Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 21, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AAL | |
Entity Registrant Name | American Airlines Group Inc. | |
Entity Central Index Key | 6,201 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 487,009,215 | |
American Airlines, Inc. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | AMERICAN AIRLINES INC | |
Entity Central Index Key | 4,515 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating revenues: | ||||
Mainline passenger | $ 7,747 | $ 7,209 | $ 14,353 | $ 13,773 |
Regional passenger | 1,835 | 1,786 | 3,384 | 3,309 |
Cargo | 196 | 174 | 368 | 336 |
Other | 1,327 | 1,194 | 2,624 | 2,380 |
Total operating revenues | 11,105 | 10,363 | 20,729 | 19,798 |
Operating expenses: | ||||
Aircraft fuel and related taxes | 1,510 | 1,314 | 2,912 | 2,343 |
Salaries, wages and benefits | 3,003 | 2,670 | 5,829 | 5,322 |
Regional expenses | 1,620 | 1,518 | 3,194 | 2,950 |
Maintenance, materials and repairs | 495 | 453 | 987 | 871 |
Other rent and landing fees | 452 | 458 | 892 | 879 |
Aircraft rent | 294 | 302 | 589 | 609 |
Selling expenses | 376 | 334 | 694 | 642 |
Depreciation and amortization | 418 | 374 | 822 | 729 |
Special items, net | 202 | 62 | 320 | 161 |
Other | 1,200 | 1,127 | 2,354 | 2,205 |
Total operating expenses | 9,570 | 8,612 | 18,593 | 16,711 |
Operating income | 1,535 | 1,751 | 2,136 | 3,087 |
Nonoperating income (expense): | ||||
Interest income | 24 | 16 | 45 | 28 |
Interest expense, net | (263) | (249) | (520) | (488) |
Other, net | (5) | (25) | (5) | (17) |
Total nonoperating expense, net | (244) | (258) | (480) | (477) |
Income before income taxes | 1,291 | 1,493 | 1,656 | 2,610 |
Income tax provision | 488 | 543 | 619 | 960 |
Net income | $ 803 | $ 950 | $ 1,037 | $ 1,650 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.64 | $ 1.69 | $ 2.08 | $ 2.82 |
Diluted (in dollars per share) | $ 1.63 | $ 1.68 | $ 2.07 | $ 2.80 |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 490,818 | 563,000 | 497,360 | 584,622 |
Diluted (in shares) | 492,965 | 566,040 | 500,381 | 588,764 |
Cash dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
American Airlines, Inc. [Member] | ||||
Operating revenues: | ||||
Mainline passenger | $ 7,747 | $ 7,209 | $ 14,353 | $ 13,773 |
Regional passenger | 1,835 | 1,786 | 3,384 | 3,309 |
Cargo | 196 | 174 | 368 | 336 |
Other | 1,324 | 1,191 | 2,617 | 2,369 |
Total operating revenues | 11,102 | 10,360 | 20,722 | 19,787 |
Operating expenses: | ||||
Aircraft fuel and related taxes | 1,510 | 1,314 | 2,912 | 2,343 |
Salaries, wages and benefits | 2,999 | 2,668 | 5,823 | 5,318 |
Regional expenses | 1,629 | 1,510 | 3,199 | 2,947 |
Maintenance, materials and repairs | 495 | 453 | 987 | 871 |
Other rent and landing fees | 452 | 458 | 892 | 879 |
Aircraft rent | 294 | 302 | 589 | 609 |
Selling expenses | 376 | 334 | 694 | 642 |
Depreciation and amortization | 418 | 374 | 822 | 729 |
Special items, net | 202 | 62 | 320 | 161 |
Other | 1,200 | 1,128 | 2,354 | 2,208 |
Total operating expenses | 9,575 | 8,603 | 18,592 | 16,707 |
Operating income | 1,527 | 1,757 | 2,130 | 3,080 |
Nonoperating income (expense): | ||||
Interest income | 53 | 25 | 102 | 46 |
Interest expense, net | (246) | (228) | (488) | (445) |
Other, net | (5) | (26) | (5) | (18) |
Total nonoperating expense, net | (198) | (229) | (391) | (417) |
Income before income taxes | 1,329 | 1,528 | 1,739 | 2,663 |
Income tax provision | 502 | 556 | 650 | 980 |
Net income | $ 827 | $ 972 | $ 1,089 | $ 1,683 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 803 | $ 950 | $ 1,037 | $ 1,650 |
Other comprehensive loss, net of tax: | ||||
Pension, retiree medical and other postretirement benefits | (15) | (16) | (29) | (35) |
Investments | 2 | 4 | ||
Total other comprehensive loss, net of tax | (15) | (14) | (29) | (31) |
Total comprehensive income | 788 | 936 | 1,008 | 1,619 |
American Airlines, Inc. [Member] | ||||
Net income | 827 | 972 | 1,089 | 1,683 |
Other comprehensive loss, net of tax: | ||||
Pension, retiree medical and other postretirement benefits | (15) | (16) | (29) | (35) |
Investments | 2 | 4 | ||
Total other comprehensive loss, net of tax | (15) | (14) | (29) | (31) |
Total comprehensive income | $ 812 | $ 958 | $ 1,060 | $ 1,652 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash | $ 386 | $ 322 |
Short-term investments | 6,500 | 6,037 |
Restricted cash and short-term investments | 554 | 638 |
Accounts receivable, net | 1,543 | 1,594 |
Aircraft fuel, spare parts and supplies, net | 1,206 | 1,094 |
Prepaid expenses and other | 827 | 639 |
Total current assets | 11,016 | 10,324 |
Operating property and equipment | ||
Flight equipment | 39,329 | 37,028 |
Ground property and equipment | 7,580 | 7,116 |
Equipment purchase deposits | 1,212 | 1,209 |
Total property and equipment, at cost | 48,121 | 45,353 |
Less accumulated depreciation and amortization | (15,128) | (14,194) |
Total property and equipment, net | 32,993 | 31,159 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $602 and $578, respectively | 2,224 | 2,173 |
Deferred tax asset | 905 | 1,498 |
Other assets | 2,107 | 2,029 |
Total other assets | 9,327 | 9,791 |
Total assets | 53,336 | 51,274 |
Current liabilities | ||
Current maturities of long-term debt and capital leases | 2,334 | 1,855 |
Accounts payable | 1,924 | 1,592 |
Accrued salaries and wages | 1,295 | 1,516 |
Air traffic liability | 5,222 | 3,912 |
Loyalty program liability | 3,014 | 2,789 |
Other accrued liabilities | 2,323 | 2,208 |
Total current liabilities | 16,112 | 13,872 |
Noncurrent liabilities | ||
Long-term debt and capital leases, net of current maturities | 22,525 | 22,489 |
Pension and postretirement benefits | 7,500 | 7,842 |
Other liabilities | 3,484 | 3,286 |
Total noncurrent liabilities | 33,509 | 33,617 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock | 5 | 5 |
Additional paid-in capital | 6,245 | 7,223 |
Accumulated other comprehensive loss | (5,112) | (5,083) |
Retained earnings | 2,577 | 1,640 |
Total stockholders' equity | 3,715 | 3,785 |
Total liabilities and stockholders' equity | 53,336 | 51,274 |
American Airlines, Inc. [Member] | ||
Current assets | ||
Cash | 368 | 310 |
Short-term investments | 6,498 | 6,034 |
Restricted cash and short-term investments | 554 | 638 |
Accounts receivable, net | 1,549 | 1,599 |
Receivables from related parties, net | 8,029 | 6,810 |
Aircraft fuel, spare parts and supplies, net | 1,146 | 1,032 |
Prepaid expenses and other | 817 | 633 |
Total current assets | 18,961 | 17,056 |
Operating property and equipment | ||
Flight equipment | 38,992 | 36,671 |
Ground property and equipment | 7,362 | 6,910 |
Equipment purchase deposits | 1,212 | 1,209 |
Total property and equipment, at cost | 47,566 | 44,790 |
Less accumulated depreciation and amortization | (14,842) | (13,909) |
Total property and equipment, net | 32,724 | 30,881 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $602 and $578, respectively | 2,224 | 2,173 |
Deferred tax asset | 1,287 | 1,912 |
Other assets | 2,040 | 1,979 |
Total other assets | 9,642 | 10,155 |
Total assets | 61,327 | 58,092 |
Current liabilities | ||
Current maturities of long-term debt and capital leases | 1,837 | 1,859 |
Accounts payable | 1,880 | 1,546 |
Accrued salaries and wages | 1,243 | 1,460 |
Air traffic liability | 5,222 | 3,912 |
Loyalty program liability | 3,014 | 2,789 |
Other accrued liabilities | 2,234 | 2,106 |
Total current liabilities | 15,430 | 13,672 |
Noncurrent liabilities | ||
Long-term debt and capital leases, net of current maturities | 21,252 | 20,718 |
Pension and postretirement benefits | 7,458 | 7,800 |
Other liabilities | 3,446 | 3,253 |
Total noncurrent liabilities | 32,156 | 31,771 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock | 0 | 0 |
Additional paid-in capital | 16,655 | 16,624 |
Accumulated other comprehensive loss | (5,211) | (5,182) |
Retained earnings | 2,297 | 1,207 |
Total stockholders' equity | 13,741 | 12,649 |
Total liabilities and stockholders' equity | $ 61,327 | $ 58,092 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accumulated amortization of intangibles | $ 602 | $ 578 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,750,000,000 | 1,750,000,000 |
Common stock, shares issued | 487,661,923 | 507,294,153 |
Common stock, shares outstanding | 487,661,923 | 507,294,153 |
American Airlines, Inc. [Member] | ||
Accumulated amortization of intangibles | $ 602 | $ 578 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Net cash provided by operating activities | $ 3,938 | $ 4,833 |
Cash flows from investing activities: | ||
Capital expenditures and aircraft purchase deposits | (3,194) | (3,063) |
Purchases of short-term investments | (3,829) | (3,605) |
Sales of short-term investments | 3,373 | 2,810 |
Decrease in restricted cash and short-term investments | 84 | 55 |
Proceeds from sale of property and equipment and sale-leaseback transactions | 313 | 32 |
Net cash used in investing activities | (3,253) | (3,771) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,625 | 4,522 |
Payments on long-term debt and capital leases | (1,101) | (2,163) |
Deferred financing costs | (39) | (87) |
Treasury stock repurchases | (1,013) | (3,236) |
Dividend payments | (102) | (119) |
Other financing activities | 9 | 77 |
Net cash provided by (used in) financing activities | (621) | (1,006) |
Net increase in cash | 64 | 56 |
Cash at beginning of period | 322 | 390 |
Cash at end of period | 386 | 446 |
Non-cash investing and financing activities: | ||
Settlement of bankruptcy obligations | 0 | 3 |
Supplemental information: | ||
Interest paid, net | 516 | 479 |
Income taxes paid | 9 | 7 |
American Airlines, Inc. [Member] | ||
Net cash provided by operating activities | 2,787 | 1,449 |
Cash flows from investing activities: | ||
Capital expenditures and aircraft purchase deposits | (3,163) | (3,027) |
Purchases of short-term investments | (3,829) | (3,605) |
Sales of short-term investments | 3,373 | 2,810 |
Decrease in restricted cash and short-term investments | 84 | 55 |
Proceeds from sale of property and equipment and sale-leaseback transactions | 312 | 30 |
Net cash used in investing activities | (3,223) | (3,737) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,625 | 4,522 |
Payments on long-term debt and capital leases | (1,101) | (2,163) |
Deferred financing costs | (39) | (87) |
Other financing activities | 9 | 77 |
Net cash provided by (used in) financing activities | 494 | 2,349 |
Net increase in cash | 58 | 61 |
Cash at beginning of period | 310 | 364 |
Cash at end of period | 368 | 425 |
Non-cash investing and financing activities: | ||
Settlement of bankruptcy obligations | 0 | 3 |
Supplemental information: | ||
Interest paid, net | 468 | 431 |
Income taxes paid | $ 9 | $ 5 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2016. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated. 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. On December 30, 2015, in order to simplify AAG’s internal corporate structure, US Airways, Inc. (US Airways), a wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, valuation allowance for 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. Recent Accounting Pronouncements Revenue In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. We will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. We currently expect to adopt the new revenue standard using the full retrospective method. We are still in the process of evaluating how the adoption of the new revenue standard will impact our condensed consolidated financial statements. We currently expect that the new revenue standard will materially impact our liability for outstanding mileage credits earned by AAdvantage loyalty program members when flying on American. We currently use the incremental cost method to account for this portion of our loyalty program liability, which values these mileage credits based on the estimated incremental cost of carrying one additional passenger. The new revenue standard will require us to change our policy and apply a relative selling price approach whereby a portion of each passenger ticket sale attributable to mileage credits earned will be deferred and recognized in passenger revenue upon future mileage redemption. The carrying value of the earned mileage credits recognized in loyalty program liability is expected to be materially greater under the relative selling price approach than the value attributed to these mileage credits under the incremental cost method. The new revenue standard will also require us to reclassify certain ancillary fees to passenger revenue, which are currently included within other operating revenue. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities are required to adopt the new lease standard using a modified retrospective approach for all leases existing at or commencing after the date of initial application with an option to use certain practical expedients. We are currently evaluating how the adoption of the new lease standard will impact our condensed consolidated financial statements. Interpretations are on-going and could have a material impact on our implementation. Currently, we expect that the adoption of the new lease standard will have a material impact on our condensed consolidated balance sheet due to the recognition of right-of-use assets and lease liabilities principally for certain leases currently accounted for as operating leases. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires that the change in total cash, cash at beginning of period and cash at end of period on the statement of cash flows include restricted cash and restricted cash equivalents. ASU 2016-18 also requires companies who report cash and restricted cash separately on the balance sheet to reconcile those amounts to the statement of cash flows. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. This standard is not expected to have a material impact on our condensed consolidated financial statements. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 requires an entity to present the service cost component of net benefit cost in the income statement line items where it reports compensation cost. Entities will present all other components of net benefit cost outside of operating income, if this subtotal is presented. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We will adopt this standard on January 1, 2018. The new standard will require all components of our net periodic benefit cost (income), with the exception of service cost, currently reported within operating expenses as salaries, wages and benefits, to be reclassified and reported within nonoperating income (expense). The adoption of this new standard will have no impact on pre-tax income or net income reported. See Note 8 for our current components of net periodic benefit cost (income). |
American Airlines, Inc. [Member] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2016. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated. 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. On December 30, 2015, in order to simplify AAG’s internal corporate structure, US Airways, Inc. (US Airways), a wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, valuation allowance for 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. Recent Accounting Pronouncements Revenue In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. American will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. American currently expects to adopt the new revenue standard using the full retrospective method. American is still in the process of evaluating how the adoption of the new revenue standard will impact its condensed consolidated financial statements. American currently expects that the new revenue standard will materially impact its liability for outstanding mileage credits earned by AAdvantage loyalty program members when flying on American. American currently uses the incremental cost method to account for this portion of its loyalty program liability, which values these mileage credits based on the estimated incremental cost of carrying one additional passenger. The new revenue standard will require American to change its policy and apply a relative selling price approach whereby a portion of each passenger ticket sale attributable to mileage credits earned will be deferred and recognized in passenger revenue upon future mileage redemption. The carrying value of the earned mileage credits recognized in loyalty program liability is expected to be materially greater under the relative selling price approach than the value attributed to these mileage credits under the incremental cost method. The new revenue standard will also require American to reclassify certain ancillary fees to passenger revenue, which are currently included within other operating revenue. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities are required to adopt the new lease standard using a modified retrospective approach for all leases existing at or commencing after the date of initial application with an option to use certain practical expedients. American is currently evaluating how the adoption of the new lease standard will impact its condensed consolidated financial statements. Interpretations are on-going and could have a material impact on American’s implementation. Currently, American expects that the adoption of the new lease standard will have a material impact on its condensed consolidated balance sheet due to the recognition of right-of-use assets and lease liabilities principally for certain leases currently accounted for as operating leases. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires that the change in total cash, cash at beginning of period and cash at end of period on the statement of cash flows include restricted cash and restricted cash equivalents. ASU 2016-18 also requires companies who report cash and restricted cash separately on the balance sheet to reconcile those amounts to the statement of cash flows. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. This standard is not expected to have a material impact on American’s condensed consolidated financial statements. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 requires an entity to present the service cost component of net benefit cost in the income statement line items where it reports compensation cost. Entities will present all other components of net benefit cost outside of operating income, if this subtotal is presented. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. American will adopt this standard on January 1, 2018. The new standard will require all components of American’s net periodic benefit cost (income), with the exception of service cost, currently reported within operating expenses as salaries, wages and benefits, to be reclassified and reported within nonoperating income (expense). The adoption of this new standard will have no impact on pre-tax income or net income reported. See Note 6 for American’s current components of net periodic benefit cost (income). |
Special Items, Net
Special Items, Net | 6 Months Ended |
Jun. 30, 2017 | |
Special Items, Net | 2. Special Items, Net Special items, net on the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Merger integration expenses (1) $ 68 $ 97 $ 130 $ 201 Fleet restructuring expenses (2) 48 15 111 41 Mark-to-market adjustments for bankruptcy obligations and other 38 (56 ) 20 (61) Labor contract expenses (3) 45 — 45 — Other operating charges (credits), net 3 6 14 (20 ) Mainline operating special items, net 202 62 320 161 Regional operating special items, net (4) 1 3 4 8 Nonoperating special items, net (5) 2 36 7 36 (1) Merger integration expenses included costs related to information technology, professional fees, re-branding of aircraft and airport facilities and training. Additionally, the 2016 periods also included costs related to alignment of labor union contracts, re-branded uniforms, relocation and severance. (2) Fleet restructuring expenses driven by the Merger principally included the acceleration of aircraft depreciation and impairments for aircraft grounded or expected to be grounded earlier than planned. (3) Labor contract expenses primarily included one-time charges to adjust the vacation accruals for pilots and flight attendants as a result of the mid-contract pay rate adjustments effective in the second quarter of 2017. (4) Regional operating special items, net principally related to Merger integration expenses. (5) Nonoperating special items, net primarily consisted of debt issuance and extinguishment costs associated with term loan refinancings. Additionally, the 2016 periods included costs associated with a bond refinancing. |
American Airlines, Inc. [Member] | |
Special Items, Net | 2. Special Items, Net Special items, net on the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Merger integration expenses (1) $ 68 $ 97 $ 130 $ 201 Fleet restructuring expenses (2) 48 15 111 41 Mark-to-market adjustments for bankruptcy obligations and other 38 (56) 20 (61) Labor contract expenses (3) 45 — 45 — Other operating charges (credits), net 3 6 14 (20) Mainline operating special items, net 202 62 320 161 Regional operating special items, net (4) 1 3 4 8 Nonoperating special items, net (5) 2 36 7 36 (1) Merger integration expenses included costs related to information technology, professional fees, re-branding of aircraft and airport facilities and training. Additionally, the 2016 periods also included costs related to alignment of labor union contracts, re-branded uniforms, relocation and severance. (2) Fleet restructuring expenses driven by the Merger principally included the acceleration of aircraft depreciation and impairments for aircraft grounded or expected to be grounded earlier than planned. (3) Labor contract expenses primarily included one-time charges to adjust the vacation accruals for pilots and flight attendants as a result of the mid-contract pay rate adjustments effective in the second quarter of 2017. (4) Regional operating special items, net principally related to Merger integration expenses. (5) Nonoperating special items, net primarily consisted of debt issuance and extinguishment costs associated with term loan refinancings. Additionally, the 2016 periods included costs associated with a bond refinancing. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 3. Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share (EPS) (in millions, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic EPS: Net income $ 803 $ 950 $ 1,037 $ 1,650 Weighted average common shares outstanding (in thousands) 490,818 563,000 497,360 584,622 Basic EPS $ 1.64 $ 1.69 $ 2.08 $ 2.82 Diluted EPS: Net income for purposes of computing diluted EPS $ 803 $ 950 $ 1,037 $ 1,650 Share computation for diluted EPS (in thousands): Basic weighted average common shares outstanding 490,818 563,000 497,360 584,622 Dilutive effect of stock awards 2,147 3,040 3,021 4,142 Diluted weighted average common shares outstanding 492,965 566,040 500,381 588,764 Diluted EPS $ 1.63 $ 1.68 $ 2.07 $ 2.80 Restricted stock unit awards excluded from the calculation of diluted EPS because inclusion would be antidilutive (in thousands) 837 2,601 616 1,845 |
Share Repurchase Programs and D
Share Repurchase Programs and Dividends | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Share Repurchase Programs and Dividends | 4. Share Repurchase Programs and Dividends Since July 2014, our Board of Directors has approved six share repurchase programs aggregating $11.0 billion of authority. As of June 30, 2017, $1.0 billion remained unused under a repurchase program that expires on December 31, 2018. Share repurchases under our share repurchase programs may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. Our share repurchase programs do not obligate us to repurchase any specific number of shares and may be suspended at any time at our discretion. During the three months ended June 30, 2017, we repurchased 10.0 million shares of AAG common stock for $450 million at a weighted average cost per share of $45.01. During the six months ended June 30, 2017, we repurchased 21.7 million shares of AAG common stock for $962 million at a weighted average cost per share of $44.36. Since the inception of our share repurchase programs in July 2014, we have repurchased 250.0 million shares of AAG common stock for $10.0 billion at a weighted average cost per share of $39.84. Our Board of Directors declared the following cash dividends during the first six months of 2017: Period Per share For stockholders of record as of Payable on Total First Quarter $ 0.10 February 13, 2017 February 27, 2017 $ 51 Second Quarter $ 0.10 May 16, 2017 May 30, 2017 50 Total $ 101 Any future dividends that may be declared and paid from time to time will be subject to market and economic conditions, applicable legal requirements and other relevant factors. We are not obligated to continue a dividend for any fixed period, and payment of dividends may be suspended at any time at our discretion. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt | 5. Debt Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2017 December 31, 2016 Secured 2013 Credit Facilities, variable interest rate of 3.22%, installments through 2020 $ 1,825 $ 1,843 2014 Credit Facilities, variable interest rate of 3.12%, installments through 2021 735 735 April 2016 Credit Facilities, variable interest rate of 3.72%, installments through 2023 990 1,000 December 2016 Credit Facilities, variable interest rate of 3.66%, installments through 2023 1,250 1,250 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 9.75%, maturing from 2018 to 2029 11,328 10,912 Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.34% to 8.80%, maturing from 2017 to 2029 5,525 5,343 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 8.00%, maturing from 2017 to 2035 891 891 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2017 to 2028 804 849 23,348 22,823 Unsecured 5.50% senior notes, interest only payments until due in 2019 750 750 6.125% senior notes, interest only payments until due in 2018 500 500 4.625% senior notes, interest only payments until due in 2020 500 500 1,750 1,750 Total long-term debt and capital lease obligations 25,098 24,573 Less: Total unamortized debt discount, premium and issuance costs 239 229 Less: Current maturities 2,334 1,855 Long-term debt and capital lease obligations, net of current maturities $ 22,525 $ 22,489 The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2017 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 The April 2016 and December 2016 Credit Facilities each provide for a revolving credit facility that may be established in the future. 2017 Aircraft Financing Activities 2017-1 EETCs In January 2017, American created three pass-through trusts which issued approximately $983 million aggregate principal amount of Series 2017-1 Class AA, Class A and Class B EETCs (the 2017-1 EETCs) in connection with the financing of 24 aircraft delivered to American through May 2017 (the 2017-1 Aircraft). As of June 30, 2017, all of the proceeds received from the sale of the 2017-1 EETCs have been used to purchase equipment notes issued by American in connection with the financing of new aircraft on or following the delivery thereof. Interest and principal payments on the equipment notes will be payable semi-annually in February and August of each year, with interest payments beginning in August 2017 and principal payments beginning in February 2018. The equipment notes are secured by liens on the 2017-1 Aircraft. Certain information regarding the 2017-1 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2017-1 EETCs Series AA Series A Series B Aggregate principal issued $537 million $248 million $198 million Fixed interest rate per annum 3.65% 4.00% 4.95% Maturity date February 2029 February 2029 February 2025 2016-3 EETCs During the first quarter of 2017, all remaining proceeds of the Series 2016-3 Class AA and Class A (the 2016-3 EETCs), in the amount of $109 million, were used to purchase equipment notes issued by American in connection with the financing of new aircraft on or following the delivery thereof. Interest and principal payments on the equipment notes are payable semi-annually in April and October of each year, with interest payments that began in April 2017 and principal payments beginning in October 2017. These equipment notes are secured by liens on the aircraft financed with the proceeds of the 2016-3 EETCs. Certain information regarding the 2016-3 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2016-3 EETCs Series AA Series A Aggregate principal issued $558 million $256 million Fixed interest rate per annum 3.00% 3.25% Maturity date October 2028 October 2028 Equipment Loans and Other Notes Payable Issued in 2017 In the first six months of 2017, American entered into agreements under which it borrowed $533 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2021 through 2029. 2017 Other Financing Activities 2013 Credit Facilities In March 2017, American and AAG entered into the Second Amendment to the Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated May 21, 2015 (which amended and restated the Credit and Guaranty Agreement dated June 27, 2013), as previously amended by the First Amendment to Amended and Restated Credit and Guaranty Agreement dated October 26, 2015, pursuant to which we refinanced the $1.8 billion term loan facility due June 2020 established thereunder (the 2013 Term Loan Facility and, together with the $1.4 billion revolving credit facility established under such agreement, the 2013 Credit Facilities) to reduce the LIBOR margin from 2.50% to 2.00% and the base rate margin from 1.50% to 1.00%. The $1.4 billion revolving credit facility under the 2013 Credit Facilities (the 2013 Revolving Facility) remains unchanged. As of June 30, 2017, approximately $1.8 billion of principal was outstanding under the 2013 Term Loan Facility and there were no borrowings or letters of credit outstanding under the 2013 Revolving Facility. 2014 Credit Facilities In June 2017, American and AAG entered into the Third Amendment to the Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated April 20, 2015 (which amended and restated the Credit and Guaranty Agreement dated October 10, 2014), as previously amended by the First Amendment to Amended and Restated Credit and Guaranty Agreement dated October 26, 2015 and the Second Amendment to Amended and Restated Credit and Guaranty Agreement dated September 22, 2016, pursuant to which we refinanced the $735 million term loan facility due October 2021 established thereunder (the 2014 Term Loan Facility and, together with the $1.025 billion revolving credit facility established under such agreement, the 2014 Credit Facilities) to reduce the LIBOR margin from 2.50% to 2.00% and the base rate margin from 1.50% to 1.00%. The $1.025 billion revolving credit facility under the 2014 Credit Facilities (the 2014 Revolving Facility) remains unchanged. As of June 30, 2017, approximately $735 million of principal was outstanding under the 2014 Term Loan Facility and there were no borrowings or letters of credit outstanding under the 2014 Revolving Facility. |
American Airlines, Inc. [Member] | |
Debt | 3. Debt Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2017 December 31, 2016 Secured 2013 Credit Facilities, variable interest rate of 3.22%, installments through 2020 $ 1,825 $ 1,843 2014 Credit Facilities, variable interest rate of 3.12%, installments through 2021 735 735 April 2016 Credit Facilities, variable interest rate of 3.72%, installments through 2023 990 1,000 December 2016 Credit Facilities, variable interest rate of 3.66%, installments through 2023 1,250 1,250 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 9.75%, maturing from 2018 to 2029 11,328 10,912 Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.34% to 8.80%, maturing from 2017 to 2029 5,525 5,343 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 5.50%, maturing from 2017 to 2035 862 862 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2017 to 2028 803 848 Total long-term debt and capital lease obligations 23,318 22,793 Less: Total unamortized debt discount, premium and issuance costs 229 216 Less: Current maturities 1,837 1,859 Long-term debt and capital lease obligations, net of current maturities $ 21,252 $ 20,718 The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2017 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 The April 2016 and December 2016 Credit Facilities each provide for a revolving credit facility that may be established in the future. 2017 Aircraft Financing Activities 2017-1 EETCs In January 2017, American created three pass-through trusts which issued approximately $983 million aggregate principal amount of Series 2017-1 Class AA, Class A and Class B EETCs (the 2017-1 EETCs) in connection with the financing of 24 aircraft delivered to American through May 2017 (the 2017-1 Aircraft). As of June 30, 2017, all of the proceeds received from the sale of the 2017-1 EETCs have been used to purchase equipment notes issued by American in connection with the financing of new aircraft on or following the delivery thereof. Interest and principal payments on the equipment notes will be payable semi-annually in February and August of each year, with interest payments beginning in August 2017 and principal payments beginning in February 2018. The equipment notes are secured by liens on the 2017-1 Aircraft. Certain information regarding the 2017-1 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2017-1 EETCs Series AA Series A Series B Aggregate principal issued $537 million $248 million $198 million Fixed interest rate per annum 3.65% 4.00% 4.95% Maturity date February 2029 February 2029 February 2025 2016-3 EETCs During the first quarter of 2017, all remaining proceeds of the Series 2016-3 Class AA and Class A (the 2016-3 EETCs), in the amount of $109 million, were used to purchase equipment notes issued by American in connection with the financing of new aircraft on or following the delivery thereof. Interest and principal payments on the equipment notes are payable semi-annually in April and October of each year, with interest payments that began in April 2017 and principal payments beginning in October 2017. These equipment notes are secured by liens on the aircraft financed with the proceeds of the 2016-3 EETCs. Certain information regarding the 2016-3 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2016-3 EETCs Series AA Series A Aggregate principal issued $558 million $256 million Fixed interest rate per annum 3.00% 3.25% Maturity date October 2028 October 2028 Equipment Loans and Other Notes Payable Issued in 2017 In the first six months of 2017, American entered into agreements under which it borrowed $533 million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2021 through 2029. 2017 Other Financing Activities 2013 Credit Facilities In March 2017, American and AAG entered into the Second Amendment to the Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated May 21, 2015 (which amended and restated the Credit and Guaranty Agreement dated June 27, 2013), as previously amended by the First Amendment to Amended and Restated Credit and Guaranty Agreement dated October 26, 2015, pursuant to which American refinanced the $1.8 billion term loan facility due June 2020 established thereunder (the 2013 Term Loan Facility and, together with the $1.4 billion revolving credit facility established under such agreement, the 2013 Credit Facilities) to reduce the LIBOR margin from 2.50% to 2.00% and the base rate margin from 1.50% to 1.00%. The $1.4 billion revolving credit facility under the 2013 Credit Facilities (the 2013 Revolving Facility) remains unchanged. As of June 30, 2017, approximately $1.8 billion of principal was outstanding under the 2013 Term Loan Facility and there were no borrowings or letters of credit outstanding under the 2013 Revolving Facility. 2014 Credit Facilities In June 2017, American and AAG entered into the Third Amendment to the Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated April 20, 2015 (which amended and restated the Credit and Guaranty Agreement dated October 10, 2014), as previously amended by the First Amendment to Amended and Restated Credit and Guaranty Agreement dated October 26, 2015 and the Second Amendment to Amended and Restated Credit and Guaranty Agreement dated September 22, 2016, pursuant to which American refinanced the $735 million term loan facility due October 2021 established thereunder (the 2014 Term Loan Facility and, together with the $1.025 billion revolving credit facility established under such agreement, the 2014 Credit Facilities) to reduce the LIBOR margin from 2.50% to 2.00% and the base rate margin from 1.50% to 1.00%. The $1.025 billion revolving credit facility under the 2014 Credit Facilities (the 2014 Revolving Facility) remains unchanged. As of June 30, 2017, approximately $735 million of principal was outstanding under the 2014 Term Loan Facility and there were no borrowings or letters of credit outstanding under the 2014 Revolving Facility. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes | 6. Income Taxes At December 31, 2016, we had approximately $10.5 billion of gross net operating losses (NOLs) carried over from prior taxable years (NOL Carryforwards) to reduce future federal taxable income, substantially all of which are expected to be available for use in 2017. The federal NOL Carryforwards will expire beginning in 2022 if unused. We also had approximately $3.7 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2016, which will expire in years 2017 through 2036 if unused. At December 31, 2016, we had an alternative minimum tax credit carryforward of approximately $339 million available for federal income tax purposes, which is available for an indefinite period. During the three and six months ended June 30, 2017, we recorded an income tax provision of $488 million and $619 million, respectively, which was substantially non-cash due to the utilization of the NOLs described above. Substantially all of our income before income taxes is attributable to the United States. |
American Airlines, Inc. [Member] | |
Income Taxes | 4. Income Taxes At December 31, 2016, American had approximately $11.3 billion of gross net operating losses (NOLs) carried over from prior taxable years (NOL Carryforwards) to reduce future federal taxable income, substantially all of which are expected to be available for use in 2017. American is a member of AAG’s consolidated federal and certain state income tax returns. The amount of federal NOL Carryforwards available in those returns is $10.5 billion, substantially all of which is expected to be available for use in 2017. The federal NOL Carryforwards will expire beginning in 2022 if unused. American also had approximately $3.4 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2016, which will expire in years 2017 through 2034 if unused. At December 31, 2016, American had an alternative minimum tax credit carryforward of approximately $452 million available for federal income tax purposes, which is available for an indefinite period. During the three and six months ended June 30, 2017, American recorded an income tax provision of $502 million and $650 million, respectively, which was substantially non-cash due to the utilization of the NOLs described above. Substantially all of American’s income before income taxes is attributable to the United States. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | 7. Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis We utilize the market approach to measure fair value for our financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Our short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the six months ended June 30, 2017. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of June 30, 2017 Total Level 1 Level 2 Level 3 Short-term investments (1) (2) Money market funds $ 348 $ 348 $ — $ — Corporate obligations 3,007 — 3,007 — Bank notes/certificates of deposit/time deposits 3,095 — 3,095 — Repurchase agreements 50 — 50 — 6,500 348 6,152 — Restricted cash and short-term investments (1) 554 106 448 — Total $ 7,054 $ 454 $ 6,600 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive loss at each measurement date. (2) All short-term investments are classified as available-for-sale and stated at fair value. Our short-term investments mature in one year or less except for $1.7 billion of bank notes/certificates of deposit/time deposits and $441 million of corporate obligations. 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 in the fair value hierarchy. The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 24,859 $ 25,440 $ 24,344 $ 24,983 |
American Airlines, Inc. [Member] | |
Fair Value Measurements | 5. Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis American utilizes the market approach to measure fair value for its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. American’s short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the six months ended June 30, 2017. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of June 30, 2017 Total Level 1 Level 2 Level 3 Short-term investments (1) (2) Money market funds $ 347 $ 347 $ — $ — Corporate obligations 3,007 — 3,007 — Bank notes/certificates of deposit/time deposits 3,094 — 3,094 — Repurchase agreements 50 — 50 — 6,498 347 6,151 — Restricted cash and short-term investments (1) 554 106 448 — Total $ 7,052 $ 453 $ 6,599 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive loss at each measurement date. (2) All short-term investments are classified as available-for-sale and stated at fair value. American’s short-term investments mature in one year or less except for $1.7 billion of bank notes/certificates of deposit/time deposits and $441 million of corporate obligations. 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 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): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 23,089 $ 23,582 $ 22,577 $ 23,181 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Employee Benefit Plans | 8. Employee Benefit Plans The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 180 188 10 12 Expected return on assets (197 ) (187 ) (5) (5) Amortization of: Prior service cost (benefit) 7 7 (59) (60) Unrecognized net loss (gain) 36 31 (6) (4) Net periodic benefit cost (income) $ 27 $ 40 $ (59) $ (56) Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 361 375 19 24 Expected return on assets (394 ) (375 ) (10) (10) Amortization of: Prior service cost (benefit) 14 14 (119) (120) Unrecognized net loss (gain) 72 63 (11) (8) Net periodic benefit cost (income) $ 54 $ 78 $ (119) $ (112) Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen. In the second quarter of 2017, we contributed $279 million to our defined benefit pension plans, including a supplemental contribution of $254 million in addition to a $25 million minimum required cash contribution. |
American Airlines, Inc. [Member] | |
Employee Benefit Plans | 6. Employee Benefit Plans The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ — $ — $ 1 $ 1 Interest cost 180 187 10 12 Expected return on assets (196) (187) (5) (5) Amortization of: Prior service cost (benefit) 7 7 (59) (60) Unrecognized net loss (gain) 36 31 (6) (4) Net periodic benefit cost (income) $ 27 $ 38 $ (59) $ (56) Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 359 373 19 24 Expected return on assets (393) (373) (10) (10) Amortization of: Prior service cost (benefit) 14 14 (119) (120) Unrecognized net loss (gain) 72 63 (11) (8) Net periodic benefit cost (income) $ 53 $ 78 $ (119) $ (112) Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen. In the second quarter of 2017, American contributed $279 million to its defined benefit pension plans, including a supplemental contribution of $254 million in addition to a $25 million minimum required cash contribution. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss | 9. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Benefits Income Tax (Provision) (1) Total Balance at December 31, 2016 $ (4,406 ) $ (677 ) $ (5,083 ) Amounts reclassified from accumulated other comprehensive income (loss) (44 ) 15 (2) (29 ) Net current-period other comprehensive income (loss) (44 ) 15 (29 ) Balance at June 30, 2017 $ (4,450 ) $ (662 ) $ (5,112 ) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. Reclassifications out of AOCI for the three and six months ended June 30, 2017 and 2016 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the statements of operations AOCI Components Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33 ) $ (33 ) $ (67 ) $ (67 ) Salaries, wages and benefits Actuarial loss 18 17 38 35 Salaries, wages and benefits Total reclassifications for the period, net of tax $ (15 ) $ (16 ) $ (29 ) $ (32 ) |
American Airlines, Inc. [Member] | |
Accumulated Other Comprehensive Loss | 7. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Benefits Income Tax (Provision) (1) Total Balance at December 31, 2016 $ (4,394) $ (788) $ (5,182) Amounts reclassified from accumulated other comprehensive income (loss) (44) 15 (2) (29) Net current-period other comprehensive income (loss) (44) 15 (29) Balance at June 30, 2017 $ (4,438) $ (773) $ (5,211) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. Reclassifications out of AOCI for the three and six months ended June 30, 2017 and 2016 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the Three Months Ended June 30, Six Months Ended June 30, condensed consolidated AOCI Components 2017 2016 2017 2016 statements of operations Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33) $ (33) $ (67) $ (67) Salaries, wages and benefits Actuarial loss 18 17 38 35 Salaries, wages and benefits Total reclassifications for the period, net of tax $ (15) $ (16) $ (29) $ (32) |
Regional Expenses
Regional Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Regional Expenses | 10. Regional Expenses Expenses associated with our wholly-owned regional airlines and third-party regional carriers operating under the brand name American Eagle are classified as regional expenses on the condensed consolidated statements of operations. Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Aircraft fuel and related taxes $ 329 $ 279 $ 648 $ 498 Salaries, wages and benefits 360 330 705 656 Capacity purchases from third-party regional carriers 413 392 806 786 Maintenance, materials and repairs 65 88 135 183 Other rent and landing fees 156 142 307 270 Aircraft rent 9 9 17 18 Selling expenses 94 88 174 166 Depreciation and amortization 78 72 157 140 Special items, net 1 3 4 8 Other 115 115 241 225 Total regional expenses $ 1,620 $ 1,518 $ 3,194 $ 2,950 |
American Airlines, Inc. [Member] | |
Regional Expenses | 8. Regional Expenses Expenses associated with American’s third-party regional carriers operating under the brand name American Eagle are classified as regional expenses on the condensed consolidated statements of operations. Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Aircraft fuel and related taxes $ 329 $ 279 $ 648 $ 498 Salaries, wages and benefits 86 83 161 167 Capacity purchases from third-party regional carriers 827 799 1,628 1,613 Maintenance, materials and repairs 2 1 3 2 Other rent and landing fees 150 122 296 231 Aircraft rent 7 7 14 14 Selling expenses 94 88 174 166 Depreciation and amortization 65 58 128 112 Special items, net 1 3 4 8 Other 68 70 143 136 Total regional expenses $ 1,629 $ 1,510 $ 3,199 $ 2,947 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2017 | |
Legal Proceedings | 11. Legal Proceedings Chapter 11 Cases Pursuant to rulings of the Bankruptcy Court, the Plan established the Disputed Claims Reserve to hold shares of AAG common stock reserved for issuance to disputed claimholders at the Effective Date that ultimately become holders of allowed claims. As of June 30, 2017, there were approximately 25.2 million shares of AAG common stock remaining in the Disputed Claims Reserve. As disputed claims are resolved, the claimants will receive distributions of shares from the Disputed Claims Reserve on the same basis as if such distributions had been made on or about the Effective Date. However, we are not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution are not sufficient to fully pay any additional allowed unsecured claims. To the extent that any of the reserved shares remain undistributed upon resolution of all remaining disputed claims, such shares will not be returned to us but rather will be distributed to former AMR stockholders. There is also pending in the Bankruptcy Court an adversary proceeding relating to an action brought by American to seek a determination that certain non-pension, postemployment benefits are not vested benefits and thus may be modified or terminated without liability to American. On April 18, 2014, the Bankruptcy Court granted American’s motion for summary judgment with respect to certain non-union employees, concluding that their benefits were not vested and could be terminated. The summary judgment motion was denied with respect to all other retirees. The Bankruptcy Court has not yet scheduled a trial on the merits concerning whether those retirees’ benefits are vested, and American cannot predict whether it will receive relief from obligations to provide benefits to any of those retirees. Our financial statements presently reflect these retirement programs without giving effect to any modification or termination of benefits that may ultimately be implemented based upon the outcome of this proceeding. DOJ Antitrust Civil Investigative Demand Private Party Antitrust Action DOJ Investigation Related to the United States Postal Service General We may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity |
American Airlines, Inc. [Member] | |
Legal Proceedings | 10. Legal Proceedings Chapter 11 Cases Pursuant to rulings of the Bankruptcy Court, the Plan established the Disputed Claims Reserve to hold shares of AAG common stock reserved for issuance to disputed claimholders at the Effective Date that ultimately become holders of allowed claims. As of June 30, 2017, there were approximately 25.2 million shares of AAG common stock remaining in the Disputed Claims Reserve. As disputed claims are resolved, the claimants will receive distributions of shares from the Disputed Claims Reserve on the same basis as if such distributions had been made on or about the Effective Date. However, American is not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution are not sufficient to fully pay any additional allowed unsecured claims. To the extent that any of the reserved shares remain undistributed upon resolution of all remaining disputed claims, such shares will not be returned to American but rather will be distributed to former AMR stockholders. There is also pending in the Bankruptcy Court an adversary proceeding relating to an action brought by American to seek a determination that certain non-pension, postemployment benefits are not vested benefits and thus may be modified or terminated without liability to American. On April 18, 2014, the Bankruptcy Court granted American’s motion for summary judgment with respect to certain non-union employees, concluding that their benefits were not vested and could be terminated. The summary judgment motion was denied with respect to all other retirees. The Bankruptcy Court has not yet scheduled a trial on the merits concerning whether those retirees’ benefits are vested, and American cannot predict whether it will receive relief from obligations to provide benefits to any of those retirees. American’s financial statements presently reflect these retirement programs without giving effect to any modification or termination of benefits that may ultimately be implemented based upon the outcome of this proceeding. DOJ Antitrust Civil Investigative Demand Private Party Antitrust Action DOJ Investigation Related to the United States Postal Service General We may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 12. Subsequent Event Dividend Declaration In July 2017, we announced that our Board of Directors had declared a $0.10 per share dividend for stockholders of record on August 14, 2017, and payable on August 28, 2017. Any future dividends that may be declared and paid from time to time will be subject to market and economic conditions, applicable legal requirements and other relevant factors. We are not obligated to continue a dividend for any fixed period, and payment of dividends may be suspended at any time at our discretion. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2017 | |
American Airlines, Inc. [Member] | |
Transactions with Related Parties | 9. Transactions with Related Parties The following represents the net receivables (payables) to related parties (in millions): June 30, 2017 December 31, 2016 AAG (1) $ 10,191 $ 8,981 AAG’s wholly-owned subsidiaries (2) (2,162) (2,171) Total $ 8,029 $ 6,810 (1) The increase in American’s net related party receivable from AAG is primarily due to American providing the cash funding for AAG’s share repurchase and dividend programs. (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 (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2016. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated. 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. On December 30, 2015, in order to simplify AAG’s internal corporate structure, US Airways, Inc. (US Airways), a wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, valuation allowance for 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. We will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. We currently expect to adopt the new revenue standard using the full retrospective method. We are still in the process of evaluating how the adoption of the new revenue standard will impact our condensed consolidated financial statements. We currently expect that the new revenue standard will materially impact our liability for outstanding mileage credits earned by AAdvantage loyalty program members when flying on American. We currently use the incremental cost method to account for this portion of our loyalty program liability, which values these mileage credits based on the estimated incremental cost of carrying one additional passenger. The new revenue standard will require us to change our policy and apply a relative selling price approach whereby a portion of each passenger ticket sale attributable to mileage credits earned will be deferred and recognized in passenger revenue upon future mileage redemption. The carrying value of the earned mileage credits recognized in loyalty program liability is expected to be materially greater under the relative selling price approach than the value attributed to these mileage credits under the incremental cost method. The new revenue standard will also require us to reclassify certain ancillary fees to passenger revenue, which are currently included within other operating revenue. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities are required to adopt the new lease standard using a modified retrospective approach for all leases existing at or commencing after the date of initial application with an option to use certain practical expedients. We are currently evaluating how the adoption of the new lease standard will impact our condensed consolidated financial statements. Interpretations are on-going and could have a material impact on our implementation. Currently, we expect that the adoption of the new lease standard will have a material impact on our condensed consolidated balance sheet due to the recognition of right-of-use assets and lease liabilities principally for certain leases currently accounted for as operating leases. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires that the change in total cash, cash at beginning of period and cash at end of period on the statement of cash flows include restricted cash and restricted cash equivalents. ASU 2016-18 also requires companies who report cash and restricted cash separately on the balance sheet to reconcile those amounts to the statement of cash flows. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. This standard is not expected to have a material impact on our condensed consolidated financial statements. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 requires an entity to present the service cost component of net benefit cost in the income statement line items where it reports compensation cost. Entities will present all other components of net benefit cost outside of operating income, if this subtotal is presented. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We will adopt this standard on January 1, 2018. The new standard will require all components of our net periodic benefit cost (income), with the exception of service cost, currently reported within operating expenses as salaries, wages and benefits, to be reclassified and reported within nonoperating income (expense). The adoption of this new standard will have no impact on pre-tax income or net income reported. See Note 8 for our current components of net periodic benefit cost (income). |
American Airlines, Inc. [Member] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2016. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated. 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. On December 30, 2015, in order to simplify AAG’s internal corporate structure, US Airways, Inc. (US Airways), a wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, valuation allowance for 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. American will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. American currently expects to adopt the new revenue standard using the full retrospective method. American is still in the process of evaluating how the adoption of the new revenue standard will impact its condensed consolidated financial statements. American currently expects that the new revenue standard will materially impact its liability for outstanding mileage credits earned by AAdvantage loyalty program members when flying on American. American currently uses the incremental cost method to account for this portion of its loyalty program liability, which values these mileage credits based on the estimated incremental cost of carrying one additional passenger. The new revenue standard will require American to change its policy and apply a relative selling price approach whereby a portion of each passenger ticket sale attributable to mileage credits earned will be deferred and recognized in passenger revenue upon future mileage redemption. The carrying value of the earned mileage credits recognized in loyalty program liability is expected to be materially greater under the relative selling price approach than the value attributed to these mileage credits under the incremental cost method. The new revenue standard will also require American to reclassify certain ancillary fees to passenger revenue, which are currently included within other operating revenue. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities are required to adopt the new lease standard using a modified retrospective approach for all leases existing at or commencing after the date of initial application with an option to use certain practical expedients. American is currently evaluating how the adoption of the new lease standard will impact its condensed consolidated financial statements. Interpretations are on-going and could have a material impact on American’s implementation. Currently, American expects that the adoption of the new lease standard will have a material impact on its condensed consolidated balance sheet due to the recognition of right-of-use assets and lease liabilities principally for certain leases currently accounted for as operating leases. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires that the change in total cash, cash at beginning of period and cash at end of period on the statement of cash flows include restricted cash and restricted cash equivalents. ASU 2016-18 also requires companies who report cash and restricted cash separately on the balance sheet to reconcile those amounts to the statement of cash flows. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. This standard is not expected to have a material impact on American’s condensed consolidated financial statements. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 requires an entity to present the service cost component of net benefit cost in the income statement line items where it reports compensation cost. Entities will present all other components of net benefit cost outside of operating income, if this subtotal is presented. This standard is to be applied retrospectively to each period presented and is effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. American will adopt this standard on January 1, 2018. The new standard will require all components of American’s net periodic benefit cost (income), with the exception of service cost, currently reported within operating expenses as salaries, wages and benefits, to be reclassified and reported within nonoperating income (expense). The adoption of this new standard will have no impact on pre-tax income or net income reported. See Note 6 for American’s current components of net periodic benefit cost (income). |
Special Items, Net (Tables)
Special Items, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Components of Special Items, Net Included in Condensed Consolidated Statements of Operations | Special items, net on the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Merger integration expenses (1) $ 68 $ 97 $ 130 $ 201 Fleet restructuring expenses (2) 48 15 111 41 Mark-to-market adjustments for bankruptcy obligations and other 38 (56 ) 20 (61) Labor contract expenses (3) 45 — 45 — Other operating charges (credits), net 3 6 14 (20 ) Mainline operating special items, net 202 62 320 161 Regional operating special items, net (4) 1 3 4 8 Nonoperating special items, net (5) 2 36 7 36 (1) Merger integration expenses included costs related to information technology, professional fees, re-branding of aircraft and airport facilities and training. Additionally, the 2016 periods also included costs related to alignment of labor union contracts, re-branded uniforms, relocation and severance. (2) Fleet restructuring expenses driven by the Merger principally included the acceleration of aircraft depreciation and impairments for aircraft grounded or expected to be grounded earlier than planned. (3) Labor contract expenses primarily included one-time charges to adjust the vacation accruals for pilots and flight attendants as a result of the mid-contract pay rate adjustments effective in the second quarter of 2017. (4) Regional operating special items, net principally related to Merger integration expenses. (5) Nonoperating special items, net primarily consisted of debt issuance and extinguishment costs associated with term loan refinancings. Additionally, the 2016 periods included costs associated with a bond refinancing. |
American Airlines, Inc. [Member] | |
Components of Special Items, Net Included in Condensed Consolidated Statements of Operations | Special items, net on the condensed consolidated statements of operations consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Merger integration expenses (1) $ 68 $ 97 $ 130 $ 201 Fleet restructuring expenses (2) 48 15 111 41 Mark-to-market adjustments for bankruptcy obligations and other 38 (56) 20 (61) Labor contract expenses (3) 45 — 45 — Other operating charges (credits), net 3 6 14 (20) Mainline operating special items, net 202 62 320 161 Regional operating special items, net (4) 1 3 4 8 Nonoperating special items, net (5) 2 36 7 36 (1) Merger integration expenses included costs related to information technology, professional fees, re-branding of aircraft and airport facilities and training. Additionally, the 2016 periods also included costs related to alignment of labor union contracts, re-branded uniforms, relocation and severance. (2) Fleet restructuring expenses driven by the Merger principally included the acceleration of aircraft depreciation and impairments for aircraft grounded or expected to be grounded earlier than planned. (3) Labor contract expenses primarily included one-time charges to adjust the vacation accruals for pilots and flight attendants as a result of the mid-contract pay rate adjustments effective in the second quarter of 2017. (4) Regional operating special items, net principally related to Merger integration expenses. (5) Nonoperating special items, net primarily consisted of debt issuance and extinguishment costs associated with term loan refinancings. Additionally, the 2016 periods included costs associated with a bond refinancing. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share (EPS) (in millions, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic EPS: Net income $ 803 $ 950 $ 1,037 $ 1,650 Weighted average common shares outstanding (in thousands) 490,818 563,000 497,360 584,622 Basic EPS $ 1.64 $ 1.69 $ 2.08 $ 2.82 Diluted EPS: Net income for purposes of computing diluted EPS $ 803 $ 950 $ 1,037 $ 1,650 Share computation for diluted EPS (in thousands): Basic weighted average common shares outstanding 490,818 563,000 497,360 584,622 Dilutive effect of stock awards 2,147 3,040 3,021 4,142 Diluted weighted average common shares outstanding 492,965 566,040 500,381 588,764 Diluted EPS $ 1.63 $ 1.68 $ 2.07 $ 2.80 Restricted stock unit awards excluded from the calculation of diluted EPS because inclusion would be antidilutive (in thousands) 837 2,601 616 1,845 |
Share Repurchase Programs and23
Share Repurchase Programs and Dividends (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary of Cash Dividends Declared | Our Board of Directors declared the following cash dividends during the first six months of 2017: Period Per share For stockholders of record as of Payable on Total First Quarter $ 0.10 February 13, 2017 February 27, 2017 $ 51 Second Quarter $ 0.10 May 16, 2017 May 30, 2017 50 Total $ 101 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Long-Term Debt | Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2017 December 31, 2016 Secured 2013 Credit Facilities, variable interest rate of 3.22%, installments through 2020 $ 1,825 $ 1,843 2014 Credit Facilities, variable interest rate of 3.12%, installments through 2021 735 735 April 2016 Credit Facilities, variable interest rate of 3.72%, installments through 2023 990 1,000 December 2016 Credit Facilities, variable interest rate of 3.66%, installments through 2023 1,250 1,250 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 9.75%, maturing from 2018 to 2029 11,328 10,912 Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.34% to 8.80%, maturing from 2017 to 2029 5,525 5,343 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 8.00%, maturing from 2017 to 2035 891 891 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2017 to 2028 804 849 23,348 22,823 Unsecured 5.50% senior notes, interest only payments until due in 2019 750 750 6.125% senior notes, interest only payments until due in 2018 500 500 4.625% senior notes, interest only payments until due in 2020 500 500 1,750 1,750 Total long-term debt and capital lease obligations 25,098 24,573 Less: Total unamortized debt discount, premium and issuance costs 239 229 Less: Current maturities 2,334 1,855 Long-term debt and capital lease obligations, net of current maturities $ 22,525 $ 22,489 |
Summary of Availability under Revolving Credit Facilities | The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2017 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 |
Enhanced Equipment Trust Certificates (EETC) [Member] | Secured Debt [Member] | |
Schedule of Long-Term Debt | Certain information regarding the 2017-1 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2017-1 EETCs Series AA Series A Series B Aggregate principal issued $537 million $248 million $198 million Fixed interest rate per annum 3.65% 4.00% 4.95% Maturity date February 2029 February 2029 February 2025 Certain information regarding the 2016-3 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2016-3 EETCs Series AA Series A Aggregate principal issued $558 million $256 million Fixed interest rate per annum 3.00% 3.25% Maturity date October 2028 October 2028 |
American Airlines, Inc. [Member] | |
Schedule of Long-Term Debt | Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2017 December 31, 2016 Secured 2013 Credit Facilities, variable interest rate of 3.22%, installments through 2020 $ 1,825 $ 1,843 2014 Credit Facilities, variable interest rate of 3.12%, installments through 2021 735 735 April 2016 Credit Facilities, variable interest rate of 3.72%, installments through 2023 990 1,000 December 2016 Credit Facilities, variable interest rate of 3.66%, installments through 2023 1,250 1,250 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.00% to 9.75%, maturing from 2018 to 2029 11,328 10,912 Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.34% to 8.80%, maturing from 2017 to 2029 5,525 5,343 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 5.50%, maturing from 2017 to 2035 862 862 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2017 to 2028 803 848 Total long-term debt and capital lease obligations 23,318 22,793 Less: Total unamortized debt discount, premium and issuance costs 229 216 Less: Current maturities 1,837 1,859 Long-term debt and capital lease obligations, net of current maturities $ 21,252 $ 20,718 |
Summary of Availability under Revolving Credit Facilities | The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2017 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 |
American Airlines, Inc. [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Secured Debt [Member] | |
Schedule of Long-Term Debt | Certain information regarding the 2017-1 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2017-1 EETCs Series AA Series A Series B Aggregate principal issued $537 million $248 million $198 million Fixed interest rate per annum 3.65% 4.00% 4.95% Maturity date February 2029 February 2029 February 2025 Certain information regarding the 2016-3 EETC equipment notes, as of June 30, 2017, is set forth in the table below. 2016-3 EETCs Series AA Series A Aggregate principal issued $558 million $256 million Fixed interest rate per annum 3.00% 3.25% Maturity date October 2028 October 2028 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 Total Level 1 Level 2 Level 3 Short-term investments (1) (2) Money market funds $ 348 $ 348 $ — $ — Corporate obligations 3,007 — 3,007 — Bank notes/certificates of deposit/time deposits 3,095 — 3,095 — Repurchase agreements 50 — 50 — 6,500 348 6,152 — Restricted cash and short-term investments (1) 554 106 448 — Total $ 7,054 $ 454 $ 6,600 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive loss at each measurement date. (2) All short-term investments are classified as available-for-sale and stated at fair value. Our short-term investments mature in one year or less except for $1.7 billion of bank notes/certificates of deposit/time deposits and $441 million of corporate obligations. |
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): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 24,859 $ 25,440 $ 24,344 $ 24,983 |
American Airlines, Inc. [Member] | |
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 June 30, 2017 Total Level 1 Level 2 Level 3 Short-term investments (1) (2) Money market funds $ 347 $ 347 $ — $ — Corporate obligations 3,007 — 3,007 — Bank notes/certificates of deposit/time deposits 3,094 — 3,094 — Repurchase agreements 50 — 50 — 6,498 347 6,151 — Restricted cash and short-term investments (1) 554 106 448 — Total $ 7,052 $ 453 $ 6,599 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive loss at each measurement date. (2) All short-term investments are classified as available-for-sale and stated at fair value. American’s short-term investments mature in one year or less except for $1.7 billion of bank notes/certificates of deposit/time deposits and $441 million of corporate obligations. |
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): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 23,089 $ 23,582 $ 22,577 $ 23,181 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Components of Net Periodic Benefit Cost (Income) | The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 180 188 10 12 Expected return on assets (197 ) (187 ) (5) (5) Amortization of: Prior service cost (benefit) 7 7 (59) (60) Unrecognized net loss (gain) 36 31 (6) (4) Net periodic benefit cost (income) $ 27 $ 40 $ (59) $ (56) Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 361 375 19 24 Expected return on assets (394 ) (375 ) (10) (10) Amortization of: Prior service cost (benefit) 14 14 (119) (120) Unrecognized net loss (gain) 72 63 (11) (8) Net periodic benefit cost (income) $ 54 $ 78 $ (119) $ (112) |
American Airlines, Inc. [Member] | |
Components of Net Periodic Benefit Cost (Income) | The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2017 2016 2017 2016 Service cost $ — $ — $ 1 $ 1 Interest cost 180 187 10 12 Expected return on assets (196) (187) (5) (5) Amortization of: Prior service cost (benefit) 7 7 (59) (60) Unrecognized net loss (gain) 36 31 (6) (4) Net periodic benefit cost (income) $ 27 $ 38 $ (59) $ (56) Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2017 2016 2017 2016 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 359 373 19 24 Expected return on assets (393) (373) (10) (10) Amortization of: Prior service cost (benefit) 14 14 (119) (120) Unrecognized net loss (gain) 72 63 (11) (8) Net periodic benefit cost (income) $ 53 $ 78 $ (119) $ (112) |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Benefits Income Tax (Provision) (1) Total Balance at December 31, 2016 $ (4,406 ) $ (677 ) $ (5,083 ) Amounts reclassified from accumulated other comprehensive income (loss) (44 ) 15 (2) (29 ) Net current-period other comprehensive income (loss) (44 ) 15 (29 ) Balance at June 30, 2017 $ (4,450 ) $ (662 ) $ (5,112 ) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCI for the three and six months ended June 30, 2017 and 2016 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the statements of operations AOCI Components Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33 ) $ (33 ) $ (67 ) $ (67 ) Salaries, wages and benefits Actuarial loss 18 17 38 35 Salaries, wages and benefits Total reclassifications for the period, net of tax $ (15 ) $ (16 ) $ (29 ) $ (32 ) |
American Airlines, Inc. [Member] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Benefits Income Tax (Provision) (1) Total Balance at December 31, 2016 $ (4,394) $ (788) $ (5,182) Amounts reclassified from accumulated other comprehensive income (loss) (44) 15 (2) (29) Net current-period other comprehensive income (loss) (44) 15 (29) Balance at June 30, 2017 $ (4,438) $ (773) $ (5,211) (1) Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCI for the three and six months ended June 30, 2017 and 2016 are as follows (in millions): Amounts reclassified from AOCI Affected line items on the Three Months Ended June 30, Six Months Ended June 30, condensed consolidated AOCI Components 2017 2016 2017 2016 statements of operations Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33) $ (33) $ (67) $ (67) Salaries, wages and benefits Actuarial loss 18 17 38 35 Salaries, wages and benefits Total reclassifications for the period, net of tax $ (15) $ (16) $ (29) $ (32) |
Regional Expenses (Tables)
Regional Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Components of Regional Expenses | Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Aircraft fuel and related taxes $ 329 $ 279 $ 648 $ 498 Salaries, wages and benefits 360 330 705 656 Capacity purchases from third-party regional carriers 413 392 806 786 Maintenance, materials and repairs 65 88 135 183 Other rent and landing fees 156 142 307 270 Aircraft rent 9 9 17 18 Selling expenses 94 88 174 166 Depreciation and amortization 78 72 157 140 Special items, net 1 3 4 8 Other 115 115 241 225 Total regional expenses $ 1,620 $ 1,518 $ 3,194 $ 2,950 |
American Airlines, Inc. [Member] | |
Components of Regional Expenses | Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Aircraft fuel and related taxes $ 329 $ 279 $ 648 $ 498 Salaries, wages and benefits 86 83 161 167 Capacity purchases from third-party regional carriers 827 799 1,628 1,613 Maintenance, materials and repairs 2 1 3 2 Other rent and landing fees 150 122 296 231 Aircraft rent 7 7 14 14 Selling expenses 94 88 174 166 Depreciation and amortization 65 58 128 112 Special items, net 1 3 4 8 Other 68 70 143 136 Total regional expenses $ 1,629 $ 1,510 $ 3,199 $ 2,947 |
Transactions with Related Par29
Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
American Airlines, Inc. [Member] | |
Summary of Net Receivables (Payables) to Related Parties | The following represents the net receivables (payables) to related parties (in millions): June 30, 2017 December 31, 2016 AAG (1) $ 10,191 $ 8,981 AAG’s wholly-owned subsidiaries (2) (2,162) (2,171) Total $ 8,029 $ 6,810 (1) The increase in American’s net related party receivable from AAG is primarily due to American providing the cash funding for AAG’s share repurchase and dividend programs. (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. |
Special Items, Net - Components
Special Items, Net - Components of Special Items, Net Included in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Merger integration expenses | $ 68 | $ 97 | $ 130 | $ 201 |
Fleet restructuring expenses | 48 | 15 | 111 | 41 |
Mark-to-market adjustments for bankruptcy obligations and other | 38 | (56) | 20 | (61) |
Labor contract expenses | 45 | 45 | ||
Other operating charges (credits), net | 3 | 6 | 14 | (20) |
Operating special items, net | 202 | 62 | 320 | 161 |
Nonoperating special items, net | 2 | 36 | 7 | 36 |
American Airlines, Inc. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Merger integration expenses | 68 | 97 | 130 | 201 |
Fleet restructuring expenses | 48 | 15 | 111 | 41 |
Mark-to-market adjustments for bankruptcy obligations and other | 38 | (56) | 20 | (61) |
Labor contract expenses | 45 | 45 | ||
Other operating charges (credits), net | 3 | 6 | 14 | (20) |
Operating special items, net | 202 | 62 | 320 | 161 |
Nonoperating special items, net | 2 | 36 | 7 | 36 |
Regional Carrier [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | 1 | 3 | 4 | 8 |
Regional Carrier [Member] | American Airlines, Inc. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | $ 1 | $ 3 | $ 4 | $ 8 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic EPS: | ||||
Net income | $ 803 | $ 950 | $ 1,037 | $ 1,650 |
Weighted average common shares outstanding (in thousands) | 490,818 | 563,000 | 497,360 | 584,622 |
Basic EPS (in dollars per share) | $ 1.64 | $ 1.69 | $ 2.08 | $ 2.82 |
Diluted EPS: | ||||
Net income for purposes of computing diluted EPS | $ 803 | $ 950 | $ 1,037 | $ 1,650 |
Share computation for diluted EPS (in thousands): | ||||
Basic weighted average common shares outstanding | 490,818 | 563,000 | 497,360 | 584,622 |
Dilutive effect of stock awards | 2,147 | 3,040 | 3,021 | 4,142 |
Diluted weighted average common shares outstanding | 492,965 | 566,040 | 500,381 | 588,764 |
Diluted EPS (in dollars per share) | $ 1.63 | $ 1.68 | $ 2.07 | $ 2.80 |
Restricted stock unit awards excluded from the calculation of diluted EPS because inclusion would be antidilutive | 837 | 2,601 | 616 | 1,845 |
Share Repurchase Programs and32
Share Repurchase Programs and Dividends - Share Repurchase Programs (Detail) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 36 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | |
Class of Stock Disclosures [Abstract] | |||
Stock repurchase programs, authorized amount | $ 11,000,000,000 | $ 11,000,000,000 | $ 11,000,000,000 |
Stock repurchase programs, remaining authorized amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 |
Number of share repurchase programs authorized | 6 | ||
Stock repurchased (in shares) | shares | 10 | 21.7 | 250 |
Aggregate stock repurchase price | $ 450,000,000 | $ 962,000,000 | $ 10,000,000,000 |
Average cost per share (in dollars per share) | $ / shares | $ 45.01 | $ 44.36 | $ 39.84 |
Share Repurchase Programs and33
Share Repurchase Programs and Dividends - Dividends (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | |||||
Cash dividends declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Total | $ 50 | $ 51 | $ 101 |
Debt - Components of Long-Term
Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 25,098 | $ 24,573 |
Less: Total unamortized debt discount, premium and issuance costs | 239 | 229 |
Less: Current maturities | 2,334 | 1,855 |
Long-term debt and capital lease obligations, net of current maturities | 22,525 | 22,489 |
American Airlines, Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Less: Total unamortized debt discount, premium and issuance costs | 229 | 216 |
Less: Current maturities | 1,837 | 1,859 |
Long-term debt and capital lease obligations, net of current maturities | 21,252 | 20,718 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | 23,348 | 22,823 |
Secured Debt [Member] | 2013 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,825 | 1,843 |
Interest rate | 3.22% | |
Secured Debt [Member] | 2014 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 735 | 735 |
Interest rate | 3.12% | |
Secured Debt [Member] | April 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 990 | 1,000 |
Interest rate | 3.72% | |
Secured Debt [Member] | December 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,250 | 1,250 |
Interest rate | 3.66% | |
Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 11,328 | 10,912 |
Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.00% | |
Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 9.75% | |
Secured Debt [Member] | Equipment Loans and Other Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 5,525 | 5,343 |
Secured Debt [Member] | Equipment Loans and Other Notes Payable [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.34% | |
Secured Debt [Member] | Equipment Loans and Other Notes Payable [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.80% | |
Secured Debt [Member] | Special Facility Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 891 | 891 |
Secured Debt [Member] | Special Facility Revenue Bonds [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
Secured Debt [Member] | Special Facility Revenue Bonds [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% | |
Secured Debt [Member] | Other Secured Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 804 | 849 |
Secured Debt [Member] | Other Secured Obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.60% | |
Secured Debt [Member] | Other Secured Obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 12.24% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 23,318 | 22,793 |
Secured Debt [Member] | American Airlines, Inc. [Member] | 2013 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,825 | 1,843 |
Interest rate | 3.22% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | 2014 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 735 | 735 |
Interest rate | 3.12% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | April 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 990 | 1,000 |
Interest rate | 3.72% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | December 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,250 | 1,250 |
Interest rate | 3.66% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 11,328 | 10,912 |
Secured Debt [Member] | American Airlines, Inc. [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.00% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 9.75% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Equipment Loans and Other Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 5,525 | 5,343 |
Secured Debt [Member] | American Airlines, Inc. [Member] | Equipment Loans and Other Notes Payable [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.34% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Equipment Loans and Other Notes Payable [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.80% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 862 | 862 |
Secured Debt [Member] | American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Other Secured Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 803 | 848 |
Secured Debt [Member] | American Airlines, Inc. [Member] | Other Secured Obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.60% | |
Secured Debt [Member] | American Airlines, Inc. [Member] | Other Secured Obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 12.24% | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,750 | 1,750 |
Unsecured Debt [Member] | 5.50% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 750 | 750 |
Interest rate | 5.50% | |
Unsecured Debt [Member] | 6.125% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 500 | 500 |
Interest rate | 6.125% | |
Unsecured Debt [Member] | 4.625% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 500 | $ 500 |
Interest rate | 4.625% |
Debt - Summary of Availability
Debt - Summary of Availability under Revolving Credit Facilities (Detail) - Revolving Credit Facility [Member] - Secured Debt [Member] $ in Millions | Jun. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 2,425 |
2013 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,400 |
2014 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,025 |
American Airlines, Inc. [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 2,425 |
American Airlines, Inc. [Member] | 2013 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,400 |
American Airlines, Inc. [Member] | 2014 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 1,025 |
Debt - Components of Long-Ter36
Debt - Components of Long-Term Debt - 2017-1 Enhanced Equipment Trust Certificates (Detail) - Enhanced Equipment Trust Certificates (EETC) [Member] - 2017-1 EETC [Member] $ in Millions | 1 Months Ended |
Jan. 31, 2017USD ($)AircraftDebt_Instruments | |
Debt Instrument [Line Items] | |
Number of pass-through trusts issued | Debt_Instruments | 3 |
Debt instrument principal amount | $ | $ 983 |
Number of aircraft financed by debt issuance | Aircraft | 24 |
American Airlines, Inc. [Member] | |
Debt Instrument [Line Items] | |
Number of pass-through trusts issued | Debt_Instruments | 3 |
Debt instrument principal amount | $ | $ 983 |
Number of aircraft financed by debt issuance | Aircraft | 24 |
Debt - Details of 2017-1 Enhanc
Debt - Details of 2017-1 Enhanced Equipment Trust Certificates (Detail) - Enhanced Equipment Trust Certificates (EETC) [Member] $ in Millions | Jun. 30, 2017USD ($) |
Series 2017-1 Class AA [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 537 |
Debt instrument, stated interest rate percentage | 3.65% |
Series 2017-1 Class A [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 248 |
Debt instrument, stated interest rate percentage | 4.00% |
Series 2017-1 Class B [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 198 |
Debt instrument, stated interest rate percentage | 4.95% |
American Airlines, Inc. [Member] | Series 2017-1 Class AA [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 537 |
Debt instrument, stated interest rate percentage | 3.65% |
American Airlines, Inc. [Member] | Series 2017-1 Class A [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 248 |
Debt instrument, stated interest rate percentage | 4.00% |
American Airlines, Inc. [Member] | Series 2017-1 Class B [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 198 |
Debt instrument, stated interest rate percentage | 4.95% |
Debt - Components of Long-Ter38
Debt - Components of Long-Term Debt - 2016-3 Enhanced Equipment Trust Certificates (Detail) - Enhanced Equipment Trust Certificates (EETC) [Member] - 2016-3 EETC [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument, escrowed proceeds used to purchase notes | $ 109 |
American Airlines, Inc. [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, escrowed proceeds used to purchase notes | $ 109 |
Debt - Details of 2016-3 Enhanc
Debt - Details of 2016-3 Enhanced Equipment Trust Certificates (Detail) - Enhanced Equipment Trust Certificates (EETC) [Member] $ in Millions | Jun. 30, 2017USD ($) |
Series 2016-3 Class AA [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 558 |
Debt instrument, stated interest rate percentage | 3.00% |
Series 2016-3 Class A [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 256 |
Debt instrument, stated interest rate percentage | 3.25% |
American Airlines, Inc. [Member] | Series 2016-3 Class AA [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 558 |
Debt instrument, stated interest rate percentage | 3.00% |
American Airlines, Inc. [Member] | Series 2016-3 Class A [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, aggregate principal issued | $ 256 |
Debt instrument, stated interest rate percentage | 3.25% |
Debt - Components of Long-Ter40
Debt - Components of Long-Term Debt - Equipment Loans and Other Notes Payable Issued in 2017 (Detail) - Secured Debt [Member] - Equipment Loans and Other Notes Payable [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Proceeds from notes payable | $ 533 |
American Airlines, Inc. [Member] | |
Debt Instrument [Line Items] | |
Proceeds from notes payable | $ 533 |
Debt - Components of Long-Ter41
Debt - Components of Long-Term Debt - 2013 Credit Facilities (Detail) - Secured Debt [Member] - 2013 Credit Facilities [Member] - USD ($) | Mar. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 |
Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net | $ 1,800,000,000 | $ 1,800,000,000 | |
Term Loan Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.50% | 2.00% | |
Term Loan Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% | 1.00% | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,400,000,000 | ||
Line of credit facility, outstanding amount | 0 | ||
American Airlines, Inc. [Member] | Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, net | $ 1,800,000,000 | $ 1,800,000,000 | |
American Airlines, Inc. [Member] | Term Loan Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.50% | 2.00% | |
American Airlines, Inc. [Member] | Term Loan Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% | 1.00% | |
American Airlines, Inc. [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,400,000,000 | ||
Line of credit facility, outstanding amount | $ 0 |
Debt - Components of Long-Ter42
Debt - Components of Long-Term Debt - 2014 Credit Facilities (Detail) - Secured Debt [Member] - 2014 Credit Facilities [Member] - USD ($) | Jun. 29, 2017 | Jun. 30, 2017 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 735,000,000 | |
Term Loan Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% | 2.00% |
Term Loan Facility [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | 1.00% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,025,000,000 | |
Line of credit facility, outstanding amount | 0 | |
American Airlines, Inc. [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 735,000,000 | |
American Airlines, Inc. [Member] | Term Loan Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% | 2.00% |
American Airlines, Inc. [Member] | Term Loan Facility [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | 1.00% |
American Airlines, Inc. [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,025,000,000 | |
Line of credit facility, outstanding amount | $ 0 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
Income tax provision (benefit) | $ 488 | $ 543 | $ 619 | $ 960 | |
Alternative Minimum Tax Credit Carryforward [Member] | |||||
Income Taxes [Line Items] | |||||
Alternative minimum tax credit carryforwards | $ 339 | ||||
American Airlines, Inc. [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax provision (benefit) | $ 502 | $ 556 | $ 650 | $ 980 | |
American Airlines, Inc. [Member] | Alternative Minimum Tax Credit Carryforward [Member] | |||||
Income Taxes [Line Items] | |||||
Alternative minimum tax credit carryforwards | 452 | ||||
Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Gross NOL Carryforwards | 10,500 | ||||
Federal [Member] | American Airlines, Inc. [Member] | |||||
Income Taxes [Line Items] | |||||
Gross NOL Carryforwards | 11,300 | ||||
State [Member] | |||||
Income Taxes [Line Items] | |||||
NOL subject to expiration | 3,700 | ||||
State [Member] | American Airlines, Inc. [Member] | |||||
Income Taxes [Line Items] | |||||
Gross NOL Carryforwards | $ 3,400 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] $ in Millions | Jun. 30, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | $ 6,500 |
Restricted cash and short-term investments | 554 |
Total | 7,054 |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 348 |
Restricted cash and short-term investments | 106 |
Total | 454 |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 6,152 |
Restricted cash and short-term investments | 448 |
Total | 6,600 |
Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 348 |
Money Market Funds [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 348 |
Corporate Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,007 |
Corporate Bonds [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 441 |
Corporate Bonds [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,007 |
Bank Notes / Certificates of Deposit / Time Deposits [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,095 |
Bank Notes / Certificates of Deposit / Time Deposits [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 1,700 |
Bank Notes / Certificates of Deposit / Time Deposits [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,095 |
Repurchase Agreements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 50 |
Repurchase Agreements [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 50 |
American Airlines, Inc. [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 6,498 |
Restricted cash and short-term investments | 554 |
Total | 7,052 |
American Airlines, Inc. [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 347 |
Restricted cash and short-term investments | 106 |
Total | 453 |
American Airlines, Inc. [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 6,151 |
Restricted cash and short-term investments | 448 |
Total | 6,599 |
American Airlines, Inc. [Member] | Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 347 |
American Airlines, Inc. [Member] | Money Market Funds [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 347 |
American Airlines, Inc. [Member] | Corporate Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,007 |
American Airlines, Inc. [Member] | Corporate Bonds [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 441 |
American Airlines, Inc. [Member] | Corporate Bonds [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,007 |
American Airlines, Inc. [Member] | Bank Notes / Certificates of Deposit / Time Deposits [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,094 |
American Airlines, Inc. [Member] | Bank Notes / Certificates of Deposit / Time Deposits [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 1,700 |
American Airlines, Inc. [Member] | Bank Notes / Certificates of Deposit / Time Deposits [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,094 |
American Airlines, Inc. [Member] | Repurchase Agreements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 50 |
American Airlines, Inc. [Member] | Repurchase Agreements [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | $ 50 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 24,859 | $ 24,344 |
Carrying Value [Member] | American Airlines, Inc. [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 23,089 | 22,577 |
Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 25,440 | 24,983 |
Fair Value [Member] | American Airlines, Inc. [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 23,582 | $ 23,181 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 1 | $ 1 | $ 1 | $ 1 |
Interest cost | 180 | 188 | 361 | 375 |
Expected return on assets | (197) | (187) | (394) | (375) |
Prior service cost (benefit) | 7 | 7 | 14 | 14 |
Unrecognized net loss (gain) | 36 | 31 | 72 | 63 |
Net periodic benefit cost (income) | 27 | 40 | 54 | 78 |
Pension Benefits [Member] | American Airlines, Inc. [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 180 | 187 | 359 | 373 |
Expected return on assets | (196) | (187) | (393) | (373) |
Prior service cost (benefit) | 7 | 7 | 14 | 14 |
Unrecognized net loss (gain) | 36 | 31 | 72 | 63 |
Net periodic benefit cost (income) | 27 | 38 | 53 | 78 |
Retiree Medical And Other Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 10 | 12 | 19 | 24 |
Expected return on assets | (5) | (5) | (10) | (10) |
Prior service cost (benefit) | (59) | (60) | (119) | (120) |
Unrecognized net loss (gain) | (6) | (4) | (11) | (8) |
Net periodic benefit cost (income) | (59) | (56) | (119) | (112) |
Retiree Medical And Other Postretirement Benefits [Member] | American Airlines, Inc. [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 10 | 12 | 19 | 24 |
Expected return on assets | (5) | (5) | (10) | (10) |
Prior service cost (benefit) | (59) | (60) | (119) | (120) |
Unrecognized net loss (gain) | (6) | (4) | (11) | (8) |
Net periodic benefit cost (income) | $ (59) | $ (56) | $ (119) | $ (112) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 279,000,000 |
Supplemental contributions by employer | 254,000,000 |
Minimum contributions by employer | 25,000,000 |
American Airlines, Inc. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | 279,000,000 |
Supplemental contributions by employer | 254,000,000 |
Minimum contributions by employer | $ 25,000,000 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI tax, attributable to parent [Roll Forward] | ||||
Beginning Balance, tax | $ (677) | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | 15 | |||
Net current-period other comprehensive income (loss), tax | 15 | |||
Ending Balance, tax | $ (662) | (662) | ||
AOCI attributable to parent, net of tax [Roll Forward] | ||||
Beginning Balance, net of tax | (5,083) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (15) | $ (16) | (29) | $ (32) |
Net current-period other comprehensive income (loss), net of tax | (15) | (14) | (29) | (31) |
Ending Balance, net of tax | (5,112) | (5,112) | ||
American Airlines, Inc. [Member] | ||||
AOCI tax, attributable to parent [Roll Forward] | ||||
Beginning Balance, tax | (788) | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | 15 | |||
Net current-period other comprehensive income (loss), tax | 15 | |||
Ending Balance, tax | (773) | (773) | ||
AOCI attributable to parent, net of tax [Roll Forward] | ||||
Beginning Balance, net of tax | (5,182) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (15) | (16) | (29) | (32) |
Net current-period other comprehensive income (loss), net of tax | (15) | $ (14) | (29) | $ (31) |
Ending Balance, net of tax | (5,211) | (5,211) | ||
Pension, Retiree Medical and Other Postretirement Benefits [Member] | ||||
AOCI attributable to parent, before tax [Roll Forward] | ||||
Beginning Balance, before tax | (4,406) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (44) | |||
Net current-period other comprehensive income (loss), before tax | (44) | |||
Ending Balance, before tax | (4,450) | (4,450) | ||
Pension, Retiree Medical and Other Postretirement Benefits [Member] | American Airlines, Inc. [Member] | ||||
AOCI attributable to parent, before tax [Roll Forward] | ||||
Beginning Balance, before tax | (4,394) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (44) | |||
Net current-period other comprehensive income (loss), before tax | (44) | |||
Ending Balance, before tax | $ (4,438) | $ (4,438) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | $ (15) | $ (16) | $ (29) | $ (32) |
American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (15) | (16) | (29) | (32) |
Prior Service Cost (Benefit) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (33) | (33) | (67) | (67) |
Prior Service Cost (Benefit) [Member] | American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (33) | (33) | (67) | (67) |
Actuarial Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | 18 | 17 | 38 | 35 |
Actuarial Loss [Member] | American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | $ 18 | $ 17 | $ 38 | $ 35 |
Regional Expenses (Detail)
Regional Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | $ 1,510 | $ 1,314 | $ 2,912 | $ 2,343 |
Salaries, wages and benefits | 3,003 | 2,670 | 5,829 | 5,322 |
Maintenance, materials and repairs | 495 | 453 | 987 | 871 |
Other rent and landing fees | 452 | 458 | 892 | 879 |
Aircraft rent | 294 | 302 | 589 | 609 |
Selling expenses | 376 | 334 | 694 | 642 |
Depreciation and amortization | 418 | 374 | 822 | 729 |
Special items, net | 202 | 62 | 320 | 161 |
Other | 1,200 | 1,127 | 2,354 | 2,205 |
Total regional expenses | 1,620 | 1,518 | 3,194 | 2,950 |
American Airlines, Inc. [Member] | ||||
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | 1,510 | 1,314 | 2,912 | 2,343 |
Salaries, wages and benefits | 2,999 | 2,668 | 5,823 | 5,318 |
Maintenance, materials and repairs | 495 | 453 | 987 | 871 |
Other rent and landing fees | 452 | 458 | 892 | 879 |
Aircraft rent | 294 | 302 | 589 | 609 |
Selling expenses | 376 | 334 | 694 | 642 |
Depreciation and amortization | 418 | 374 | 822 | 729 |
Special items, net | 202 | 62 | 320 | 161 |
Other | 1,200 | 1,128 | 2,354 | 2,208 |
Total regional expenses | 1,629 | 1,510 | 3,199 | 2,947 |
Regional Carrier [Member] | ||||
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | 329 | 279 | 648 | 498 |
Salaries, wages and benefits | 360 | 330 | 705 | 656 |
Capacity purchases from third-party regional carriers | 413 | 392 | 806 | 786 |
Maintenance, materials and repairs | 65 | 88 | 135 | 183 |
Other rent and landing fees | 156 | 142 | 307 | 270 |
Aircraft rent | 9 | 9 | 17 | 18 |
Selling expenses | 94 | 88 | 174 | 166 |
Depreciation and amortization | 78 | 72 | 157 | 140 |
Special items, net | 1 | 3 | 4 | 8 |
Other | 115 | 115 | 241 | 225 |
Total regional expenses | 1,620 | 1,518 | 3,194 | 2,950 |
Regional Carrier [Member] | American Airlines, Inc. [Member] | ||||
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | 329 | 279 | 648 | 498 |
Salaries, wages and benefits | 86 | 83 | 161 | 167 |
Capacity purchases from third-party regional carriers | 827 | 799 | 1,628 | 1,613 |
Maintenance, materials and repairs | 2 | 1 | 3 | 2 |
Other rent and landing fees | 150 | 122 | 296 | 231 |
Aircraft rent | 7 | 7 | 14 | 14 |
Selling expenses | 94 | 88 | 174 | 166 |
Depreciation and amortization | 65 | 58 | 128 | 112 |
Special items, net | 1 | 3 | 4 | 8 |
Other | 68 | 70 | 143 | 136 |
Total regional expenses | $ 1,629 | $ 1,510 | $ 3,199 | $ 2,947 |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Detail) shares in Millions | 1 Months Ended | |
Jun. 30, 2015Lawsuits | Jun. 30, 2017shares | |
Long-term Purchase Commitment [Line Items] | ||
Shares reserved for future issuance | shares | 25.2 | |
Number of putative class action lawsuits | 100 | |
American Airlines, Inc. [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Number of putative class action lawsuits | 100 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Subsequent Event [Line Items] | ||||||
Common stock dividends per share declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | |
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends per share declared (in dollars per share) | $ 0.10 |
Transactions with Related Par53
Transactions with Related Parties (Detail) - American Airlines, Inc. [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Net receivables (payables) to related parties | $ 8,029 | $ 6,810 |
AAG [Member] | ||
Related Party Transaction [Line Items] | ||
Net receivables (payables) to related parties | 10,191 | 8,981 |
AAG's Wholly-owned Subsidiaries [Member] | ||
Related Party Transaction [Line Items] | ||
Net receivables (payables) to related parties | $ (2,162) | $ (2,171) |