results of the individual regional carriers. The objective in making operational decisions is to maximize consolidated financial results, not the individual results of American or American Eagle.See Note 1(l) for American’s passenger revenue by geographic region. American’s tangible assets consist primarily of flight equipment, which are mobile across geographic markets and, therefore, have not been allocated. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation | Share-based Compensation The 2013 AAG Incentive Award Plan (the 2013 Plan) provides that awards may be in the form of an option, restricted stock award, restricted stock unit award, performance award, dividend equivalent award, deferred stock award, deferred stock unit award, stock payment award or stock appreciation right. The 2013 Plan initially authorized the grant of awards for the issuance of up to 40 million shares. Any shares underlying awards granted under the 2013 Plan that are forfeited, terminate or are settled in cash (in whole or in part) without the delivery of shares will again be available for grant. For the years ended December 31, 2021, 2020 and 2019, we recorded $98 million, $91 million and $95 million, respectively, of share-based compensation costs principally in salaries, wages and benefits expense on our consolidated statements of operations. During 2021, 2020 and 2019, we withheld approximately 1.0 million, 0.7 million and 0.8 million shares of AAG common stock, respectively, and paid approximately $18 million, $15 million and $25 million, respectively, in satisfaction of certain tax withholding obligations associated with employee equity awards. Restricted Stock Unit Awards (RSUs) The majority of our RSUs have service conditions (time vested primarily over three years). The grant-date fair value of these RSUs is equal to the market price of the underlying shares of AAG common stock on the date of grant. The expense for these RSUs is recognized on a straight-line basis over the vesting period for the entire award. RSUs are classified as equity awards as the vesting results in the issuance of shares of AAG common stock. RSU award activity for all plans for the years ended December 31, 2021, 2020 and 2019 is as follows: Number of Shares Weighted Average Grant Date Fair Value (In thousands) Outstanding at December 31, 2018 4,320 $ 44.29 Granted 3,206 34.00 Vested and released (2,002) 44.90 Forfeited (337) 42.55 Outstanding at December 31, 2019 5,187 $ 37.01 Granted 5,883 22.07 Vested and released (2,268) 39.46 Forfeited (920) 29.78 Outstanding at December 31, 2020 7,882 $ 23.66 Granted 5,525 18.34 Vested and released (3,314) 25.58 Forfeited (692) 18.78 Outstanding at December 31, 2021 9,401 $ 20.17 As of December 31, 2021, there was $99 million of unrecognized compensation cost related to RSUs. These costs are expected to be recognized over a weighted average period of one year. The total fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019 was $62 million, $51 million and $68 million, respectively. |
American Airlines, Inc. | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation | Share-based Compensation The 2013 AAG Incentive Award Plan (the 2013 Plan) provides that awards may be in the form of an option, restricted stock award, restricted stock unit award, performance award, dividend equivalent award, deferred stock award, deferred stock unit award, stock payment award or stock appreciation right. The 2013 Plan initially authorized the grant of awards for the issuance of up to 40 million shares. Any shares underlying awards granted under the 2013 Plan that are forfeited, terminate or are settled in cash (in whole or in part) without the delivery of shares will again be available for grant. For the years ended December 31, 2021, 2020 and 2019, American recorded $95 million, $91 million and $95 million, respectively, of share-based compensation costs principally in salaries, wages and benefits expense on its consolidated statements of operations. During 2021, 2020 and 2019, AAG withheld approximately 1.0 million, 0.7 million and 0.8 million shares of AAG common stock, respectively, and paid approximately $18 million, $15 million and $25 million, respectively, in satisfaction of certain tax withholding obligations associated with employee equity awards. Restricted Stock Unit Awards (RSUs) The majority of American’s RSUs have service conditions (time vested primarily over three years). The grant-date fair value of these RSUs is equal to the market price of the underlying shares of AAG common stock on the date of grant. The expense for these RSUs is recognized on a straight-line basis over the vesting period for the entire award. RSUs are classified as equity awards as the vesting results in the issuance of shares of AAG common stock. RSU award activity for all plans for the years ended December 31, 2021, 2020 and 2019 is as follows: Number of Shares Weighted Average Grant Date Fair Value (In thousands) Outstanding at December 31, 2018 4,320 $ 44.29 Granted 3,206 34.00 Vested and released (2,002) 44.90 Forfeited (337) 42.55 Outstanding at December 31, 2019 5,187 $ 37.01 Granted 5,883 22.07 Vested and released (2,268) 39.46 Forfeited (920) 29.78 Outstanding at December 31, 2020 7,882 $ 23.66 Granted 5,525 18.34 Vested and released (3,314) 25.58 Forfeited (692) 18.78 Outstanding at December 31, 2021 9,401 $ 20.17 As of December 31, 2021, there was $95 million of unrecognized compensation cost related to RSUs. These costs are expected to be recognized over a weighted average period of one year. The total fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019 was $62 million, $51 million and $68 million, respectively. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (in millions) Balance at Beginning of Year Additions Charged to Statement of Operations Accounts Deductions Balance at Allowance for obsolescence of spare parts Year ended December 31, 2021 $ 490 $ 177 $ (33) $ 634 Year ended December 31, 2020 784 100 (394) 490 Year ended December 31, 2019 814 91 (121) 784 Allowance for credit losses on accounts receivable Year ended December 31, 2021 $ 36 $ 22 $ (24) $ 34 Year ended December 31, 2020 31 27 (22) 36 Year ended December 31, 2019 29 19 (17) 31 |
American Airlines, Inc. | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (in millions) Balance at Beginning of Year Additions Charged to Statement of Operations Accounts Deductions Balance at Allowance for obsolescence of spare parts Year ended December 31, 2021 $ 442 $ 165 $ (19) $ 588 Year ended December 31, 2020 729 81 (368) 442 Year ended December 31, 2019 754 79 (104) 729 Allowance for credit losses on accounts receivable Year ended December 31, 2021 $ 29 $ 21 $ (22) $ 28 Year ended December 31, 2020 25 25 (21) 29 Year ended December 31, 2019 24 17 (16) 25 |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
American Airlines, Inc. | |
Related Party Transaction [Line Items] | |
Transactions with Related Parties | Transactions with Related Parties The following represents the net receivables (payables) to related parties (in millions): December 31, 2021 2020 AAG (1) $ 7,613 $ 9,940 AAG’s wholly-owned subsidiaries (2) (2,066) (2,063) Total $ 5,547 $ 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, PSP3 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. Pursuant to a capacity purchase agreement between American and AAG’s wholly-owned regional airlines operating as American Eagle, American purchases all of the capacity from these carriers and recognizes passenger revenue from flights operated by American Eagle. In 2021, 2020 and 2019, American recognized expense of approximately $2.1 billion, $1.8 billion and $2.2 billion, respectively, related to wholly-owned regional airline capacity purchase agreements. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Event [Line Items] | |
Subsequent Event | Subsequent EventOn January 31, 2022, we entered into an amended purchase agreement with Boeing, pursuant to which we agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options. We also intend to exercise purchase options for an additional seven aircraft in 2022, bringing our total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024. In addition, we entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023. Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027. |
American Airlines, Inc. | |
Subsequent Event [Line Items] | |
Subsequent Event | Subsequent EventOn January 31, 2022, American entered into an amended purchase agreement with Boeing, pursuant to which it has agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options. American also intends to exercise purchase options for an additional seven aircraft in 2022, bringing its total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024. In addition, American entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023. Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Basis of Presentation | (a) Basis of Presentation American Airlines Group Inc. (we, us, our and similar terms, or AAG), a Delaware corporation, is a holding company whose primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its mainline operating subsidiary, American Airlines, Inc. (American) and its wholly-owned regional airline subsidiaries, Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc., that operate under the brand American Eagle. On December 9, 2013, a subsidiary of AMR Corporation (AMR) merged with and into US Airways Group, Inc. (US Airways Group), a Delaware corporation, which survived as a wholly-owned subsidiary of AAG, and AAG emerged from Chapter 11 (the Merger). Upon closing of the Merger and emergence from Chapter 11, AMR changed its name to American Airlines Group Inc. All significant intercompany transactions have been eliminated. 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, 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 (r) Regional Expenses below for further information. |
Recent Accounting Pronouncements | (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 the 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 consolidated 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. See Note 4(h) for additional information on 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 consolidated financial statements. ASU 2021-10: Disclosures by Business Entities about Government Assistance (Topic 832) This standard provides guidance on the disclosure requirements for business entities receiving government assistance. Specifically, entities are required to disclose information about the nature of the assistance received, including the related accounting, the affected line items on the financial statements and amounts, and the significant terms and conditions, including any commitments and contingencies. This standard is effective for annual periods beginning after December 15, 2021, and early adoption is permitted. We adopted this standard as of December 31, 2021. See (b) Impact of COVID-19 above for disclosure related to the financial assistance we have received from Treasury. |
Investments | (d) Investments Short-term investments primarily include debt securities and are classified as available-for-sale and stated at fair value. Realized gains and losses are recorded in nonoperating expense on our consolidated statements of operations. Unrealized gains and losses are recorded in accumulated other comprehensive loss on our consolidated balance sheets. For investments in an unrealized loss position, we determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. There have been no credit losses. |
Restricted Cash and Short-term Investments | (e) Restricted Cash and Short-term Investments We have restricted cash and short-term investments related primarily to collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK. |
Aircraft Fuel, Spare Parts, and Supplies, Net | (f) Aircraft Fuel, Spare Parts and Supplies, Net Aircraft fuel is recorded on a first-in, first-out basis. Spare parts and supplies are recorded at average costs less an allowance for obsolescence, which is recognized over the weighted average remaining useful life of the related fleet. We also provide an allowance for spare parts and supplies identified as excess or obsolete to reduce the carrying cost to the lower of cost or net realizable value. Aircraft fuel, spare parts and supplies are expensed when used. |
Operating Property and Equipment | (g) Operating Property and Equipment Operating property and equipment is recorded at cost and depreciated or amortized to residual values over the asset’s estimated useful life or the lease term, whichever is less, using the straight-line method. Residual values for aircraft, engines and related rotable parts are generally 5% to 10% of original cost. Costs of major improvements that enhance the usefulness of the asset are capitalized and depreciated or amortized over the estimated useful life of the asset or the lease term, whichever is less. The estimated useful lives for the principal property and equipment classifications are as follows: Principal Property and Equipment Classification Estimated Useful Life Aircraft, engines and related rotable parts 20 – 30 years Buildings and improvements 5 – 30 years Furniture, fixtures and other equipment 3 – 10 years Capitalized software 5 – 10 years |
Impairment | We assess impairment of operating property and equipment when events and circumstances indicate that the assets may be impaired. An impairment of an asset or group of assets exists only when the sum of the estimated undiscounted cash flows expected to be generated directly by the assets are less than the carrying value of the assets. We group assets principally by fleet-type when estimating future cash flows, which is generally the lowest level for which identifiable cash flows exist. Estimates of future cash flows are based on historical results adjusted to reflect management’s best estimate of future market and operating conditions, including our current fleet plan. If such assets are impaired, the impairment charge recognized is the amount by which the carrying value of the assets exceed their fair value. Fair value reflects management’s best estimate including inputs from published pricing guides and bids from third parties as well as contracted sales agreements when applicable. |
Leases | (h) Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, current maturities of long-term debt and finance leases and long-term debt and finance leases, net of current maturities, on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rate, which is derived from information available at the lease commencement date , in determining the present value of lease payments. We give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on our consolidated balance sheets. Our lease agreements do not contain any residual value guarantees. Under certain of our capacity purchase agreements with third-party regional carriers, we do not own the underlying aircraft. However, since we control the marketing, scheduling, ticketing, pricing and seat inventories of these aircraft and therefore control the asset, the aircraft is deemed to be leased for accounting purposes. For these capacity purchase agreements, we account for the lease and non-lease components separately. The lease component consists of the aircraft and the non-lease components consist of services, such as the crew and maintenance. We allocate the consideration in the capacity purchase agreements to the lease and non-lease components using their estimated relative standalone prices. See Note 11(b) for additional information on our capacity purchase agreements . For real estate, we account for the lease and non-lease components as a single lease component. |
Income Taxes | (i) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. We provide a valuation allowance for our deferred tax assets when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. 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. |
Goodwill | (j) Goodwill Goodwill represents the purchase price in excess of the fair value of the net assets acquired and liabilities assumed in connection with the merger with US Airways Group. We have one reporting unit. We assess goodwill for impairment annually or more frequently if events or circumstances indicate that the fair value of goodwill may be lower than the carrying value. Our annual assessment date is October 1. |
Other Intangibles, Net | (k) Other Intangibles, Net Intangible assets consist primarily of certain domestic airport slots and gate leasehold rights, customer relationships, marketing agreements, international slots and route authorities and tradenames. Definite-Lived Intangible Assets Definite-lived intangible assets are originally recorded at their acquired fair values, subsequently amortized over their respective estimated useful lives and are assessed for impairment whenever events and circumstances indicate that the assets may be impaired. Indefinite-Lived Intangible Assets Indefinite-lived intangible assets include certain domestic airport slots and international slots and route authorities. We assess indefinite-lived intangible assets for impairment annually or more frequently if events or circumstances indicate that the fair values of indefinite-lived intangible assets may be lower than their carrying values. Our annual assessment date is October 1. |
Revenue Recognition | We attribute passenger revenue by geographic region based upon the origin and destination of each flight segment. Passenger Revenue We recognize all revenues generated from transportation on American and our regional flights operated under the brand name American Eagle, including associated baggage fees and other inflight services, as passenger revenue when transportation is provided. Ticket and other related sales for transportation that has not yet been provided are initially deferred and recorded as air traffic liability on our consolidated balance sheets. 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 majority of tickets sold are nonrefundable. A small percentage of tickets, some of which are partially used tickets, expire unused. Due to complex pricing structures, refund and exchange policies, and interline agreements with other airlines, certain amounts are recognized in passenger revenue using estimates regarding both the timing of the revenue recognition and the amount of revenue to be recognized. These estimates are generally based on the analysis of our historical data. We have consistently applied this accounting method to estimate revenue from unused tickets at the date of travel. Estimated future refunds and exchanges included in the air traffic liability are routinely evaluated based on subsequent activity to validate the accuracy of our estimates. Any adjustments resulting from periodic evaluations of the estimated air traffic liability are included in passenger revenue during the period in which the evaluations are completed. Various taxes and fees assessed on the sale of tickets to end customers are collected by us as an agent and remitted to taxing authorities. These taxes and fees have been presented on a net basis in the accompanying consolidated statements of operations and recorded as a liability until remitted to the appropriate taxing authority. Loyalty Revenue We currently operate the loyalty program, AAdvantage. This program awards mileage credits to passengers who fly on American, any one world airline or other partner airlines, or by using the services of other program participants, such as our co-branded credit cards, and certain hotels and car rental companies. Mileage credits can be redeemed for travel on American and other participating partner airlines, as well as other non-air travel awards such as hotels and rental cars. For mileage credits earned by AAdvantage loyalty program members, we apply the deferred revenue method. In response to the COVID-19 pandemic, we suspended the expiration of mileage credits through March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. Mileage credits earned through travel For mileage credits earned through travel, we apply a relative selling price approach whereby the total amount collected from each passenger ticket sale is allocated between the air transportation and the mileage credits earned. The portion of each passenger ticket sale attributable to mileage credits earned is initially deferred and then recognized in passenger revenue when mileage credits are redeemed and transportation is provided. The estimated selling price of mileage credits is determined using an equivalent ticket value approach, which uses historical data, including award redemption patterns by geographic region and class of service, as well as similar fares as those used to settle award redemptions. The estimated selling price of miles is adjusted for an estimate of mileage credits that will not be redeemed using a statistical model based on historical redemption patterns to develop an estimate of the likelihood of future redemption. 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. Mileage credits sold to co-branded credit cards and other partners We sell mileage credits to participating airline partners and non-airline business partners, including our co-branded credit card partners, under contracts with terms extending generally for one Our most significant partner agreements are our co-branded credit card agreements with Citi and Barclaycard US. We identified the following revenue elements in these co-branded credit card agreements: the transportation component; and the use of intellectual property, including the American brand and access to loyalty program member lists, which is the predominant element in the agreements, as well as advertising (collectively, the marketing component). Accordingly, we recognize the marketing component in other revenue in the period of the mileage sale following the sales-based royalty method. The transportation component represents the estimated selling price of future travel awards and is determined using the same equivalent ticket value approach described above. The portion of each mileage credit sold attributable to transportation is initially deferred and then recognized in passenger revenue when mileage credits are redeemed and transportation is provided. For the portion of our outstanding mileage credits that we estimate will not be redeemed, we recognize the associated value proportionally as the remaining mileage credits are redeemed. Our estimates use a statistical model based on historical redemption patterns to develop an estimate of the likelihood of future redemption. Cargo Revenue Cargo revenue is recognized when we provide the transportation. Other Revenue Other revenue includes revenue associated with our loyalty program, which is comprised principally of the marketing component of mileage sales to co-branded credit card and other partners and other marketing related payments. Loyalty revenue included in other revenue was $2.2 billion, $1.8 billion and $2.4 billion for the years ended December 31, 2021, 2020 and 2019, respectively. The accounting and recognition for the loyalty program marketing services are discussed above in “ Loyalty Revenue .” The remaining amounts included within other revenue relate to airport clubs, advertising and vacation-related services. 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 our consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on our consolidated balance sheets. December 31, 2021 2020 (in millions) Loyalty program liability $ 9,135 $ 9,195 Air traffic liability 6,087 4,757 Total $ 15,222 $ 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 2,161 Recognition of revenue (1) (2,221) Balance at December 31, 2021 (2) $ 9,135 (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 March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2021, our current loyalty program liability was $2.9 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. 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 our 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 2021, $1.7 billion of revenue was recognized in passenger revenue that was included in our air traffic liability at December 31, 2020. In response to the COVID-19 pandemic, we 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, tickets to certain international destinations have extended contract duration to December 31, 2022. We also have eliminated change fees for most domestic and international tickets providing more flexibility for customers to change travel plans. Given these changes and the uncertainty surrounding the future demand for air travel, our estimates of revenue that will be recognized from the air traffic liability for future flown or unused tickets as well as our estimates of refunds may be subject to variability and differ from historical experience. |
Maintenance, Materials and Repairs | (m) Maintenance, Materials and Repairs Maintenance and repair costs for owned and leased flight equipment are charged to operating expense as incurred, except costs incurred for maintenance and repair under flight hour maintenance contract agreements, which are accrued based on contractual terms when an obligation exists. |
Selling Expenses | (n) Selling ExpensesSelling expenses include credit card fees, commissions, third party distribution channel fees and advertising. Selling expenses associated with passenger revenue are expensed when the transportation or service is provided. Advertising costs are expensed as incurred. |
Share-based Compensation | (o) Share-based Compensation We account for our share-based compensation expense based on the fair value of the stock award at the time of grant, which is recognized ratably over the vesting period of the stock award. The majority of our stock awards are time vested restricted stock units, and the fair value of such awards is based on the market price of the underlying shares of AAG common stock on the date of grant. See Note 14 for further discussion of share-based compensation. |
Foreign Currency Gains and Losses | (p) Foreign Currency Gains and LossesForeign currency gains and losses are recorded as part of other income, net within total nonoperating expense, net on our consolidated statements of operations. |
Other Operating Expenses | (q) Other Operating Expenses Other operating expenses includes costs associated with ground and cargo handling, crew travel, aircraft food and catering, aircraft cleaning, passenger accommodation, international navigation fees and certain general and administrative expenses. |
Regional Expenses | (r) 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 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 consolidated statements of operations. The 2020 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. |
American Airlines, Inc. | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Basis of Presentation | (a) Basis of Presentation American Airlines, Inc. (American) is a Delaware corporation whose primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG), which owns all of American’s outstanding common stock, par value $1.00 per share. On December 9, 2013, a subsidiary of AMR Corporation (AMR) merged with and into US Airways Group, Inc. (US Airways Group), a Delaware corporation, which survived as a wholly-owned subsidiary of AAG, and AAG emerged from Chapter 11 (the Merger). Upon closing of the Merger and emergence from Chapter 11, AMR changed its name to American Airlines Group Inc. All significant intercompany transactions have been eliminated. 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, 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 (r) Regional Expenses below for further information. |
Recent Accounting Pronouncements | (c) Recent Accounting Pronouncements Accounting Standards Update (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. American adopted this standard effective January 1, 2021, and it did not have a material impact on its consolidated financial statements. ASU 2021-10: Disclosures by Business Entities about Government Assistance (Topic 832) This standard provides guidance on the disclosure requirements for business entities receiving government assistance. Specifically, entities are required to disclose information about the nature of the assistance received, including the related accounting, the affected line items on the financial statements and amounts, and the significant terms and conditions, including any commitments and contingencies. This standard is effective for annual periods beginning after December 15, 2021, and early adoption is permitted. American adopted this standard as of December 31, 2021. See (b) Impact of COVID-19 above for disclosure related to the financial assistance American received from Treasury. |
Investments | (d) Investments Short-term investments primarily include debt securities and are classified as available-for-sale and stated at fair value. Realized gains and losses are recorded in nonoperating expense on American’s consolidated statements of operations. Unrealized gains and losses are recorded in accumulated other comprehensive loss on American’s consolidated balance sheets. For investments in an unrealized loss position, American determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. There have been no credit losses. |
Restricted Cash and Short-term Investments | (e) Restricted Cash and Short-term Investments American has restricted cash and short-term investments related primarily to collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK. |
Aircraft Fuel, Spare Parts, and Supplies, Net | (f) Aircraft Fuel, Spare Parts and Supplies, Net Aircraft fuel is recorded on a first-in, first-out basis. Spare parts and supplies are recorded at average costs less an allowance for obsolescence, which is recognized over the weighted average remaining useful life of the related fleet. American also provides an allowance for spare parts and supplies identified as excess or obsolete to reduce the carrying cost to the lower of cost or net realizable value. Aircraft fuel, spare parts and supplies are expensed when used. |
Operating Property and Equipment | (g) Operating Property and Equipment Operating property and equipment is recorded at cost and depreciated or amortized to residual values over the asset’s estimated useful life or the lease term, whichever is less, using the straight-line method. Residual values for aircraft, engines and related rotable parts are generally 5% to 10% of original cost. Costs of major improvements that enhance the usefulness of the asset are capitalized and depreciated or amortized over the estimated useful life of the asset or the lease term, whichever is less. The estimated useful lives for the principal property and equipment classifications are as follows: Principal Property and Equipment Classification Estimated Useful Life Aircraft, engines and related rotable parts 20 – 30 years Buildings and improvements 5 – 30 years Furniture, fixtures and other equipment 3 – 10 years Capitalized software 5 – 10 years |
Impairment | American assesses impairment of operating property and equipment when events and circumstances indicate that the assets may be impaired. An impairment of an asset or group of assets exists only when the sum of the estimated undiscounted cash flows expected to be generated directly by the assets are less than the carrying value of the assets. American groups assets principally by fleet-type when estimating future cash flows, which is generally the lowest level for which identifiable cash flows exist. Estimates of future cash flows are based on historical results adjusted to reflect management’s best estimate of future market and operating conditions, including American’s current fleet plan. If such assets are impaired, the impairment charge recognized is the amount by which the carrying value of the assets exceed their fair value. Fair value reflects management’s best estimate including inputs from published pricing guides and bids from third parties as well as contracted sales agreements when applicable. In 2021, American retired its remaining Embraer 140 fleet and recorded $27 million in non-cash special impairment charges reflecting the difference between the carrying values of these assets and their fair values.At December 31, 2021 and 2020, prepaid expense and other on the consolidated balance sheets included $29 million and $164 million, respectively, of retired aircraft that are expected to be sold in the next year, and other assets on the consolidated balance sheets included $382 million and $400 million, respectively, of nonoperating retired aircraft. |
Leases | (h) Leases American determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities on American’s consolidated balance sheets. Finance leases are included in property and equipment, current maturities of long-term debt and finance leases and long-term debt and finance leases, net of current maturities, on American’s consolidated balance sheets. ROU assets represent American’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. American uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date , in determining the present value of lease payments. American gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. American’s lease term includes options to extend the lease when it is reasonably certain that it will exercise that option. Leases with a term of 12 months or less are not recorded on its consolidated balance sheets. American’s lease agreements do not contain any residual value guarantees. Under certain of American’s capacity purchase agreements with third-party regional carriers, American does not own the underlying aircraft. However, since American controls the marketing, scheduling, ticketing, pricing and seat inventories of these aircraft and therefore control the asset, the aircraft is deemed to be leased for accounting purposes. For these capacity purchase agreements, American accounts for the lease and non-lease components separately. The lease component consists of the aircraft and the non-lease components consist of services, such as the crew and maintenance. American allocates the consideration in the capacity purchase agreements to the lease and non-lease components using their estimated relative standalone prices. See Note 10(b) for additional information on its capacity purchase agreements . For real estate, American accounts for the lease and non-lease components as a single lease component. |
Income Taxes | (i) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. American provides a valuation allowance for its deferred tax assets when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. 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 American’s control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. |
Goodwill | (j) Goodwill Goodwill represents the purchase price in excess of the fair value of the net assets acquired and liabilities assumed in connection with the merger with US Airways Group. American has one reporting unit. American assesses goodwill for impairment annually or more frequently if events or circumstances indicate that the fair value of goodwill may be lower than the carrying value. American’s annual assessment date is October 1. Goodwill is assessed for impairment by initially performing a qualitative assessment. If American determines that it is more likely than not that its goodwill may be impaired, it uses a quantitative approach to assess the asset’s fair value and the amount of the impairment, if any. Based upon American’s annual assessment, there was no goodwill impairment in 2021. The carrying value of American’s goodwill on its consolidated balance sheets was $4.1 billion as of December 31, 2021 and 2020. |
Other Intangibles, Net | (k) Other Intangibles, Net Intangible assets consist primarily of certain domestic airport slots and gate leasehold rights, customer relationships, marketing agreements, international slots and route authorities and tradenames. Definite-Lived Intangible Assets Definite-lived intangible assets are originally recorded at their acquired fair values, subsequently amortized over their respective estimated useful lives and are assessed for impairment whenever events and circumstances indicate that the assets may be impaired. Indefinite-Lived Intangible Assets Indefinite-lived intangible assets include certain domestic airport slots and international slots and route authorities. American assesses indefinite-lived intangible assets for impairment annually or more frequently if events or circumstances indicate that the fair values of indefinite-lived intangible assets may be lower than their carrying values. American’s annual assessment date is October 1. |
Revenue Recognition | American attributes passenger revenue by geographic region based upon the origin and destination of each flight segment. Passenger Revenue American recognizes all revenues generated from transportation on American and its regional flights operated under the brand name American Eagle, including associated baggage fees and other inflight services, as passenger revenue when transportation is provided. Ticket and other related sales for transportation that has not yet been provided are initially deferred and recorded as air traffic liability on American’s consolidated balance sheets. 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 majority of tickets sold are nonrefundable. A small percentage of tickets, some of which are partially used tickets, expire unused. Due to complex pricing structures, refund and exchange policies, and interline agreements with other airlines, certain amounts are recognized in passenger revenue using estimates regarding both the timing of the revenue recognition and the amount of revenue to be recognized. These estimates are generally based on the analysis of American’s historical data. American has consistently applied this accounting method to estimate revenue from unused tickets at the date of travel. Estimated future refunds and exchanges included in the air traffic liability are routinely evaluated based on subsequent activity to validate the accuracy of American’s estimates. Any adjustments resulting from periodic evaluations of the estimated air traffic liability are included in passenger revenue during the period in which the evaluations are completed. Various taxes and fees assessed on the sale of tickets to end customers are collected by American as an agent and remitted to taxing authorities. These taxes and fees have been presented on a net basis in the accompanying consolidated statements of operations and recorded as a liability until remitted to the appropriate taxing authority. Loyalty Revenue American currently operates the loyalty program, AAdvantage. This program awards mileage credits to passengers who fly on American, any one world airline or other partner airlines, or by using the services of other program participants, such as American’s co-branded credit cards, and certain hotels and car rental companies. Mileage credits can be redeemed for travel on American and other participating partner airlines, as well as other non-air travel awards such as hotels and rental cars. For mileage credits earned by AAdvantage loyalty program members, American applies the deferred revenue method. In response to the COVID-19 pandemic, American suspended the expiration of mileage credits through March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. Mileage credits earned through travel For mileage credits earned through travel, American applies a relative selling price approach whereby the total amount collected from each passenger ticket sale is allocated between the air transportation and the mileage credits earned. The portion of each passenger ticket sale attributable to mileage credits earned is initially deferred and then recognized in passenger revenue when mileage credits are redeemed and transportation is provided. The estimated selling price of mileage credits is determined using an equivalent ticket value approach, which uses historical data, including award redemption patterns by geographic region and class of service, as well as similar fares as those used to settle award redemptions. The estimated selling price of miles is adjusted for an estimate of mileage credits that will not be redeemed using a statistical model based on historical redemption patterns to develop an estimate of the likelihood of future redemption. 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. Mileage credits sold to co-branded credit cards and other partners American sells mileage credits to participating airline partners and non-airline business partners, including American’s co-branded credit card partners, under contracts with terms extending generally for one American’s most significant partner agreements are its co-branded credit card agreements with Citi and Barclaycard US. American identified the following revenue elements in these co-branded credit card agreements: the transportation component; and the use of intellectual property, including the American brand and access to loyalty program member lists, which is the predominant element in the agreements, as well as advertising (collectively, the marketing component). Accordingly, American recognizes the marketing component in other revenue in the period of the mileage sale following the sales-based royalty method. The transportation component represents the estimated selling price of future travel awards and is determined using the same equivalent ticket value approach described above. The portion of each mileage credit sold attributable to transportation is initially deferred and then recognized in passenger revenue when mileage credits are redeemed and transportation is provided. For the portion of American’s outstanding mileage credits that it estimates will not be redeemed, American recognizes the associated value proportionally as the remaining mileage credits are redeemed. American’s estimates use a statistical model based on historical redemption patterns to develop an estimate of the likelihood of future redemption. Cargo Revenue Cargo revenue is recognized when American provides the transportation. Other Revenue Other revenue includes revenue associated with American’s loyalty program, which is comprised principally of the marketing component of mileage sales to co-branded credit card and other partners and other marketing related payments. Loyalty revenue included in other revenue was $2.2 billion, $1.8 billion and $2.4 billion for the years ended December 31, 2021, 2020 and 2019, respectively. The accounting and recognition for the loyalty program marketing services are discussed above in “ Loyalty Revenue .” The remaining amounts included within other revenue relate to airport clubs, advertising and vacation-related services. 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 American’s consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on American’s consolidated balance sheets. 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 2021, $1.7 billion 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, tickets to certain international destinations have extended contract duration to December 31, 2022. American also has eliminated change fees for most domestic and international tickets providing more flexibility for customers to change travel plans. Given these changes and the 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 its estimates of refunds may be subject to variability and differ from historical experience. American’s ticket contract receivables relate to ticket sales to individual passengers primarily through the use of major credit cards and are reflected as accounts receivable, net on the accompanying consolidated balance sheets. These receivables are short-term, mostly settled within seven days after sale. All accounts receivable are reported net of an allowance for credit losses, which have been minimal. American considers past and future financial and qualitative factors when establishing the allowance for credit losses. |
Maintenance, Materials and Repairs | (m) Maintenance, Materials and Repairs Maintenance and repair costs for owned and leased flight equipment are charged to operating expense as incurred, except costs incurred for maintenance and repair under flight hour maintenance contract agreements, which are accrued based on contractual terms when an obligation exists. |
Selling Expenses | (n) Selling ExpensesSelling expenses include credit card fees, commissions, third party distribution channel fees and advertising. Selling expenses associated with passenger revenue are expensed when the transportation or service is provided. Advertising costs are expensed as incurred. |
Share-based Compensation | (o) Share-based Compensation American accounts for its share-based compensation expense based on the fair value of the stock award at the time of grant, which is recognized ratably over the vesting period of the stock award. The majority of American’s stock awards are time vested restricted stock units, and the fair value of such awards is based on the market price of the underlying shares of AAG common stock on the date of grant. See Note 13 for further discussion of share-based compensation. |
Foreign Currency Gains and Losses | (p) Foreign Currency Gains and LossesForeign currency gains and losses are recorded as part of other income, net within total nonoperating expense, net on American’s consolidated statements of operations. |
Other Operating Expenses | (q) Other Operating Expenses Other operating expenses includes costs associated with ground and cargo handling, crew travel, aircraft food and catering, aircraft cleaning, passenger accommodation, international navigation fees and certain general and administrative expenses. |
Regional Expenses | (r) 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 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 consolidated statements of operations. The 2020 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. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Estimated Useful Lives of Principal Property and Equipment | The estimated useful lives for the principal property and equipment classifications are as follows: Principal Property and Equipment Classification Estimated Useful Life Aircraft, engines and related rotable parts 20 – 30 years Buildings and improvements 5 – 30 years Furniture, fixtures and other equipment 3 – 10 years Capitalized software 5 – 10 years |
Schedule of Amortizable Intangible Assets | The following table provides information relating to our amortizable intangible assets as of December 31, 2021 and 2020 (in millions): December 31, 2021 2020 Domestic airport slots $ 365 $ 365 Customer relationships 300 300 Marketing agreements 105 105 Tradenames 35 35 Airport gate leasehold rights 137 137 Accumulated amortization (786) (745) Total $ 156 $ 197 |
Schedule of Future Amortization Expense | We expect to record annual amortization expense for these intangible assets as follows (in millions): 2022 $ 41 2023 7 2024 7 2025 7 2026 6 2027 and thereafter 88 Total $ 156 |
Disaggregation of Revenue | The following are the significant categories comprising our reported operating revenues (in millions): Year Ended December 31, 2021 2020 2019 Passenger revenue: Passenger travel $ 23,896 $ 13,456 $ 38,831 Loyalty revenue - travel (1) 2,167 1,062 3,179 Total passenger revenue 26,063 14,518 42,010 Cargo 1,314 769 863 Other: Loyalty revenue - marketing services (2) 2,166 1,825 2,361 Other revenue 339 225 534 Total other revenue 2,505 2,050 2,895 Total operating revenues $ 29,882 $ 17,337 $ 45,768 (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. See “ Loyalty Revenue ” below for further discussion on these mileage credits. (2) During the years ended December 31, 2021, 2020 and 2019, cash payments from co-branded credit card and other partners were $3.4 billion, $2.9 billion and $3.9 billion, respectively. The following is our total passenger revenue by geographic region (in millions): Year Ended December 31, 2021 2020 2019 Domestic $ 21,453 $ 11,765 $ 30,881 Latin America 3,506 1,852 5,047 Atlantic 965 654 4,624 Pacific 139 247 1,458 Total passenger revenue $ 26,063 $ 14,518 $ 42,010 |
Schedule of Contract Balances | December 31, 2021 2020 (in millions) Loyalty program liability $ 9,135 $ 9,195 Air traffic liability 6,087 4,757 Total $ 15,222 $ 13,952 Balance at December 31, 2020 $ 9,195 Deferral of revenue 2,161 Recognition of revenue (1) (2,221) Balance at December 31, 2021 (2) $ 9,135 (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 March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2021, our current loyalty program liability was $2.9 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. | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Estimated Useful Lives of Principal Property and Equipment | The estimated useful lives for the principal property and equipment classifications are as follows: Principal Property and Equipment Classification Estimated Useful Life Aircraft, engines and related rotable parts 20 – 30 years Buildings and improvements 5 – 30 years Furniture, fixtures and other equipment 3 – 10 years Capitalized software 5 – 10 years |
Schedule of Amortizable Intangible Assets | The following table provides information relating to American’s amortizable intangible assets as of December 31, 2021 and 2020 (in millions): December 31, 2021 2020 Domestic airport slots $ 365 $ 365 Customer relationships 300 300 Marketing agreements 105 105 Tradenames 35 35 Airport gate leasehold rights 137 137 Accumulated amortization (786) (745) Total $ 156 $ 197 |
Schedule of Future Amortization Expense | American expects to record annual amortization expense for these intangible assets as follows (in millions): 2022 $ 41 2023 7 2024 7 2025 7 2026 6 2027 and thereafter 88 Total $ 156 |
Disaggregation of Revenue | The following are the significant categories comprising American’s reported operating revenues (in millions): Year Ended December 31, 2021 2020 2019 Passenger revenue: Passenger travel $ 23,896 $ 13,456 $ 38,831 Loyalty revenue - travel (1) 2,167 1,062 3,179 Total passenger revenue 26,063 14,518 42,010 Cargo 1,314 769 863 Other: Loyalty revenue - marketing services (2) 2,166 1,825 2,361 Other revenue 337 223 527 Total other revenue 2,503 2,048 2,888 Total operating revenues $ 29,880 $ 17,335 $ 45,761 (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. See “ Loyalty Revenue” below for further discussion on these mileage credits. (2) During the years ended December 31, 2021, 2020 and 2019, cash payments from co-branded credit card and other partners were $3.4 billion, $2.9 billion and $3.9 billion, respectively. The following is American’s total passenger revenue by geographic region (in millions): Year Ended December 31, 2021 2020 2019 Domestic $ 21,453 $ 11,765 $ 30,881 Latin America 3,506 1,852 5,047 Atlantic 965 654 4,624 Pacific 139 247 1,458 Total passenger revenue $ 26,063 $ 14,518 $ 42,010 |
Schedule of Contract Balances | December 31, 2021 2020 (in millions) Loyalty program liability $ 9,135 $ 9,195 Air traffic liability 6,087 4,757 Total $ 15,222 $ 13,952 Balance at December 31, 2020 $ 9,195 Deferral of revenue 2,161 Recognition of revenue (1) (2,221) Balance at December 31, 2021 (2) $ 9,135 (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 March 31, 2022 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2021, American’s current loyalty program liability was $2.9 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. |
Special Items, Net (Tables)
Special Items, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Components of Special Items, Net Included in Consolidated Statements of Operations | Special items, net on our consolidated statements of operations consisted of the following (in millions): Year Ended December 31, 2021 2020 2019 PSP Financial Assistance (1) $ (4,162) $ (3,710) $ — Severance expenses (2) 168 1,408 11 Litigation reserve adjustments (19) — (53) Mark-to-market adjustments on bankruptcy obligations, net (3) (3) (49) (11) Fleet impairment (4) — 1,484 213 Labor contract expenses (5) — 228 — Fleet restructuring expenses (6) — — 271 Merger integration expenses (7) — — 191 Other operating special items, net 10 (18) 13 Mainline operating special items, net (4,006) (657) 635 PSP Financial Assistance (1) (539) (444) — Regional pilot retention program (8) 61 — — Fleet impairment (4) 27 117 — Severance expenses (2) 2 18 — Other operating special items, net — — 6 Regional operating special items, net (449) (309) 6 Operating special items, net (4,455) (966) 641 Mark-to-market adjustments on equity and other investments, net (9) 31 135 (5) Debt refinancing, extinguishment and other, net 29 35 8 Nonoperating special items, net 60 170 3 (1) The 2021 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP2 and PSP3 Agreements. See Note 1(b) for further information. The 2020 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP1 Agreement. (2) The 2021 and 2020 severance expenses include salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments primarily associated with our voluntary early retirement programs were approximately $520 million and $365 million in 2021 and 2020, respectively. The 2019 severance expenses primarily included costs associated with reductions of management and support staff team members. (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 charges resulted from the retirement of certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. In 2021, we retired our remaining Embraer 140 fleet resulting in a non-cash write-down of these regional aircraft. See Note 1(g) for further information related to these charges. In 2020, we retired our entire Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $1.5 billion non-cash write-down of mainline and regional aircraft and associated spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of our Embraer 190 fleet. (5) The 2020 labor contract expenses primarily related to one-time charges due to the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned. (7) Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems. (8) Our regional pilot retention program provides for, among other things, a cash retention bonus paid in the fourth quarter of 2021 to eligible captains at our wholly-owned regional airlines included on the pilot seniority list as of September 1, 2021. (9) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with our equity investments in China Southern Airlines Company Limited (China Southern Airlines) and in 2021, Vertical Aerospace Ltd. (Vertical), and certain treasury rate lock derivative instruments. |
American Airlines, Inc. | |
Restructuring Cost and Reserve [Line Items] | |
Components of Special Items, Net Included in Consolidated Statements of Operations | Special items, net on American’s consolidated statements of operations consisted of the following (in millions): Year Ended December 31, 2021 2020 2019 PSP Financial Assistance (1) $ (4,162) $ (3,710) $ — Severance expenses (2) 168 1,408 11 Litigation reserve adjustments (19) — (53) Mark-to-market adjustments on bankruptcy obligations, net (3) (3) (49) (11) Fleet impairment (4) — 1,484 213 Labor contract expenses (5) — 228 — Fleet restructuring expenses (6) — — 271 Merger integration expenses (7) — — 191 Other operating special items, net 10 (18) 13 Mainline operating special items, net (4,006) (657) 635 PSP Financial Assistance (1) (539) (444) — Fleet impairment (4) 27 106 — Regional operating special items, net (512) (338) — Operating special items, net (4,518) (995) 635 Mark-to-market adjustments on equity and other investments, net (8) 31 135 (5) Debt refinancing, extinguishment and other, net 29 35 16 Nonoperating special items, net 60 170 11 (1) The 2021 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP2 and PSP3 Agreements. See Note 1(b) for further information. The 2020 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP1 Agreement. (2) The 2021 and 2020 severance expenses include salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments primarily associated with American's voluntary early retirement programs were approximately $520 million and $365 million in 2021 and 2020, respectively. The 2019 severance expenses primarily included costs associated with reductions of management and support staff team members. (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 charges resulted from the retirement of certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. In 2021, American retired its remaining Embraer 140 fleet resulting in a non-cash write-down of these regional aircraft. See Note 1(g) for further information related to these charges. In 2020, American retired its entire Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $1.5 billion non-cash write-down of mainline and regional aircraft and associated spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of American’s Embraer 190 fleet. (5) The 2020 labor contract expenses primarily related to one-time charges due to the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases. (6) Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned. (7) Merger integration expenses included costs associated with integration projects, principally American's technical operations, flight attendant, human resources and payroll systems. (8) Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American’s equity investments in China Southern Airlines Company Limited (China Southern Airlines) and in 2021, Vertical Aerospace Ltd. (Vertical), and certain treasury rate lock derivative instruments. |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 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 earnings (loss) per common share (EPS) (in millions, except share and per share amounts): Year Ended December 31, 2021 2020 2019 Basic EPS: Net income (loss) $ (1,993) $ (8,885) $ 1,686 Weighted average common shares outstanding (in thousands) 644,015 483,888 443,363 Basic EPS $ (3.09) $ (18.36) $ 3.80 Diluted EPS: Net income (loss) for purposes of computing diluted EPS $ (1,993) $ (8,885) $ 1,686 Share computation for diluted EPS (in thousands): Basic weighted average common shares outstanding 644,015 483,888 443,363 Dilutive effect of stock awards and warrants — — 906 Diluted weighted average common shares outstanding 644,015 483,888 444,269 Diluted EPS $ (3.09) $ (18.36) $ 3.79 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | 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): Year Ended December 31, 2021 2020 2019 6.50% convertible senior notes 61,728 31,882 — PSP1 Warrants 5,392 349 — Restricted stock unit awards 3,420 4,584 2,520 Treasury Loan Warrants 1,681 107 — PSP2 Warrants 1,300 — — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Schedule of Long-Term Debt | Long-term debt included on our consolidated balance sheets consisted of (in millions): December 31, 2021 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.85%, installments through 2025 (a) $ 1,770 $ 1,788 2013 Revolving Facility (a) — 750 2014 Term Loan Facility, variable interest rate of 1.85%, installments through 2027 (a) 1,208 1,220 2014 Revolving Facility (a) — 1,643 April 2016 Spare Parts Term Loan Facility (a) — 960 April 2016 Revolving Facility (a) — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 (a) 1,188 1,200 11.75% senior secured notes, interest only payments until due in July 2025 (b) 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 (b) 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 (b) 200 200 Treasury Term Loan Facility (c) — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (d) 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (d) 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.50%, installments beginning in July 2023 through April 2028 (d) 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 8.39%, averaging 3.84%, maturing from 2022 to 2034 (e) 9,357 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.27% to 4.64%, averaging 1.82%, maturing from 2022 to 2032 3,433 4,417 Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036 (f) 1,129 1,064 31,785 28,755 Unsecured PSP1 Promissory Note, interest only payments until due in April 2030 (g) 1,765 1,765 PSP2 Promissory Note, interest only payments until due in January 2031 (g) 1,035 — PSP3 Promissory Note, interest only payments until due in April 2031 (g) 946 — 6.50% convertible senior notes, interest only payments until due in July 2025 (h) 1,000 1,000 5.000% senior notes, interest only payments until due in June 2022 (i) 750 750 3.75% senior notes, interest only payments until due in March 2025 (i) 500 500 5,996 4,015 Total long-term debt 37,781 32,770 Less: Total unamortized debt discount, premium and issuance costs 458 749 Less: Current maturities 2,315 2,697 Long-term debt, net of current maturities $ 35,008 $ 29,324 Certain information regarding the 2021-1 Aircraft EETC equipment notes, as of December 31, 2021, is set forth in the table below. 2021-1 Aircraft EETCs Series A Series B Aggregate principal issued $758 million $202 million Remaining escrowed proceeds $684 million $182 million Fixed interest rate per annum 2.875% 3.95% Maturity date July 2034 July 2030 The details of our 5.000% and 3.75% Senior Notes are shown in the table below as of December 31, 2021: 5.000% Senior Notes 3.75% Senior Notes Aggregate principal issued and outstanding $750 million $500 million Maturity date June 2022 March 2025 Fixed interest rate per annum 5.000% 3.75% Interest payments Semi-annually in arrears in June and December Semi-annually in arrears in March and September |
Schedule of Credit Facilities | As of December 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 568 Total $ 3,411 Certain details of our 2013 Credit Facilities, 2014 Credit Facilities, April 2016 Credit Facilities and December 2016 Credit Facilities (collectively referred to as the Credit Facilities) are shown in the table below as of December 31, 2021: 2013 Credit Facilities 2014 Credit Facilities April 2016 Credit Facilities December 2016 Credit Facilities 2013 Term Loan 2013 2014 Term Loan 2014 April 2016 December 2016 Term Loan Aggregate principal issued $1,919 $750 $1,280 $1,643 $450 $1,250 Principal outstanding or $1,770 $— $1,208 $— $— $1,188 Maturity date June 2025 October 2024 January 2027 October 2024 October 2024 December 2023 LIBOR margin 1.75% 2.00% 1.75% 2.00% 2.00% 2.00% |
Schedule of Maturities of Long-Term Debt and Capital Lease Obligations | At December 31, 2021, the maturities of long-term debt are as follows (in millions): 2022 $ 2,387 2023 4,167 2024 3,467 2025 9,249 2026 4,412 2027 and thereafter 14,099 Total $ 37,781 |
Schedule of Convertible Debt | As previously discussed in Note 1(c), as of January 1, 2021, we early adopted the New Convertible Debt Standard. Accordingly, our unamortized debt discount as of January 1, 2021 was reduced by $389 million, increasing the liability and decreasing the effective interest rate on the Convertible Notes from approximately 20% at December 31, 2020 to approximately 7% at December 31, 2021. We recognized $70 million of interest expense in 2021 including $5 million of non-cash amortization of the debt discount and $65 million of contractual coupon interest. As of December 31, 2021, our unamortized debt discount on the Convertible Notes was $22 million. |
Schedule of Collateral Coverage Tests | Specifically, we are required to meet certain collateral coverage tests for our Credit Facilities, 10.75% Senior Secured Notes and 11.75% Senior Secured Notes, as described below: 2013 Credit 2014 Credit April 2016 December 2016 10.75% Senior Secured Notes 11.75% Senior Secured Notes Frequency of Appraisals of Appraised Collateral Annual Annual Annual Annual Annual Semi-Annual LTV Requirement 1.6x Collateral valuation to amount of debt outstanding (62.5% LTV) LTV as of Last Measurement Date 38.4% 18.0% Not Applicable 53.5% 53.5% 33.5% Collateral Description Generally, certain slots, route authorities and airport gate leasehold rights used by American to operate all services between the U.S. and South America Generally, certain slots, route authorities and airport gate leasehold rights used by American to operate certain services between the U.S. and European Union (including London Heathrow) Generally, certain spare parts Generally, certain Ronald Reagan Washington National Airport (DCA) slots, certain LaGuardia Airport (LGA) slots, certain simulators and certain leasehold rights Generally, certain DCA slots, certain LGA slots, certain simulators and certain leasehold rights and, in the case of the IP Notes, certain intellectual property of American Generally, certain slots, route authorities and airport gate leasehold rights used by American to operate certain services between the U.S. and the Caribbean, Central America and various other countries |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Schedule of Long-Term Debt | Long-term debt included on American’s consolidated balance sheets consisted of (in millions): December 31, 2021 2020 Secured 2013 Term Loan Facility, variable interest rate of 1.85%, installments through 2025 (a) $ 1,770 $ 1,788 2013 Revolving Facility (a) — 750 2014 Term Loan Facility, variable interest rate of 1.85%, installments through 2027 (a) 1,208 1,220 2014 Revolving Facility (a) — 1,643 April 2016 Spare Parts Term Loan Facility (a) — 960 April 2016 Revolving Facility (a) — 450 December 2016 Term Loan Facility, variable interest rate of 2.11%, installments through 2023 (a) 1,188 1,200 11.75% senior secured notes, interest only payments until due in July 2025 (b) 2,500 2,500 10.75% senior secured IP notes, interest only payments until due in February 2026 (b) 1,000 1,000 10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026 (b) 200 200 Treasury Term Loan Facility (c) — 550 5.50% senior secured notes, installments beginning in July 2023 until due in April 2026 (d) 3,500 — 5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (d) 3,000 — AAdvantage Term Loan Facility, variable interest rate of 5.50%, installments beginning in July 2023 through April 2028 (d) 3,500 — Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 8.39%, averaging 3.84%, maturing from 2022 to 2034 (e) 9,357 11,013 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.27% to 4.64%, averaging 1.82%, maturing from 2022 to 2032 3,433 4,417 Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036 (f) 1,129 1,040 Total long-term debt 31,785 28,731 Less: Total unamortized debt discount, premium and issuance costs 428 321 Less: Current maturities 1,568 2,700 Long-term debt, net of current maturities $ 29,789 $ 25,710 |
Schedule of Credit Facilities | As of December 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 568 Total $ 3,411 Certain details of American’s 2013 Credit Facilities, 2014 Credit Facilities, April 2016 Credit Facilities and December 2016 Credit Facilities (collectively referred to as the Credit Facilities) are shown in the table below as of December 31, 2021: 2013 Credit Facilities 2014 Credit Facilities April 2016 Credit Facilities December 2016 Credit Facilities 2013 Term Loan 2013 2014 Term Loan 2014 April 2016 December 2016 Term Loan Aggregate principal issued $1,919 $750 $1,280 $1,643 $450 $1,250 Principal outstanding or $1,770 $— $1,208 $— $— $1,188 Maturity date June 2025 October 2024 January 2027 October 2024 October 2024 December 2023 LIBOR margin 1.75% 2.00% 1.75% 2.00% 2.00% 2.00% |
Schedule of Maturities of Long-Term Debt and Capital Lease Obligations | At December 31, 2021, the maturities of long-term debt are as follows (in millions): 2022 $ 1,637 2023 4,167 2024 3,467 2025 7,749 2026 4,412 2027 and thereafter 10,353 Total $ 31,785 |
Schedule of Collateral Coverage Tests | Specifically, American is required to meet certain collateral coverage tests for its Credit Facilities, 10.75% Senior Secured Notes and 11.75% Senior Secured Notes, as described below: 2013 Credit Facilities 2014 Credit Facilities April 2016 Credit December 2016 10.75% Senior Secured Notes 11.75% Senior Secured Notes Frequency of Appraisals of Appraised Collateral Annual Annual Annual Annual Annual Semi-Annual LTV Requirement 1.6x Collateral valuation to amount of debt outstanding (62.5% LTV) LTV as of Last Measurement Date 38.4% 18.0% Not Applicable 53.5% 53.5% 33.5% Collateral Description Generally, certain slots, route authorities and airport gate leasehold rights used by American to operate all services between the U.S. and South America Generally, certain slots, route authorities and airport gate leasehold rights used by American to operate certain services between the U.S. and European Union (including London Heathrow) Generally, certain spare parts Generally, certain Ronald Reagan Washington National Airport (DCA) slots, certain LaGuardia Airport (LGA) slots, certain simulators and certain leasehold rights Generally, certain DCA slots, certain LGA slots, certain simulators and certain leasehold rights and, in the case of the IP Notes, certain intellectual property of American Generally, certain slots, route authorities and airport gate leasehold rights used by American to operate certain services between the U.S. and the Caribbean, Central America and various other countries |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |
Components of Lease Expense | The components of lease expense were as follows (in millions): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 2,012 $ 1,957 $ 2,027 Finance lease cost: Amortization of assets 107 92 79 Interest on lease liabilities 44 38 43 Variable lease cost 2,471 1,801 2,558 Total net lease cost $ 4,634 $ 3,888 $ 4,707 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2021 2020 Operating leases: Operating lease ROU assets $ 7,850 $ 8,039 Current operating lease liabilities $ 1,507 $ 1,651 Noncurrent operating lease liabilities 6,610 6,777 Total operating lease liabilities $ 8,117 $ 8,428 Finance leases: Property and equipment, at cost $ 1,201 $ 1,021 Accumulated amortization (653) (539) Property and equipment, net $ 548 $ 482 Current finance lease liabilities $ 174 $ 100 Noncurrent finance lease liabilities 563 472 Total finance lease liabilities $ 737 $ 572 Weighted average remaining lease term (in years): Operating leases 7.6 7.4 Finance leases 4.6 5.4 Weighted average discount rate: Operating leases 6.3 % 5.6 % Finance leases 6.1 % 6.3 % |
Supplemental Cash Flow and Other Information | Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,053 $ 2,028 $ 2,013 Operating cash flows from finance leases 37 39 43 Financing cash flows from finance leases 126 114 83 Non-cash transactions: ROU assets acquired through operating leases 1,386 917 1,145 Property and equipment acquired through finance leases 180 11 20 Operating lease conversion to finance lease 102 5 41 Gain on sale leaseback transactions, net 25 107 107 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,929 $ 215 2023 1,791 183 2024 1,410 180 2025 1,039 113 2026 762 87 2027 and thereafter 3,614 77 Total lease payments 10,545 855 Less: Imputed interest (2,428) (118) Total lease obligations 8,117 737 Less: Current obligations (1,507) (174) Long-term lease obligations $ 6,610 $ 563 |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,929 $ 215 2023 1,791 183 2024 1,410 180 2025 1,039 113 2026 762 87 2027 and thereafter 3,614 77 Total lease payments 10,545 855 Less: Imputed interest (2,428) (118) Total lease obligations 8,117 737 Less: Current obligations (1,507) (174) Long-term lease obligations $ 6,610 $ 563 |
American Airlines, Inc. | |
Lessee, Lease, Description [Line Items] | |
Components of Lease Expense | The components of lease expense were as follows (in millions): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 1,998 $ 1,943 $ 2,012 Finance lease cost: Amortization of assets 107 92 79 Interest on lease liabilities 44 38 43 Variable lease cost 2,461 1,786 2,542 Total net lease cost $ 4,610 $ 3,859 $ 4,676 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2021 2020 Operating leases: Operating lease ROU assets $ 7,810 $ 7,994 Current operating lease liabilities $ 1,496 $ 1,641 Noncurrent operating lease liabilities 6,578 6,739 Total operating lease liabilities $ 8,074 $ 8,380 Finance leases: Property and equipment, at cost $ 1,201 $ 1,021 Accumulated amortization (653) (539) Property and equipment, net $ 548 $ 482 Current finance lease liabilities $ 174 $ 100 Noncurrent finance lease liabilities 563 472 Total finance lease liabilities $ 737 $ 572 Weighted average remaining lease term (in years): Operating leases 7.6 7.4 Finance leases 4.6 5.4 Weighted average discount rate: Operating leases 6.2 % 5.6 % Finance leases 6.1 % 6.3 % |
Supplemental Cash Flow and Other Information | Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,040 $ 2,015 $ 1,996 Operating cash flows from finance leases 37 39 43 Financing cash flows from finance leases 126 114 83 Non-cash transactions: ROU assets acquired through operating leases 1,381 898 1,144 Property and equipment acquired through finance leases 180 11 20 Operating lease conversion to finance lease 102 5 41 Gain on sale leaseback transactions, net 25 107 107 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,912 $ 215 2023 1,777 183 2024 1,398 180 2025 1,032 113 2026 757 87 2027 and thereafter 3,600 77 Total lease payments 10,476 855 Less: Imputed interest (2,402) (118) Total lease obligations 8,074 737 Less: Current obligations (1,496) (174) Long-term lease obligations $ 6,578 $ 563 |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows (in millions): December 31, 2021 Operating Leases Finance Leases 2022 $ 1,912 $ 215 2023 1,777 183 2024 1,398 180 2025 1,032 113 2026 757 87 2027 and thereafter 3,600 77 Total lease payments 10,476 855 Less: Imputed interest (2,402) (118) Total lease obligations 8,074 737 Less: Current obligations (1,496) (174) Long-term lease obligations $ 6,578 $ 563 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Line Items] | |
Components of Income Tax Provision | The significant components of the income tax provision (benefit) were (in millions): Year Ended December 31, 2021 2020 2019 Current income tax provision: State and Local $ — $ — $ 2 Foreign — — 8 Current income tax provision — — 10 Deferred income tax provision (benefit): Federal (508) (2,335) 498 State and Local (47) (233) 62 Deferred income tax provision (benefit) (555) (2,568) 560 Total income tax provision (benefit) $ (555) $ (2,568) $ 570 |
Reconciliation of Income Tax Provision | The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions): Year Ended December 31, 2021 2020 2019 Statutory income tax provision (benefit) $ (535) $ (2,405) $ 474 State income tax provision (benefit), net of federal tax effect (37) (183) 47 Book expenses not deductible for tax purposes 23 22 31 Foreign income taxes, net of federal tax effect — — 8 Change in valuation allowance — — 4 Other, net (6) (2) 6 Income tax provision (benefit) $ (555) $ (2,568) $ 570 |
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities were (in millions): December 31, 2021 2020 Deferred tax assets: Operating loss and other carryforwards $ 4,612 $ 4,027 Loyalty program liability 1,903 1,977 Leases 1,833 1,913 Pensions 941 1,405 Postretirement benefits other than pensions 214 203 Rent expense 92 96 Reorganization items 24 28 Other 760 847 Total deferred tax assets 10,379 10,496 Valuation allowance (34) (34) Net deferred tax assets 10,345 10,462 Deferred tax liabilities: Accelerated depreciation and amortization (4,747) (5,028) Leases (1,767) (1,818) Other (284) (386) Total deferred tax liabilities (6,798) (7,232) Net deferred tax asset $ 3,547 $ 3,230 |
American Airlines, Inc. | |
Income Taxes [Line Items] | |
Components of Income Tax Provision | The significant components of the income tax provision (benefit) were (in millions): Year Ended December 31, 2021 2020 2019 Current income tax provision: State and Local $ — $ — $ 2 Foreign — — 8 Current income tax provision — — 10 Deferred income tax provision (benefit): Federal (453) (2,224) 567 State and Local (47) (229) 56 Deferred income tax provision (benefit) (500) (2,453) 623 Total income tax provision (benefit) $ (500) $ (2,453) $ 633 |
Reconciliation of Income Tax Provision | The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions): Year Ended December 31, 2021 2020 2019 Statutory income tax provision (benefit) $ (478) $ (2,290) $ 547 State income tax provision (benefit), net of federal tax effect (37) (181) 41 Book expenses not deductible for tax purposes 21 20 29 Foreign income taxes, net of federal tax effect — — 8 Change in valuation allowance — — 5 Other, net (6) (2) 3 Income tax provision (benefit) $ (500) $ (2,453) $ 633 |
Deferred Tax Assets and Liabilities | The components of American’s deferred tax assets and liabilities were (in millions): December 31, 2021 2020 Deferred tax assets: Operating loss and other carryforwards $ 4,476 $ 3,944 Loyalty program liability 1,903 1,977 Leases 1,822 1,904 Pensions 934 1,397 Postretirement benefits other than pensions 215 203 Rent expense 92 96 Reorganization items 24 28 Other 710 796 Total deferred tax assets 10,176 10,345 Valuation allowance (24) (24) Net deferred tax assets 10,152 10,321 Deferred tax liabilities: Accelerated depreciation and amortization (4,715) (4,992) Leases (1,758) (1,809) Other (279) (294) Total deferred tax liabilities (6,752) (7,095) Net deferred tax asset $ 3,400 $ 3,226 |
Fair Value Measurements and O_2
Fair Value Measurements and Other Investments (Tables) | 12 Months Ended |
Dec. 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 December 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 108 $ 108 $ — $ — Corporate obligations 8,665 — 8,665 — Bank notes/certificates of deposit/time deposits 2,195 — 2,195 — Repurchase agreements 1,190 — 1,190 — 12,158 108 12,050 — Restricted cash and short-term investments (1), (3) 990 654 336 — Long-term investments (4) 239 239 — — Total $ 13,387 $ 1,001 $ 12,386 $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Short-term investments (1) : Money market funds $ 247 $ 247 $ — $ — Corporate obligations 3,449 — 3,449 — Bank notes/certificates of deposit/time deposits 2,168 — 2,168 — Repurchase agreements 755 — 755 — 6,619 247 6,372 — Restricted cash and short-term investments (1), (3) 609 448 161 — Long-term investments (4) 161 161 — — Total $ 7,389 $ 856 $ 6,533 $ — (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 as of December 31, 2021 mature in one year or less. (3) Restricted cash and short-term investments primarily include collateral held to support workers' compensation obligations and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK, and as of December 31, 2021, also include collateral associated with the payment of interest for the AAdvantage Financing. (4) Long-term investments primarily include our equity investment in China Southern Airlines and as of December 31, 2021, our long-term investments also include Vertical. These investments are reflected in other assets on our consolidated balance sheets. See “Other Investments” below for further information on our equity investments. |
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): December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 37,323 $ 38,567 $ 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 December 31, 2021 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) : Money market funds $ 106 $ 106 $ — $ — Corporate obligations 8,665 — 8,665 — Bank notes/certificates of deposit/time deposits 2,194 — 2,194 — Repurchase agreements 1,190 — 1,190 — 12,155 106 12,049 — Restricted cash and short-term investments (1), (3) 990 654 336 — Long-term investments (4) 239 239 — — Total $ 13,384 $ 999 $ 12,385 $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 Short-term investments (1) : Money market funds $ 245 $ 245 $ — $ — Corporate obligations 3,449 — 3,449 — Bank notes/certificates of deposit/time deposits 2,168 — 2,168 — Repurchase agreements 755 — 755 — 6,617 245 6,372 — Restricted cash and short-term investments (1), (3) 609 448 161 — Long-term investments (4) 161 161 — — Total $ 7,387 $ 854 $ 6,533 $ — (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 as of December 31, 2021 mature in one year or less. (3) Restricted cash and short-term investments primarily include collateral held to support workers' compensation obligations and money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of the Terminal at JFK, and as of December 31, 2021, also include collateral associated with the payment of interest for the AAdvantage Financing. (4) Long-term investments primarily include American's equity investment in China Southern Airlines and as of December 31, 2021, American’s long-term investments also include Vertical. These investments are reflected in other assets on American’s consolidated balance sheets. See “Other Investments” below for further information on American’s equity investments. |
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): December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Long-term debt, including current maturities $ 31,357 $ 32,999 $ 28,410 $ 27,193 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status | The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2021 and 2020: Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Benefit obligation at beginning of period $ 19,812 $ 18,358 $ 1,046 $ 824 Service cost 4 2 12 8 Interest cost 526 615 30 30 Actuarial (gain) loss (1), (2) (609) 1,613 (57) 46 Special termination benefits (3) — — 139 410 Plan amendments (4) — — — (195) Settlements (1) (36) — — Benefit payments (822) (740) (72) (77) Benefit obligation at end of period $ 18,910 $ 19,812 $ 1,098 $ 1,046 Fair value of plan assets at beginning of period $ 13,557 $ 12,897 $ 170 $ 204 Actual return on plan assets 1,710 1,427 21 13 Employer contributions (5) 247 9 48 30 Settlements (1) (36) — — Benefit payments (822) (740) (72) (77) Fair value of plan assets at end of period $ 14,691 $ 13,557 $ 167 $ 170 Funded status at end of period $ (4,219) $ (6,255) $ (931) $ (876) (1) The 2021 and 2020 pension actuarial (gain) loss primarily relates to the change in our weighted average discount rate assumption. (2) The 2021 and 2020 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to the change in our weighted average discount rate assumption and, in 2021, plan experience adjustments. (3) During the first quarter of 2021 and the third quarter of 2020, we remeasured our retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted into voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. As a result, during 2021, we recognized a $139 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $139 million, and during 2020, we recognized a $410 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $410 million. (4) Principally relates to the transition of our retiree medical benefit program from a self-insured plan to a fully-insured Medicare Advantage plan as discussed above. |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Balance Sheet Position Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) As of December 31, Current liability $ 7 $ 7 $ 90 $ 55 Noncurrent liability 4,212 6,248 841 821 Total liabilities $ 4,219 $ 6,255 $ 931 $ 876 |
Schedule of Amounts Recognized in Other Comprehensive Income | Net actuarial loss (gain) $ 5,252 $ 6,700 $ (396) $ (358) Prior service cost (benefit) 47 75 (167) (181) Total accumulated other comprehensive loss (income), pre-tax $ 5,299 $ 6,775 $ (563) $ (539) |
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits 2021 2020 (In millions) Projected benefit obligation $ 18,910 $ 19,812 Fair value of plan assets 14,691 13,557 Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Accumulated benefit obligation $ 18,899 $ 19,799 $ — $ — Accumulated postretirement benefit obligation — — 1,098 1,046 Fair value of plan assets 14,691 13,557 167 170 |
Components of Net Periodic Benefit Cost (Income) | Net Periodic Benefit Cost (Income) Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 (In millions) Defined benefit plans: Service cost $ 4 $ 2 $ 2 $ 12 $ 8 $ 3 Interest cost 526 615 703 30 30 33 Expected return on assets (1,084) (1,010) (815) (12) (11) (15) Special termination benefits — — — 139 410 — Settlements — 12 — — — — Amortization of: Prior service cost (benefit) 28 30 28 (13) (135) (236) Unrecognized net loss (gain) 212 164 150 (24) (24) (31) Net periodic benefit cost (income) $ (314) $ (187) $ 68 $ 132 $ 278 $ (246) |
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost (income) for the periods presented: Pension Benefits Retiree Medical and 2021 2020 2021 2020 Benefit obligations: Weighted average discount rate 3.0% 2.7% 2.8% 2.4% Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 Net periodic benefit cost (income): Weighted average discount rate 2.7% 3.4% 4.4% 2.4% 3.2% 4.3% Weighted average expected rate of return on plan assets 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% Weighted average health care cost trend rate assumed for next year (1) N/A N/A N/A 4.8% 4.0% 3.7% (1) The weighted average health care cost trend rate at December 31, 2021 is assumed to decline gradually to 3.9% by 2028 and remain level thereafter. |
Schedule of Expected Future Service Benefit Payments | The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions): 2022 2023 2024 2025 2026 2027-2031 Pension benefits $ 864 $ 898 $ 933 $ 966 $ 994 $ 5,225 Retiree medical and other postretirement benefits 114 109 103 99 95 390 |
Schedule of Allocation of Plan Assets | The current strategic target asset allocation is as follows: Asset Class/Sub-Class Allowed Range Equity 45% - 80% Public: U.S. Large 10% - 40% U.S. Small/Mid 2% - 10% International 10% - 25% International Small/Mid 0% - 10% Emerging Markets 2% - 15% Alternative Investments 5% - 30% Fixed Income 20% - 55% Public: U.S. Long Duration 15% - 45% High Yield and Emerging Markets 0% - 10% Private Income 0% - 15% Other 0% - 5% Cash Equivalents 0% - 20% |
Changes in Fair Value Measurements of Level 3 Investments | Changes in fair value measurements of Level 3 investments during the years ended December 31, 2021 and 2020, were as follows (in millions): 2021 2020 Balance at beginning of year $ 17 $ 12 Actual gain on plan assets: Relating to assets still held at the reporting date 10 1 Purchases 32 4 Sales (1) — Balance at end of year $ 58 $ 17 |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The fair value of our pension plan assets at December 31, 2021 and 2020, by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 76 $ — $ — $ 76 Equity securities: International markets (a), (b) 2,166 — 4 2,170 Large-cap companies (b) 1,860 — — 1,860 Mid-cap companies (b) 449 — — 449 Small-cap companies (b) 84 2 — 86 Mutual funds/exchange traded funds (c) 263 — — 263 Fixed income: Corporate debt (d) — 2,847 — 2,847 Government securities (e) — 1,128 — 1,128 U.S. municipal securities — 19 — 19 Alternative instruments: Private market partnerships (f) — — 52 52 Private market partnerships measured at net asset value (f), (g) — — — 2,827 Common/collective trusts (h) — 337 — 337 Common/collective trusts measured at net asset value (g), (h) — — — 2,514 Insurance group annuity contracts — — 2 2 Other investments — 3 — 3 Dividend and interest receivable 45 — — 45 Due from brokers for sale of securities – net 10 — — 10 Other receivables – net 3 — — 3 Total $ 4,956 $ 4,336 $ 58 $ 14,691 (a) Holdings are diversified as follows: 14% United Kingdom, 10% Ireland, 10% Japan, 9% Switzerland, 7% France, 6% Germany, 12% emerging markets and the remaining 32% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Investment includes holdings invested 70% in U.S. treasuries and corporate bonds, 17% in equity securities of international companies and 13% in equity securities of large-cap, mid-cap and small-cap U.S. companies. (d) Includes approximately 81% investments in corporate debt with a S&P rating lower than A and 19% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. (e) Includes approximately 94% investments in U.S. domestic government securities and 6% in emerging market government securities. There are no significant foreign currency risks within this classification. (f) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (g) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (h) Investment includes 31% in a common/collective trust investing in large market capitalization equity securities within the U.S., 29% in three common/collective trusts investing in emerging country equity securities, 22% in a common/collective trust investing in equity securities of companies located outside the U.S., 11% in a collective interest trust investing primarily in short-term securities, 6% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 40 $ — $ — $ 40 Equity securities: International markets (a), (b) 2,282 — — 2,282 Large-cap companies (b) 2,085 — — 2,085 Mid-cap companies (b) 428 — — 428 Small-cap companies (b) 73 1 — 74 Mutual funds (c) 80 — — 80 Fixed income: Corporate debt (d) — 3,026 — 3,026 Government securities (e) — 1,010 — 1,010 U.S. municipal securities — 30 — 30 Alternative instruments: Private market partnerships (f) — — 15 15 Private market partnerships measured at net asset value (f), (g) — — — 1,791 Common/collective trusts (h) — 259 — 259 Common/collective trusts measured at net asset value (g), (h) — — — 2,384 Insurance group annuity contracts — — 2 2 Dividend and interest receivable 49 — — 49 Due from brokers for sale of securities – net 1 — — 1 Other receivables – net 1 — — 1 Total $ 5,039 $ 4,326 $ 17 $ 13,557 (a) Holdings are diversified as follows: 11% Switzerland, 11% Ireland, 10% United Kingdom, 9% France, 8% Japan, 7% Germany, 6% Netherlands, 13% emerging markets and the remaining 25% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Investment includes mutual funds invested 39% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 35% in U.S. treasuries and corporate bonds and 26% in equity securities of international companies. (d) Includes approximately 77% investments in corporate debt with a S&P rating lower than A and 23% investments in corporate debt with a S&P rating A or higher. Holdings include 89% U.S. companies, 9% international companies and 2% emerging market companies. (e) Includes approximately 89% investments in U.S. domestic government securities, 9% in emerging market government securities and 2% in international government securities. There are no significant foreign currency risks within this classification. (f) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (g) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (h) Investment includes 34% in a common/collective trust investing in large market capitalization equity securities within the U.S., 30% in three common/collective trusts investing in emerging country equity securities, 21% in a common/collective trust investing in equity securities of companies located outside the U.S., 9% in a collective interest trust investing primarily in short-term securities, 5% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
Retiree Medical and Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The fair value of our retiree medical and other postretirement benefits plans’ assets by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 163 — 163 Total $ 4 $ 163 $ — $ 167 Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 166 — 166 Total $ 4 $ 166 $ — $ 170 |
American Airlines, Inc. | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status | The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2021 and 2020: Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Benefit obligation at beginning of period $ 19,690 $ 18,246 $ 1,046 $ 824 Service cost 3 2 12 8 Interest cost 523 611 30 30 Actuarial (gain) loss (1), (2) (606) 1,603 (57) 46 Special termination benefits (3) — — 139 410 Plan amendments (4) — — — (195) Settlements (1) (36) — — Benefit payments (818) (736) (72) (77) Benefit obligation at end of period $ 18,791 $ 19,690 $ 1,098 $ 1,046 Fair value of plan assets at beginning of period $ 13,477 $ 12,829 $ 170 $ 204 Actual return on plan assets 1,700 1,414 21 13 Employer contributions (5) 247 6 48 30 Settlements (1) (36) — — Benefit payments (818) (736) (72) (77) Fair value of plan assets at end of period $ 14,605 $ 13,477 $ 167 $ 170 Funded status at end of period $ (4,186) $ (6,213) $ (931) $ (876) (1) The 2021 and 2020 pension actuarial (gain) loss primarily relates to the change in American’s weighted average discount rate assumption. (2) The 2021 and 2020 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to the change in American’s weighted average discount rate assumption and, in 2021, plan experience adjustments. (3) During the first quarter of 2021 and the third quarter of 2020, American remeasured its retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted into voluntary early retirement programs offered as a result of reductions to its operation due to the COVID-19 pandemic. As a result, during 2021, American recognized a $139 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $139 million and during 2020 American recognized a $410 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $410 million. (4) Principally relates to the transition of American’s retiree medical benefit program from a self-insured plan to a fully-insured Medicare Advantage plan as discussed above. (5) 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. |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) As of December 31, Current liability $ 7 $ 7 $ 90 $ 55 Noncurrent liability 4,179 6,206 841 821 Total liabilities $ 4,186 $ 6,213 $ 931 $ 876 |
Schedule of Amounts Recognized in Other Comprehensive Income | Net actuarial loss (gain) $ 5,241 $ 6,679 $ (396) $ (358) Prior service cost (benefit) 46 75 (167) (181) Total accumulated other comprehensive loss (income), pre-tax $ 5,287 $ 6,754 $ (563) $ (539) |
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits 2021 2020 (In millions) Projected benefit obligation $ 18,791 $ 19,690 Fair value of plan assets 14,605 13,477 Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets Pension Benefits Retiree Medical and 2021 2020 2021 2020 (In millions) Accumulated benefit obligation $ 18,782 $ 19,678 $ — $ — Accumulated postretirement benefit obligation — — 1,098 1,046 Fair value of plan assets 14,605 13,477 167 170 |
Components of Net Periodic Benefit Cost (Income) | Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 (In millions) Defined benefit plans: Service cost $ 3 $ 2 $ 2 $ 12 $ 8 $ 3 Interest cost 523 611 699 30 30 33 Expected return on assets (1,078) (1,005) (811) (12) (11) (15) Special termination benefits — — — 139 410 — Settlements — 12 — — — — Amortization of: Prior service cost (benefit) 28 29 28 (13) (135) (236) Unrecognized net loss (gain) 211 164 150 (24) (24) (31) Net periodic benefit cost (income) $ (313) $ (187) $ 68 $ 132 $ 278 $ (246) |
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost (income) for the periods presented: Pension Benefits Retiree Medical and 2021 2020 2021 2020 Benefit obligations: Weighted average discount rate 3.0% 2.7% 2.8% 2.4% Pension Benefits Retiree Medical and 2021 2020 2019 2021 2020 2019 Net periodic benefit cost (income): Weighted average discount rate 2.7% 3.4% 4.4% 2.4% 3.2% 4.3% Weighted average expected rate of return on plan assets 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% Weighted average health care cost trend rate assumed for next year (1) N/A N/A N/A 4.8% 4.0% 3.7% (1) The weighted average health care cost trend rate at December 31, 2021 is assumed to decline gradually to 3.9% by 2028 and remain level thereafter. |
Schedule of Expected Future Service Benefit Payments | The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions): 2022 2023 2024 2025 2026 2027-2031 Pension benefits $ 860 $ 893 $ 928 $ 961 $ 989 $ 5,194 Retiree medical and other postretirement benefits 114 109 103 99 95 390 |
Schedule of Allocation of Plan Assets | The current strategic target asset allocation is as follows: Asset Class/Sub-Class Allowed Range Equity 45% - 80% Public: U.S. Large 10% - 40% U.S. Small/Mid 2% - 10% International 10% - 25% International Small/Mid 0% - 10% Emerging Markets 2% - 15% Alternative Investments 5% - 30% Fixed Income 20% - 55% Public: U.S. Long Duration 15% - 45% High Yield and Emerging Markets 0% - 10% Private Income 0% - 15% Other 0% - 5% Cash Equivalents 0% - 20% |
Changes in Fair Value Measurements of Level 3 Investments | Changes in fair value measurements of Level 3 investments during the years ended December 31, 2021 and 2020, were as follows (in millions): 2021 2020 Balance at beginning of year $ 17 $ 12 Actual gain on plan assets: Relating to assets still held at the reporting date 10 1 Purchases 32 4 Sales (1) — Balance at end of year $ 58 $ 17 |
American Airlines, Inc. | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The fair value of American’s pension plan assets at December 31, 2021 and 2020, by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 76 $ — $ — $ 76 Equity securities: International markets (a), (b) 2,166 — 4 2,170 Large-cap companies (b) 1,860 — — 1,860 Mid-cap companies (b) 449 — — 449 Small-cap companies (b) 84 2 — 86 Mutual funds/exchange traded funds (c) 177 — — 177 Fixed income: Corporate debt (d) — 2,847 — 2,847 Government securities (e) — 1,128 — 1,128 U.S. municipal securities — 19 — 19 Alternative instruments: Private market partnerships (f) — — 52 52 Private market partnerships measured at net asset value (f), (g) — — — 2,827 Common/collective trusts (h) — 337 — 337 Common/collective trusts measured at net asset value (g), (h) — — — 2,514 Insurance group annuity contracts — — 2 2 Other investments — 3 — 3 Dividend and interest receivable 45 — — 45 Due from brokers for sale of securities – net 10 — — 10 Other receivables – net 3 — — 3 Total $ 4,870 $ 4,336 $ 58 $ 14,605 (a) Holdings are diversified as follows: 14% United Kingdom, 10% Ireland, 10% Japan, 9% Switzerland, 7% France, 6% Germany, 12% emerging markets and the remaining 32% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Investment includes holdings invested 86% in U.S. treasuries and corporate bonds and 14% in equity securities of international companies. (d) Includes approximately 81% investments in corporate debt with a S&P rating lower than A and 19% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. (e) Includes approximately 94% investments in U.S. domestic government securities and 6% in emerging market government securities. There are no significant foreign currency risks within this classification. (f) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (g) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (h) Investment includes 31% in a common/collective trust investing in large market capitalization equity securities within the U.S., 29% in three common/collective trusts investing in emerging country equity securities, 22% in a common/collective trust investing in equity securities of companies located outside the U.S., 11% in a collective interest trust investing primarily in short-term securities, 6% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Cash and cash equivalents $ 40 $ — $ — $ 40 Equity securities: International markets (a), (b) 2,282 — — 2,282 Large-cap companies (b) 2,085 — — 2,085 Mid-cap companies (b) 428 — — 428 Small-cap companies (b) 73 1 — 74 Fixed income: Corporate debt (c) — 3,026 — 3,026 Government securities (d) — 1,010 — 1,010 U.S. municipal securities — 30 — 30 Alternative instruments: Private market partnerships (e) — — 15 15 Private market partnerships measured at net asset value (e), (f) — — — 1,791 Common/collective trusts (g) — 259 — 259 Common/collective trusts measured at net asset value (f), (g) — — — 2,384 Insurance group annuity contracts — — 2 2 Dividend and interest receivable 49 — — 49 Due from brokers for sale of securities – net 1 — — 1 Other receivables – net 1 — — 1 Total $ 4,959 $ 4,326 $ 17 $ 13,477 (a) Holdings are diversified as follows: 11% Switzerland, 11% Ireland, 10% United Kingdom, 9% France, 8% Japan, 7% Germany, 6% Netherlands, 13% emerging markets and the remaining 25% with no concentration greater than 5% in any one country. (b) There are no significant concentrations of holdings by company or industry. (c) Includes approximately 77% investments in corporate debt with a S&P rating lower than A and 23% investments in corporate debt with a S&P rating A or higher. Holdings include 89% U.S. companies, 9% international companies and 2% emerging market companies. (d) Includes approximately 89% investments in U.S. domestic government securities, 9% in emerging market government securities and 2% in international government securities. There are no significant foreign currency risks within this classification. (e) Includes limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one (f) Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. (g) Investment includes 34% in a common/collective trust investing in large market capitalization equity securities within the U.S., 30% in three common/collective trusts investing in emerging country equity securities, 21% in a common/collective trust investing in equity securities of companies located outside the U.S., 9% in a collective interest trust investing primarily in short-term securities, 5% in a common/collective trust investing in smaller market capitalization equity securities within the U.S. and 1% in Canadian segregated balanced value, income growth and diversified pooled funds. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The fair value of American’s retiree medical and other postretirement benefits plans’ assets by asset category, were as follows (in millions): Fair Value Measurements as of December 31, 2021 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 163 — 163 Total $ 4 $ 163 $ — $ 167 Fair Value Measurements as of December 31, 2020 Asset Category Quoted Prices in Significant Significant Total Money market fund $ 4 $ — $ — $ 4 Mutual funds – AAL Class — 166 — 166 Total $ 4 $ 166 $ — $ 170 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Components of Accumulated Other Comprehensive Loss (AOCI) | The components of AOCI are as follows (in millions): Pension, Unrealized Loss on Investments Income Tax (1) Total Balance at December 31, 2019 $ (5,238) $ (2) $ (1,091) $ (6,331) Other comprehensive income (loss) before reclassifications (1,045) — 236 (809) Amounts reclassified from AOCI 47 — (10) (2) 37 Net current-period other comprehensive income (loss) (998) — 226 (772) Balance at December 31, 2020 (6,236) (2) (865) (7,103) Other comprehensive income (loss) before reclassifications 1,297 — (293) 1,004 Amounts reclassified from AOCI 203 — (46) (2) 157 Net current-period other comprehensive income (loss) 1,500 — (339) 1,161 Balance at December 31, 2021 $ (4,736) $ (2) $ (1,204) $ (5,942) (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 our consolidated statements of operations. |
Reclassifications out of AOCI | Reclassifications out of AOCI for the years ended December 31, 2021 and 2020 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the Year Ended December 31, AOCI Components 2021 2020 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ 11 $ (81) Nonoperating other income, net Actuarial loss 146 118 Nonoperating other income, net Total reclassifications for the period, net of tax $ 157 $ 37 |
American Airlines, Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Components of Accumulated Other Comprehensive Loss (AOCI) | The components of AOCI are as follows (in millions): Pension, Unrealized Loss on Investments Income Tax (1) Total Balance at December 31, 2019 $ (5,218) $ (2) $ (1,203) $ (6,423) Other comprehensive income (loss) before reclassifications (1,043) — 236 (807) Amounts reclassified from AOCI 46 — (10) (2) 36 Net current-period other comprehensive income (loss) (997) — 226 (771) Balance at December 31, 2020 (6,215) (2) (977) (7,194) Other comprehensive income (loss) before reclassifications 1,289 — (292) 997 Amounts reclassified from AOCI 202 — (46) (2) 156 Net current-period other comprehensive income (loss) 1,491 — (338) 1,153 Balance at December 31, 2021 $ (4,724) $ (2) $ (1,315) $ (6,041) (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 American’s consolidated statements of operations. |
Reclassifications out of AOCI | Reclassifications out of AOCI for the years ended December 31, 2021 and 2020 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the Year Ended December 31, AOCI Components 2021 2020 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ 11 $ (82) Nonoperating other income, net Actuarial loss 145 118 Nonoperating other income, net Total reclassifications for the period, net of tax $ 156 $ 36 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitments | Under all of our aircraft and engine purchase agreements, our total future commitments as of December 31, 2021 are expected to be as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Payments for aircraft and engine commitments (1) $ 1,987 $ 1,851 $ 3,358 $ 3,535 $ 1,663 $ 688 $ 13,082 (1) These amounts are net of purchase deposits currently held by the manufacturers. Our purchase deposits held by all manufacturers totaled $517 million and $1.4 billion as of December 31, 2021 and December 31, 2020, respectively. Due to the uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent our most current estimate; however, the actual delivery schedule may differ from the table above, potentially materially. On January 31, 2022, we entered into an amended purchase agreement with The Boeing Company (Boeing) pursuant to which we agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options. We also intend to exercise purchase options for an additional seven aircraft in 2022, bringing our total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024. In addition, we entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023. Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027. The table above reflects our purchase commitments after giving effect to these amendments and assumes our exercise of the seven 737 MAX Family aircraft purchase options mentioned above. |
Minimum Fixed Obligations under Capacity Purchase Agreements with Third-Party Regional Carriers | As of December 31, 2021, American’s minimum obligations under its capacity purchase agreements with third-party regional carriers are as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Minimum obligations under capacity purchase agreements with third-party regional carriers (1) $ 1,495 $ 1,834 $ 1,875 $ 1,729 $ 1,123 $ 2,317 $ 10,373 |
American Airlines, Inc. | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitments | Under all of American’s aircraft and engine purchase agreements, its total future commitments as of December 31, 2021 are expected to be as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Payments for aircraft and engine commitments (1) $ 1,987 $ 1,851 $ 3,358 $ 3,535 $ 1,663 $ 688 $ 13,082 (1) These amounts are net of purchase deposits currently held by the manufacturers. American’s purchase deposits held by all manufacturers totaled $517 million and $1.4 billion as of December 31, 2021 and December 31, 2020, respectively. Due to the uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent American’s most current estimate; however, the actual delivery schedule may differ from the table above, potentially materially. On January 31, 2022, American entered into an amended purchase agreement with The Boeing Company (Boeing) pursuant to which it agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options. American also intends to exercise purchase options for an additional seven aircraft in 2022, bringing its total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024. In addition, American entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023. Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027. The table above reflects American’s purchase commitments after giving effect to these amendments and assumes American’s exercise of the seven 737 MAX Family aircraft purchase options mentioned above. Additionally, the amounts in the table exclude 10 and three Boeing 787-8 aircraft scheduled to be delivered in 2022 and 2023, respectively, and four and one Boeing 787-9 aircraft scheduled to be delivered in 2023 and 2024, respectively, for which American has obtained committed lease financing. See Note 4 for information regarding this operating lease commitment. |
Minimum Fixed Obligations under Capacity Purchase Agreements with Third-Party Regional Carriers | As of December 31, 2021, American’s minimum obligations under its capacity purchase agreements with third-party regional carriers are as follows (approximately, in millions): 2022 2023 2024 2025 2026 2027 and Thereafter Total Minimum obligations under capacity purchase agreements with third-party regional carriers (1) $ 1,495 $ 1,834 $ 1,875 $ 1,729 $ 1,123 $ 2,317 $ 10,373 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Significant Noncash Transactions [Line Items] | |
Cash Flow Information and Non-Cash Investing and Financing Activities | Supplemental disclosure of cash flow information and non-cash investing and financing activities are as follows (in millions): Year Ended December 31, 2021 2020 2019 Non-cash investing and financing activities: Equity investment $ 88 $ — $ — Settlement of bankruptcy obligations (1) 56 7 Deferred financing costs paid through issuance of debt — 17 — Supplemental information: Interest paid, net 1,632 944 1,111 Income taxes paid 3 6 8 |
American Airlines, Inc. | |
Other Significant Noncash Transactions [Line Items] | |
Cash Flow Information and Non-Cash Investing and Financing Activities | Supplemental disclosure of cash flow information and non-cash investing and financing activities are as follows (in millions): Year Ended December 31, 2021 2020 2019 Non-cash investing and financing activities: Equity investment $ 88 $ — $ — Settlement of bankruptcy obligations 4 56 7 Deferred financing costs paid through issuance of debt — 17 — Supplemental information: Interest paid, net 1,481 877 1,025 Income taxes paid 2 6 8 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-Settled RSU Award Activity | RSU award activity for all plans for the years ended December 31, 2021, 2020 and 2019 is as follows: Number of Shares Weighted Average Grant Date Fair Value (In thousands) Outstanding at December 31, 2018 4,320 $ 44.29 Granted 3,206 34.00 Vested and released (2,002) 44.90 Forfeited (337) 42.55 Outstanding at December 31, 2019 5,187 $ 37.01 Granted 5,883 22.07 Vested and released (2,268) 39.46 Forfeited (920) 29.78 Outstanding at December 31, 2020 7,882 $ 23.66 Granted 5,525 18.34 Vested and released (3,314) 25.58 Forfeited (692) 18.78 Outstanding at December 31, 2021 9,401 $ 20.17 |
American Airlines, Inc. | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-Settled RSU Award Activity | RSU award activity for all plans for the years ended December 31, 2021, 2020 and 2019 is as follows: Number of Shares Weighted Average Grant Date Fair Value (In thousands) Outstanding at December 31, 2018 4,320 $ 44.29 Granted 3,206 34.00 Vested and released (2,002) 44.90 Forfeited (337) 42.55 Outstanding at December 31, 2019 5,187 $ 37.01 Granted 5,883 22.07 Vested and released (2,268) 39.46 Forfeited (920) 29.78 Outstanding at December 31, 2020 7,882 $ 23.66 Granted 5,525 18.34 Vested and released (3,314) 25.58 Forfeited (692) 18.78 Outstanding at December 31, 2021 9,401 $ 20.17 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Components of Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (in millions) Balance at Beginning of Year Additions Charged to Statement of Operations Accounts Deductions Balance at Allowance for obsolescence of spare parts Year ended December 31, 2021 $ 490 $ 177 $ (33) $ 634 Year ended December 31, 2020 784 100 (394) 490 Year ended December 31, 2019 814 91 (121) 784 Allowance for credit losses on accounts receivable Year ended December 31, 2021 $ 36 $ 22 $ (24) $ 34 Year ended December 31, 2020 31 27 (22) 36 Year ended December 31, 2019 29 19 (17) 31 |
American Airlines, Inc. | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Components of Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (in millions) Balance at Beginning of Year Additions Charged to Statement of Operations Accounts Deductions Balance at Allowance for obsolescence of spare parts Year ended December 31, 2021 $ 442 $ 165 $ (19) $ 588 Year ended December 31, 2020 729 81 (368) 442 Year ended December 31, 2019 754 79 (104) 729 Allowance for credit losses on accounts receivable Year ended December 31, 2021 $ 29 $ 21 $ (22) $ 28 Year ended December 31, 2020 25 25 (21) 29 Year ended December 31, 2019 24 17 (16) 25 |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
American Airlines, Inc. | |
Related Party Transaction [Line Items] | |
Summary of Net Receivables (Payables) to Related Parties | The following represents the net receivables (payables) to related parties (in millions): December 31, 2021 2020 AAG (1) $ 7,613 $ 9,940 AAG’s wholly-owned subsidiaries (2) (2,066) (2,063) Total $ 5,547 $ 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, PSP3 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 Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | Apr. 20, 2020USD ($)$ / sharesshares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($)shares | Dec. 31, 2021USD ($)reporting_unitmembercomponent$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Apr. 30, 2021USD ($)shares | Apr. 23, 2021$ / shares | Mar. 24, 2021USD ($) | Jan. 15, 2021USD ($)$ / shares | Jan. 01, 2021USD ($) | Oct. 21, 2020USD ($) | Sep. 25, 2020USD ($) | Jun. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Nov. 30, 2019USD ($) | Oct. 31, 2019USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Decrease in flying compared to prior year period (in percentage) | 24.70% | ||||||||||||||||||
Decrease in domestic capacity in percentage | 0.145 | ||||||||||||||||||
Decrease in international capacity in percentage | 0.449 | ||||||||||||||||||
Number of team members opting for early retirement or long-term paid leave (more than) | member | 1,600 | ||||||||||||||||||
Available liquidity | $ 15,800,000,000 | ||||||||||||||||||
Unrestricted cash and short-term investments | 12,400,000,000 | ||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 3,411,000,000 | ||||||||||||||||||
Proceeds from sale of property and equipment | 193,000,000 | $ 351,000,000 | $ 54,000,000 | ||||||||||||||||
Covenant terms, minimum aggregate liquidity required | 2,000,000,000 | ||||||||||||||||||
Adjustments to additional paid in capital, net of tax | (320,000,000) | ||||||||||||||||||
Retained deficit | $ (8,638,000,000) | (6,664,000,000) | |||||||||||||||||
Consolidated reporting unit | reporting_unit | 1 | ||||||||||||||||||
Goodwill impairment | $ 0 | ||||||||||||||||||
Goodwill | 4,091,000,000 | 4,091,000,000 | |||||||||||||||||
Amortization expense | 41,000,000 | 41,000,000 | 41,000,000 | ||||||||||||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 0 | ||||||||||||||||||
Indefinite lived intangible assets | 1,800,000,000 | 1,800,000,000 | |||||||||||||||||
Operating revenues | $ 29,882,000,000 | 17,337,000,000 | 45,768,000,000 | ||||||||||||||||
Contract receivables settlement duration | 7 days | ||||||||||||||||||
Advertising expense | $ 105,000,000 | 57,000,000 | 144,000,000 | ||||||||||||||||
Foreign currency gains (losses) | (4,000,000) | (24,000,000) | (32,000,000) | ||||||||||||||||
American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 3,411,000,000 | ||||||||||||||||||
Proceeds from sale of property and equipment | 192,000,000 | 351,000,000 | 49,000,000 | ||||||||||||||||
Retained deficit | $ (7,285,000,000) | (5,508,000,000) | |||||||||||||||||
Consolidated reporting unit | reporting_unit | 1 | ||||||||||||||||||
Goodwill impairment | $ 0 | ||||||||||||||||||
Goodwill | 4,091,000,000 | 4,091,000,000 | |||||||||||||||||
Amortization expense | 41,000,000 | 41,000,000 | 41,000,000 | ||||||||||||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 0 | ||||||||||||||||||
Indefinite lived intangible assets | 1,800,000,000 | 1,800,000,000 | |||||||||||||||||
Operating revenues | $ 29,880,000,000 | 17,335,000,000 | 45,761,000,000 | ||||||||||||||||
Contract receivables settlement duration | 7 days | ||||||||||||||||||
Advertising expense | $ 105,000,000 | 57,000,000 | 144,000,000 | ||||||||||||||||
Foreign currency gains (losses) | $ (4,000,000) | $ (24,000,000) | $ (32,000,000) | ||||||||||||||||
Minimum | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Performance obligation term | 1 year | ||||||||||||||||||
Minimum | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Performance obligation term | 1 year | ||||||||||||||||||
Maximum | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Performance obligation term | 5 years | ||||||||||||||||||
Maximum | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Performance obligation term | 5 years | ||||||||||||||||||
Air traffic liability | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Performance obligation term | 1 year | ||||||||||||||||||
Contract with customer, liability, updated revenue recognition period | 12 months | ||||||||||||||||||
Recognition of revenue | $ 1,700,000,000 | ||||||||||||||||||
Air traffic liability | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Performance obligation term | 1 year | ||||||||||||||||||
Recognition of revenue | $ 1,700,000,000 | ||||||||||||||||||
Loyalty program liability | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Payment term | 30 days | ||||||||||||||||||
Number of revenue components | component | 2 | ||||||||||||||||||
Recognition of revenue | $ 2,221,000,000 | ||||||||||||||||||
Loyalty program liability | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Payment term | 30 days | ||||||||||||||||||
Number of revenue components | component | 2 | ||||||||||||||||||
Recognition of revenue | $ 2,221,000,000 | ||||||||||||||||||
At-the-market Offering | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Issuance of shares of common stock, net of offering costs (in shares) | shares | 24,150,764 | 68,561,487 | |||||||||||||||||
Common shares, stock price (in dollars per share) | $ / shares | $ 19.26 | ||||||||||||||||||
Proceeds from issuance of common stock | $ 460,000,000 | ||||||||||||||||||
Common stock, remaining authorized amount | 650,000,000 | ||||||||||||||||||
US Department Of The Treasury, CARES Act, Payroll Support Program Two | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from government assistance, payroll support program, CARES Act | 3,500,000,000 | ||||||||||||||||||
US Department Of The Treasury, CARES Act, Payroll Support Program Three | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from government assistance, payroll support program, CARES Act | 3,300,000,000 | ||||||||||||||||||
US Department Of The Treasury, CARES Act, Payroll Support Program One | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from government assistance, payroll support program, CARES Act | $ 6,000,000,000 | ||||||||||||||||||
PSP1 Promissory Note | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | $ 1,800,000,000 | 1,800,000,000 | |||||||||||||||||
Warrants, number of warrant shares of common stock | shares | 14,100,000 | ||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 12.51 | ||||||||||||||||||
Fair value of warrants | $ 63,000,000 | ||||||||||||||||||
PSP2 Promissory Note | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||||||
Warrants, number of warrant shares of common stock | shares | 6,600,000 | 6,600,000 | |||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 15.66 | ||||||||||||||||||
PSP3 Promissory Note | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | $ 946,000,000 | ||||||||||||||||||
Warrants, number of warrant shares of common stock | shares | 4,400,000 | ||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 21.75 | ||||||||||||||||||
PSP2 Warrants | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Fair value of warrants | $ 76,000,000 | ||||||||||||||||||
PSP3 Warrants | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Fair value of warrants | $ 46,000,000 | ||||||||||||||||||
Other PSP1 Financial Assistance, CARES Act | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from government assistance, payroll support program, CARES Act | $ 4,200,000,000 | ||||||||||||||||||
Other PSP2 Financial Assistance, CARES Act | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from government assistance, payroll support program, CARES Act | $ 2,400,000,000 | ||||||||||||||||||
Other PSP3 Financial Assistance, CARES Act | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from government assistance, payroll support program, CARES Act | $ 2,300,000,000 | ||||||||||||||||||
Senior Notes | 5.50% Senior Notes | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | $ 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] | |||||||||||||||||||
Aggregate principal issued | $ 3,000,000,000 | $ 3,000,000,000 | |||||||||||||||||
Stated interest rate | 5.75% | 5.75% | |||||||||||||||||
Senior Notes | Senior Notes 6.50% Due 2025 | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | $ 1,000,000,000 | ||||||||||||||||||
Stated interest rate | 6.50% | ||||||||||||||||||
Reduction of debt discount | $ 22,000,000 | ||||||||||||||||||
Senior Notes | Senior Notes 6.50% Due 2025 | 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 | ||||||||||||||||||
Adjustments to additional paid in capital, net of tax | $ 320,000,000 | ||||||||||||||||||
Retained deficit | $ 19,000,000 | ||||||||||||||||||
Reduction of debt 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 | 5.50% Senior Notes | American Airlines, Inc. | |||||||||||||||||||
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% | ||||||||||||||||||
Secured Debt | 5.75% Senior Notes | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Stated interest rate | 5.75% | ||||||||||||||||||
Secured Debt | Term Loan Facility | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | $ 3,500,000,000 | ||||||||||||||||||
Secured Debt | Enhanced Equipment Trust Certificates and Other Equipment Financing | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from issuance of debt | 94,000,000 | ||||||||||||||||||
Secured Debt | Special Facility Revenue Bonds | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Aggregate principal issued | 150,000,000 | ||||||||||||||||||
Repayments of long-term debt | $ 62,000,000 | ||||||||||||||||||
Secured Debt | Special Facility Revenue Bonds | Minimum | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Stated interest rate | 2.25% | ||||||||||||||||||
Secured Debt | Special Facility Revenue Bonds | Minimum | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Stated interest rate | 2.25% | ||||||||||||||||||
Secured Debt | Special Facility Revenue Bonds | Maximum | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Stated interest rate | 5.38% | ||||||||||||||||||
Secured Debt | Special Facility Revenue Bonds | Maximum | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Stated interest rate | 5.38% | ||||||||||||||||||
Secured Debt | Equipment Loans and Other Notes Payable | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Proceeds from sale-leaseback transactions | $ 181,000,000 | ||||||||||||||||||
Secured Debt | Spare Parts Credit Facility April 2016 | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Repayments of long-term debt | 950,000,000 | ||||||||||||||||||
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 | 568,000,000 | ||||||||||||||||||
Revolving Credit Facility | Short-term Revolving and Other Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 568,000,000 | ||||||||||||||||||
Revolving Credit Facility | 2013 Credit Facilities | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 750,000,000 | ||||||||||||||||||
Revolving Credit Facility | 2013 Credit Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 750,000,000 | ||||||||||||||||||
Revolving Credit Facility | 2014 Credit Facilities | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | ||||||||||||||||||
Revolving Credit Facility | 2014 Credit Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | ||||||||||||||||||
Revolving Credit Facility | April 2016 Credit Facilities | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 450,000,000 | ||||||||||||||||||
Revolving Credit Facility | April 2016 Credit Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 450,000,000 | ||||||||||||||||||
Revolving Credit Facility | Secured Debt | 2013 Credit Facilities | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 750,000,000 | ||||||||||||||||||
Revolving Credit Facility | Secured Debt | 2013 Credit Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, remaining borrowing capacity | 0 | $ 0 | |||||||||||||||||
Repayments of long-term debt | 750,000,000 | ||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 1,000,000,000 | |||||||||||||||||
Revolving Credit Facility | Secured Debt | 2014 Credit Facilities | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 1,643,000,000 | ||||||||||||||||||
Revolving Credit Facility | Secured Debt | 2014 Credit Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Repayments of long-term debt | 1,600,000,000 | ||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,200,000,000 | 1,600,000,000 | 1,500,000,000 | ||||||||||||||||
Revolving Credit Facility | Secured Debt | April 2016 Credit Facilities | American Airlines, Inc. | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Repayments of long-term debt | 450,000,000 | ||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 450,000,000 | $ 300,000,000 | |||||||||||||||||
Line of Credit | Treasury Term Loan Facility | |||||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||||
Warrants, number of warrant shares of common stock | shares | 4,400,000 | ||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 12.51 | ||||||||||||||||||
Line of Credit | Treasury Term Loan Facility | American Airlines, Inc. | |||||||||||||||||||
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 | ||||||||||||||||
Warrants, number of warrant shares of common stock | shares | 4,400,000 | ||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 12.51 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Operating Property and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 2,300 | $ 2,400 | $ 2,600 |
Impairment charge | $ 27 | ||
Minimum | Aircraft, engines and related rotable parts | |||
Property, Plant and Equipment [Line Items] | |||
Residual value percentage of equipment and properties | 5.00% | ||
Estimated useful life | 20 years | ||
Minimum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Minimum | Furniture, fixtures and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Minimum | Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Maximum | Aircraft, engines and related rotable parts | |||
Property, Plant and Equipment [Line Items] | |||
Residual value percentage of equipment and properties | 10.00% | ||
Estimated useful life | 30 years | ||
Maximum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 30 years | ||
Maximum | Furniture, fixtures and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Maximum | Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Prepaid Expenses and Other Current Assets | |||
Property, Plant and Equipment [Line Items] | |||
Retired aircraft to be sold | $ 29 | 164 | |
Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Nonoperating retired aircraft | 383 | 401 | |
American Airlines, Inc. | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 2,300 | 2,300 | $ 2,500 |
Impairment charge | $ 27 | ||
American Airlines, Inc. | Minimum | Aircraft, engines and related rotable parts | |||
Property, Plant and Equipment [Line Items] | |||
Residual value percentage of equipment and properties | 5.00% | ||
Estimated useful life | 20 years | ||
American Airlines, Inc. | Minimum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
American Airlines, Inc. | Minimum | Furniture, fixtures and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
American Airlines, Inc. | Minimum | Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
American Airlines, Inc. | Maximum | Aircraft, engines and related rotable parts | |||
Property, Plant and Equipment [Line Items] | |||
Residual value percentage of equipment and properties | 10.00% | ||
Estimated useful life | 30 years | ||
American Airlines, Inc. | Maximum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 30 years | ||
American Airlines, Inc. | Maximum | Furniture, fixtures and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
American Airlines, Inc. | Maximum | Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
American Airlines, Inc. | Prepaid Expenses and Other Current Assets | |||
Property, Plant and Equipment [Line Items] | |||
Retired aircraft to be sold | $ 29 | 164 | |
American Airlines, Inc. | Other Assets | |||
Property, Plant and Equipment [Line Items] | |||
Nonoperating retired aircraft | $ 382 | $ 400 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Definite-Lived Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (786) | $ (745) |
Total | 156 | 197 |
American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | (786) | (745) |
Total | 156 | 197 |
Domestic airport slots | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 365 | 365 |
Useful life of intangible assets | 25 years | |
Domestic airport slots | American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 365 | 365 |
Useful life of intangible assets | 25 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 300 | 300 |
Useful life of intangible assets | 9 years | |
Customer relationships | American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 300 | 300 |
Useful life of intangible assets | 9 years | |
Marketing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 105 | 105 |
Useful life of intangible assets | 30 years | |
Marketing agreements | American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 105 | 105 |
Useful life of intangible assets | 30 years | |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 35 | 35 |
Tradenames | American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 35 | 35 |
Airport gate leasehold rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 137 | 137 |
Useful life of intangible assets | 25 years | |
Airport gate leasehold rights | American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 137 | $ 137 |
Useful life of intangible assets | 25 years |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Definite-Lived Intangible Assets Amortization Expense (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
2022 | $ 41 | |
2023 | 7 | |
2024 | 7 | |
2025 | 7 | |
2026 | 6 | |
2027 and thereafter | 88 | |
Total | 156 | $ 197 |
American Airlines, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 | 41 | |
2023 | 7 | |
2024 | 7 | |
2025 | 7 | |
2026 | 6 | |
2027 and thereafter | 88 | |
Total | $ 156 | $ 197 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Significant Categories of Reported Operating Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from External Customer [Line Items] | |||
Total operating revenues | $ 29,882 | $ 17,337 | $ 45,768 |
Passenger | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 26,063 | 14,518 | 42,010 |
Passenger travel | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 23,896 | 13,456 | 38,831 |
Loyalty revenue - travel | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 2,167 | 1,062 | 3,179 |
Cargo | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 1,314 | 769 | 863 |
Other | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 2,505 | 2,050 | 2,895 |
Loyalty revenue - marketing services | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 2,166 | 1,825 | 2,361 |
Loyalty Program, Co-branded Credit Card and Other Partners | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 3,400 | 2,900 | 3,900 |
Other revenue | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 339 | 225 | 534 |
American Airlines, Inc. | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 29,880 | 17,335 | 45,761 |
American Airlines, Inc. | Passenger | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 26,063 | 14,518 | 42,010 |
American Airlines, Inc. | Passenger travel | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 23,896 | 13,456 | 38,831 |
American Airlines, Inc. | Loyalty revenue - travel | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 2,167 | 1,062 | 3,179 |
American Airlines, Inc. | Cargo | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 1,314 | 769 | 863 |
American Airlines, Inc. | Other | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 2,503 | 2,048 | 2,888 |
American Airlines, Inc. | Loyalty revenue - marketing services | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 2,166 | 1,825 | 2,361 |
American Airlines, Inc. | Loyalty Program, Co-branded Credit Card and Other Partners | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | 3,400 | 2,900 | 3,900 |
American Airlines, Inc. | Other revenue | |||
Revenue from External Customer [Line Items] | |||
Total operating revenues | $ 337 | $ 223 | $ 527 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Passenger Revenue by Geographic Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Airline Destination Disclosure [Line Items] | |||
Operating revenues | $ 29,882 | $ 17,337 | $ 45,768 |
Passenger | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 26,063 | 14,518 | 42,010 |
Passenger | Domestic | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 21,453 | 11,765 | 30,881 |
Passenger | Latin America | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 3,506 | 1,852 | 5,047 |
Passenger | Atlantic | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 965 | 654 | 4,624 |
Passenger | Pacific | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 139 | 247 | 1,458 |
American Airlines, Inc. | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 29,880 | 17,335 | 45,761 |
American Airlines, Inc. | Passenger | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 26,063 | 14,518 | 42,010 |
American Airlines, Inc. | Passenger | Domestic | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 21,453 | 11,765 | 30,881 |
American Airlines, Inc. | Passenger | Latin America | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 3,506 | 1,852 | 5,047 |
American Airlines, Inc. | Passenger | Atlantic | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | 965 | 654 | 4,624 |
American Airlines, Inc. | Passenger | Pacific | |||
Airline Destination Disclosure [Line Items] | |||
Operating revenues | $ 139 | $ 247 | $ 1,458 |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies - Significant Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | $ 15,222 | $ 13,952 |
Loyalty program liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 9,135 | 9,195 |
Air traffic liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 6,087 | 4,757 |
American Airlines, Inc. | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 15,222 | 13,952 |
American Airlines, Inc. | Loyalty program liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | 9,135 | 9,195 |
American Airlines, Inc. | Air traffic liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract balances, liability | $ 6,087 | $ 4,757 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies - Changes in Loyalty Program Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 13,952 | |
Ending balance | 15,222 | |
Loyalty program liability | ||
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 9,195 | |
Deferral of revenue | 2,161 | |
Recognition of revenue | (2,221) | |
Ending balance | $ 9,135 | |
Inactive period before expiration of mileage credits | 18 months | |
Customer liabilities | $ 2,896 | $ 2,033 |
American Airlines, Inc. | ||
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 13,952 | |
Ending balance | 15,222 | |
American Airlines, Inc. | Loyalty program liability | ||
Movement In Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | 9,195 | |
Deferral of revenue | 2,161 | |
Recognition of revenue | (2,221) | |
Ending balance | $ 9,135 | |
Inactive period before expiration of mileage credits | 18 months | |
Customer liabilities | $ 2,896 | $ 2,033 |
Basis of Presentation and Su_12
Basis of Presentation and Summary of Significant Accounting Policies - Regional Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Regional Expenses [Line Items] | |||
Depreciation and amortization | $ 2,019 | $ 2,040 | $ 1,982 |
Aircraft rent | $ 1,425 | 1,341 | 1,326 |
Republic Holdings | |||
Regional Expenses [Line Items] | |||
Ownership interest | 25.00% | ||
Regional Carrier | |||
Regional Expenses [Line Items] | |||
Depreciation and amortization | $ 316 | 325 | 336 |
Aircraft rent | 6 | 13 | 29 |
Regional Carrier | Republic | |||
Regional Expenses [Line Items] | |||
Capacity purchases from third-party regional carriers | 495 | 438 | 590 |
American Airlines, Inc. | |||
Regional Expenses [Line Items] | |||
Depreciation and amortization | 2,019 | 2,040 | 1,982 |
Aircraft rent | $ 1,425 | 1,341 | 1,326 |
American Airlines, Inc. | Republic Holdings | |||
Regional Expenses [Line Items] | |||
Ownership interest | 25.00% | ||
American Airlines, Inc. | Regional Carrier | |||
Regional Expenses [Line Items] | |||
Depreciation and amortization | $ 263 | 273 | 286 |
Aircraft rent | 6 | 13 | 29 |
American Airlines, Inc. | Regional Carrier | Republic | |||
Regional Expenses [Line Items] | |||
Capacity purchases from third-party regional carriers | $ 495 | $ 438 | $ 590 |
Special Items, Net (Details)
Special Items, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Operating special items, net | $ (4,455) | $ (966) | $ 641 |
Mark-to-market adjustments on equity and other investments, net | 31 | 135 | (5) |
Debt refinancing, extinguishment and other, net | 29 | 35 | 8 |
Nonoperating special items, net | 60 | 170 | 3 |
Fleet equipment impairment and inventory write-down | 1,500 | ||
Operating lease, impairment loss | 109 | ||
Payments for restructuring, salary and medical costs | 520 | 365 | |
American Airlines, Inc. | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating special items, net | (4,518) | (995) | 635 |
Mark-to-market adjustments on equity and other investments, net | 31 | 135 | (5) |
Debt refinancing, extinguishment and other, net | 29 | 35 | 16 |
Nonoperating special items, net | 60 | 170 | 11 |
Fleet equipment impairment and inventory write-down | 1,500 | ||
Operating lease, impairment loss | 109 | ||
Payments for restructuring, salary and medical costs | 365 | ||
Mainline | |||
Restructuring Cost and Reserve [Line Items] | |||
Payroll Support Program Grant | (4,162) | (3,710) | 0 |
Severance expenses | 168 | 1,408 | 11 |
Litigation reserve adjustments | (19) | 0 | (53) |
Mark-to-market adjustments on bankruptcy obligations, net | (3) | (49) | (11) |
Fleet impairment | 0 | 1,484 | 213 |
Labor contract expenses | 0 | 228 | 0 |
Fleet restructuring expenses | 0 | 0 | 271 |
Merger integration expenses | 0 | 0 | 191 |
Other operating special items, net | 10 | (18) | 13 |
Operating special items, net | (4,006) | (657) | 635 |
Mainline | American Airlines, Inc. | |||
Restructuring Cost and Reserve [Line Items] | |||
Payroll Support Program Grant | (4,162) | (3,710) | 0 |
Severance expenses | 168 | 1,408 | 11 |
Litigation reserve adjustments | (19) | 0 | (53) |
Mark-to-market adjustments on bankruptcy obligations, net | (3) | (49) | (11) |
Fleet impairment | 0 | 1,484 | 213 |
Labor contract expenses | 0 | 228 | 0 |
Fleet restructuring expenses | 0 | 0 | 271 |
Merger integration expenses | 0 | 0 | 191 |
Other operating special items, net | 10 | (18) | 13 |
Operating special items, net | (4,006) | (657) | 635 |
Regional Carrier | |||
Restructuring Cost and Reserve [Line Items] | |||
Payroll Support Program Grant | (539) | (444) | 0 |
Severance expenses | 2 | 18 | 0 |
Fleet impairment | 27 | 117 | 0 |
Other operating special items, net | 0 | 0 | 6 |
Operating special items, net | (449) | (309) | 6 |
Regional pilot retention program | 61 | 0 | 0 |
Regional Carrier | American Airlines, Inc. | |||
Restructuring Cost and Reserve [Line Items] | |||
Payroll Support Program Grant | (539) | (444) | 0 |
Fleet impairment | 27 | 106 | 0 |
Operating special items, net | $ (512) | $ (338) | $ 0 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic EPS: | |||
Net income (loss) | $ (1,993) | $ (8,885) | $ 1,686 |
Weighted average common shares outstanding (in shares) | 644,015 | 483,888 | 443,363 |
Basic EPS (in dollars per share) | $ (3.09) | $ (18.36) | $ 3.80 |
Diluted EPS: | |||
Net income (loss) for purposes of computing diluted EPS | $ (1,993) | $ (8,885) | $ 1,686 |
Share computation for diluted EPS: | |||
Basic weighted average common shares outstanding (in shares) | 644,015 | 483,888 | 443,363 |
Dilutive effect of stock awards (in shares) | 0 | 0 | 906 |
Diluted weighted average common shares outstanding (in shares) | 644,015 | 483,888 | 444,269 |
Diluted EPS (in dollars per share) | $ (3.09) | $ (18.36) | $ 3.79 |
6.50% convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 61,728 | 31,882 | 0 |
Warrant | PSP1 Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 5,392 | 349 | 0 |
Warrant | PSP2 Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,300 | 0 | 0 |
Restricted stock unit awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 3,420 | 4,584 | 2,520 |
Treasury Loan Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,681 | 107 | 0 |
Debt - Components of Long-Term
Debt - Components of Long-Term Debt (Details) - USD ($) | Dec. 31, 2021 | Mar. 24, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 37,781,000,000 | $ 32,770,000,000 | |
Less: Total unamortized debt discount, premium and issuance costs | 458,000,000 | 749,000,000 | |
Less: Current maturities | 2,315,000,000 | 2,697,000,000 | |
Long-term debt, net of current maturities | 35,008,000,000 | 29,324,000,000 | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 31,785,000,000 | 28,755,000,000 | |
Secured Debt | 2013 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,770,000,000 | 1,788,000,000 | |
Variable interest rate | 1.85% | ||
Secured Debt | 2013 Credit Facilities | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 750,000,000 | |
Long-term debt, net of current maturities | 0 | ||
Secured Debt | 2014 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,208,000,000 | 1,220,000,000 | |
Variable interest rate | 1.85% | ||
Secured Debt | 2014 Credit Facilities | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 1,643,000,000 | |
Long-term debt, net of current maturities | 0 | ||
Secured Debt | April 2016 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 0 | 960,000,000 | |
Secured Debt | April 2016 Credit Facilities | 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 | $ 1,188,000,000 | 1,200,000,000 | |
Variable interest rate | 2.11% | ||
Secured Debt | December 2016 Credit Facilities | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, net of current maturities | $ 1,188,000,000 | ||
Secured Debt | Senior Notes 11.75% Due 2025 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 2,500,000,000 | 2,500,000,000 | |
Fixed interest rate per annum | 11.75% | ||
Secured Debt | Senior Secured IP Notes 10.75% Due 2026 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Fixed interest rate per annum | 10.75% | ||
Secured Debt | Senior Secured LGA/DCA Notes 10.75% | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 200,000,000 | 200,000,000 | |
Fixed interest rate per annum | 10.75% | ||
Secured Debt | Treasury Term Loan Facility | 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 | |
Fixed interest rate per annum | 5.50% | ||
Secured Debt | 5.75% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,000,000,000 | 0 | |
Fixed interest rate per annum | 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 | $ 9,357,000,000 | 11,013,000,000 | |
Average interest rate | 3.84% | ||
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 2.88% | ||
Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 8.39% | ||
Secured Debt | Equipment Loans and Other Notes Payable | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,433,000,000 | 4,417,000,000 | |
Average interest rate | 1.82% | ||
Secured Debt | Equipment Loans and Other Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 1.27% | ||
Secured Debt | Equipment Loans and Other Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 4.64% | ||
Secured Debt | Special Facility Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,129,000,000 | 1,064,000,000 | |
Secured Debt | Special Facility Revenue Bonds | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 2.25% | ||
Secured Debt | Special Facility Revenue Bonds | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 5.38% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 5,996,000,000 | 4,015,000,000 | |
Unsecured Debt | PSP1 Promissory Note | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 1,765,000,000 | 1,765,000,000 | |
Unsecured Debt | PSP2 Promissory Note | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 1,035,000,000 | 0 | |
Unsecured Debt | PSP3 Promissory Note | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 946,000,000 | 0 | |
Unsecured Debt | Senior Notes 6.50% Due 2025 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Fixed interest rate per annum | 6.50% | ||
Unsecured Debt | Senior Notes 5.000% Due 2022 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 750,000,000 | 750,000,000 | |
Fixed interest rate per annum | 5.00% | ||
Unsecured Debt | Senior Notes 3.75% Matures 2025 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 500,000,000 | 500,000,000 | |
Fixed interest rate per annum | 3.75% | ||
American Airlines, Inc. | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 31,785,000,000 | ||
Less: Total unamortized debt discount, premium and issuance costs | 428,000,000 | 321,000,000 | |
Less: Current maturities | 1,568,000,000 | 2,700,000,000 | |
Long-term debt, net of current maturities | 29,789,000,000 | 25,710,000,000 | |
American Airlines, Inc. | Secured Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 31,785,000,000 | 28,731,000,000 | |
American Airlines, Inc. | Secured Debt | 2013 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,770,000,000 | 1,788,000,000 | |
Variable interest rate | 1.85% | ||
American Airlines, Inc. | Secured Debt | 2013 Credit Facilities | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 750,000,000 | |
American Airlines, Inc. | Secured Debt | 2014 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,208,000,000 | 1,220,000,000 | |
Variable interest rate | 1.85% | ||
American Airlines, Inc. | Secured Debt | 2014 Credit Facilities | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 1,643,000,000 | |
American Airlines, Inc. | Secured Debt | April 2016 Credit Facilities | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 0 | 960,000,000 | |
American Airlines, Inc. | Secured Debt | April 2016 Credit Facilities | 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 | $ 1,188,000,000 | 1,200,000,000 | |
Variable interest rate | 2.11% | ||
American Airlines, Inc. | Secured Debt | Senior Notes 11.75% Due 2025 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 2,500,000,000 | 2,500,000,000 | |
Fixed interest rate per annum | 11.75% | ||
American Airlines, Inc. | Secured Debt | Senior Secured IP Notes 10.75% Due 2026 | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Fixed interest rate per annum | 10.75% | ||
American Airlines, Inc. | Secured Debt | Senior Secured LGA/DCA Notes 10.75% | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 200,000,000 | 200,000,000 | |
Fixed interest rate per annum | 10.75% | ||
American Airlines, Inc. | Secured Debt | Treasury Term Loan Facility | 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 | |
Fixed interest rate per annum | 5.50% | ||
American Airlines, Inc. | Secured Debt | 5.75% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,000,000,000 | 0 | |
Fixed interest rate per annum | 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 | $ 9,357,000,000 | 11,013,000,000 | |
Average interest rate | 3.84% | ||
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 2.88% | ||
American Airlines, Inc. | Secured Debt | Enhanced Equipment Trust Certificates (EETC) | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 8.39% | ||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,433,000,000 | 4,417,000,000 | |
Average interest rate | 1.82% | ||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 1.27% | ||
American Airlines, Inc. | Secured Debt | Equipment Loans and Other Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 4.64% | ||
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 1,129,000,000 | $ 1,040,000,000 | |
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 2.25% | ||
American Airlines, Inc. | Secured Debt | Special Facility Revenue Bonds | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 5.38% | ||
American Airlines, Inc. | Unsecured Debt | Senior Notes 6.50% Due 2025 | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 6.50% | ||
American Airlines, Inc. | Unsecured Debt | Senior Notes 3.75% Matures 2025 | |||
Debt Instrument [Line Items] | |||
Fixed interest rate per annum | 3.75% |
Debt - Summary of Availability
Debt - Summary of Availability under Revolving Credit Facilities (Details) - USD ($) | Jan. 02, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | $ 3,411,000,000 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 2,800,000,000 | |
Revolving Credit Facility | 2013 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 750,000,000 | |
Revolving Credit Facility | 2014 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | |
Revolving Credit Facility | April 2016 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 450,000,000 | |
Revolving Credit Facility | Short-term Revolving and Other Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 568,000,000 | |
American Airlines, Inc. | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 3,411,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | 2013 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 750,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | 2014 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 1,643,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | April 2016 Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 450,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | Short-term Revolving and Other Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 568,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | Other Short-term Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 500,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | Other Short-term Revolving Facility | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | $ 150,000,000 | |
American Airlines, Inc. | Revolving Credit Facility | Cargo Receivable Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, remaining borrowing capacity | $ 68,000,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of Long-term Debt [Abstract] | ||
2022 | $ 2,387 | |
2023 | 4,167 | |
2024 | 3,467 | |
2025 | 9,249 | |
2026 | 4,412 | |
2027 and thereafter | 14,099 | |
Total | 37,781 | $ 32,770 |
American Airlines, Inc. | ||
Maturities of Long-term Debt [Abstract] | ||
2022 | 1,637 | |
2023 | 4,167 | |
2024 | 3,467 | |
2025 | 7,749 | |
2026 | 4,412 | |
2027 and thereafter | 10,353 | |
Total | $ 31,785 |
Debt - 2013, 2014 and 2016 Cred
Debt - 2013, 2014 and 2016 Credit Facilities (Details) - USD ($) | Jul. 22, 2021 | Mar. 31, 2021 | Jan. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2020 | Apr. 30, 2020 | Nov. 30, 2019 | Oct. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||
Principal outstanding or drawn | $ 35,008,000,000 | $ 29,324,000,000 | ||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum aggregate liquidity required under debt covenant | $ 2,000,000,000 | |||||||||
2013 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility undrawn fee percentage | 0.63% | |||||||||
Revolving Credit Facility | 2013 Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 750,000,000 | |||||||||
Revolving Credit Facility | 2013 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |||||||||
Principal outstanding or drawn | $ 0 | |||||||||
Revolving Credit Facility | 2013 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.00% | |||||||||
Revolving Credit Facility | 2014 Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | 1,600,000,000 | |||||||||
Revolving Credit Facility | 2014 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,643,000,000 | |||||||||
Principal outstanding or drawn | $ 0 | |||||||||
Revolving Credit Facility | 2014 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.00% | |||||||||
Revolving Credit Facility | December 2016 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||||||||
Principal outstanding or drawn | $ 1,188,000,000 | |||||||||
Revolving Credit Facility | December 2016 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.00% | |||||||||
Term Loan Facility | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Annual installment repayment, percent or original principal balance | 1.00% | |||||||||
Term Loan Facility | 2013 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal issued | $ 1,919,000,000 | |||||||||
Principal outstanding or drawn | $ 1,770,000,000 | |||||||||
Term Loan Facility | 2013 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Term Loan Facility | 2014 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal issued | $ 1,280,000,000 | |||||||||
Principal outstanding or drawn | $ 1,208,000,000 | |||||||||
Term Loan Facility | 2014 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Term Loan Facility | April 2016 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal issued | $ 450,000,000 | |||||||||
Principal outstanding or drawn | $ 0 | |||||||||
Term Loan Facility | April 2016 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.00% | |||||||||
Letter of Credit | 2013 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||||||||
Letter of Credit | 2014 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 200,000,000 | |||||||||
American Airlines, Inc. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal outstanding or drawn | 29,789,000,000 | $ 25,710,000,000 | ||||||||
American Airlines, Inc. | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum aggregate liquidity required under debt covenant | $ 2,000,000,000 | |||||||||
American Airlines, Inc. | Spare Parts Credit Facility April 2016 | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 950,000,000 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility undrawn fee percentage | 0.63% | |||||||||
American Airlines, Inc. | Revolving Credit Facility | 2013 Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | 750,000,000 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | 2013 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 1,000,000,000 | ||||||||
American Airlines, Inc. | Revolving Credit Facility | 2013 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |||||||||
Basis spread on variable rate | 2.00% | |||||||||
Principal outstanding or drawn | $ 0 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | 2014 Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | 1,600,000,000 | |||||||||
Long-term line of credit | $ 0 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | 2014 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,200,000,000 | 1,600,000,000 | 1,500,000,000 | |||||||
Long-term line of credit | 0 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | 2014 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,643,000,000 | |||||||||
Basis spread on variable rate | 1.75% | 2.00% | 2.00% | 2.00% | ||||||
Floor interest rate | 0.00% | 0.00% | ||||||||
Principal outstanding or drawn | $ 0 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | 2014 Credit Facilities | Secured Debt | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.75% | 1.00% | 1.00% | |||||||
American Airlines, Inc. | Revolving Credit Facility | April 2016 Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 450,000,000 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | April 2016 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 450,000,000 | $ 300,000,000 | ||||||||
Long-term line of credit | $ 0 | |||||||||
American Airlines, Inc. | Revolving Credit Facility | April 2016 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||||||||
Basis spread on variable rate | 2.00% | |||||||||
Principal outstanding or drawn | $ 1,188,000,000 | |||||||||
American Airlines, Inc. | Term Loan Facility | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Annual installment repayment, percent or original principal balance | 1.00% | |||||||||
American Airlines, Inc. | Term Loan Facility | 2013 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Aggregate principal issued | $ 1,919,000,000 | |||||||||
Principal outstanding or drawn | $ 1,770,000,000 | |||||||||
American Airlines, Inc. | Term Loan Facility | 2014 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Aggregate principal issued | $ 1,280,000,000 | |||||||||
Principal outstanding or drawn | $ 1,208,000,000 | |||||||||
American Airlines, Inc. | Term Loan Facility | April 2016 Credit Facilities | Secured Debt | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.00% | |||||||||
Aggregate principal issued | $ 450,000,000 | |||||||||
Principal outstanding or drawn | 0 | |||||||||
American Airlines, Inc. | Letter of Credit | 2013 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 100,000,000 | |||||||||
American Airlines, Inc. | Letter of Credit | 2014 Credit Facilities | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 |
Debt - 11.75% Secured Senior No
Debt - 11.75% Secured Senior Notes (Details) - American Airlines, Inc. - Senior Notes 11.75% Due 2025 - Senior Notes | 1 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($) | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Fixed interest rate per annum | 11.75% | |
Aggregate principal issued | $ 2,500,000,000 | |
Long term debt, price, percentage of par value | 99.00% | |
Redemption price percentage | 100.00% | |
Debt instrument, covenant, debt service coverage ratio | 1.6 | |
Additional Special Interest required to pay (in percentage) | 0.020 | |
Debt Instrument, Redemption Period, In the Event of Specified Change of Control | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 101.00% |
Debt - 10.75% Senior Secured No
Debt - 10.75% Senior Secured Notes (Details) - American Airlines, Inc. | Sep. 25, 2020USD ($) |
10.75% Senior Secured Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Fixed interest rate per annum | 10.75% |
Debt instrument, alternative interest rate | 0.1200 |
Covenant term, minimum unrestricted cash and cash equivalents | $ 2,000,000,000 |
10.75% Senior Secured Notes | Senior Notes | Debt Instrument, Redemption, Period One | |
Debt Instrument [Line Items] | |
Redemption price percentage | 100.00% |
10.75% Senior Secured Notes | Senior Notes | Debt Instrument, Redemption, Period Two | |
Debt Instrument [Line Items] | |
Redemption price percentage | 105.375% |
10.75% Senior Secured Notes | Senior Notes | Debt Instrument, Redemption, Period Three | |
Debt Instrument [Line Items] | |
Redemption price percentage | 101.00% |
Senior Secured IP Notes 10.75% Due 2026 | Payment in Kind (PIK) Note | |
Debt Instrument [Line Items] | |
Aggregate principal issued | $ 1,000,000,000 |
Debt instrument, conditional additional borrowing capacity | 4,000,000,000 |
Senior Secured LGA/DCA Notes 10.75% | Payment in Kind (PIK) Note | |
Debt Instrument [Line Items] | |
Aggregate principal issued | $ 200,000,000 |
Debt - Treasury Loan Agreement
Debt - Treasury Loan Agreement (Details) - American Airlines, Inc. - Line of Credit - Treasury Term Loan Facility - USD ($) | Mar. 24, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Oct. 21, 2020 | Sep. 25, 2020 |
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 7,500,000,000 | $ 7,500,000,000 | $ 5,500,000,000 | ||
Proceeds from lines of credit | $ 550,000,000 | ||||
Repayments of debt | $ 550,000,000 |
Debt - AAdvantage Financing (De
Debt - AAdvantage Financing (Details) - USD ($) | Jul. 20, 2026 | Jul. 31, 2023 | Jul. 20, 2023 | Dec. 31, 2021 | Mar. 24, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 37,781,000,000 | $ 32,770,000,000 | ||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | 31,785,000,000 | 28,755,000,000 | ||||
5.50% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal issued | $ 3,500,000,000 | $ 3,500,000,000 | ||||
Fixed interest rate per annum | 5.50% | 5.50% | ||||
5.50% Senior Notes | Senior Notes | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Periodic Payment | $ 292,000,000 | |||||
5.50% Senior Notes | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate per annum | 5.50% | |||||
Total long-term debt | $ 3,500,000,000 | 0 | ||||
5.75% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal issued | $ 3,000,000,000 | $ 3,000,000,000 | ||||
Fixed interest rate per annum | 5.75% | 5.75% | ||||
5.75% Senior Notes | Senior Notes | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Periodic Payment | $ 250,000,000 | |||||
5.75% Senior Notes | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate per annum | 5.75% | |||||
Total long-term debt | $ 3,000,000,000 | 0 | ||||
AAdvantage Term Loan Facility | Senior Notes | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Periodic Payment | $ 175,000,000 | |||||
AAdvantage Term Loan Facility | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 3,500,000,000 | $ 3,500,000,000 | $ 0 | |||
Redemption price percentage | 100.00% | |||||
Variable interest rate | 5.50% | |||||
Mandatory prepayment amount, threshold net proceeds from pre-paid frequent flyer | 505,000,000 | |||||
Threshold net proceeds from pre-paid frequent flyer | $ 550,000,000 | |||||
Cash receipts deposited in collection account | 0.90 | |||||
Minimum liquidity | $ 2,000,000,000 | |||||
AAdvantage Term Loan Facility | Secured Debt | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 0.75% | |||||
AAdvantage Term Loan Facility | Secured Debt | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.75% |
Debt - EETCs (Details)
Debt - EETCs (Details) - American Airlines, Inc. - Enhanced Equipment Trust Certificates (EETC) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Nov. 30, 2021USD ($)aircraft | |
Debt Instrument [Line Items] | ||
Proceeds held in escrow from issuance of debt | $ 866 | |
Enhanced Equipment Trust Certificates 2021-1 | ||
Debt Instrument [Line Items] | ||
Aggregate principal issued | $ 960 | |
Number of aircraft financed by debt issuance | aircraft | 26 | |
Repayments of long-term debt | $ 94 | |
Number of aircrafts financed through repurchased debt | aircraft | 5 |
Debt - EETCs - Certain Informat
Debt - EETCs - Certain Information (Details) - American Airlines, Inc. - Enhanced Equipment Trust Certificates (EETC) | Dec. 31, 2021USD ($) |
2021-1 EETC - Series A | |
Debt Instrument [Line Items] | |
Aggregate principal issued | $ 758,000,000 |
Remaining escrowed proceeds | $ 684,000,000 |
Fixed interest rate per annum | 2.875% |
2021-1 EETC - Series B | |
Debt Instrument [Line Items] | |
Aggregate principal issued | $ 202,000,000 |
Remaining escrowed proceeds | $ 182,000,000 |
Fixed interest rate per annum | 3.95% |
Debt - Special Facility Revenue
Debt - Special Facility Revenue Bonds (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 12,190 | $ 11,780 | $ 3,960 | |||
Payments of debt issuance costs | 209 | 93 | 61 | |||
2020 JFK Bonds and 2021 JFK Bonds | Secured Debt | Restricted Cash and Short-term Investment | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | 236 | |||||
2021 JFK Bonds | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal issued | $ 150 | |||||
Proceeds from issuance of long-term debt | 150 | |||||
Payments of debt issuance costs | 4 | |||||
2021 JFK Bonds, 2.25% Matures 2026 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal issued | $ 70 | |||||
Fixed interest rate per annum | 2.25% | |||||
2021 JFK Bonds, 3.00% Matures 2031 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal issued | $ 80 | |||||
Fixed interest rate per annum | 3.00% | |||||
2016 JFK Bonds And 2020 JFK Bonds | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 62 | |||||
JFK Airport Upgrade | ||||||
Debt Instrument [Line Items] | ||||||
Construction project, expected Cost | $ 439 | |||||
JFK Airport Upgrade | 2020 JFK Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Construction project, expected cost, funded by special facility revenue bond | $ 298 | |||||
JFK Airport Upgrade | 2021 JFK Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Construction project, expected cost, funded by special facility revenue bond | $ 84 | |||||
American Airlines, Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | 10,209 | 8,959 | 3,210 | |||
Payments of debt issuance costs | $ 207 | $ 85 | $ 52 | |||
American Airlines, Inc. | JFK Airport Upgrade | ||||||
Debt Instrument [Line Items] | ||||||
Construction project, expected Cost | $ 439 |
Debt - PSP Promissory Note (Det
Debt - PSP Promissory Note (Details) - USD ($) $ in Millions | Apr. 23, 2021 | Jan. 15, 2021 | Apr. 20, 2020 | Dec. 31, 2021 |
PSP1 Promissory Note | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal issued | $ 1,800 | $ 1,800 | ||
Number of days within the occurrence of triggering event | 30 days | |||
PSP1 Promissory Note | Interest Rate First Five Years | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate per annum | 1.00% | |||
PSP1 Promissory Note | Interest Rate Years Six Through Ten | Secured Overnight Financing Rate or Other | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Floor interest rate | 0.00% | |||
PSP2 Promissory Note | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal issued | $ 1,000 | 1,000 | ||
Number of days within the occurrence of triggering event | 30 days | |||
PSP2 Promissory Note | Interest Rate First Five Years | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate per annum | 1.00% | |||
PSP2 Promissory Note | Interest Rate Years Six Through Ten | Secured Overnight Financing Rate or Other | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Floor interest rate | 0.00% | |||
PSP3 Promissory Note | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal issued | $ 946 | |||
Number of days within the occurrence of triggering event | 30 days | |||
PSP3 Promissory Note | Interest Rate First Five Years | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate per annum | 1.00% | |||
PSP3 Promissory Note | Interest Rate Years Six Through Ten | Secured Overnight Financing Rate or Other | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Floor interest rate | 0.00% |
Debt - 6.50% Convertible Senior
Debt - 6.50% Convertible Senior Notes (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2021USD ($)day | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2021USD ($) | |
Debt Instrument [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 12,190,000,000 | $ 11,780,000,000 | $ 3,960,000,000 | ||
Interest expense | $ 1,800,000,000 | $ 1,227,000,000 | $ 1,095,000,000 | ||
Senior Notes 6.50% Due 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate per annum | 6.50% | ||||
Aggregate principal issued | $ 1,000,000,000 | ||||
Proceeds from issuance of long-term debt | $ 970,000,000 | ||||
Long term debt, price, percentage of par value | 100.00% | ||||
Debt instrument, conversion ratio | 0.0617284 | ||||
Conversion price | $ / shares | $ 16.20 | ||||
Convertible debt, conversion terms, percentage of sales price exceeding conversion price | 130.00% | ||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Redemption price percentage | 100.00% | ||||
Debt instrument, percent of holders can declare debt due and payable | 25.00% | ||||
Reduction of debt discount | $ 22,000,000 | ||||
Effective interest rate percentage | 7.00% | 20.00% | |||
Interest expense | $ 70,000,000 | ||||
Amortization of debt discount | 5,000,000 | ||||
Interest expense | 65,000,000 | ||||
Debt instrument, convertible, if-converted value in excess of principal | $ 114,000,000 | ||||
Senior Notes 6.50% Due 2025 | Senior Notes | Debt Conversion, Circumstance One | |||||
Debt Instrument [Line Items] | |||||
Convertible debt, conversion terms, percentage of sales price exceeding conversion price | 130.00% | ||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Senior Notes 6.50% Due 2025 | Senior Notes | Debt Conversion, Circumstance Two | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 5 | ||||
Threshold consecutive trading days | day | 10 | ||||
Convertible debt, conversion terms, measurement period trading price threshold percentage | 98.00% | ||||
Senior Notes 6.50% Due 2025 | Senior Notes | Cumulative Effect, Period of Adoption, Adjustment | |||||
Debt Instrument [Line Items] | |||||
Reduction of debt discount | $ (389,000,000) |
Debt - Unsecured Senior Notes (
Debt - Unsecured Senior Notes (Details) - Unsecured Debt - USD ($) | 1 Months Ended | |
May 31, 2019 | Dec. 31, 2021 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 101.00% | |
Senior Notes 5.000% Due 2022 | ||
Debt Instrument [Line Items] | ||
Fixed interest rate per annum | 5.00% | |
Aggregate principal issued | $ 750,000,000 | |
Senior Notes 3.75% Matures 2025 | ||
Debt Instrument [Line Items] | ||
Fixed interest rate per annum | 3.75% | |
Aggregate principal issued | $ 500,000,000 |
Debt - Guarantees (Details)
Debt - Guarantees (Details) | Dec. 31, 2021USD ($) |
Secured Debt | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 19,800,000,000 |
Secured Debt | Special Facility Revenue Bonds | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 1,100,000,000 |
Unsecured Debt | Senior Notes 6.50% Due 2025 | |
Debt Instrument [Line Items] | |
Fixed interest rate per annum | 6.50% |
Unsecured Debt | Senior Notes 5.000% Due 2022 | |
Debt Instrument [Line Items] | |
Fixed interest rate per annum | 5.00% |
Unsecured Debt | Senior Notes 3.75% Matures 2025 | |
Debt Instrument [Line Items] | |
Fixed interest rate per annum | 3.75% |
American Airlines, Inc. | Unsecured Debt | PSP1 Promissory Note | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 1,800,000,000 |
American Airlines, Inc. | Unsecured Debt | PSP2 Promissory Note | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 1,000,000,000 |
American Airlines, Inc. | Unsecured Debt | PSP3 Promissory Note | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 946,000,000 |
American Airlines, Inc. | Unsecured Debt | Senior Notes 6.50% Due 2025 | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 1,000,000,000 |
Fixed interest rate per annum | 6.50% |
American Airlines, Inc. | Unsecured Debt | Senior Notes 5.000% Due 2022 | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 750,000,000 |
American Airlines, Inc. | Unsecured Debt | Senior Notes 3.75% Matures 2025 | |
Debt Instrument [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 500,000,000 |
Fixed interest rate per annum | 3.75% |
Debt - Collateral-Related Coven
Debt - Collateral-Related Covenants (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Covenant terms, minimum aggregate liquidity required | $ 2,000,000,000 |
Secured Debt | |
Debt Instrument [Line Items] | |
LTV Multiplier | 1.6 |
Maximum LTV | 62.50% |
American Airlines, Inc. | Secured Debt | |
Debt Instrument [Line Items] | |
LTV Multiplier | 1.6 |
Maximum LTV | 62.50% |
American Airlines, Inc. | Secured Debt | 2013 Credit Facilities | |
Debt Instrument [Line Items] | |
LTV as of Last Measurement Date | 38.40% |
American Airlines, Inc. | Secured Debt | 2014 Credit Facilities | |
Debt Instrument [Line Items] | |
LTV as of Last Measurement Date | 18.00% |
American Airlines, Inc. | Secured Debt | December 2016 Credit Facilities | |
Debt Instrument [Line Items] | |
LTV as of Last Measurement Date | 53.50% |
American Airlines, Inc. | Secured Debt | 10.75% Senior Secured Notes | |
Debt Instrument [Line Items] | |
LTV as of Last Measurement Date | 53.50% |
American Airlines, Inc. | Secured Debt | 11.75% Senior Secured Notes | |
Debt Instrument [Line Items] | |
LTV as of Last Measurement Date | 33.50% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)aircraft | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of leased aircraft | aircraft | 696 | ||
Operating lease cost | $ 2,012 | $ 1,957 | $ 2,027 |
Operating lease, impairment loss | 109 | ||
Operating lease commitments that have not yet commenced | $ 1,800 | ||
Operating lease commitments that have not yet commenced, number of aircraft | aircraft | 18 | ||
Operating lease commitments that have not yet commenced, lease term | 10 years | ||
Republic Holdings | |||
Lessee, Lease, Description [Line Items] | |||
Ownership interest | 25.00% | ||
Republic | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 190 | 172 | 236 |
American Airlines, Inc. | |||
Lessee, Lease, Description [Line Items] | |||
Number of leased aircraft | aircraft | 696 | ||
Operating lease cost | $ 1,998 | 1,943 | 2,012 |
Operating lease, impairment loss | 109 | ||
Operating lease commitments that have not yet commenced | $ 1,800 | ||
Operating lease commitments that have not yet commenced, number of aircraft | aircraft | 18 | ||
Operating lease commitments that have not yet commenced, lease term | 10 years | ||
American Airlines, Inc. | Republic Holdings | |||
Lessee, Lease, Description [Line Items] | |||
Ownership interest | 25.00% | ||
American Airlines, Inc. | Republic | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 190 | $ 172 | $ 236 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms | 1 year | ||
Minimum | American Airlines, Inc. | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms | 12 years | ||
Maximum | American Airlines, Inc. | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms | 12 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 2,012 | $ 1,957 | $ 2,027 |
Finance lease cost: | |||
Amortization of assets | 107 | 92 | 79 |
Interest on lease liabilities | 44 | 38 | 43 |
Variable lease cost | 2,471 | 1,801 | 2,558 |
Total net lease cost | 4,634 | 3,888 | 4,707 |
American Airlines, Inc. | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 1,998 | 1,943 | 2,012 |
Finance lease cost: | |||
Amortization of assets | 107 | 92 | 79 |
Interest on lease liabilities | 44 | 38 | 43 |
Variable lease cost | 2,461 | 1,786 | 2,542 |
Total net lease cost | $ 4,610 | $ 3,859 | $ 4,676 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Operating lease ROU assets | $ 7,850 | $ 8,039 |
Current operating lease liabilities | 1,507 | 1,651 |
Noncurrent operating lease liabilities | 6,610 | 6,777 |
Total operating lease liabilities | 8,117 | 8,428 |
Finance leases: | ||
Property and equipment, at cost | 1,201 | 1,021 |
Accumulated amortization | (653) | (539) |
Property and equipment, net | 548 | 482 |
Current finance lease liabilities | 174 | 100 |
Noncurrent finance lease liabilities | 563 | 472 |
Total finance lease liabilities | $ 737 | $ 572 |
Weighted average remaining lease term: | ||
Operating leases | 7 years 7 months 6 days | 7 years 4 months 24 days |
Finance leases | 4 years 7 months 6 days | 5 years 4 months 24 days |
Weighted average discount rate: | ||
Operating leases | 6.30% | 5.60% |
Finance leases | 6.10% | 6.30% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total property and equipment, net | Total property and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term debt and finance leases | Current maturities of long-term debt and finance leases |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt and Lease Obligation | Long-term Debt and Lease Obligation |
American Airlines, Inc. | ||
Operating leases: | ||
Operating lease ROU assets | $ 7,810 | $ 7,994 |
Current operating lease liabilities | 1,496 | 1,641 |
Noncurrent operating lease liabilities | 6,578 | 6,739 |
Total operating lease liabilities | 8,074 | 8,380 |
Finance leases: | ||
Property and equipment, at cost | 1,201 | 1,021 |
Accumulated amortization | (653) | (539) |
Property and equipment, net | 548 | 482 |
Current finance lease liabilities | 174 | 100 |
Noncurrent finance lease liabilities | 563 | 472 |
Total finance lease liabilities | $ 737 | $ 572 |
Weighted average remaining lease term: | ||
Operating leases | 7 years 7 months 6 days | 7 years 4 months 24 days |
Finance leases | 4 years 7 months 6 days | 5 years 4 months 24 days |
Weighted average discount rate: | ||
Operating leases | 6.20% | 5.60% |
Finance leases | 6.10% | 6.30% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total property and equipment, net | Total property and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term debt and finance leases | Current maturities of long-term debt and finance leases |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt and Lease Obligation | Long-term Debt and Lease Obligation |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 2,053 | $ 2,028 | $ 2,013 |
Operating cash flows from finance leases | 37 | 39 | 43 |
Financing cash flows from finance leases | 126 | 114 | 83 |
Non-cash transactions: | |||
ROU assets acquired through operating leases | 1,386 | 917 | 1,145 |
Property and equipment acquired through finance leases | 180 | 11 | 20 |
Operating lease conversion to finance lease | 102 | 5 | 41 |
Gain on sale leaseback transactions, net | 25 | 107 | 107 |
American Airlines, Inc. | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 2,040 | 2,015 | 1,996 |
Operating cash flows from finance leases | 37 | 39 | 43 |
Financing cash flows from finance leases | 126 | 114 | 83 |
Non-cash transactions: | |||
ROU assets acquired through operating leases | 1,381 | 898 | 1,144 |
Property and equipment acquired through finance leases | 180 | 11 | 20 |
Operating lease conversion to finance lease | 102 | 5 | 41 |
Gain on sale leaseback transactions, net | $ 25 | $ 107 | $ 107 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 1,929 | |
2023 | 1,791 | |
2024 | 1,410 | |
2025 | 1,039 | |
2026 | 762 | |
2027 and thereafter | 3,614 | |
Total lease payments | 10,545 | |
Less: Imputed interest | (2,428) | |
Total operating lease liabilities | 8,117 | $ 8,428 |
Less: Current obligations | (1,507) | (1,651) |
Long-term lease obligations | 6,610 | 6,777 |
Finance Leases | ||
2022 | 215 | |
2023 | 183 | |
2024 | 180 | |
2025 | 113 | |
2026 | 87 | |
2027 and thereafter | 77 | |
Total lease payments | 855 | |
Less: Imputed interest | (118) | |
Total finance lease liabilities | 737 | 572 |
Less: Current obligations | (174) | (100) |
Long-term lease obligations | 563 | 472 |
American Airlines, Inc. | ||
Operating Leases | ||
2022 | 1,912 | |
2023 | 1,777 | |
2024 | 1,398 | |
2025 | 1,032 | |
2026 | 757 | |
2027 and thereafter | 3,600 | |
Total lease payments | 10,476 | |
Less: Imputed interest | (2,402) | |
Total operating lease liabilities | 8,074 | 8,380 |
Less: Current obligations | (1,496) | (1,641) |
Long-term lease obligations | 6,578 | 6,739 |
Finance Leases | ||
2022 | 215 | |
2023 | 183 | |
2024 | 180 | |
2025 | 113 | |
2026 | 87 | |
2027 and thereafter | 77 | |
Total lease payments | 855 | |
Less: Imputed interest | (118) | |
Total finance lease liabilities | 737 | 572 |
Less: Current obligations | (174) | (100) |
Long-term lease obligations | $ 563 | $ 472 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax provision: | |||
State and Local | $ 0 | $ 0 | $ 2 |
Foreign | 0 | 0 | 8 |
Current income tax provision | 0 | 0 | 10 |
Deferred income tax provision (benefit): | |||
Federal | (508) | (2,335) | 498 |
State and Local | (47) | (233) | 62 |
Deferred income tax provision (benefit) | (555) | (2,568) | 560 |
Total income tax provision (benefit) | (555) | (2,568) | 570 |
American Airlines, Inc. | |||
Current income tax provision: | |||
State and Local | 0 | 0 | 2 |
Foreign | 0 | 0 | 8 |
Current income tax provision | 0 | 0 | 10 |
Deferred income tax provision (benefit): | |||
Federal | (453) | (2,224) | 567 |
State and Local | (47) | (229) | 56 |
Deferred income tax provision (benefit) | (500) | (2,453) | 623 |
Total income tax provision (benefit) | $ (500) | $ (2,453) | $ 633 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | |||
Statutory income tax provision (benefit) | $ (535) | $ (2,405) | $ 474 |
State income tax provision (benefit), net of federal tax effect | (37) | (183) | 47 |
Book expenses not deductible for tax purposes | 23 | 22 | 31 |
Foreign income taxes, net of federal tax effect | 0 | 0 | 8 |
Change in valuation allowance | 0 | 0 | 4 |
Other, net | (6) | (2) | 6 |
Total income tax provision (benefit) | (555) | (2,568) | 570 |
American Airlines, Inc. | |||
Income Tax Disclosure [Line Items] | |||
Statutory income tax provision (benefit) | (478) | (2,290) | 547 |
State income tax provision (benefit), net of federal tax effect | (37) | (181) | 41 |
Book expenses not deductible for tax purposes | 21 | 20 | 29 |
Foreign income taxes, net of federal tax effect | 0 | 0 | 8 |
Change in valuation allowance | 0 | 0 | 5 |
Other, net | (6) | (2) | 3 |
Total income tax provision (benefit) | $ (500) | $ (2,453) | $ 633 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Operating loss and other carryforwards | $ 4,612 | $ 4,027 |
Loyalty program liability | 1,903 | 1,977 |
Leases | 1,833 | 1,913 |
Pensions | 941 | 1,405 |
Postretirement benefits other than pensions | 214 | 203 |
Rent expense | 92 | 96 |
Reorganization items | 24 | 28 |
Other | 760 | 847 |
Total deferred tax assets | 10,379 | 10,496 |
Valuation allowance | (34) | (34) |
Net deferred tax assets | 10,345 | 10,462 |
Deferred tax liabilities: | ||
Accelerated depreciation and amortization | (4,747) | (5,028) |
Leases | (1,767) | (1,818) |
Other | (284) | (386) |
Total deferred tax liabilities | (6,798) | (7,232) |
Net deferred tax asset | 3,547 | 3,230 |
American Airlines, Inc. | ||
Deferred tax assets: | ||
Operating loss and other carryforwards | 4,476 | 3,944 |
Loyalty program liability | 1,903 | 1,977 |
Leases | 1,822 | 1,904 |
Pensions | 934 | 1,397 |
Postretirement benefits other than pensions | 215 | 203 |
Rent expense | 92 | 96 |
Reorganization items | 24 | 28 |
Other | 710 | 796 |
Total deferred tax assets | 10,176 | 10,345 |
Valuation allowance | (24) | (24) |
Net deferred tax assets | 10,152 | 10,321 |
Deferred tax liabilities: | ||
Accelerated depreciation and amortization | (4,715) | (4,992) |
Leases | (1,758) | (1,809) |
Other | (279) | (294) |
Total deferred tax liabilities | (6,752) | (7,095) |
Net deferred tax asset | $ 3,400 | $ 3,226 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Other carryforwards | $ 3,000 | ||
Income tax provision (benefit) | $ (555) | $ (2,568) | $ 570 |
Income tax expense, effective rate | 22.00% | ||
Federal | |||
Income Taxes [Line Items] | |||
Gross NOL carryforwards | $ 17,200 | ||
Operating loss carryforwards and other carryforwards, subject to expiration | 6,900 | ||
Operating loss carryforwards and other carryforwards, not subject to expiration | 13,300 | ||
State | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, subject to expiration | 6,000 | ||
American Airlines, Inc. | |||
Income Taxes [Line Items] | |||
Other carryforwards | 2,400 | ||
Income tax provision (benefit) | $ (500) | $ (2,453) | $ 633 |
Income tax expense, effective rate | 22.00% | ||
American Airlines, Inc. | Federal | |||
Income Taxes [Line Items] | |||
Gross NOL carryforwards | $ 17,100 | ||
Operating loss carryforwards and other carryforwards, subject to expiration | 7,300 | ||
Operating loss carryforwards and other carryforwards, not subject to expiration | 12,200 | ||
American Airlines, Inc. | State | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, subject to expiration | $ 6,000 |
Risk Management (Details)
Risk Management (Details) $ in Billions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Principal amount of long-term variable rate debt | $ 10.9 |
Variable Rate Debt | |
Debt Instrument [Line Items] | |
Weighted average effective interest rate on variable rate debt | 3.00% |
American Airlines, Inc. | |
Debt Instrument [Line Items] | |
Principal amount of long-term variable rate debt | $ 10.9 |
American Airlines, Inc. | Variable Rate Debt | |
Debt Instrument [Line Items] | |
Weighted average effective interest rate on variable rate debt | 3.00% |
Fair Value Measurements and O_3
Fair Value Measurements and Other Investments - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 12,158 | $ 6,619 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,158 | 6,619 |
Restricted cash and short-term investments | 990 | 609 |
Long-term investments | 239 | 161 |
Total | 13,387 | 7,389 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 108 | 247 |
Restricted cash and short-term investments | 654 | 448 |
Long-term investments | 239 | 161 |
Total | 1,001 | 856 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,050 | 6,372 |
Restricted cash and short-term investments | 336 | 161 |
Long-term investments | 0 | 0 |
Total | 12,386 | 6,533 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Restricted cash and short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total | 0 | 0 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 108 | 247 |
Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 108 | 247 |
Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,665 | 3,449 |
Recurring | Corporate obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Corporate obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,665 | 3,449 |
Recurring | Corporate obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Bank notes/certificates of deposit/time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,195 | 2,168 |
Recurring | Bank notes/certificates of deposit/time deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Bank notes/certificates of deposit/time deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,195 | 2,168 |
Recurring | Bank notes/certificates of deposit/time deposits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,190 | 755 |
Recurring | Repurchase agreements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Recurring | Repurchase agreements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,190 | 755 |
Recurring | Repurchase agreements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
American Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,155 | 6,617 |
American Airlines, Inc. | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,155 | 6,617 |
Restricted cash and short-term investments | 990 | 609 |
Long-term investments | 239 | 161 |
Total | 13,384 | 7,387 |
American Airlines, Inc. | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 106 | 245 |
Restricted cash and short-term investments | 654 | 448 |
Long-term investments | 239 | 161 |
Total | 999 | 854 |
American Airlines, Inc. | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,049 | 6,372 |
Restricted cash and short-term investments | 336 | 161 |
Long-term investments | 0 | 0 |
Total | 12,385 | 6,533 |
American Airlines, Inc. | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Restricted cash and short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total | 0 | 0 |
American Airlines, Inc. | Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 106 | 245 |
American Airlines, Inc. | Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 106 | 245 |
American Airlines, Inc. | Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
American Airlines, Inc. | Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
American Airlines, Inc. | Recurring | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,665 | |
American Airlines, Inc. | Recurring | Corporate obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Corporate obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,665 | |
American Airlines, Inc. | Recurring | Corporate obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
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 | 2,194 | |
American Airlines, Inc. | Recurring | Bank notes/certificates of deposit/time deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Bank notes/certificates of deposit/time deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,194 | |
American Airlines, Inc. | Recurring | Bank notes/certificates of deposit/time deposits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
American Airlines, Inc. | Recurring | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,190 | 755 |
American Airlines, Inc. | Recurring | Repurchase agreements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
American Airlines, Inc. | Recurring | Repurchase agreements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,190 | 755 |
American Airlines, Inc. | Recurring | Repurchase agreements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | $ 0 |
Fair Value Measurements and O_4
Fair Value Measurements and Other Investments - Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 3,700 | $ 2,300 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 37,323 | 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 | 38,567 | 30,454 |
Fair Value | Level 2 | Convertible Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 1,400 | 1,200 |
American Airlines, Inc. | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 550 | |
American Airlines, Inc. | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 31,357 | 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 | $ 32,999 | $ 27,193 |
Fair Value Measurements and O_5
Fair Value Measurements and Other Investments - Other Investments (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)aircraft$ / sharesshares | Dec. 31, 2021USD ($)aircraft$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities incurred to acquire equity securities | $ 88 | $ 0 | $ 0 | ||
China Southern Airlines | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 0.018 | 0.018 | 0.027 | ||
Equity method investment, initial aggregate value | $ 203 | ||||
Vertical | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 0.054 | 0.054 | |||
Equity method investment, initial aggregate value | $ 113 | $ 113 | |||
Payments to acquire equity method investments | $ 25 | ||||
Equity method investment, number of shares acquired from investee (in shares) | shares | 11,250 | ||||
Liabilities incurred to acquire equity securities | $ 88 | ||||
Number of aircraft agreed to pre-order | aircraft | 250 | ||||
Purchase option, additional number of aircraft which can be ordered | aircraft | 100 | ||||
Number of warrants to be issued in installments (in shares) | shares | 1,750 | 1,750 | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Threshold number of aircraft to be purchased per legally binding commitment | aircraft | 50 | 50 | |||
Aggregated number of warrants to be issued (in shares) | shares | 8,750 | 8,750 | |||
American Airlines, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities incurred to acquire equity securities | $ 88 | $ 0 | $ 0 | ||
American Airlines, Inc. | China Southern Airlines | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 0.018 | 0.018 | 0.027 | ||
Equity method investment, initial aggregate value | $ 203 | ||||
American Airlines, Inc. | Vertical | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 0.054 | 0.054 | |||
Equity method investment, initial aggregate value | $ 113 | $ 113 | |||
Payments to acquire equity method investments | $ 25 | ||||
Equity method investment, number of shares acquired from investee (in shares) | shares | 11,250 | ||||
Liabilities incurred to acquire equity securities | $ 88 | ||||
Number of aircraft agreed to pre-order | aircraft | 250 | ||||
Purchase option, additional number of aircraft which can be ordered | aircraft | 100 | ||||
Number of warrants to be issued in installments (in shares) | shares | 1,750 | 1,750 | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Threshold number of aircraft to be purchased per legally binding commitment | aircraft | 50 | 50 | |||
Aggregated number of warrants to be issued (in shares) | shares | 8,750 | 8,750 | |||
Republic | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 25.00% | 25.00% | |||
Republic | American Airlines, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 25.00% | 25.00% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Increase (decrease) for plan amendment | $ (313) | $ (1,900) | |
Average remaining life expectancy of retirees | 13 years | ||
Defined benefit plan, prior service cost remines to be amortized | $ 195 | ||
American Airlines, Inc. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase (decrease) for plan amendment | (313) | $ (1,900) | |
Average remaining life expectancy of retirees | 13 years | ||
Defined benefit plan, prior service cost remines to be amortized | $ 195 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | |
Reconciliation of benefit obligation: | |||||
Plan amendments | $ (313) | $ (1,900) | |||
Pension Benefits | |||||
Reconciliation of benefit obligation: | |||||
Benefit obligation at beginning of period | $ 19,812 | 18,358 | |||
Service cost | 4 | 2 | $ 2 | ||
Interest cost | 526 | 615 | 703 | ||
Actuarial (gain) loss | (609) | 1,613 | |||
Special termination benefits | 0 | 0 | 0 | ||
Plan amendments | 0 | 0 | |||
Settlements | (1) | (36) | |||
Benefit payments | (822) | (740) | |||
Benefit obligation at end of period | $ 18,910 | 18,910 | 19,812 | 18,358 | |
Retiree Medical and Other Postretirement Benefits | |||||
Reconciliation of benefit obligation: | |||||
Benefit obligation at beginning of period | 1,046 | 824 | |||
Service cost | 12 | 8 | 3 | ||
Interest cost | 30 | 30 | 33 | ||
Actuarial (gain) loss | (57) | 46 | |||
Special termination benefits | 139 | 410 | 0 | ||
Plan amendments | 0 | (195) | |||
Settlements | 0 | 0 | |||
Benefit payments | (72) | (77) | |||
Benefit obligation at end of period | 1,098 | 1,098 | 1,046 | 824 | |
American Airlines, Inc. | |||||
Reconciliation of benefit obligation: | |||||
Plan amendments | (313) | $ (1,900) | |||
American Airlines, Inc. | Pension Benefits | |||||
Reconciliation of benefit obligation: | |||||
Benefit obligation at beginning of period | 19,690 | 18,246 | |||
Service cost | 3 | 2 | 2 | ||
Interest cost | 523 | 611 | 699 | ||
Actuarial (gain) loss | (606) | 1,603 | |||
Special termination benefits | 0 | 0 | 0 | ||
Plan amendments | 0 | 0 | |||
Settlements | (1) | (36) | |||
Benefit payments | (818) | (736) | |||
Benefit obligation at end of period | 18,791 | 18,791 | 19,690 | 18,246 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | |||||
Reconciliation of benefit obligation: | |||||
Benefit obligation at beginning of period | 1,046 | 824 | |||
Service cost | 12 | 8 | 3 | ||
Interest cost | 30 | 30 | 33 | ||
Actuarial (gain) loss | (57) | 46 | |||
Special termination benefits | 139 | 410 | 0 | ||
Plan amendments | 0 | (195) | |||
Settlements | 0 | 0 | |||
Benefit payments | (72) | (77) | |||
Benefit obligation at end of period | $ 1,098 | $ 1,098 | $ 1,046 | $ 824 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of period | $ 13,557 | $ 13,557 | $ 12,897 | |
Actual return on plan assets | 1,710 | 1,427 | ||
Employer contributions | 241 | 247 | 9 | |
Settlements | (1) | (36) | ||
Benefit payments | (822) | (740) | ||
Fair value of plan assets at end of period | 14,691 | 13,557 | $ 12,897 | |
Funded status at end of period | (4,219) | (6,255) | ||
Special termination benefits | 0 | 0 | 0 | |
Contributions expected to be deferred under CARES Act | 130 | |||
Retiree Medical and Other Postretirement Benefits | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of period | 170 | 170 | 204 | |
Actual return on plan assets | 21 | 13 | ||
Employer contributions | 48 | 30 | ||
Settlements | 0 | 0 | ||
Benefit payments | (72) | (77) | ||
Fair value of plan assets at end of period | 167 | 170 | 204 | |
Funded status at end of period | (931) | (876) | ||
Special termination benefits | 139 | 410 | 0 | |
Increase in postretirement benefit obligation | 410 | |||
American Airlines, Inc. | Pension Benefits | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of period | 13,477 | 13,477 | 12,829 | |
Actual return on plan assets | 1,700 | 1,414 | ||
Employer contributions | 241 | 247 | 6 | |
Settlements | (1) | (36) | ||
Benefit payments | (818) | (736) | ||
Fair value of plan assets at end of period | 14,605 | 13,477 | 12,829 | |
Funded status at end of period | (4,186) | (6,213) | ||
Special termination benefits | 0 | 0 | 0 | |
Contributions expected to be deferred under CARES Act | 130 | |||
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of period | $ 170 | 170 | 204 | |
Actual return on plan assets | 21 | 13 | ||
Employer contributions | 48 | 30 | ||
Settlements | 0 | 0 | ||
Benefit payments | (72) | (77) | ||
Fair value of plan assets at end of period | 167 | 170 | 204 | |
Funded status at end of period | (931) | (876) | ||
Special termination benefits | $ 139 | 410 | $ 0 | |
Increase in postretirement benefit obligation | $ 410 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liability | $ 5,053 | $ 7,069 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 7 | 7 |
Noncurrent liability | 4,212 | 6,248 |
Total liabilities | 4,219 | 6,255 |
Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 90 | 55 |
Noncurrent liability | 841 | 821 |
Total liabilities | 931 | 876 |
American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liability | 5,020 | 7,027 |
American Airlines, Inc. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 7 | 7 |
Noncurrent liability | 4,179 | 6,206 |
Total liabilities | 4,186 | 6,213 |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 90 | 55 |
Noncurrent liability | 841 | 821 |
Total liabilities | $ 931 | $ 876 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | $ 5,252 | $ 6,700 |
Prior service cost (benefit) | 47 | 75 |
Total accumulated other comprehensive loss (income), pre-tax | 5,299 | 6,775 |
Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | (396) | (358) |
Prior service cost (benefit) | (167) | (181) |
Total accumulated other comprehensive loss (income), pre-tax | (563) | (539) |
American Airlines, Inc. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | 5,241 | 6,679 |
Prior service cost (benefit) | 46 | 75 |
Total accumulated other comprehensive loss (income), pre-tax | 5,287 | 6,754 |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | (396) | (358) |
Prior service cost (benefit) | (167) | (181) |
Total accumulated other comprehensive loss (income), pre-tax | $ (563) | $ (539) |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 18,910 | $ 19,812 |
Accumulated benefit obligation | 18,899 | 19,799 |
Fair value of plan assets | 14,691 | 13,557 |
Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated postretirement benefit obligation | 1,098 | 1,046 |
Fair value of plan assets | 167 | 170 |
American Airlines, Inc. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 18,791 | 19,690 |
Accumulated benefit obligation | 18,782 | 19,678 |
Fair value of plan assets | 14,605 | 13,477 |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated postretirement benefit obligation | 1,098 | 1,046 |
Fair value of plan assets | $ 167 | $ 170 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined benefit plans: | |||
Service cost | $ 4 | $ 2 | $ 2 |
Interest cost | 526 | 615 | 703 |
Expected return on assets | (1,084) | (1,010) | (815) |
Special termination benefits | 0 | 0 | 0 |
Settlements | 0 | 12 | 0 |
Amortization of: | |||
Prior service cost (benefit) | 28 | 30 | 28 |
Unrecognized net loss (gain) | 212 | 164 | 150 |
Net periodic benefit cost (income) | (314) | (187) | 68 |
Retiree Medical and Other Postretirement Benefits | |||
Defined benefit plans: | |||
Service cost | 12 | 8 | 3 |
Interest cost | 30 | 30 | 33 |
Expected return on assets | (12) | (11) | (15) |
Special termination benefits | 139 | 410 | 0 |
Settlements | 0 | 0 | 0 |
Amortization of: | |||
Prior service cost (benefit) | (13) | (135) | (236) |
Unrecognized net loss (gain) | (24) | (24) | (31) |
Net periodic benefit cost (income) | 132 | 278 | (246) |
American Airlines, Inc. | Pension Benefits | |||
Defined benefit plans: | |||
Service cost | 3 | 2 | 2 |
Interest cost | 523 | 611 | 699 |
Expected return on assets | (1,078) | (1,005) | (811) |
Special termination benefits | 0 | 0 | 0 |
Settlements | 0 | 12 | 0 |
Amortization of: | |||
Prior service cost (benefit) | 28 | 29 | 28 |
Unrecognized net loss (gain) | 211 | 164 | 150 |
Net periodic benefit cost (income) | (313) | (187) | 68 |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | |||
Defined benefit plans: | |||
Service cost | 12 | 8 | 3 |
Interest cost | 30 | 30 | 33 |
Expected return on assets | (12) | (11) | (15) |
Special termination benefits | 139 | 410 | 0 |
Settlements | 0 | 0 | |
Amortization of: | |||
Prior service cost (benefit) | (13) | (135) | (236) |
Unrecognized net loss (gain) | (24) | (24) | (31) |
Net periodic benefit cost (income) | $ 132 | $ 278 | $ (246) |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of Assumption Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net periodic benefit cost (income): | |||
Weighted average expected rate of return on plan assets | 8.00% | ||
Pension Benefits | |||
Benefit obligations: | |||
Weighted average discount rate | 3.00% | 2.70% | |
Net periodic benefit cost (income): | |||
Weighted average discount rate | 2.70% | 3.40% | 4.40% |
Weighted average expected rate of return on plan assets | 8.00% | 8.00% | 8.00% |
Retiree Medical and Other Postretirement Benefits | |||
Benefit obligations: | |||
Weighted average discount rate | 2.80% | 2.40% | |
Net periodic benefit cost (income): | |||
Weighted average discount rate | 2.40% | 3.20% | 4.30% |
Weighted average expected rate of return on plan assets | 8.00% | 8.00% | 8.00% |
Weighted average health care cost trend rate assumed for next year | 4.80% | 4.00% | 3.70% |
Weighted average health care cost trend rate assumed thereafter | 3.90% | ||
American Airlines, Inc. | |||
Net periodic benefit cost (income): | |||
Weighted average expected rate of return on plan assets | 8.00% | ||
American Airlines, Inc. | Pension Benefits | |||
Benefit obligations: | |||
Weighted average discount rate | 3.00% | 2.70% | |
Net periodic benefit cost (income): | |||
Weighted average discount rate | 2.70% | 3.40% | 4.40% |
Weighted average expected rate of return on plan assets | 8.00% | 8.00% | 8.00% |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | |||
Benefit obligations: | |||
Weighted average discount rate | 2.80% | 2.40% | |
Net periodic benefit cost (income): | |||
Weighted average discount rate | 2.40% | 3.20% | 4.30% |
Weighted average expected rate of return on plan assets | 8.00% | 8.00% | 8.00% |
Weighted average health care cost trend rate assumed for next year | 4.80% | 4.00% | 3.70% |
Weighted average health care cost trend rate assumed thereafter | 3.90% |
Employee Benefit Plans - Sche_7
Employee Benefit Plans - Schedule of Expected Future Service Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 864 |
2023 | 898 |
2024 | 933 |
2025 | 966 |
2026 | 994 |
2027-2031 | 5,225 |
Retiree Medical and Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 114 |
2023 | 109 |
2024 | 103 |
2025 | 99 |
2026 | 95 |
2027-2031 | 390 |
American Airlines, Inc. | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 860 |
2023 | 893 |
2024 | 928 |
2025 | 961 |
2026 | 989 |
2027-2031 | 5,194 |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 114 |
2023 | 109 |
2024 | 103 |
2025 | 99 |
2026 | 95 |
2027-2031 | $ 390 |
Employee Benefit Plans - Sche_8
Employee Benefit Plans - Schedule of Allocation of Plan Assets (Details) | Dec. 31, 2021 |
Equity | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 45.00% |
Equity | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 80.00% |
U.S. Large | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
U.S. Large | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 40.00% |
U.S. Small/Mid | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 2.00% |
U.S. Small/Mid | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
International | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
International | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 25.00% |
International Small/Mid | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
International Small/Mid | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
Emerging Markets | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 2.00% |
Emerging Markets | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 15.00% |
Alternative Investments | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 5.00% |
Alternative Investments | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 30.00% |
Fixed Income | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 20.00% |
Fixed Income | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 55.00% |
U.S. Long Duration | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 15.00% |
U.S. Long Duration | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 45.00% |
High Yield and Emerging Markets | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
High Yield and Emerging Markets | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
Private Income | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
Private Income | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 15.00% |
Other investments | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
Other investments | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 5.00% |
Cash Equivalents | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
Cash Equivalents | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 20.00% |
American Airlines, Inc. | Equity | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 45.00% |
American Airlines, Inc. | Equity | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 80.00% |
American Airlines, Inc. | U.S. Large | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
American Airlines, Inc. | U.S. Large | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 40.00% |
American Airlines, Inc. | U.S. Small/Mid | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 2.00% |
American Airlines, Inc. | U.S. Small/Mid | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
American Airlines, Inc. | International | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
American Airlines, Inc. | International | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 25.00% |
American Airlines, Inc. | International Small/Mid | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
American Airlines, Inc. | International Small/Mid | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
American Airlines, Inc. | Emerging Markets | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 2.00% |
American Airlines, Inc. | Emerging Markets | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 15.00% |
American Airlines, Inc. | Alternative Investments | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 5.00% |
American Airlines, Inc. | Alternative Investments | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 30.00% |
American Airlines, Inc. | Fixed Income | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 20.00% |
American Airlines, Inc. | Fixed Income | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 55.00% |
American Airlines, Inc. | U.S. Long Duration | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 15.00% |
American Airlines, Inc. | U.S. Long Duration | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 45.00% |
American Airlines, Inc. | High Yield and Emerging Markets | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
American Airlines, Inc. | High Yield and Emerging Markets | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 10.00% |
American Airlines, Inc. | Private Income | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
American Airlines, Inc. | Private Income | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 15.00% |
American Airlines, Inc. | Other investments | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
American Airlines, Inc. | Other investments | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 5.00% |
American Airlines, Inc. | Cash Equivalents | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 0.00% |
American Airlines, Inc. | Cash Equivalents | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Strategic target asset allocation | 20.00% |
Employee Benefit Plans - Sche_9
Employee Benefit Plans - Schedule of Fair Value of Pension Plan Assets by Asset Category (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 58 | $ 17 | $ 12 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,691 | 13,557 | 12,897 |
Pension Benefits | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,691 | 13,557 | |
Pension Benefits | Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,956 | 5,039 | |
Pension Benefits | Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,336 | 4,326 | |
Pension Benefits | Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 17 | |
Pension Benefits | Recurring | Cash and cash equivalents | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76 | 40 | |
Pension Benefits | Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76 | 40 | |
Pension Benefits | Recurring | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | International markets | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,170 | 2,282 | |
Pension Benefits | Recurring | International markets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,166 | 2,282 | |
Pension Benefits | Recurring | International markets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | International markets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 0 | |
Pension Benefits | Recurring | Large-cap companies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,860 | 2,085 | |
Pension Benefits | Recurring | Large-cap companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,860 | 2,085 | |
Pension Benefits | Recurring | Large-cap companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Large-cap companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Mid-cap companies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 449 | 428 | |
Pension Benefits | Recurring | Mid-cap companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 449 | 428 | |
Pension Benefits | Recurring | Mid-cap companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Mid-cap companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Small-cap companies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 86 | 74 | |
Pension Benefits | Recurring | Small-cap companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 73 | |
Pension Benefits | Recurring | Small-cap companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Pension Benefits | Recurring | Small-cap companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Mutual funds/exchange traded funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 263 | 80 | |
Pension Benefits | Recurring | Mutual funds/exchange traded funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 263 | 80 | |
Pension Benefits | Recurring | Mutual funds/exchange traded funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Mutual funds/exchange traded funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Corporate obligations | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,847 | 3,026 | |
Pension Benefits | Recurring | Corporate obligations | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Corporate obligations | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,847 | 3,026 | |
Pension Benefits | Recurring | Corporate obligations | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Government Securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,128 | 1,010 | |
Pension Benefits | Recurring | Government Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Government Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,128 | 1,010 | |
Pension Benefits | Recurring | Government Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | U.S. municipal securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 30 | |
Pension Benefits | Recurring | U.S. municipal securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | U.S. municipal securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 30 | |
Pension Benefits | Recurring | U.S. municipal securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Private Equity Funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52 | 15 | |
Pension Benefits | Recurring | Private Equity Funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Private Equity Funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Private Equity Funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52 | 15 | |
Pension Benefits | Recurring | Private Equity Funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,827 | 1,791 | |
Pension Benefits | Recurring | Common/collective trusts | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 337 | 259 | |
Pension Benefits | Recurring | Common/collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Common/collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 337 | 259 | |
Pension Benefits | Recurring | Common/collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Common/collective trusts and 103-12 Investment Trust measured at net asset value | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,514 | 2,384 | |
Pension Benefits | Recurring | Insurance group annuity contracts | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Pension Benefits | Recurring | Insurance group annuity contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Insurance group annuity contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Insurance group annuity contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Pension Benefits | Recurring | Other investments | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
Pension Benefits | Recurring | Other investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits | Recurring | Other investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
Pension Benefits | Recurring | Other investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Benefits | Recurring | Dividend and interest receivable | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 49 | |
Pension Benefits | Recurring | Dividend and interest receivable | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 49 | |
Pension Benefits | Recurring | Dividend and interest receivable | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Dividend and interest receivable | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Due from brokers for sale of securities – net | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 1 | |
Pension Benefits | Recurring | Due from brokers for sale of securities – net | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 1 | |
Pension Benefits | Recurring | Due from brokers for sale of securities – net | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Due from brokers for sale of securities – net | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Other receivables – net | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
Pension Benefits | Recurring | Other receivables – net | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
Pension Benefits | Recurring | Other receivables – net | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Recurring | Other receivables – net | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 17 | 12 |
American Airlines, Inc. | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,605 | 13,477 | $ 12,829 |
American Airlines, Inc. | Pension Benefits | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,605 | 13,477 | |
American Airlines, Inc. | Pension Benefits | Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,870 | 4,959 | |
American Airlines, Inc. | Pension Benefits | Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,336 | 4,326 | |
American Airlines, Inc. | Pension Benefits | Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 17 | |
American Airlines, Inc. | Pension Benefits | Recurring | Cash and cash equivalents | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76 | 40 | |
American Airlines, Inc. | Pension Benefits | Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76 | 40 | |
American Airlines, Inc. | Pension Benefits | Recurring | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | International markets | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,170 | 2,282 | |
American Airlines, Inc. | Pension Benefits | Recurring | International markets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,166 | 2,282 | |
American Airlines, Inc. | Pension Benefits | Recurring | International markets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | International markets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Large-cap companies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,860 | 2,085 | |
American Airlines, Inc. | Pension Benefits | Recurring | Large-cap companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,860 | 2,085 | |
American Airlines, Inc. | Pension Benefits | Recurring | Large-cap companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Large-cap companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Mid-cap companies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 449 | 428 | |
American Airlines, Inc. | Pension Benefits | Recurring | Mid-cap companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 449 | 428 | |
American Airlines, Inc. | Pension Benefits | Recurring | Mid-cap companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Mid-cap companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Small-cap companies | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 86 | 74 | |
American Airlines, Inc. | Pension Benefits | Recurring | Small-cap companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 73 | |
American Airlines, Inc. | Pension Benefits | Recurring | Small-cap companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
American Airlines, Inc. | Pension Benefits | Recurring | Small-cap companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Mutual funds/exchange traded funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 177 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Mutual funds/exchange traded funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 177 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Mutual funds/exchange traded funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Mutual funds/exchange traded funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Corporate obligations | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,847 | 3,026 | |
American Airlines, Inc. | Pension Benefits | Recurring | Corporate obligations | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Corporate obligations | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,847 | 3,026 | |
American Airlines, Inc. | Pension Benefits | Recurring | Corporate obligations | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Government Securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,128 | 1,010 | |
American Airlines, Inc. | Pension Benefits | Recurring | Government Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Government Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,128 | 1,010 | |
American Airlines, Inc. | Pension Benefits | Recurring | Government Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | U.S. municipal securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 30 | |
American Airlines, Inc. | Pension Benefits | Recurring | U.S. municipal securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | U.S. municipal securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 30 | |
American Airlines, Inc. | Pension Benefits | Recurring | U.S. municipal securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Private Equity Funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52 | 15 | |
American Airlines, Inc. | Pension Benefits | Recurring | Private Equity Funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Private Equity Funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Private Equity Funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52 | 15 | |
American Airlines, Inc. | Pension Benefits | Recurring | Private Equity Funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,827 | 1,791 | |
American Airlines, Inc. | Pension Benefits | Recurring | Common/collective trusts | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 337 | 259 | |
American Airlines, Inc. | Pension Benefits | Recurring | Common/collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Common/collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 337 | 259 | |
American Airlines, Inc. | Pension Benefits | Recurring | Common/collective trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Common/collective trusts and 103-12 Investment Trust measured at net asset value | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,514 | 2,384 | |
American Airlines, Inc. | Pension Benefits | Recurring | Insurance group annuity contracts | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
American Airlines, Inc. | Pension Benefits | Recurring | Insurance group annuity contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Insurance group annuity contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Insurance group annuity contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
American Airlines, Inc. | Pension Benefits | Recurring | Other investments | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Other investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Other investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Other investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
American Airlines, Inc. | Pension Benefits | Recurring | Dividend and interest receivable | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 49 | |
American Airlines, Inc. | Pension Benefits | Recurring | Dividend and interest receivable | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 49 | |
American Airlines, Inc. | Pension Benefits | Recurring | Dividend and interest receivable | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Dividend and interest receivable | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Due from brokers for sale of securities – net | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 1 | |
American Airlines, Inc. | Pension Benefits | Recurring | Due from brokers for sale of securities – net | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 1 | |
American Airlines, Inc. | Pension Benefits | Recurring | Due from brokers for sale of securities – net | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Due from brokers for sale of securities – net | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Other receivables – net | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
American Airlines, Inc. | Pension Benefits | Recurring | Other receivables – net | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 1 | |
American Airlines, Inc. | Pension Benefits | Recurring | Other receivables – net | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Pension Benefits | Recurring | Other receivables – net | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Sch_10
Employee Benefit Plans - Schedule of Fair Value of Pension Plan Assets by Asset Category - Additional Information (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
International markets, United Kingdom | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 14.00% | 10.00% |
International markets, United Kingdom | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 14.00% | 10.00% |
International markets, Ireland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 10.00% | 11.00% |
International markets, Ireland | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 10.00% | 11.00% |
International markets, Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 10.00% | 8.00% |
International markets, Japan | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 10.00% | 8.00% |
International markets, Switzerland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 9.00% | 11.00% |
International markets, Switzerland | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 9.00% | 11.00% |
International markets, France | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 7.00% | 9.00% |
International markets, France | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 7.00% | 9.00% |
International markets, Germany | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | 7.00% |
International markets, Germany | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | 7.00% |
International markets, Netherlands | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | |
International markets, Netherlands | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | |
International markets, emerging markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 12.00% | 13.00% |
International markets, emerging markets | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 12.00% | 13.00% |
International markets, no concentration greater than 5% in any one country | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 32.00% | 25.00% |
International markets, no concentration greater than 5% in any one country | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 32.00% | 25.00% |
Mutual funds/exchange traded funds | U.S. Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 13.00% | 39.00% |
Mutual funds/exchange traded funds | US Treasuries and Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 70.00% | 35.00% |
Mutual funds/exchange traded funds | US Treasuries and Corporate Bonds | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 86.00% | |
Mutual funds/exchange traded funds | International Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 17.00% | 26.00% |
Mutual funds/exchange traded funds | International Companies | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 14.00% | |
Corporate obligations | U.S. Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 86.00% | 89.00% |
Corporate obligations | U.S. Companies | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 86.00% | 89.00% |
Corporate obligations | International Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 12.00% | 9.00% |
Corporate obligations | International Companies | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 12.00% | 9.00% |
Corporate obligations | Corporate Debt with A Standard and Poor's (S&P) Rating Lower than A | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 81.00% | 77.00% |
Corporate obligations | Corporate Debt with A Standard and Poor's (S&P) Rating Lower than A | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 81.00% | 77.00% |
Corporate obligations | Corporate Debt with Standard and Poor's (S&P) Rating A or Higher | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 19.00% | 23.00% |
Corporate obligations | Corporate Debt with Standard and Poor's (S&P) Rating A or Higher | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 19.00% | 23.00% |
Corporate obligations | Emerging Market Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 2.00% | 2.00% |
Corporate obligations | Emerging Market Companies | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 2.00% | 2.00% |
Government securities | Domestic Government Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 94.00% | 89.00% |
Government securities | Domestic Government Securities | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 94.00% | 89.00% |
Government securities | Emerging Market Government Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | 9.00% |
Government securities | Emerging Market Government Securities | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | 9.00% |
Government securities | Other International Government Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 2.00% | |
Government securities | Other International Government Securities | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 2.00% | |
Private Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan master trust future funding commitments | $ 1.6 | $ 1.6 |
Private Equity Funds | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan master trust future funding commitments | $ 1.6 | $ 1.6 |
Private Equity Funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated period of liquidation of underlying assets | 1 year | 1 year |
Private Equity Funds | Minimum | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated period of liquidation of underlying assets | 1 year | 1 year |
Private Equity Funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated period of liquidation of underlying assets | 10 years | 10 years |
Private Equity Funds | Maximum | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated period of liquidation of underlying assets | 10 years | 10 years |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Securities of Larger Companies within US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 31.00% | 34.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Securities of Larger Companies within US | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 31.00% | 34.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Emerging Country | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 29.00% | 30.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Emerging Country | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 29.00% | 30.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Securities of Companies outside US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 22.00% | 21.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Securities of Companies outside US | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 22.00% | 21.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Interest Trust, Short-term Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 11.00% | 9.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Interest Trust, Short-term Securities | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 11.00% | 9.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Securities of Smaller Companies within US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | 5.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Common or Collective Trust, Securities of Smaller Companies within US | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 6.00% | 5.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Canadian Segregated Balanced Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 1.00% | 1.00% |
Common/collective trusts and 103-12 Investment Trust measured at net asset value | Canadian Segregated Balanced Value | American Airlines, Inc. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 1.00% | 1.00% |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Fair Value Measurements of Level 3 Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Level 3 | ||
Change in fair value measurements of level 3 investments | ||
Fair value of plan assets at beginning of period | $ 17 | $ 12 |
Relating to assets still held at the reporting date | 10 | 1 |
Purchases | 32 | 4 |
Sales | (1) | 0 |
Fair value of plan assets at end of period | 58 | 17 |
Pension Benefits | ||
Change in fair value measurements of level 3 investments | ||
Fair value of plan assets at beginning of period | 13,557 | 12,897 |
Fair value of plan assets at end of period | 14,691 | 13,557 |
American Airlines, Inc. | Level 3 | ||
Change in fair value measurements of level 3 investments | ||
Fair value of plan assets at beginning of period | 17 | 12 |
Relating to assets still held at the reporting date | 10 | 1 |
Purchases | 32 | 4 |
Sales | (1) | 0 |
Fair value of plan assets at end of period | 58 | 17 |
American Airlines, Inc. | Pension Benefits | ||
Change in fair value measurements of level 3 investments | ||
Fair value of plan assets at beginning of period | 13,477 | 12,829 |
Fair value of plan assets at end of period | $ 14,605 | $ 13,477 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Values of Retiree Medical and Other Postretirement Benefit Plans Assets by Asset Category (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 58 | $ 17 | $ 12 |
Mutual funds/exchange traded funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 17.00% | 26.00% | |
Retiree Medical and Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 167 | $ 170 | 204 |
Retiree Medical and Other Postretirement Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
Retiree Medical and Other Postretirement Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163 | 166 | |
Retiree Medical and Other Postretirement Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retiree Medical and Other Postretirement Benefits | Money market fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
Retiree Medical and Other Postretirement Benefits | Money market fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
Retiree Medical and Other Postretirement Benefits | Money market fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retiree Medical and Other Postretirement Benefits | Money market fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163 | 166 | |
Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163 | 166 | |
Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
Retiree Medical and Other Postretirement Benefits | Mutual funds/exchange traded funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 24.00% | 25.00% | |
American Airlines, Inc. | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 58 | $ 17 | 12 |
American Airlines, Inc. | Mutual funds/exchange traded funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 14.00% | ||
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 167 | 170 | $ 204 |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163 | 166 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Money market fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Money market fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Money market fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Money market fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163 | 166 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163 | 166 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Mutual funds – AAL Class | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
American Airlines, Inc. | Retiree Medical and Other Postretirement Benefits | Mutual funds/exchange traded funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 24.00% | 25.00% |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution and Multiemployer Plans (Details) - USD ($) $ in Millions | Jun. 14, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 29, 2019 |
Defined Contribution Plan Disclosure [Line Items] | |||||
Contributions to defined contribution benefit plans | $ 920 | $ 860 | $ 860 | ||
American Airlines, Inc. | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Contributions to defined contribution benefit plans | 893 | 835 | 836 | ||
Pension Plan | International Association of Machinists & Aerospace Workers (IAM) National Pension Fund | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Contribution to multiemployer plan by employer, individually significant | 43 | 40 | 32 | ||
Contributions to multiemployer plan by company | $ 494 | ||||
Contributions to multiemployer plan by company, percentage of total contributions to plan (more than) | 5.00% | ||||
Multiemployer plan, funded status percentage (over) | 80.00% | ||||
Rehabilitation plan, percentage increase in company annual contributions | 2.50% | ||||
Pension Plan | International Association of Machinists & Aerospace Workers (IAM) National Pension Fund | American Airlines, Inc. | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Contribution to multiemployer plan by employer, individually significant | $ 43 | $ 40 | $ 32 | ||
Contributions to multiemployer plan by company | $ 494 | ||||
Contributions to multiemployer plan by company, percentage of total contributions to plan (more than) | 5.00% | ||||
Multiemployer plan, funded status percentage (over) | 80.00% | ||||
Rehabilitation plan, percentage increase in company annual contributions | 2.50% |
Employee Benefit Plans - Profit
Employee Benefit Plans - Profit Sharing Program (Details) - Deferred Profit Sharing | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Pre-tax income excluding special items for employee profit sharing, percentage | 5.00% |
American Airlines, Inc. | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Pre-tax income excluding special items for employee profit sharing, percentage | 5.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI tax, attributable to parent [Roll Forward] | |||
Beginning balance, tax | $ (865) | $ (1,091) | |
Other comprehensive income (loss) before reclassifications, tax | (293) | 236 | |
Amounts reclassified from AOCI, tax | (46) | (10) | |
Net current-period other comprehensive income (loss), tax | (339) | 226 | |
Ending balance, tax | (1,204) | (865) | $ (1,091) |
AOCI attributable to parent, net of tax [Roll Forward] | |||
Beginning balance, net of tax | (7,103) | (6,331) | |
Other comprehensive income (loss) before reclassifications, net of tax | 1,004 | (809) | |
Amounts reclassified from AOCI, net of tax | 157 | 37 | |
Total other comprehensive income (loss), net of tax | 1,161 | (772) | (435) |
Ending balance, net of tax | (5,942) | (7,103) | (6,331) |
Pension, Retiree Medical and Other Postretirement Benefits | |||
AOCI attributable to parent, before tax [Roll Forward] | |||
Beginning balance, before tax | (6,236) | (5,238) | |
Other comprehensive income (loss) before reclassifications, before tax | 1,297 | (1,045) | |
Amounts reclassified from AOCI, before tax | 203 | 47 | |
Net current-period other comprehensive income (loss), before tax | 1,500 | (998) | |
Ending balance, before tax | (4,736) | (6,236) | (5,238) |
Unrealized Loss on Investments | |||
AOCI attributable to parent, before tax [Roll Forward] | |||
Beginning balance, before tax | (2) | (2) | |
Other comprehensive income (loss) before reclassifications, before tax | 0 | 0 | |
Amounts reclassified from AOCI, before tax | 0 | 0 | |
Net current-period other comprehensive income (loss), before tax | 0 | 0 | |
Ending balance, before tax | (2) | (2) | (2) |
American Airlines, Inc. | |||
AOCI tax, attributable to parent [Roll Forward] | |||
Beginning balance, tax | (977) | (1,203) | |
Other comprehensive income (loss) before reclassifications, tax | (292) | 236 | |
Amounts reclassified from AOCI, tax | (46) | (10) | |
Net current-period other comprehensive income (loss), tax | (338) | 226 | |
Ending balance, tax | (1,315) | (977) | (1,203) |
AOCI attributable to parent, net of tax [Roll Forward] | |||
Beginning balance, net of tax | (7,194) | (6,423) | |
Other comprehensive income (loss) before reclassifications, net of tax | 997 | (807) | |
Amounts reclassified from AOCI, net of tax | 156 | 36 | |
Total other comprehensive income (loss), net of tax | 1,153 | (771) | (431) |
Ending balance, net of tax | (6,041) | (7,194) | (6,423) |
American Airlines, Inc. | Pension, Retiree Medical and Other Postretirement Benefits | |||
AOCI attributable to parent, before tax [Roll Forward] | |||
Beginning balance, before tax | (6,215) | (5,218) | |
Other comprehensive income (loss) before reclassifications, before tax | 1,289 | (1,043) | |
Amounts reclassified from AOCI, before tax | 202 | 46 | |
Net current-period other comprehensive income (loss), before tax | 1,491 | (997) | |
Ending balance, before tax | (4,724) | (6,215) | (5,218) |
American Airlines, Inc. | Unrealized Loss on Investments | |||
AOCI attributable to parent, before tax [Roll Forward] | |||
Beginning balance, before tax | (2) | (2) | |
Other comprehensive income (loss) before reclassifications, before tax | 0 | 0 | |
Amounts reclassified from AOCI, before tax | 0 | 0 | |
Net current-period other comprehensive income (loss), before tax | 0 | 0 | |
Ending balance, before tax | $ (2) | $ (2) | $ (2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | $ 157 | $ 37 |
Prior service cost (benefit) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 11 | (81) |
Actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 146 | 118 |
American Airlines, Inc. | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 156 | 36 |
American Airlines, Inc. | Prior service cost (benefit) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 11 | (82) |
American Airlines, Inc. | Actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | $ 145 | $ 118 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Aircraft, Engine and Other Purchase Commitments (Details) $ in Millions | Jan. 31, 2022aircraft | Dec. 31, 2021USD ($)aircraft | Dec. 31, 2020USD ($) |
Purchase Obligations | |||
Equipment purchase deposits | $ 517 | $ 1,446 | |
Boeing 737 Max | Subsequent Event | |||
Purchase Obligations | |||
Number of aircraft to be purchased through the conversion of existing purchase option | aircraft | 23 | ||
Number of aircraft to be purchased through exercising of purchase option | aircraft | 7 | ||
Additional number of aircrafts to be purchased | aircraft | 30 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2023 | aircraft | 15 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2024 | aircraft | 15 | ||
B-787-8 | |||
Purchase Obligations | |||
Number of aircraft, deferrable, scheduled to be delivered in 2023 | aircraft | 3 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2022 | aircraft | 10 | ||
B-787-9 | |||
Purchase Obligations | |||
Number of aircraft, deferrable, scheduled to be delivered in 2023 | aircraft | 4 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2024 | aircraft | 1 | ||
Jet Fuel, Facility Construction Projects and Information Technology Support | |||
Unrecorded Unconditional Purchase Obligations | |||
2022 | $ 4,400 | ||
2023 | 1,800 | ||
2024 | 1,400 | ||
2025 | 154 | ||
2026 | 610 | ||
2027 and thereafter | 942 | ||
Aircraft and Engine Purchase Commitments | |||
Purchase Obligations | |||
2022 | 1,987 | ||
2023 | 1,851 | ||
2024 | 3,358 | ||
2025 | 3,535 | ||
2026 | 1,663 | ||
2027 and Thereafter | 688 | ||
Total | 13,082 | ||
American Airlines, Inc. | |||
Purchase Obligations | |||
Equipment purchase deposits | $ 517 | $ 1,446 | |
American Airlines, Inc. | Boeing 737 Max | Subsequent Event | |||
Purchase Obligations | |||
Number of aircraft to be purchased through the conversion of existing purchase option | aircraft | 23 | ||
Number of aircraft to be purchased through exercising of purchase option | aircraft | 7 | ||
Additional number of aircrafts to be purchased | aircraft | 30 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2023 | aircraft | 15 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2024 | aircraft | 15 | ||
American Airlines, Inc. | B-787-8 | |||
Purchase Obligations | |||
Number of aircraft, deferrable, scheduled to be delivered in 2023 | aircraft | 3 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2022 | aircraft | 10 | ||
American Airlines, Inc. | B-787-9 | |||
Purchase Obligations | |||
Number of aircraft, deferrable, scheduled to be delivered in 2023 | aircraft | 1 | ||
Number of aircraft, deferrable, scheduled to be delivered in 2022 | aircraft | 4 | ||
American Airlines, Inc. | Jet Fuel, Facility Construction Projects and Information Technology Support | |||
Unrecorded Unconditional Purchase Obligations | |||
2022 | $ 4,400 | ||
2023 | 1,800 | ||
2024 | 1,400 | ||
2025 | 154 | ||
2026 | 610 | ||
2027 and thereafter | 942 | ||
American Airlines, Inc. | Aircraft and Engine Purchase Commitments | |||
Purchase Obligations | |||
2022 | 1,987 | ||
2023 | 1,851 | ||
2024 | 3,358 | ||
2025 | 3,535 | ||
2026 | 1,663 | ||
2027 and Thereafter | 688 | ||
Total | $ 13,082 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Capacity Purchase Agreements (Details) - American Airlines, Inc. - Airline Capacity Purchase Arrangements $ in Millions | Dec. 31, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Capacity purchase agreement, percentage of reimbursement for certain variable costs | 100.00% |
2022 | $ 1,495 |
2023 | 1,834 |
2024 | 1,875 |
2025 | 1,729 |
2026 | 1,123 |
2027 and Thereafter | 2,317 |
Total | $ 10,373 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Additional Information (Details) shares in Millions | Dec. 07, 2021shares | Jun. 15, 2018USD ($) | Jun. 30, 2015lawsuit | Dec. 31, 2021USD ($)employeeaircraftengineshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2020USD ($)ft² | Dec. 31, 2018USD ($)lane |
Long-term Purchase Commitment [Line Items] | ||||||||
Airport redevelopment, number of security screening lanes | lane | 10 | |||||||
Payments for terminal upgrade project | $ 204,000,000 | $ 173,000,000 | $ 98,000,000 | |||||
Number of aircraft owned through financing under EETCs | aircraft | 344 | |||||||
Number of aircraft leased through financing under EETCs | aircraft | 11 | |||||||
Number of spare aircraft engines owned through financing under EETCs | engine | 60 | |||||||
Long-term debt | $ 37,781,000,000 | 32,770,000,000 | ||||||
Operating lease liabilities | 8,117,000,000 | 8,428,000,000 | ||||||
Letters of credit outstanding and surety bonds, amount | $ 439,000,000 | |||||||
Capital shares distributed from disputed claims reserve (in shares) | shares | 4.5 | |||||||
Shares reserved for issuance in Disputed Claims Reserve (in shares) | shares | 0.3 | |||||||
Number of putative class action lawsuits | lawsuit | 100 | |||||||
Settlement amount | $ 45,000,000 | |||||||
Number of full-time equivalent employees | employee | 123,400 | |||||||
Percentage of employees covered by collective bargaining agreements with various labor unions | 86.00% | |||||||
Percentage of employees covered by collective bargaining agreements that are currently available | 0.45 | |||||||
JFK Airport Upgrade | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Construction project, expected Cost | $ 439,000,000 | |||||||
Payments for terminal upgrade project | $ 118,000,000 | |||||||
JFK Airport Upgrade, Existing Terminal Building | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Area of real estate property | ft² | 73,300 | |||||||
JFK Airport Upgrade, New Terminal Building | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Area of real estate property | ft² | 51,000 | |||||||
Restricted Cash | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Letters of credit outstanding and surety bonds, amount | 94,000,000 | |||||||
Leasehold Improvements | LAX Modernization Project | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Airport development, amount | $ 1,600,000,000 | |||||||
Airport redevelopment, costs incurred and capitalized | 338,000,000 | |||||||
Airport redevelopment cost incurred in current year | 112,000,000 | 114,000,000 | 98,000,000 | |||||
Non-proprietary improvements sold and transferred | 132,000,000 | |||||||
Non-proprietary improvements sold and transferred in current period | 21,000,000 | |||||||
Proceeds for non-proprietary improvements not yet ready for use | $ 88,000,000 | |||||||
Regional Carrier | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Number of full-time equivalent employees | employee | 26,600 | |||||||
EETC Leveraged Lease Financings | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Operating lease liabilities | $ 20,000,000 | |||||||
Special Facility Revenue Bonds | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Operating lease liabilities | 321,000,000 | |||||||
Guarantor obligations, maximum exposure, undiscounted | 555,000,000 | |||||||
Secured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 31,785,000,000 | 28,755,000,000 | ||||||
Guarantor obligations, maximum exposure, undiscounted | 19,800,000,000 | |||||||
Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 5,996,000,000 | 4,015,000,000 | ||||||
Enhanced Equipment Trust Certificates (EETC) | Secured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 9,357,000,000 | 11,013,000,000 | ||||||
Special Facility Revenue Bonds | Secured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 1,129,000,000 | 1,064,000,000 | ||||||
Guarantor obligations, maximum exposure, undiscounted | 1,100,000,000 | |||||||
PSP1 Promissory Note | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 1,765,000,000 | 1,765,000,000 | ||||||
Senior Notes 5.000% Due 2022 | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | $ 750,000,000 | 750,000,000 | ||||||
Fixed interest rate per annum | 5.00% | |||||||
Senior Notes 3.75% Matures 2025 | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | $ 500,000,000 | 500,000,000 | ||||||
Fixed interest rate per annum | 3.75% | |||||||
Senior Notes 6.50% Due 2025 | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | $ 1,000,000,000 | 1,000,000,000 | ||||||
Fixed interest rate per annum | 6.50% | |||||||
American Airlines, Inc. | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Airport redevelopment, number of security screening lanes | lane | 10 | |||||||
Payments for terminal upgrade project | $ 204,000,000 | 173,000,000 | 98,000,000 | |||||
Number of aircraft owned through financing under EETCs | aircraft | 344 | |||||||
Number of aircraft leased through financing under EETCs | aircraft | 11 | |||||||
Number of spare aircraft engines owned through financing under EETCs | engine | 60 | |||||||
Long-term debt | $ 31,785,000,000 | |||||||
Operating lease liabilities | 8,074,000,000 | 8,380,000,000 | ||||||
Letters of credit outstanding and surety bonds, amount | $ 439,000,000 | |||||||
Capital shares distributed from disputed claims reserve (in shares) | shares | 4.5 | |||||||
Shares reserved for issuance in Disputed Claims Reserve (in shares) | shares | 0.3 | |||||||
Number of putative class action lawsuits | lawsuit | 100 | |||||||
Settlement amount | $ 45,000,000 | |||||||
Number of full-time equivalent employees | employee | 96,800 | |||||||
Percentage of employees covered by collective bargaining agreements with various labor unions | 87.00% | |||||||
Percentage of employees covered by collective bargaining agreements that are currently available | 0.54 | |||||||
American Airlines, Inc. | JFK Airport Upgrade | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Construction project, expected Cost | $ 439,000,000 | |||||||
Payments for terminal upgrade project | $ 118,000,000 | |||||||
American Airlines, Inc. | Leasehold Improvements | LAX Modernization Project | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Airport development, amount | $ 1,600,000,000 | |||||||
Airport redevelopment, costs incurred and capitalized | 338,000,000 | |||||||
Airport redevelopment cost incurred in current year | 112,000,000 | 114,000,000 | $ 98,000,000 | |||||
Non-proprietary improvements sold and transferred | 132,000,000 | |||||||
Non-proprietary improvements sold and transferred in current period | 21,000,000 | |||||||
Proceeds for non-proprietary improvements not yet ready for use | 88,000,000 | |||||||
American Airlines, Inc. | EETC Leveraged Lease Financings | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Operating lease liabilities | 20,000,000 | |||||||
American Airlines, Inc. | Special Facility Revenue Bonds | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Guarantor obligations, maximum exposure, undiscounted | 555,000,000 | |||||||
American Airlines, Inc. | Secured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 31,785,000,000 | 28,731,000,000 | ||||||
American Airlines, Inc. | Enhanced Equipment Trust Certificates (EETC) | Secured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 9,357,000,000 | 11,013,000,000 | ||||||
American Airlines, Inc. | Special Facility Revenue Bonds | Secured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Long-term debt | 1,129,000,000 | $ 1,040,000,000 | ||||||
American Airlines, Inc. | PSP1 Promissory Note | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Guarantor obligations, maximum exposure, undiscounted | 1,800,000,000 | |||||||
American Airlines, Inc. | Senior Notes 5.000% Due 2022 | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Guarantor obligations, maximum exposure, undiscounted | 750,000,000 | |||||||
American Airlines, Inc. | Senior Notes 3.75% Matures 2025 | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Guarantor obligations, maximum exposure, undiscounted | $ 500,000,000 | |||||||
Fixed interest rate per annum | 3.75% | |||||||
American Airlines, Inc. | Senior Notes 6.50% Due 2025 | Unsecured Debt | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Guarantor obligations, maximum exposure, undiscounted | $ 1,000,000,000 | |||||||
Fixed interest rate per annum | 6.50% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-cash investing and financing activities: | |||
Equity investment | $ 88 | $ 0 | $ 0 |
Settlement of bankruptcy obligations | (1) | 56 | 7 |
Deferred financing costs paid through issuance of debt | 0 | 17 | 0 |
Supplemental information: | |||
Interest paid, net | 1,632 | 944 | 1,111 |
Income taxes paid | 3 | 6 | 8 |
American Airlines, Inc. | |||
Non-cash investing and financing activities: | |||
Equity investment | 88 | 0 | 0 |
Settlement of bankruptcy obligations | 4 | 56 | 7 |
Deferred financing costs paid through issuance of debt | 0 | 17 | 0 |
Supplemental information: | |||
Interest paid, net | 1,481 | 877 | 1,025 |
Income taxes paid | $ 2 | $ 6 | $ 8 |
Operating Segments and Relate_2
Operating Segments and Related Disclosures (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
American Airlines, Inc. | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation costs | $ 98 | $ 91 | $ 95 | |
Common stock withheld or sold related to tax obligations (in shares) | 1,000,000 | 700,000 | 800,000 | |
Payment of certain tax withholding obligations associated with employee equity awards | $ 18 | $ 15 | $ 25 | |
AAG Incentive Award Plan 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for grant (in shares) | 40,000,000 | |||
American Airlines, Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation costs | $ 95 | $ 91 | $ 95 | |
Common stock withheld or sold related to tax obligations (in shares) | 1,000,000 | 700,000 | 800,000 | |
Payment of certain tax withholding obligations associated with employee equity awards | $ 18 | $ 15 | $ 25 | |
American Airlines, Inc. | AAG Incentive Award Plan 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for grant (in shares) | 40,000,000 |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Unit Awards (Details) - Restricted stock unit awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Number of Shares [Roll Forward] | |||
Number of Shares, Beginning Balance (in shares) | 7,882 | 5,187 | 4,320 |
Number of Shares, Granted (in shares) | 5,525 | 5,883 | 3,206 |
Number of Shares, Vested and released (in shares) | (3,314) | (2,268) | (2,002) |
Number of Shares, Forfeited (in shares) | (692) | (920) | (337) |
Number of Shares, Ending balance (in shares) | 9,401 | 7,882 | 5,187 |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 23.66 | $ 37.01 | $ 44.29 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 18.34 | 22.07 | 34 |
Weighted Average Grant Date Fair Value, Vested and released (in dollars per share) | 25.58 | 39.46 | 44.90 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 18.78 | 29.78 | 42.55 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 20.17 | $ 23.66 | $ 37.01 |
Unrecognized compensation cost | $ 99 | ||
Recognition period | 1 year | ||
Total fair value of stock-settled during the year | $ 62 | $ 51 | $ 68 |
American Airlines, Inc. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Number of Shares [Roll Forward] | |||
Number of Shares, Beginning Balance (in shares) | 7,882 | 5,187 | 4,320 |
Number of Shares, Granted (in shares) | 5,525 | 5,883 | 3,206 |
Number of Shares, Vested and released (in shares) | (3,314) | (2,268) | (2,002) |
Number of Shares, Forfeited (in shares) | (692) | (920) | (337) |
Number of Shares, Ending balance (in shares) | 9,401 | 7,882 | 5,187 |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 23.66 | $ 37.01 | $ 44.29 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 18.34 | 22.07 | 34 |
Weighted Average Grant Date Fair Value, Vested and released (in dollars per share) | 25.58 | 39.46 | 44.90 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 18.78 | 29.78 | 42.55 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 20.17 | $ 23.66 | $ 37.01 |
Unrecognized compensation cost | $ 95 | ||
Recognition period | 1 year | ||
Total fair value of stock-settled during the year | $ 62 | $ 51 | $ 68 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for obsolescence of spare parts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 490 | $ 784 | $ 814 |
Additions Charged to Statement of Operations Accounts | 177 | 100 | 91 |
Deductions | (33) | (394) | (121) |
Balance at End of Year | 634 | 490 | 784 |
Allowance for credit losses on accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 36 | 31 | 29 |
Additions Charged to Statement of Operations Accounts | 22 | 27 | 19 |
Deductions | (24) | (22) | (17) |
Balance at End of Year | 34 | 36 | 31 |
American Airlines, Inc. | Allowance for obsolescence of spare parts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 442 | 729 | 754 |
Additions Charged to Statement of Operations Accounts | 165 | 81 | 79 |
Deductions | (19) | (368) | (104) |
Balance at End of Year | 588 | 442 | 729 |
American Airlines, Inc. | Allowance for credit losses on accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 29 | 25 | 24 |
Additions Charged to Statement of Operations Accounts | 21 | 25 | 17 |
Deductions | (22) | (21) | (16) |
Balance at End of Year | $ 28 | $ 29 | $ 25 |
Transactions with Related Par_3
Transactions with Related Parties - Net Receivables (Payables) to Related Parties (Details) - American Airlines, Inc. - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Receivables from related parties, net | $ 5,547 | $ 7,877 |
AAG | ||
Related Party Transaction [Line Items] | ||
Receivables from related parties, net | 7,613 | 9,940 |
AAG's Wholly-owned Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Receivables from related parties, net | $ (2,066) | $ (2,063) |
Transactions with Related Par_4
Transactions with Related Parties - Additional Information (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
American Airlines, Inc. | Regional Carrier | AAG's Wholly-owned Subsidiaries | Airline Capacity Purchase Arrangements | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expense recognized | $ 2.1 | $ 1.8 | $ 2.2 |
Subsequent Event (Details)
Subsequent Event (Details) - Boeing 737 Max - Subsequent Event | Jan. 31, 2022aircraft |
Subsequent Event [Line Items] | |
Number of aircraft to be purchased through the conversion of existing purchase option | 23 |
Number of aircraft to be purchased through exercising of purchase option | 7 |
Additional number of aircrafts to be purchased | 30 |
Number of aircraft, deferrable, scheduled to be delivered in 2023 | 15 |
Number of aircraft, deferrable, scheduled to be delivered in 2024 | 15 |
American Airlines, Inc. | |
Subsequent Event [Line Items] | |
Number of aircraft to be purchased through the conversion of existing purchase option | 23 |
Number of aircraft to be purchased through exercising of purchase option | 7 |
Additional number of aircrafts to be purchased | 30 |
Number of aircraft, deferrable, scheduled to be delivered in 2023 | 15 |
Number of aircraft, deferrable, scheduled to be delivered in 2024 | 15 |