UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM			10-Q


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended ~~June~~September 30, 2025


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From to

Commission file number 1-8400



American Airlines Group Inc.
(Exact name of registrant as specified in its charter)

Delaware

75-1825172

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1 Skyview Drive,

Fort Worth,

Texas

76155

(Address of principal executive offices)

(Zip Code)


	(682)	278-9000
(Registrant’s telephone number, including area code)

Commission file number 1-2691



American Airlines, Inc.
(Exact name of registrant as specified in its charter)

Delaware

13-1502798

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1 Skyview Drive,

Fort Worth,

Texas

76155

(Address of principal executive offices)

(Zip Code)


	(682)	278-9000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

AAL

The Nasdaq Global Select Market

Preferred Stock Purchase Rights

—

(1)

(1) Attached to the Common Stock

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

American Airlines Group Inc.

☒

Yes

☐

American Airlines, Inc.

☒

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

American Airlines Group Inc.

☒

Yes

☐

American Airlines, Inc.

☒

Yes

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

American Airlines Group Inc.

☒

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

American Airlines, Inc.

☐

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


American Airlines Group Inc.			☐
American Airlines, Inc.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

American Airlines Group Inc.

☐

Yes

☒

American Airlines, Inc.

☐

Yes

☒

As of ~~July~~October 1817, 2025, there were ~~659~~660,~~828~~086,~~821~~495 shares of American Airlines Group Inc. common stock outstanding.

As of ~~July~~October 1817, 2025, there were 1,000 shares of American Airlines, Inc. common stock outstanding, all of which were held by American Airlines Group Inc.

American Airlines Group Inc.

American Airlines, Inc.

Form 10-Q

Quarterly Period Ended ~~June~~September 30, 2025

Table of Contents

		Page
PART I: FINANCIAL INFORMATION
Item 1A.	Condensed Consolidated Financial Statements of American Airlines Group Inc.	5
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Comprehensive Income (Loss)	6
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statements of Cash Flows	8
	Condensed Consolidated Statements of Stockholders’ Deficit	9
	Notes to the Condensed Consolidated Financial Statements	1011
Item 1B.	Condensed Consolidated Financial Statements of American Airlines, Inc.	2324
	Condensed Consolidated Statements of Operations	2324
	Condensed Consolidated Statements of Comprehensive Income	24
	Condensed Consolidated Statements of Comprehensive Income (Loss)	25
	Condensed Consolidated Balance Sheets	2526
	Condensed Consolidated Statements of Cash Flows	2627
	Condensed Consolidated Statements of Stockholder’s Equity	2728
	Notes to the Condensed Consolidated Financial Statements	2829
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3941
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5861
Item 4.	Controls and Procedures	5962
PART II: OTHER INFORMATION
Item 1.	Legal Proceedings	6063
Item 1A.	Risk Factors	6063
Item 5.	Other Information	6063
Item 6.	Exhibits	6164
SIGNATURES		6265

General

This report is filed by American Airlines Group Inc. (AAG) and its wholly-owned subsidiary American Airlines, Inc. (American). References in this report to “we,” “us,” “our,” the “Company” and similar terms refer to AAG and its consolidated subsidiaries. References in this report to “mainline” refer to the operations of American only and exclude regional operations. Capitalized terms used but not defined herein shall have the meanings given to them in our annual report on Form 10-K for the year ended December 31, 2024 (2024 Form 10-K).

Note Concerning Forward-Looking Statements

Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended (the Securities Act), the Securities Exchange Act of 1934, as amended (the Exchange Act), and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about our plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on our current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to:

•downturns in economic conditions;

•our inability to obtain sufficient financing or other capital to operate successfully;

•our high level of debt and other obligations;

•our significant pension and other postretirement benefit funding obligations;

•any deterioration of our financial condition;

•any loss of key personnel, or our inability to attract, develop and retain additional qualified personnel;

•changing economic, geopolitical, commercial, regulatory and other conditions beyond our control, including the recently announced tariffs and other global events that affect travel behavior;

•changes in current legislation, regulations and economic conditions regarding federal governmental tariffs, the implementation of federal government budget cuts, a prolonged government shutdown and the potential that any of the foregoing disrupts our operations, and affects the demand for, or restricts the use of, travel by government employees and their families or private sector enterprises that contract or otherwise interface with the federal government;

•the intensely competitive and dynamic nature of the airline industry;

•union disputes, employee strikes and other labor-related disruptions;

•problems with any of our third-party regional operators or third-party service providers;

•any damage to our reputation or brand image;

•losses and adverse publicity stemming from any public incidents involving our company, our people or our brand;

•changes to our business model that may not be successful and may cause operational difficulties or decreased demand;

•our inability to protect our intellectual property rights, particularly our branding rights;

•litigation in the normal course of business or otherwise;

•our inability to use net operating losses and other carryforwards;

•any new U.S. and international tax legislation;

•any impairment of goodwill and intangible assets or long-lived assets;

•any inability of our commercial relationships with other companies to produce the returns or results we expect;

•our dependence on price and availability of aircraft fuel;

•extensive government regulation and compliance risks;

•economic and political instability outside of the U.S. where we have significant operations;

•ongoing security concerns due to conflicts, terrorist attacks or other acts of violence, domestically or abroad;

•climate change;

•environmental and social matters, and compliance risks with environmental, health and noise regulations;

•a shortage of pilots;

•our dependence on a limited number of suppliers for aircraft, aircraft engines and parts;

•any failure of technology and automated systems, including artificial intelligence, that we rely on to operate our business;

•evolving data privacy requirements, risks from cyberattacks and data privacy incidents, and compliance risks with regulations related therewith;

•any inability to effectively manage the costs, rights and functionality of third-party distribution channels;

•any inability to obtain and maintain adequate facilities and infrastructure throughout our system and, at some airports, adequate slots;

•interruptions or disruptions in service at one or more of our key facilities;

•increases in insurance costs or reductions in insurance coverage;

•heavy taxation in the airline industry;

•risks related to ownership of AAG common stock; and

other risks as described in Part I, Item 1A. Risk Factors in our 2024 Form 10-K, Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors of this report and other risks and uncertainties listed from time to time in our filings with the Securities and Exchange Commission (the SEC).

There may be other factors of which we are not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. We do not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such statements other than as required by law. Any forward-looking statements speak only as of the date of this report or as of the dates indicated in the statements.

Table of Contents

PART I: FINANCIAL INFORMATION

This report on Form 10-Q is filed by both AAG and American and includes the Condensed Consolidated Financial Statements of each company in Item 1A and Item 1B, respectively.

Table of Contents

ITEM 1A. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share amounts)(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Operating revenues:

Passenger

1312,~~123~~471

1312,~~202~~523

2436,~~514~~985

2437,~~661~~184

Cargo

~~211~~212

~~195~~202

~~400~~612

~~382~~584

Other

1,~~058~~008

~~937~~922

23,~~029~~037

12,~~861~~783

Total operating revenues

1413,~~392~~691

1413,~~334~~647

2640,~~943~~634

2640,~~904~~551

Operating expenses:

Aircraft fuel and related taxes

2,~~663~~767

32,~~061~~874

58,~~250~~017

68,~~042~~916

Salaries, wages and benefits

4,~~382~~461

34,~~953~~098

813,~~604~~065

711,~~820~~917

Regional expenses

1,~~331~~370

1,~~268~~264

24,~~683~~053

23,~~469~~733

Maintenance, materials and repairs

~~927~~1,028

~~950~~989

12,~~848~~876

12,~~834~~823

Other rent and landing fees

~~894~~906

~~834~~861

12,~~720~~627

12,~~653~~514

Aircraft rent

~~303~~310

~~314~~303

~~600~~910

~~642~~945

Selling expenses

~~535~~483

~~456~~468

~~985~~1,467

~~864~~1,331

Depreciation and amortization

~~476~~474

~~474~~479

~~944~~1,418

~~944~~1,424

Special items, net

477

—554

~~118~~125

70625

Other

1,~~699~~734

1,~~640~~668

35,~~327~~061

34,~~175~~843

Total operating expenses

13,~~257~~540

1213,~~950~~558

2639,~~079~~619

2539,~~513~~071

Operating income

~~1,135~~151

~~1,384~~89

~~864~~1,015

1,~~391~~480

Nonoperating income (expense):

Interest income

~~100~~90

~~128~~117

~~194~~285

~~246~~363

Interest expense, net

(~~433~~432)

(~~486~~480)

(~~861~~1,294)

(~~984~~1,464)

Other income (expense), net

3649

218

~~(8)~~42

(3820)

Total nonoperating expense, net

(~~297~~293)

(~~356~~345)

(~~675~~967)

(~~776~~1,121)

Income before income taxes

838

1,028

189

615

Income (loss) before income taxes

(142)

(256)

359

Income tax provision

239

311

210

Income tax provision (benefit)

(28)

(107)

103

Net income

599

717

126

405

Net income (loss)

(114)

(149)

256

Earnings per common share:

Earnings (loss) per common share:

Basic

(0.9117)

1(0.0923)

0.1902

0.6239

Diluted

(0.9117)

1(0.0123)

0.1902

0.5939

Weighted average shares outstanding (in thousands):

Basic

660,~~127~~358

~~656~~657,~~965~~424

659,~~504~~788

656,~~406~~745

Diluted

660,~~367~~358

~~720~~657,~~302~~424

660,~~523~~784

~~720~~658,~~712~~775

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income	$	599	$	717	$	126	$	405
Net income (loss)	$	(114)	$	(149)	$	12	$	256
Other comprehensive income (loss), net of tax:
Other comprehensive income, net of tax:
Pension, retiree medical and other postretirement benefits	1715		1918		3550		3755
Investments	—		—5		—		~~(1)~~4
Total other comprehensive income, net of tax	1715		1923		3550		3659
Total comprehensive income	$	616	$	736	$	161	$	441
Total comprehensive income (loss)	$	(99)	$	(126)	$	62	$	315

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and par value amounts)

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
	(Unaudited)
ASSETS
Current assets
Cash	$	~~833~~835	$	804
Short-term investments	76,~~740~~023		6,180
Restricted cash and short-term investments	~~807~~760		732
Accounts receivable, net	2,~~057~~028		2,006
Aircraft fuel, spare parts and supplies, net	2,~~776~~782		2,638
Prepaid expenses and other	~~855~~822		794
Total current assets	1513,~~068~~250		13,154
Operating property and equipment
Flight equipment	44,~~219~~994		43,521
Ground property and equipment	10,~~304~~366		10,202
Equipment purchase deposits	~~976~~850		1,012
Total property and equipment, at cost	5556,~~499~~210		54,735
Less accumulated depreciation and amortization	(24,~~298~~752)		(23,608)
Total property and equipment, net	31,~~201~~458		31,127
Operating lease right-of-use assets	7,~~488~~495		7,333
Other assets
Goodwill	4,091		4,091
Intangibles, net of accumulated amortization of $845 and $841, respectively	2,040		2,044
Intangibles, net of accumulated amortization of $847 and $841, respectively	2,038		2,044
Deferred tax asset	2,~~411~~435		2,485
Other assets	1,~~368~~374		1,549
Total other assets	9,~~910~~938		10,169
Total assets	$	6362,~~667~~141	$	61,783
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt and finance leases	$	43,~~605~~604	$	5,322
Accounts payable	32,~~130~~833		2,455
Accrued salaries and wages	12,~~900~~053		2,150
Air traffic liability	8,~~240~~092		6,759
Loyalty program liability	3,~~666~~699		3,556
Operating lease liabilities	1,~~120~~143		1,092
Other accrued liabilities	3,~~110~~214		2,961
Total current liabilities	2524,~~771~~638		24,295
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	25,~~276~~113		25,154
Pension and postretirement benefits	1,~~814~~759		2,128
Loyalty program liability	6,~~805~~815		6,498
Operating lease liabilities	6,~~200~~204		5,976
Other liabilities	1,~~671~~574		1,709
Total noncurrent liabilities	41,~~766~~465		41,465
Commitments and contingencies
Stockholders’ equity (deficit)
Common stock, $0.01 par value; 1,750,000,000 shares authorized, 659,797,256 shares issued and outstanding at June 30, 2025; 657,566,166 shares issued and outstanding at December 31, 2024	7		7
Common stock, $0.01 par value; 1,750,000,000 shares authorized, 660,064,930 shares issued and outstanding at September 30, 2025; 657,566,166 shares issued and outstanding at December 31, 2024	7		7
Additional paid-in capital	7,~~370~~377		7,424
Accumulated other comprehensive loss	(4,~~530~~515)		(4,565)
Retained deficit	(6,~~717~~831)		(6,843)
Total stockholders’ deficit	(3,~~870~~962)		(3,977)
Total liabilities and stockholders’ equity (deficit)	$	6362,~~667~~141	$	61,783

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)(Unaudited)

	Six Months Ended June 30,
	Nine Months Ended September 30,
	2025		2024
Net cash provided by operating activities	$	3,~~419~~373	$	3,~~308~~585
Cash flows from investing activities:
Capital expenditures and aircraft purchase deposits	(12,~~323~~149)		(1,~~475~~943)
Proceeds from sale-leaseback transactions and sale of property and equipment	~~200~~243		~~353~~598
Purchases of short-term investments	(4,680)		(4,714)
Sales of short-term investments	4,944		5,901
Sales of short-term investments	3,119		3,881
Purchases of short-term investments	(4,801)		(6,528)
Decrease (increase) in restricted short-term investments	(7320)		68159
Other investing activities	279		(521)
Net cash used in investing activities	(21,~~478~~504)		(1,~~892~~834)
Cash flows from financing activities:
Payments on long-term debt and finance leases	(24,~~365~~087)		(12,~~836~~698)
Proceeds from issuance of long-term debt	12,~~659~~169		~~527~~1,252
Other financing activities	~~(206)~~85		(4853)
Net cash used in financing activities	(~~912~~1,833)		(1,~~357~~499)
Net increase in cash and restricted cash	2936		59252
Cash and restricted cash at beginning of period	902		681
Cash and restricted cash at end of period (1)	$	~~931~~938	$	~~740~~933
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases	$	~~687~~984	$	~~630~~775
Property and equipment acquired through finance leases and other	91137		~~158~~193
Operating leases converted to finance leases	83104		130
Finance leases converted to operating leases	4547		3033
Supplemental information:
Interest paid, net	~~832~~1,324		~~979~~1,512
Income taxes paid	1013		6

(1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:

Cash	$	~~833~~835	$	~~605~~834
Restricted cash included in restricted cash and short-term investments	98103		~~135~~99
Total cash and restricted cash	$	~~931~~938	$	~~740~~933

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In millions, except share amounts)(Unaudited)

	CommonStock		AdditionalPaid-inCapital		AccumulatedOtherComprehensiveLoss		RetainedDeficit		Total
Balance at December 31, 2024	$	7	$	7,424	$	(4,565)	$	(6,843)	$	(3,977)
Net loss	—		—		—		(473)		(473)
Other comprehensive income, net	—		—		18		—		18
Settlement of PSP1 and Treasury Loan Warrants (see Note 3)	—		(79)		—		—		(79)
Issuance of 1,914,837 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(13)		—		—		(13)
Share-based compensation expense	—		16		—		—		16
Balance at March 31, 2025	7		7,348		(4,547)		(7,316)		(4,508)
Net income	—		—		—		599		599
Other comprehensive income, net	—		—		17		—		17
Issuance of 316,253 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(1)		—		—		(1)
Share-based compensation expense	—		23		—		—		23
Balance at June 30, 2025	$7	7	$7,370	~~7,370~~	$(4,530)	~~(4,530)~~	$(6,717)	~~(6,717)~~	$(3,870)	~~(3,870)~~
Net loss	—		—		—		(114)		(114)
Other comprehensive income, net	—		—		15		—		15
Issuance of 267,674 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(2)		—		—		(2)
Share-based compensation expense	—		9		—		—		9
Balance at September 30, 2025	$	7	$	7,377	$	(4,515)	$	(6,831)	$	(3,962)

	CommonStock		AdditionalPaid-inCapital		AccumulatedOtherComprehensiveLoss		RetainedDeficit		Total
Balance at December 31, 2023	$	7	$	7,374	$	(4,894)	$	(7,689)	$	(5,202)
Net loss	—		—		—		(312)		(312)
Other comprehensive income, net	—		—		17		—		17
Issuance of 1,772,443 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(11)		—		—		(11)
Share-based compensation expense	—		28		—		—		28
Modification of share-based awards	—		(20)		—		—		(20)
Balance at March 31, 2024	7		7,371		(4,877)		(8,001)		(5,500)
Net income	—		—		—		717		717
Other comprehensive income, net	—		—		19		—		19
Issuance of 562,167 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(3)		—		—		(3)
Share-based compensation expense	—		21		—		—		21
Balance at June 30, 2024	$	7	$	7,389	$	(4,858)	$	(7,284)	$	(4,746)

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In millions, except share amounts)(Unaudited)


	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Deficit		Total
Balance at December 31, 2023	$	7	$	7,374	$	(4,894)	$	(7,689)	$	(5,202)
Net loss	—		—		—		(312)		(312)
Other comprehensive income, net	—		—		17		—		17
Issuance of 1,772,443 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(11)		—		—		(11)
Share-based compensation expense	—		28		—		—		28
Modification of share-based awards	—		(20)		—		—		(20)
Balance at March 31, 2024	7		7,371		(4,877)		(8,001)		(5,500)
Net income	—		—		—		717		717
Other comprehensive income, net	—		—		19		—		19

Issuance of 562,167 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(3)		—		—		(3)
Share-based compensation expense	—		21		—		—		21
Balance at June 30, 2024	7		7,389		(4,858)		(7,284)		(4,746)
Net loss	—		—		—		(149)		(149)
Other comprehensive income, net	—		—		23		—		23
Issuance of 495,040 shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes	—		(4)		—		—		(4)
Share-based compensation expense	—		22		—		—		22

Balance at September 30, 2024	$	7	$	7,407	$	(4,835)	$	(7,433)	$	(4,854)

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

1. Basis of Presentation

(a) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2024. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated.

Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, the loyalty program, deferred tax assets, as well as pension and retiree medical and other postretirement benefits.

(b) Operating Property and Equipment

Effective January 1, 2025, we adjusted the estimated useful lives of our mainline and regional aircraft, engines and related rotable parts by three years to align with the extended lives of aircraft included in our long-term fleet plan. In conjunction with this change, we also reduced the salvage values for most of these assets from 10% to 5% of original cost to more closely reflect the estimated value at the end of the useful life. Accordingly, the estimated useful lives for the principal property and equipment classification are as follows:


Principal Property and Equipment Classification			Estimated Useful Life
Aircraft, engines and related rotable parts			20 – 33 years

The effect of these changes did not have a material impact to depreciation and amortization expense in the condensed consolidated statement of operations for the three and ~~six~~nine months ended ~~June~~September 30, 2025.

American’s improvements to the overhaul and maintenance base at Tulsa International Airport (Tulsa Maintenance Base) include the design, construction and renovation of various facilities at the Tulsa Maintenance Base. The Tulsa Maintenance Base is American’s largest maintenance facility and is an integral part of operating its mainline fleet. American has concluded that it does not control the underlying assets being constructed, and therefore, it recognizes operating lease liabilities with corresponding right-of-use assets on the condensed consolidated balance sheet as individual project stages are completed and leases commence.

In May 2025, the Tulsa Municipal Airport Trust (TMAT) issued $400 million aggregate principal amount of special facility revenue bonds on behalf of American, with $300 million maturing on December 1, 2035 and $100 million maturing on December 1, 2040 (collectively, the 2025 TMAT Bonds). The 2025 TMAT Bond due December 1, 2035 was priced at 109% of par value and the 2025 TMAT Bond due December 1, 2040 was priced at 107% of par value. The gross proceeds from the issuance of the 2025 TMAT Bonds were approximately $432 million. Of this amount, $104 million was used to fund the redemption of the aggregate principal amount of TMAT’s outstanding 2015 special facility revenue bonds (the 2015 TMAT Bonds) and the remaining $328 million will be used to finance the cost of improvements at the Tulsa Maintenance Base. The net proceeds received from the 2025 TMAT Bonds, offset by related project spend, are reflected within other investing activities in the condensed consolidated statement of cash flows.

The 2025 TMAT Bonds bear interest at 6.25% per annum commencing on May 8, 2025, until the day preceding the applicable maturity date, on which date the bonds will be subject to mandatory tender for purchase by American. American is required to pay rent equal to the annual principal and interest requirement on the 2025 TMAT Bonds through payments under a sublease agreement with TMAT (as amended), and AAG guarantees the 2025 TMAT Bonds. American’s 11

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(d) Recent Accounting Pronouncements

Accounting Standards Update 2025-06: Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software

This standard modernizes the accounting for costs related to internal-use software by removing references to project stages and by clarifying the thresholds entities apply to begin capitalizing costs. The amendments in this update are effective for interim and annual periods beginning after December 15, 2027, and early adoption is permitted. We are currently evaluating how the adoption of this standard may impact our consolidated financial statements.

2. Special Items, Net

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Litigation reserve adjustments	$	47—	$	—	$	77	$	—
Labor contract expenses (1)	—		—516		31		57573
Severance expenses	—3		—		58		13
Other operating special items, net	—4		—38		59		—39
Mainline operating special items, net	477		—554		~~118~~125		70625
Debt refinancing, extinguishment and other, net	~~(2)~~—		7—		17		7
Mark-to-market adjustments on equity investments, net (2)	(144)		5(27)		1511		5123
Nonoperating special items, net	(164)		12(27)		3228		5830

(1)Labor contract expenses for the ~~six~~nine months ended ~~June~~September 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with our mainline maintenance and fleet service team members.

Labor contract expenses for the ~~six~~three months ended ~~June~~September 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline ~~passenger~~flight ~~service team members~~attendants, including a one-time ~~signing~~payment ~~bonus~~of $514 million. For the nine months ended September 30, 2024, labor contract expenses included one-time charges resulting from the ratification of new collective bargaining agreements with our mainline flight attendants and mainline passenger service team members.

(2)Mark-to-market adjustments on equity investments, net included unrealized gains and losses associated with certain equity investments.

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3. Earnings (Loss) Per Common Share

The following table provides the computation of basic and diluted earnings (loss) per common share (EPS) (in millions, except share and per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Basic EPS:
Net income	$	599	$	717	$	126	$	405
Net income (loss)	$	(114)	$	(149)	$	12	$	256
Weighted average common shares outstanding (in thousands)	660,~~127~~358		~~656~~657,~~965~~424		659,~~504~~788		656,~~406~~745
Basic EPS	$	(0.9117)	$	1(0.0923)	$	0.1902	$	0.6239
Diluted EPS:
Net income	$	599	$	717	$	126	$	405
Net income (loss) for purposes of computing diluted EPS	$	(114)	$	(149)	$	12	$	256
Interest expense on 6.50% convertible senior notes	—		9		—		22
Net income for purposes of computing diluted EPS	$	599	$	726	$	126	$	427
Share computation for diluted EPS (in thousands):
Basic weighted average common shares outstanding	660,~~127~~358		~~656~~657,~~965~~424		659,~~504~~788		656,~~406~~745
Dilutive effect of restricted stock unit awards	~~240~~—		~~723~~—		~~370~~563		~~865~~888
Dilutive effect of certain PSP Warrants and Treasury Loan Warrants	—		~~886~~—		~~649~~433		1,~~713~~142
Assumed conversion of 6.50% convertible senior notes	—		61,728		—		61,728
Diluted weighted average common shares outstanding	660,358		657,424		660,784		658,775
Diluted weighted average common shares outstanding	660,367		720,302		660,523		720,712
Diluted EPS	$	(0.17)	$	(0.23)	$	0.02	$	0.39
Diluted EPS	$	0.91	$	1.01	$	0.19	$	0.59

The following were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

6.50% convertible senior notes (1)

—

—61,728

3020,~~864~~576

—61,728

Restricted stock unit awards

21,~~012~~873

2,~~912~~862

1,~~673~~424

32,~~112~~717

(1)On March 27, 2025, we provided notice to the holders of our Convertible Notes that we would settle our Convertible Notes at their ~~upcoming~~ maturity in cash on July 1, 2025~~, in cash (including any conversions up to a price per share of AAG common stock of approximately $22~~.~~00).~~ As a result, for the ~~three~~quarterly ~~months~~periods ~~ended~~ending ~~June~~after 30March 31, 2025, we have excluded the ~~assumed conversion of the~~ Convertible Notes from the calculation of diluted EPS.

In addition, excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive, are certain shares underlying the warrants issued pursuant to (i) the payroll support program established under the Coronavirus Aid, Relief, and Economic Security Act (PSP1 Warrants), (ii) the payroll support program established under the Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP2 Warrants), (iii) the payroll support program established under the American Rescue Plan Act of 2021 (PSP3 Warrants) and (iv) the Loan and Guarantee Agreement with the U.S. Department of Treasury (Treasury Loan Warrants).

During the first quarter of 2025, all of the PSP1 Warrants and Treasury Loan Warrants, 14.0 million shares and 4.4 million shares, respectively, were exercised at an exercise price of $12.51 per share and net settled in cash for $79 million, reflected within other financing activities in the condensed consolidated statement of cash flows.

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The table below provides a summary of the warrants outstanding as of ~~June~~September 30, 2025:

Warrants

Warrants Issued (shares, in thousands) (1)

Exercise Price ($)

Expiration

PSP2 Warrants

6,576

15.66

January 2026 to April 2026

PSP3 Warrants

4,407

21.75

April 2026 to June 2026

(1)The PSP2 Warrants and PSP3 Warrants are subject to certain anti-dilution provisions, do not have any voting rights and are freely transferable, with registration rights. Each warrant will be exercisable either through net share settlement or cash, at our option. The warrants were issued solely as compensation to the U.S. Government related to entry into the payroll support program agreements. No separate proceeds (apart from the financial assistance previously received in 2021 ~~and 2020~~) were received upon issuance of the warrants or will be received upon exercise thereof.

4. Revenue Recognition

Revenue

The following are the significant categories comprising our operating revenues (in millions):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Passenger revenue:

Passenger travel

1211,~~126~~402

1211,~~212~~539

2234,~~601~~004

2234,~~795~~334

Loyalty revenue - travel (1)

~~997~~1,069

~~990~~984

12,~~913~~981

12,~~866~~850

Total passenger revenue

1312,~~123~~471

1312,~~202~~523

2436,~~514~~985

2437,~~661~~184

Cargo

~~211~~212

~~195~~202

~~400~~612

~~382~~584

Other:

Loyalty revenue - marketing services

~~912~~831

~~799~~779

12,~~735~~566

12,~~584~~363

Other revenue

~~146~~177

~~138~~143

~~294~~471

~~277~~420

Total other revenue

1,~~058~~008

~~937~~922

23,~~029~~037

12,~~861~~783

Total operating revenues

1413,~~392~~691

1413,~~334~~647

2640,~~943~~634

2640,~~904~~551

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

The following is our total passenger revenue by geographic region (in millions):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Domestic

98,~~159~~723

98,~~342~~681

1726,~~286~~010

1726,~~604~~285

Latin America

1,~~550~~340

1,~~562~~433

34,~~455~~795

34,~~464~~897

Atlantic

2,~~086~~109

2,~~019~~110

35,~~052~~160

35,~~012~~122

Pacific

~~328~~299

~~279~~299

~~721~~1,020

~~581~~880

Total passenger revenue

1312,~~123~~471

1312,~~202~~523

2436,~~514~~985

2437,~~661~~184

We attribute passenger revenue by geographic region based upon the origin and destination of each flight segment.

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Contract Balances

Our significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future air travel, non-air travel and other awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
	(In millions)
Loyalty program liability	$	10,~~471~~514	$	10,054
Air traffic liability	8,~~240~~092		6,759
Total	$	18,~~711~~606	$	16,813

The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):

Balance at December 31, 2024	$	10,054
Deferral of revenue	23,~~278~~362
Recognition of revenue (1)	(12,~~861~~902)
Balance at June 30, 2025 (2)	$	10,471
Balance at September 30, 2025 (2)	$	10,514

(1)Principally relates to revenue recognized from the redemption of mileage credits for air travel, non-air travel and other awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.

(2)Mileage credits can be redeemed at any time and generally do not expire as long as the AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of ~~June~~September 30, 2025, our current loyalty program liability was $3.7 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in our air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the ~~six~~nine months ended ~~June~~September 30, 2025, $45.81 billion of revenue was recognized in passenger revenue that was included in our air traffic liability at December 31, 2024.

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5. Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
Secured
2013 Term Loan Facility, variable interest rate of 6.50%, installments until due in February 2028	$	970	$	980
2014 Term Loan Facility, variable interest rate of 5.98%, installments until due in January 2027	1,159		1,171
2023 Term Loan Facility, variable interest rate of 6.51%, installments until due in June 2029	1,089		1,089
2023 Term Loan Facility, variable interest rate of 6.26%, installments until due in June 2029	1,089		1,089
10.75% senior secured IP notes, interest only payments until due in February 2026	524		781
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	105		156
7.25% senior secured notes, interest only payments until due in February 2028	750		750
8.50% senior secured notes, interest only payments until due in May 2029	1,000		1,000
5.50% senior secured notes, installments until due in April 2026 (1)	~~1,167~~875		1,750
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
2021 AAdvantage Term Loan Facility, variable interest rate of 6.52%, installments until due in April 2028 (1)	2,275		2,450
2021 AAdvantage Term Loan Facility, variable interest rate of 6.58%, installments until due in April 2028 (1)	2,269		2,450
2025 AAdvantage Term Loan Facility, variable interest rate of 7.58%, installments beginning in July 2025 until due in May 2032 (1)	1,000		—
2025 AAdvantage Term Loan Facility, variable interest rate of 7.58%, installments until due in May 2032 (1)	998		—
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.15%, averaging 3.79%, maturing from 2025 to 2034	6,364		7,271
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.15%, averaging 3.77%, maturing from 2025 to 2034	6,211		7,271
Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.55% to 6.89%, averaging 6.03%, maturing from 2025 to 2037	4,522		4,094
Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.55% to 6.91%, averaging 5.94%, maturing from 2025 to 2037	4,880		4,094
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	~~880~~789		880
	24,805		25,372
	24,619		25,372
Unsecured
PSP1 Promissory Note, variable interest rate of 6.13%, interest only payments until due in April 2030	1,757		1,757
PSP1 Promissory Note, variable interest rate of 6.04%, interest only payments until due in April 2030	1,757		1,757
PSP2 Promissory Note, interest only payments until due in January 2031 (2)	1,030		1,030
PSP3 Promissory Note, interest only payments until due in April 2031 (2)	959		959
6.50% convertible senior notes, interest only payments until due in July 2025	1,000		1,000
6.50% convertible senior notes	—		1,000
	4,746		4,746
	3,746		4,746
Total long-term debt	2928,~~551~~365		30,118
Less: Total unamortized debt discount, premium and issuance costs	~~332~~319		305
Less: Current maturities	43,~~514~~508		5,196
Long-term debt, net of current maturities	$	24,~~705~~538	$	24,617

(1)Collectively referred to as the AAdvantage Financing.

(2)PSP2 and PSP3 notes bear interest at a fixed interest rate of 1.00% until the first and second quarters of 2026, respectively. Thereafter and until maturity, the notes bear interest at 2.00% plus an interest rate based on the Secured Overnight Financing Rate (SOFR) ~~or other benchmark replacement rate consistent with customary market conventions~~.

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As of ~~June~~September 30, 2025, the maximum availability under our revolving credit and other facilities is as follows (in millions):


2013 Revolving Facility (1)	$	519
2014 Revolving Facility (1)	1,557
2023 Revolving Facility (1)	924
Other facilities (2)	400
Total	$	3,400

(1)On April 21, 2025, the aggregate revolving commitments under the 2013, 2014 and 2023 Revolving Facilities were increased from $2.9 billion to $3.0 billion upon the upsize of commitments by certain existing lenders. No other terms were changed and there are no borrowings outstanding under the facilities.

(2)Includes a revolving credit facility that provides for borrowing capacity of up to $350 million, maturing in March 2027 with an option to extend for an additional year. Additionally, American currently has $50 million of available borrowing base under a cargo receivables facility that is set to expire in December 2025. There are no amounts drawn under these facilities.

Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.

AAdvantage Term Loan Facilities

On March 24, 2025, American and AAdvantage Loyalty IP Ltd. (the Borrowers) entered into a second amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Second Amendment). As a result of the Second Amendment, the term loans outstanding with a principal amount of approximately $2.3 billion (the 2021 AAdvantage Term Loan Facility) were replaced with new term loans in the same principal amount. The terms of the new term loans are substantially similar to the prior term loans; however, the new term loans bear interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 1.25% per annum or, at the Borrowers’ option, the SOFR for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 2.25% per annum. Additionally, the scheduled quarterly principal amortization amount was reduced to 0.25% of the principal amount of term loans outstanding as of March 24, 2025 (approximately $6 million each quarter), ~~payable~~which ~~beginning~~began in July 2025, and the remaining balance is due at maturity in April 2028. Pursuant to the Second Amendment, the new term loans are not subject to a cost spread adjustment.

On May 28, 2025, the Borrowers entered into a third amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Third Amendment). As a result of the Third Amendment, the Borrowers incurred $1.0 billion of incremental term loans (the 2025 AAdvantage Term Loan Facility) due on May 28, 2032. The terms of the 2025 AAdvantage Term Loan Facility are substantially similar to the 2021 AAdvantage Term Loan Facility; however, the 2025 AAdvantage Term Loan Facility bears interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 2.25% per annum or, at the Borrowers’ option, the SOFR rate for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 3.25% per annum. Additionally, the scheduled quarterly principal amortization amount is equal to 0.25% of the original aggregate principal amount of the 2025 AAdvantage Term Loan Facility (approximately $3 million each quarter), ~~payable~~which ~~beginning~~began in July 2025, and the remaining balance is due at maturity in May 2032. Pursuant to the Third Amendment, the 2025 AAdvantage Term Loan Facility is not subject to a cost spread adjustment. The net proceeds from the 2025 AAdvantage Term Loan Facility were used to repay near term maturities, including the Convertible Notes described further below.

6.50% Convertible Senior Notes (the Convertible Notes)

On March 27, 2025, we provided notice to the holders of our Convertible Notes that we would settle our Convertible Notes at their maturity in cash (including any conversions up to a price per share of AAG common stock of approximately $22.00). Weif ~~changed~~ the ~~default~~volume-weighted ~~settlement~~average ~~method~~price ~~applicable~~per toshare ~~conversions~~ of ~~the~~AAG ~~Convertible~~common ~~Notes~~stock todid ~~provide~~not ~~that~~exceed noapproximately ~~shares~~$22.00 ofon ~~AAG~~any ~~common~~trading ~~stock~~day ~~would be due upon settlement~~ of the ~~conversion~~20-trading ofday ~~any~~“observation ~~Convertible~~period” ~~Note~~over ~~(and,~~which ~~accordingly,~~the ~~such~~consideration due upon conversion ~~would~~is becalculated ~~settled~~and ~~entirely~~determined. inOn ~~cash)~~July if1, 2025, the volume-weighted average price per share of AAG common stock did not exceed ~~approximately~~ $22.00 on any trading day of the 20-trading day “observation period” ~~over which the consideration due upon conversion is calculated~~ and ~~determined.~~therefore ~~Pursuant to~~ the ~~terms of the indenture governing the~~ Convertible Notes, ~~the~~were ~~holders~~settled ~~of the Convertible Notes could convert~~ at their ~~option~~maturity ~~beginning~~in ~~April~~cash 1,for ~~2025, until the~~ $1.0 billion.

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close of business on the scheduled trading day immediately before the maturity date, July 1, 2025, of the Convertible Notes.

On July 1, 2025, the volume-weighted average price per share of AAG common stock did not exceed $22.00 on any trading day of the 20-trading day “observation period” and therefore the Convertible Notes were settled at their maturity in cash for $1.0 billion.

Equipment Loans and Other Notes Payable Issued in 2025

During the first ~~six~~nine months of 2025, American entered into agreements under which it borrowed $~~712~~1.2 ~~million~~billion in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2036 through 2037 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging 6.2905% as of ~~June~~September 30, 2025.

Other Financing Activities

During the first ~~six~~nine months of 2025, American prepaid $487 million of the outstanding principal amounts of equipment notes issued under EETCs, and these amounts were applied to repay the related trust certificates. Additionally, American prepaid $308 million toward portions of the outstanding principal amounts of the 10.75% senior secured IP notes and 10.75% senior secured LGA/DCA notes.

6. Income Taxes

At December 31, 2024, we had approximately $12.9 billion of gross federal net operating losses (NOLs) and $5.9 billion of other carryforwards available to reduce future federal taxable income, of which $2.6 billion will expire beginning in 2033 if unused and $16.2 billion can be carried forward indefinitely. We also had approximately $5.2 billion of NOL carryforwards to reduce future state taxable income at December 31, 2024, which will expire in taxable years 2024 through 2044 if unused.

Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs and other carryforwards, when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. We consider all available positive and negative evidence and make certain assumptions in evaluating the realizability of our deferred tax assets. Many factors are considered that impact our assessment of future profitability, including conditions which are beyond our control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. We have determined that positive factors outweigh negative factors in the determination of the realizability of our deferred tax assets.

We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full year to income or loss for the reporting period. We have changed to use the discrete method to calculate income taxes for the three and ~~six~~nine months ended ~~June~~September 30, 2025. At this time, we believe that the use of the discrete method ~~for the three and six months ended June 30, 2025~~ is more appropriate than the estimated annual effective tax rate method due to the fact that small changes in projected full year income could cause material fluctuations in our annual effective tax rate applied during each quarter.

During the three and ~~six~~nine months ended ~~June~~September 30, 2025, we recorded an income tax ~~provision~~benefit of $~~239~~28 million and an income tax provision of $6336 million, respectively, which was substantially non-cash due to the utilization of the NOLs described above. Substantially all of our income or loss before income taxes is attributable to the United States.

On July 4, 2025, H.R. 1, the “One Big Beautiful Bill Act” (the OBBBA) was signed into law in the U.S. Among other changes, the OBBBA modifies key business tax provisions, including by restoring 100% bonus depreciation under Section 168(k), reverting to the higher, EBITDA-based, business interest expense limitation under Section 163(j) and changing the computation of taxes related to international operations. Based on our current analysis of these provisions, we do not believe these provisions will have a material impact on our consolidated financial statements.

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7. Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

We utilize the market approach to measure the fair value of our financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Our short-term investments, restricted cash and restricted short-term investments classified as Level 2 utilize significant observable inputs, other than quoted prices in active markets, for valuation of these securities. No changes in valuation techniques or inputs occurred during the ~~six~~nine months ended ~~June~~September 30, 2025.

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of June 30, 2025
	Fair Value Measurements as of September 30, 2025
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	~~925~~392	$	~~925~~392	$	—	$	—
Corporate obligations	43,~~570~~581		—		43,~~570~~581		—
Bank notes/certificates of deposit/time deposits	1,~~745~~600		—		1,~~745~~600		—
Repurchase agreements	~~500~~450		—		~~500~~450		—
	7,740		925		6,815		—
	6,023		392		5,631		—
Restricted cash and short-term investments (1), (3)	~~807~~760		~~460~~454		~~347~~306		—
Long-term investments (4)	~~147~~151		~~147~~151		—		—
Total	$	86,~~694~~934	$	~~1,532~~997	$	75,~~162~~937	$	—

(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.

(2)Our short-term investments mature in one year or less.

(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance the cost of improvements at the Tulsa Maintenance Base. Restricted short-term investments mature in one year or less except for $~~157~~128 million as of ~~June~~September 30, 2025.

(4)Long-term investments primarily include our equity investment in China Southern Airlines Company Limited (China Southern Airlines). See Note 8 for further information on our equity investments.

Fair Value of Debt

The fair value of our long-term debt was estimated using quoted market prices or discounted cash flow analyses based on our current estimated incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Convertible Notes, which would have been classified as Level 2, was $1.~~0 billion and $1.~~2 billion as of ~~June 30, 2025 and~~ December 31, 2024~~, respectively~~.

The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions):

	June 30, 2025
	September 30, 2025
			Fair Value
	CarryingValue		Total		Level 1		Level 2		Level 3
Long-term debt, including current maturities	$	2928,~~219~~046	$	2928,~~270~~210	$	—	$	2524,~~806~~743	$	3,~~464~~467
	December 31, 2024
			Fair Value
	CarryingValue		Total		Level 1		Level 2		Level 3
Long-term debt, including current maturities	$	29,813	$	30,010	$	—	$	26,402	$	3,608

1819

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

8. Investments

To help expand our network and as part of our ongoing commitment to sustainability, we enter into various commercial relationships or other strategic partnerships, including equity investments, with other airlines and companies. Our equity investments are reflected in other assets on our condensed consolidated balance sheets. Our share of equity method investees’ financial results and changes in fair value are recorded in nonoperating other income (expense), net on the condensed consolidated statements of operations.

Our equity investment ownership interests and carrying values are as follows:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	~~June~~September 30, 2025		December 31, 2024		~~June~~September 30, 2025		December 31, 2024
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	~~267~~270	$	253
China Southern Airlines	Fair Value	1.5	%	1.5	%	~~139~~145		142
Other investments (1)	Various					~~117~~148		120
Total						$	~~523~~563	$	515

(1)Primarily includes our investment in JetSMART Holdings Limited, which is accounted for under the equity method.

9. Employee Benefit Plans

The following table provides the components of net periodic benefit cost (income) (in millions):

	Pension Benefits				Retiree Medical and OtherPostretirement Benefits
Three Months Ended June 30,	2025		2024		2025		2024
Three Months Ended September 30,	2025		2024		2025		2024
Service cost	$	1	$	—	$	6	$	8
Interest cost	~~183~~180		~~181~~180		18		17
Expected return on assets	(232)		(~~244~~245)		(2)		(2)
Amortization of:
Prior service cost	—		—		4		3
Unrecognized net loss (gain)	2421		2726		(6)		(6)
Net periodic benefit cost (income)	$	(2430)	$	(3639)	$	20	$	20
	Pension Benefits				Retiree Medical and OtherPostretirement Benefits
Six Months Ended June 30,	2025		2024		2025		2024
Nine Months Ended September 30,	2025		2024		2025		2024
Service cost	$	12	$	1	$	1218	$	1623
Interest cost	~~367~~547		~~362~~542		3553		3451
Expected return on assets	(~~464~~696)		(~~489~~733)		(57)		(57)
Amortization of:
Prior service cost	—		—		913		711
Unrecognized net loss (gain)	4768		5479		(1117)		(1319)
Net periodic benefit cost (income)	$	(4979)	$	(72111)	$	4060	$	3959

Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen.

The service cost component of net periodic benefit cost (income) is included in operating expenses and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.

During the first ~~six~~nine months of 2025, we made required contributions of $~~223~~224 million to our defined benefit pension plans.

1920

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

10. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, RetireeMedical and OtherPostretirementBenefits		Income Tax Provision (1)			Total
Balance at December 31, 2024	$	(2,959)	$	(1,606)		$	(4,565)
Amounts reclassified from AOCI	4564		(1014)		(2)	3550
Net current-period other comprehensive income (loss)	4564		(1014)			3550
Balance at June 30, 2025	$	(2,914)	$	(1,616)		$	(4,530)
Balance at September 30, 2025	$	(2,895)	$	(1,620)		$	(4,515)

(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 statements of operations.

Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI								Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended ~~June~~September 30,				~~Six~~Nine Months ~~EndedJune~~EndedSeptember 30,
	2025		2024		2025		2024
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	$	710	$	59	Nonoperating other income (expense), net
Actuarial loss	1412		1615		2840		3246		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	1715	$	1918	$	3550	$	3755

11. Regional Expenses

Our regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include our wholly-owned regional carriers as well as third-party regional carriers. Our regional carrier arrangements are principally in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations.

Regional expenses for the three months ended ~~June~~September 30, 2025 and 2024 include $8184 million and $7980 million of depreciation and amortization, respectively, and ~~each includes~~ $2 million of aircraft rent in each period. Regional expenses for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024 include $~~160~~244 million and $~~158~~238 million of depreciation and amortization, respectively, and $57 million ~~and $4 million~~ of aircraft rent, ~~respectively~~in each period.

During the three months ended ~~June~~September 30, 2025 and 2024, we recognized $~~174~~177 million and $~~150~~153 million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). During the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, we recognized $~~342~~519 million and $~~299~~452 million, respectively, of expense under our capacity purchase agreement with Republic. We hold a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

2021

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

12. Legal Proceedings

~~Government~~Private Party Antitrust ~~Action~~Actions Related to the Northeast Alliance (NEA). On ~~September~~December 215, ~~2021,~~2022 ~~the~~and ~~United~~December ~~States~~7, ~~Department of Justice~~2022, ~~joined~~two byprivate ~~Attorneys~~party ~~General~~plaintiffs ~~from~~filed ~~six~~putative ~~states~~class ~~and~~action ~~the District of Columbia, filed an~~ antitrust ~~complaint~~complaints against AAG and JetBlue ~~Airways Corporation (JetBlue)~~ in the U.S. District Court for the Eastern District of ~~Massachusetts~~New York alleging that AAG and JetBlue violated U.S. antitrust law in connection with the previously disclosed ~~Northeast~~NEA. ~~Alliance~~These ~~arrangement~~actions ~~(NEA)~~were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On ~~May~~February 192, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the District of Massachusetts ~~issued~~and anthe ~~order~~U.S. ~~permanently~~District ~~enjoining~~Court ~~AAG~~for ~~and~~the ~~JetBlue~~Eastern ~~from~~District ~~continuing~~of ~~and~~New ~~further~~York, ~~implementing~~respectively. ~~the~~In ~~NEA.~~March ~~Following~~2023, ~~JetBlue’s~~AAG ~~notice~~filed ofa ~~termination~~motion ofin the ~~NEA,~~U.S. ~~effective~~District ~~July~~Court ~~29,~~for ~~2023,~~ the ~~airlines~~District ~~conducted~~of aMassachusetts ~~wind-down~~case ofasking to transfer the ~~NEA~~case to the U.S. ~~AAG~~District ~~filed~~Court afor ~~notice~~the Eastern District of ~~appeal~~New toYork and consolidate it with the cases pending in that venue. The U.S. District Court ~~of Appeals~~ for the ~~First~~District ~~Circuit~~of onMassachusetts ~~September~~granted ~~25,~~that ~~2023~~motion. The ~~First~~remaining ~~Circuit~~cases ~~affirmed~~were consolidated with the other actions in the Eastern District ~~Court’s~~of ~~decision~~New onYork. ~~November~~In 8June 2023, ~~2024.~~the ~~AAG~~private party plaintiffs filed a ~~petition~~second ~~for~~amended ~~writ~~consolidated ofcomplaint, ~~certiorari~~followed toby ~~the~~a ~~U.S.~~third ~~Supreme~~amended ~~Court~~complaint onfiled ~~February~~in ~~27,~~August ~~2025~~2023. OnIn ~~June~~September 302023, ~~2025~~AAG, together with JetBlue, filed a motion to dismiss the Uthird amended complaint.S. ~~Supreme~~In ~~Court~~September 2024, the court denied that motion. AAG and JetBlue filed answers to the ~~petition~~private ~~for~~party ~~writ~~plaintiffs’ ofthird ~~certiorari~~amended complaint in October 2024, and the parties are now engaged in discovery. We believe these lawsuits are without merit and are defending against them vigorously.

Private Party Antitrust Actions Related to the Northeast Alliance. On December 5, 2022 and December 7, 2022, two private party plaintiffs filed putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the Eastern District of New York alleging that AAG and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. In March 2023, AAG filed a motion in the U.S. District Court for the District of Massachusetts case asking to transfer the case to the U.S. District Court for the Eastern District of New York and consolidate it with the cases pending in that venue. The U.S. District Court for the District of Massachusetts granted that motion. The remaining cases were consolidated with the other actions in the Eastern District of New York. In June 2023, the private party plaintiffs filed a second amended consolidated complaint, followed by a third amended complaint filed in August 2023. In September 2023, AAG, together with JetBlue, filed a motion to dismiss the third amended complaint. In September 2024, the court denied that motion. AAG and JetBlue filed answers to the private party plaintiffs’ third amended complaint in October 2024, and the parties are now engaged in discovery. We believe these lawsuits are without merit and are defending against them vigorously.

Securities and Stockholder Derivative Litigation. On July 18, 2024, AAG and certain of its current and former officers were named as defendants in a putative class action lawsuit filed in the U.S. District Court for the Northern District of Texas, captioned Qawasmi v. American Airlines Group Inc., et al. The Qawasmi plaintiff purports to represent investors who acquired AAG securities between January 25, 2024 and May 28, 2024. On August 28, 2024, AAG and certain of its current and former officers were named as defendants in a second putative class action lawsuit filed in the same court, captioned Thornburg v. American Airlines Group Inc., et al. The Thornburg plaintiff purports to represent investors who acquired AAG securities between July 20, 2023 and May 28, 2024. Both the Qawasmi and Thornburg complaints assert violations of Sections 10(b) and 20(a) of the Exchange Act based on allegations that, during the relevant periods, AAG misrepresented and/or omitted material facts related to its financial outlook and certain commercial initiatives. On September 16, 2024, certain purported AAG investors moved for consolidation of the Qawasmi and Thornburg actions as well as appointment as lead plaintiff. On November 22, 2024, the Qawasmi and Thornburg complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Securities Litigation. The court also appointed co-lead plaintiffs and lead counsel to represent the putative class in the consolidated action. Plaintiffs filed a consolidated complaint on January 21, 2025, and an amended consolidated complaint on March 19, 2025. The consolidated complaint makes similar factual allegations to the prior complaints regarding AAG’s financial outlook and certain commercial initiatives. AAG and the individual defendants filed a joint motion to dismiss on March 21, 2025 that was fully submitted on May 23, 2025. That motion is currently pending.

Additionally, on September 19, 2024, certain of AAG’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit (in which AAG is a nominal defendant) filed in the U.S. District Court for the Northern District of Texas, captioned Hollin v. Isom, et al. The Hollin complaint asserts violations of Section 10(b) of the Exchange Act, breach of fiduciary duty, and claims for unjust enrichment and corporate waste. On September 26, 2024, a second derivative complaint was filed in the same court, similarly naming certain of AAG’s current and former directors and officers (as well as AAG as a nominal defendant), captioned Leon v. Isom, et al. The Leon complaint asserts violations of Section 14(a) of the Exchange Act, breaches of fiduciary duty, claims of unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and a claim for contribution. The Hollin and Leon complaints generally allege the same purported misconduct as alleged in the securities class actions. On November 25, 2024, the Hollin and Leon complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Stockholder Derivative Action. The derivative actions are currently stayed pending resolution of the securities class action. We believe both the securities class action and shareholder derivative lawsuit are without merit and intend to defend against them vigorously.

21General. In addition to the specifically identified legal proceedings, we and our subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within our control. Therefore, although we will vigorously defend ourselves in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on us are uncertain but could be material.

Table of Contents

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.

(Unaudited)

~~both~~13. ~~the~~Subsequent ~~securities class action and shareholder derivative lawsuit are without merit and intend to defend against them vigorously.~~Events

~~General.~~ In ~~addition~~October to2025, American refinanced the ~~specifically~~$629 million ~~identified~~remaining ~~legal~~outstanding ~~proceedings,~~principal weamount ~~and~~of ~~our~~the ~~subsidiaries~~10.75% ~~are~~senior ~~also~~secured ~~engaged~~IP innotes ~~other~~and ~~legal~~the ~~proceedings~~10.75% ~~from~~senior ~~time~~secured toLGA/DCA ~~time. Legal~~notes ~~proceedings~~due ~~can~~February be2026 ~~complex~~with ~~and~~$629 million ~~take~~borrowed ~~many~~under ~~months,~~a orsenior ~~even~~unsecured ~~years,~~short-term toloan ~~reach~~facility. ~~resolution,~~Term ~~with~~loans under the ~~final~~facility ~~outcome~~mature ~~depending~~ on aJanuary ~~number of variables~~21, ~~some~~2026 ofand ~~which~~bear ~~are~~interest ~~not~~at ~~within~~SOFR ~~our~~for ~~control.~~a ~~Therefore,~~tenor ~~although~~of weone ~~will~~month ~~vigorously~~plus ~~defend~~an ~~ourselves~~applicable inmargin ~~each~~ of ~~the~~2.375% ~~actions~~per ~~described~~annum ~~above~~(6.40% ~~and~~as ~~such~~of ~~other~~the ~~legal~~closing ~~proceedings,~~date). ~~their~~The ~~ultimate~~resulting ~~resolution~~transactions ~~and~~also ~~potential~~accelerated ~~financial~~the ~~and~~release ~~other~~of ~~impacts~~the on10.75% ussenior ~~are~~secured ~~uncertain~~LGA/DCA ~~but~~notes ~~could be material~~collateral.

2223

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ITEM 1B. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions)(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Operating revenues:

Passenger

1312,~~123~~471

1312,~~202~~523

2436,~~514~~985

2437,~~661~~184

Cargo

~~211~~212

~~195~~202

~~400~~612

~~382~~584

Other

1,~~056~~005

~~936~~920

23,~~026~~031

12,~~859~~778

Total operating revenues

1413,~~390~~688

1413,~~333~~645

2640,~~940~~628

2640,~~902~~546

Operating expenses:

Aircraft fuel and related taxes

2,~~663~~767

32,~~061~~874

58,~~250~~017

68,~~042~~916

Salaries, wages and benefits

4,~~379~~459

34,~~950~~096

813,~~599~~058

711,~~816~~911

Regional expenses

1,~~325~~353

1,~~260~~268

24,~~674~~027

23,~~457~~725

Maintenance, materials and repairs

~~927~~1,028

~~950~~989

12,~~848~~876

12,~~834~~823

Other rent and landing fees

~~894~~906

~~834~~861

12,~~720~~627

12,~~653~~514

Aircraft rent

~~303~~310

~~314~~303

~~600~~910

~~642~~945

Selling expenses

~~535~~483

~~456~~468

~~985~~1,467

~~864~~1,331

Depreciation and amortization

~~475~~473

~~472~~477

~~941~~1,414

~~939~~1,416

Special items, net

477

—554

~~118~~125

70625

Other

1,~~700~~735

1,~~642~~665

35,~~330~~065

34,~~178~~844

Total operating expenses

13,~~248~~521

1213,~~939~~555

2639,~~065~~586

2539,~~495~~050

Operating income

~~1,142~~167

~~1,394~~90

~~875~~1,042

1,~~407~~496

Nonoperating income (expense):

Interest income

~~247~~249

~~275~~268

~~483~~732

~~537~~805

Interest expense, net

(~~440~~450)

(~~511~~505)

(~~893~~1,343)

(1,~~031~~536)

Other income (expense), net

3649

218

~~(8)~~41

(3921)

Total nonoperating expense, net

(~~157~~152)

(~~234~~219)

(~~418~~570)

(~~533~~752)

Income before income taxes

985

1,160

457

874

Income (loss) before income taxes

(129)

472

744

Income tax provision

267

367

123

297

Income tax provision (benefit)

(88)

128

208

Net income

718

793

334

577

Net income (loss)

(41)

344

536

See accompanying notes to condensed consolidated financial statements.

2324

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AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income	$	718	$	793	$	334	$	577
Net income (loss)	$	10	$	(41)	$	344	$	536
Other comprehensive income (loss), net of tax:
Other comprehensive income, net of tax:
Pension, retiree medical and other postretirement benefits	1715		1918		3550		3755
Investments	—		—5		—		~~(1)~~4
Total other comprehensive income, net of tax	1715		1923		3550		3659
Total comprehensive income	$	735	$	812	$	369	$	613
Total comprehensive income (loss)	$	25	$	(18)	$	394	$	595

See accompanying notes to condensed consolidated financial statements.

2425

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AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and par value amounts)

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
	(Unaudited)
ASSETS
Current assets
Cash	$	~~824~~825	$	795
Short-term investments	76,~~737~~020		6,177
Restricted cash and short-term investments	~~807~~760		732
Accounts receivable, net	21,~~022~~996		1,977
Receivables from related parties, net	89,~~570~~754		8,187
Aircraft fuel, spare parts and supplies, net	2,594		2,476
Prepaid expenses and other	~~741~~707		675
Total current assets	2322,~~295~~656		21,019
Operating property and equipment
Flight equipment	4344,~~862~~631		43,158
Ground property and equipment	9,~~791~~849		9,709
Equipment purchase deposits	~~976~~850		1,012
Total property and equipment, at cost	5455,~~629~~330		53,879
Less accumulated depreciation and amortization	(2324,~~745~~191)		(23,060)
Total property and equipment, net	3031,~~884~~139		30,819
Operating lease right-of-use assets	7,~~431~~441		7,274
Other assets
Goodwill	4,091		4,091
Intangibles, net of accumulated amortization of $845 and $841, respectively	2,040		2,044
Intangibles, net of accumulated amortization of $847 and $841, respectively	2,038		2,044
Deferred tax asset	1,~~935~~926		2,068
Other assets	1,~~231~~244		1,440
Total other assets	9,~~297~~299		9,643
Total assets	$	70,~~907~~535	$	68,755
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities
Current maturities of long-term debt and finance leases	$	3,~~602~~601	$	4,326
Accounts payable	32,~~037~~723		2,372
Accrued salaries and wages	1,~~747~~875		1,995
Air traffic liability	8,~~240~~092		6,759
Loyalty program liability	3,~~666~~699		3,556
Operating lease liabilities	1,~~110~~133		1,082
Other accrued liabilities	23,~~938~~107		2,812
Total current liabilities	24,~~340~~230		22,902
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities	21,~~532~~369		21,410
Pension and postretirement benefits	1,~~803~~749		2,115
Loyalty program liability	6,~~805~~815		6,498
Operating lease liabilities	6,~~152~~157		5,926
Other liabilities	1,~~633~~539		1,670
Total noncurrent liabilities	37,~~925~~629		37,619
Commitments and contingencies
Stockholder’s equity
Common stock, $1.00 par value; 1,000 shares authorized, issued and outstanding	—		—
Additional paid-in capital	17,~~447~~456		17,408
Accumulated other comprehensive loss	(4,~~642~~627)		(4,677)
Retained deficit	(4,~~163~~153)		(4,497)
Total stockholder’s equity	8,~~642~~676		8,234
Total liabilities and stockholder’s equity	$	70,~~907~~535	$	68,755

See accompanying notes to condensed consolidated financial statements.

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AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)(Unaudited)

	Six Months Ended June 30,
	Nine Months Ended September 30,
	2025		2024
Net cash provided by operating activities	$	32,~~292~~229	$	3,~~262~~517
Cash flows from investing activities:
Capital expenditures and aircraft purchase deposits	(12,~~292~~103)		(1,~~449~~900)
Proceeds from sale-leaseback transactions and sale of property and equipment	~~200~~243		~~353~~598
Purchases of short-term investments	(4,680)		(4,712)
Sales of short-term investments	4,944		5,901
Sales of short-term investments	3,119		3,881
Purchases of short-term investments	(4,801)		(6,527)
Decrease (increase) in restricted short-term investments	(7320)		68159
Other investing activities	280		(521)
Net cash used in investing activities	(21,~~446~~457)		(1,~~864~~790)
Cash flows from financing activities:
Payments on long-term debt and finance leases	(23,~~364~~086)		(12,~~831~~691)
Proceeds from issuance of long-term debt	12,~~659~~169		~~527~~1,252
Other financing activities	~~(112)~~180		(34)
Net cash used in financing activities	(~~817~~737)		(1,~~338~~473)
Net increase in cash and restricted cash	2935		60254
Cash and restricted cash at beginning of period	893		670
Cash and restricted cash at end of period (1)	$	~~922~~928	$	~~730~~924
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases	$	~~683~~980	$	~~626~~754
Property and equipment acquired through finance leases and other	90137		~~158~~193
Operating leases converted to finance leases	83104		130
Finance leases converted to operating leases	4547		3033
Supplemental information:
Interest paid, net	~~780~~1,179		~~918~~1,391
Income taxes paid	1013		6

(1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:

Cash	$	~~824~~825	$	~~595~~825
Restricted cash included in restricted cash and short-term investments	98103		~~135~~99
Total cash and restricted cash	$	~~922~~928	$	~~730~~924

See accompanying notes to condensed consolidated financial statements.

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AMERICAN AIRLINES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(In millions)(Unaudited)

	CommonStock		AdditionalPaid-inCapital		AccumulatedOtherComprehensiveLoss		RetainedDeficit		Total
Balance at December 31, 2024	$	—	$	17,408	$	(4,677)	$	(4,497)	$	8,234
Net loss	—		—		—		(384)		(384)
Other comprehensive income, net	—		—		18		—		18
Share-based compensation expense	—		15		—		—		15
Intercompany equity transfer	—		1		—		—		1
Balance at March 31, 2025	—		17,424		(4,659)		(4,881)		7,884
Net income	—		—		—		718		718
Other comprehensive income, net	—		—		17		—		17
Share-based compensation expense	—		22		—		—		22
Intercompany equity transfer	—		1		—		—		1
Balance at June 30, 2025	$—	—	$17,447	~~17,447~~	$(4,642)	~~(4,642)~~	$(4,163)	~~(4,163)~~	$8,642	~~8,642~~
Net income	—		—		—		10		10
Other comprehensive income, net	—		—		15		—		15
Share-based compensation expense	—		9		—		—		9
Balance at September 30, 2025	$	—	$	17,456	$	(4,627)	$	(4,153)	$	8,676

	CommonStock		AdditionalPaid-inCapital		AccumulatedOtherComprehensiveLoss		RetainedDeficit		Total
Balance at December 31, 2023	$	—	$	17,335	$	(4,999)	$	(5,759)	$	6,577
Net loss	—		—		—		(216)		(216)
Other comprehensive income, net	—		—		17		—		17
Share-based compensation expense	—		27		—		—		27
Modification of share-based awards	—		(20)		—		—		(20)
Intercompany equity transfer	—		1		—		—		1
Balance at March 31, 2024	—		17,343		(4,982)		(5,975)		6,386
Net income	—		—		—		793		793
Other comprehensive income, net	—		—		19		—		19
Share-based compensation expense	—		20		—		—		20
Intercompany equity transfer	—		1		—		—		1
Balance at June 30, 2024	$—	—	$17,364	~~17,364~~	$(4,963)	~~(4,963)~~	$(5,182)	~~(5,182)~~	$7,219	~~7,219~~
Net loss	—		—		—		(41)		(41)
Other comprehensive income, net	—		—		23		—		23
Share-based compensation expense	—		21		—		—		21
Intercompany equity transfer	—		1		—		—		1
Balance at September 30, 2024	$	—	$	17,386	$	(4,940)	$	(5,223)	$	7,223

See accompanying notes to condensed consolidated financial statements.

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(Unaudited)

1. Basis of Presentation

(a) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2024. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated.

(b) Operating Property and Equipment

Effective January 1, 2025, American adjusted the estimated useful lives of its mainline and regional aircraft, engines and related rotable parts by three years to align with the extended lives of aircraft included in American’s long-term fleet plan. In conjunction with this change, American also reduced the salvage values for most of these assets from 10% to 5% of original cost to more closely reflect the estimated value at the end of the useful life. Accordingly, the estimated useful lives for the principal property and equipment classification are as follows:


Principal Property and Equipment Classification			Estimated Useful Life
Aircraft, engines and related rotable parts			20 – 33 years

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(Unaudited)

(d) Recent Accounting Pronouncements

Accounting Standards Update 2025-06: Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software

This standard modernizes the accounting for costs related to internal-use software by removing references to project stages and by clarifying the thresholds entities apply to begin capitalizing costs. The amendments in this update are effective for interim and annual periods beginning after December 15, 2027, and early adoption is permitted. American is currently evaluating how the adoption of this standard may impact its consolidated financial statements.

2. Special Items, Net

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Litigation reserve adjustments	$	47—	$	—	$	77	$	—
Labor contract expenses (1)	—		—516		31		57573
Severance expenses	—3		—		58		13
Other operating special items, net	—4		—38		59		—39
Mainline operating special items, net	477		—554		~~118~~125		70625
Debt refinancing, extinguishment and other, net	~~(2)~~—		7—		17		7
Mark-to-market adjustments on equity investments, net (2)	(144)		5(27)		1511		5123
Nonoperating special items, net	(164)		12(27)		3228		5830

(1)Labor contract expenses for the ~~six~~nine months ended ~~June~~September 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with American’s mainline maintenance and fleet service team members.

Labor contract expenses for the ~~six~~three months ended ~~June~~September 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with American’s mainline ~~passenger~~flight ~~service team members~~attendants, including a one-time ~~signing~~payment ~~bonus~~of $514 million. For the nine months ended September 30, 2024, labor contract expenses included one-time charges resulting from the ratification of new collective bargaining agreements with American’s mainline flight attendants and mainline passenger service team members.

(2)Mark-to-market adjustments on equity investments, net included unrealized gains and losses associated with certain equity investments.

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(Unaudited)

3. Revenue Recognition

Revenue

The following are the significant categories comprising American’s operating revenues (in millions):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Passenger revenue:

Passenger travel

1211,~~126~~402

1211,~~212~~539

2234,~~601~~004

2234,~~795~~334

Loyalty revenue - travel (1)

~~997~~1,069

~~990~~984

12,~~913~~981

12,~~866~~850

Total passenger revenue

1312,~~123~~471

1312,~~202~~523

2436,~~514~~985

2437,~~661~~184

Cargo

~~211~~212

~~195~~202

~~400~~612

~~382~~584

Other:

Loyalty revenue - marketing services

~~912~~831

~~799~~779

12,~~735~~566

12,~~585~~363

Other revenue

~~144~~174

~~137~~141

~~291~~465

~~274~~415

Total other revenue

1,~~056~~005

~~936~~920

23,~~026~~031

12,~~859~~778

Total operating revenues

1413,~~390~~688

1413,~~333~~645

2640,~~940~~628

2640,~~902~~546

(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners.

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(Unaudited)

The following is American’s total passenger revenue by geographic region (in millions):

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Domestic

98,~~159~~723

98,~~342~~681

1726,~~286~~010

1726,~~604~~285

Latin America

1,~~550~~340

1,~~562~~433

34,~~455~~795

34,~~464~~897

Atlantic

2,~~086~~109

2,~~019~~110

35,~~052~~160

35,~~012~~122

Pacific

~~328~~299

~~279~~299

~~721~~1,020

~~581~~880

Total passenger revenue

1312,~~123~~471

1312,~~202~~523

2436,~~514~~985

2437,~~661~~184

American attributes passenger revenue by geographic region based upon the origin and destination of each flight segment.

Contract Balances

American’s significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future air travel, non-air travel and other awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
	(In millions)
Loyalty program liability	$	10,~~471~~514	$	10,054
Air traffic liability	8,~~240~~092		6,759
Total	$	18,~~711~~606	$	16,813

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(Unaudited)

Balance at December 31, 2024	$	10,054
Deferral of revenue	23,~~278~~362
Recognition of revenue (1)	(12,~~861~~902)
Balance at June 30, 2025 (2)	$	10,471
Balance at September 30, 2025 (2)	$	10,514

(2)Mileage credits can be redeemed at any time and generally do not expire as long as the AAdvantage member has any type of qualifying activity at least every 24 months or if the AAdvantage member is the primary holder of a co-branded credit card. As of ~~June~~September 30, 2025, American’s current loyalty program liability was $3.7 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.

The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in American’s air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally one year. Accordingly, any revenue associated with tickets sold for future travel will be recognized within 12 months. For the ~~six~~nine months ended ~~June~~September 30, 2025, $45.81 billion of revenue was recognized in passenger revenue that was included in American’s air traffic liability at December 31, 2024.

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(Unaudited)

4. Debt

Long-term debt included in the condensed consolidated balance sheets consisted of (in millions):

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
Secured
2013 Term Loan Facility, variable interest rate of 6.50%, installments until due in February 2028	$	970	$	980
2014 Term Loan Facility, variable interest rate of 5.98%, installments until due in January 2027	1,159		1,171
2023 Term Loan Facility, variable interest rate of 6.51%, installments until due in June 2029	1,089		1,089
2023 Term Loan Facility, variable interest rate of 6.26%, installments until due in June 2029	1,089		1,089
10.75% senior secured IP notes, interest only payments until due in February 2026	524		781
10.75% senior secured LGA/DCA notes, interest only payments until due in February 2026	105		156
7.25% senior secured notes, interest only payments until due in February 2028	750		750
8.50% senior secured notes, interest only payments until due in May 2029	1,000		1,000
5.50% senior secured notes, installments until due in April 2026 (1)	~~1,167~~875		1,750
5.75% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)	3,000		3,000
2021 AAdvantage Term Loan Facility, variable interest rate of 6.52%, installments until due in April 2028 (1)	2,275		2,450
2021 AAdvantage Term Loan Facility, variable interest rate of 6.58%, installments until due in April 2028 (1)	2,269		2,450
2025 AAdvantage Term Loan Facility, variable interest rate of 7.58%, installments beginning in July 2025 until due in May 2032 (1)	1,000		—
2025 AAdvantage Term Loan Facility, variable interest rate of 7.58%, installments until due in May 2032 (1)	998		—
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.15%, averaging 3.79%, maturing from 2025 to 2034	6,364		7,271
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 2.88% to 7.15%, averaging 3.77%, maturing from 2025 to 2034	6,211		7,271
Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.55% to 6.89%, averaging 6.03%, maturing from 2025 to 2037	4,522		4,094
Equipment loans and other notes payable, fixed and variable interest rates ranging from 2.55% to 6.91%, averaging 5.94%, maturing from 2025 to 2037	4,880		4,094
Special facility revenue bonds, fixed interest rates ranging from 2.25% to 5.38%, maturing from 2026 to 2036	~~880~~789		880
Total long-term debt	24,~~805~~619		25,372
Less: Total unamortized debt discount, premium and issuance costs	~~330~~317		300
Less: Current maturities	3,~~514~~508		4,196
Long-term debt, net of current maturities	$	20,~~961~~794	$	20,876

(1)Collectively referred to as the AAdvantage Financing.

As of ~~June~~September 30, 2025, the maximum availability under American’s revolving credit and other facilities is as follows (in millions):


2013 Revolving Facility (1)	$	519
2014 Revolving Facility (1)	1,557
2023 Revolving Facility (1)	924
Other facilities (2)	400
Total	$	3,400

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(Unaudited)

AAdvantage Term Loan Facilities

On March 24, 2025, American and AAdvantage Loyalty IP Ltd. (the Borrowers) entered into a second amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Second Amendment). As a result of the Second Amendment, the term loans outstanding with a principal amount of approximately $2.3 billion (the 2021 AAdvantage Term Loan Facility) were replaced with new term loans in the same principal amount. The terms of the new term loans are substantially similar to the prior term loans; however, the new term loans bear interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 1.25% per annum or, at the Borrowers’ option, the Secured Overnight Financing Rate (SOFR) for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 2.25% per annum. Additionally, the scheduled quarterly principal amortization amount was reduced to 0.25% of the principal amount of term loans outstanding as of March 24, 2025 (approximately $6 million each quarter), ~~payable~~which ~~beginning~~began in July 2025, and the remaining balance is due at maturity in April 2028. Pursuant to the Second Amendment, the new term loans are not subject to a cost spread adjustment.

Equipment Loans and Other Notes Payable Issued in 2025

Other Financing Activities

5. Income Taxes

At December 31, 2024, American had approximately $12.8 billion of gross federal net operating losses (NOLs) and $4.2 billion of other carryforwards available to reduce future federal taxable income, of which $2.9 billion will expire beginning in 2033 if unused and $14.1 billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $5.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2024, which will expire in taxable years 2024 through 2044 if unused.

American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include its NOLs and other carryforwards, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price

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(Unaudited)

volatility of aircraft fuel and travel demand. American has determined that positive factors outweigh negative factors in the determination of the realizability of its deferred tax assets.

American has historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full year to income or loss for the reporting period. American has changed to use the discrete method to calculate income taxes for the three and ~~six~~nine months ended ~~June~~September 30, 2025. At this time, American believes that the use of the discrete method ~~for the three and six months ended June 30, 2025~~ is more appropriate than the estimated annual effective tax rate method due to the fact that small changes in projected full year income could cause material fluctuations in American’s annual effective tax rate applied during each quarter.

During the three and ~~six~~nine months ended ~~June~~September 30, 2025, American recorded an income tax provision of $~~267~~5 million and $~~123~~128 million, respectively, which was substantially non-cash due to the utilization of the NOLs described above. Substantially all of American’s income or loss before income taxes is attributable to the United States.

On July 4, 2025, H.R. 1, the “One Big Beautiful Bill Act” (the OBBBA) was signed into law in the U.S. Among other changes, the OBBBA modifies key business tax provisions, including by restoring 100% bonus depreciation under Section 168(k), reverting to the higher, EBITDA-based, business interest expense limitation under Section 163(j) and changing the computation of taxes related to international operations. Based on American’s current analysis of these provisions, American does not believe these provisions will have a material impact on its consolidated financial statements.

6. Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

American utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. American’s short-term investments, restricted cash and restricted short-term investments classified as Level 2 utilize significant observable inputs, other than quoted prices in active markets, for valuation of these securities. No changes in valuation techniques or inputs occurred during the ~~six~~nine months ended ~~June~~September 30, 2025.

Assets measured at fair value on a recurring basis are summarized below (in millions):

	Fair Value Measurements as of June 30, 2025
	Fair Value Measurements as of September 30, 2025
	Total		Level 1		Level 2		Level 3
Short-term investments (1), (2):
Money market funds	$	~~923~~390	$	~~923~~390	$	—	$	—
Corporate obligations	43,~~570~~581		—		43,~~570~~581		—
Bank notes/certificates of deposit/time deposits	1,~~744~~599		—		1,~~744~~599		—
Repurchase agreements	~~500~~450		—		~~500~~450		—
	7,737		923		6,814		—
	6,020		390		5,630		—
Restricted cash and short-term investments (1), (3)	~~807~~760		~~460~~454		~~347~~306		—
Long-term investments (4)	~~147~~151		~~147~~151		—		—
Total	$	86,~~691~~931	$	~~1,530~~995	$	75,~~161~~936	$	—

(2)American’s short-term investments mature in one year or less.

(4)Long-term investments primarily include American’s equity investment in China Southern Airlines Company Limited (China Southern Airlines). See Note 7 for further information on American’s equity investments.

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(Unaudited)

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.

The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions):

	June 30, 2025
	September 30, 2025
			Fair Value
	CarryingValue		Total		Level 1		Level 2		Level 3
Long-term debt, including current maturities	$	24,~~475~~302	$	24,~~806~~743	$	—	$	24,~~806~~743	$	—
	December 31, 2024
			Fair Value
	CarryingValue		Total		Level 1		Level 2		Level 3
Long-term debt, including current maturities	$	25,072	$	25,234	$	—	$	25,234	$	—

7. Investments

To help expand American’s network and as part of its ongoing commitment to sustainability, American enters into various commercial relationships or other strategic partnerships, including equity investments, with other airlines and companies. American’s equity investments are reflected in other assets on its condensed consolidated balance sheets. American’s share of equity method investees’ financial results and changes in fair value are recorded in nonoperating other income (expense), net on the condensed consolidated statements of operations.

American’s equity investment ownership interests and carrying values are as follows:

		Ownership Interest				Carrying Value (in millions)
	Accounting Treatment	~~June~~September 30, 2025		December 31, 2024		~~June~~September 30, 2025		December 31, 2024
Republic Airways Holdings Inc.	Equity Method	25.0	%	25.0	%	$	~~267~~270	$	253
China Southern Airlines	Fair Value	1.5	%	1.5	%	~~139~~145		142
Other investments (1)	Various					~~117~~148		120
Total						$	~~523~~563	$	515

(1)Primarily includes American’s investment in JetSMART Holdings Limited, which is accounted for under the equity method.

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(Unaudited)

8. Employee Benefit Plans

The following table provides the components of net periodic benefit cost (income) (in millions):

	Pension Benefits				Retiree Medical and OtherPostretirement Benefits
Three Months Ended June 30,	2025		2024		2025		2024
Three Months Ended September 30,	2025		2024		2025		2024
Service cost	$	1	$	—	$	6	$	8
Interest cost	~~182~~179		~~180~~178		18		17
Expected return on assets	(231)		(243)		(2)		(2)
Amortization of:
Prior service cost	—		—		4		3
Unrecognized net loss (gain)	2421		2726		(6)		(6)
Net periodic benefit cost (income)	$	(2430)	$	(3639)	$	20	$	20
	Pension Benefits				Retiree Medical and OtherPostretirement Benefits
Six Months Ended June 30,	2025		2024		2025		2024
Nine Months Ended September 30,	2025		2024		2025		2024
Service cost	$	12	$	1	$	1218	$	1623
Interest cost	~~364~~544		~~360~~539		3553		3451
Expected return on assets	(~~460~~693)		(~~487~~729)		(57)		(57)
Amortization of:
Prior service cost	—		—		913		711
Unrecognized net loss (gain)	4768		5479		(1117)		(1319)
Net periodic benefit cost (income)	$	(4879)	$	(72110)	$	4060	$	3959

Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen.

During the first ~~six~~nine months of 2025, American made required contributions of $221 million to its defined benefit pension plans.

9. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss (AOCI) are as follows (in millions):

	Pension, RetireeMedical and OtherPostretirementBenefits		Income Tax Provision (1)			Total
Balance at December 31, 2024	$	(2,962)	$	(1,715)		$	(4,677)
Amounts reclassified from AOCI	4564		(1014)		(2)	3550
Net current-period other comprehensive income (loss)	4564		(1014)			3550
Balance at June 30, 2025	$	(2,917)	$	(1,725)		$	(4,642)
Balance at September 30, 2025	$	(2,898)	$	(1,729)		$	(4,627)

(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 statements of operations.

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Reclassifications out of AOCI are as follows (in millions):

	Amounts reclassified from AOCI								Affected line items on the condensed consolidated statements of operations
AOCI Components	Three Months Ended ~~June~~September 30,				~~Six~~Nine Months ~~EndedJune~~EndedSeptember 30,
	2025		2024		2025		2024
Amortization of pension, retiree medical and other postretirement benefits:
Prior service cost	$	3	$	3	$	710	$	59	Nonoperating other income (expense), net
Actuarial loss	1412		1615		2840		3246		Nonoperating other income (expense), net
Total reclassifications for the period, net of tax	$	1715	$	1918	$	3550	$	3755

10. Regional Expenses

American’s regional carriers provide scheduled air transportation under the brand name “American Eagle.” The American Eagle carriers include AAG’s wholly-owned regional carriers as well as third-party regional carriers. American’s regional carrier arrangements are principally in the form of capacity purchase agreements. Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations.

Regional expenses for the three months ended ~~June~~September 30, 2025 and 2024 include $7275 million and $6970 million of depreciation and amortization, respectively, and ~~each includes~~ $2 million of aircraft rent in each period. Regional expenses for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024 include $~~141~~216 million and $~~138~~208 million of depreciation and amortization, respectively, and $57 million ~~and $4 million~~ of aircraft rent, ~~respectively~~in each period.

During the three months ended ~~June~~September 30, 2025 and 2024, American recognized $~~174~~177 million and $~~150~~153 million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). During the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, American recognized $~~342~~519 million and $~~299~~452 million, respectively, of expense under its capacity purchase agreement with Republic. American holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

11. Transactions with Related Parties

The following represents the net receivables (payables) to related parties (in millions):

	June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024
AAG	$	10,622	$	10,258
AAG (1)	$	11,818	$	10,258
AAG’s wholly-owned subsidiaries (1)	(2,052)		(2,071)
AAG’s wholly-owned subsidiaries (2)	(2,064)		(2,071)
Total	$	89,~~570~~754	$	8,187

(1)The ~~net~~increase ~~payable~~in ~~to AAG~~American’s ~~wholly-owned~~net ~~subsidiaries~~related ~~consists~~party ~~primarily~~receivable offrom ~~amounts~~AAG is due ~~under~~in ~~regional~~part ~~capacity~~to ~~purchase~~American ~~agreements~~providing ~~with~~the cash funding for AAG’s ~~wholly-owned~~financing ~~regional~~transactions, ~~airlines~~including ~~operating under~~ the ~~brand~~$1.0 billion ~~name~~cash settlement of ~~American~~AAG’s ~~Eagle~~6.50% convertible senior notes upon their maturity on July 1, 2025.

36(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.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

12. Legal Proceedings

~~Government~~Private Party Antitrust ~~Action~~Actions Related to the Northeast Alliance (NEA). On ~~September~~December 215, ~~2021,~~2022 ~~the~~and ~~United~~December ~~States~~7, ~~Department of Justice~~2022, ~~joined~~two byprivate ~~Attorneys~~party ~~General~~plaintiffs ~~from~~filed ~~six~~putative ~~states~~class ~~and~~action ~~the District of Columbia, filed an~~ antitrust ~~complaint~~complaints against AAG and JetBlue ~~Airways Corporation (JetBlue)~~ in the U.S. District Court for the Eastern District of ~~Massachusetts~~New York alleging that AAG and JetBlue violated U.S. antitrust law in connection with the previously disclosed ~~Northeast~~NEA. ~~Alliance~~These ~~arrangement~~actions ~~(NEA)~~were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On ~~May~~February 192, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the District of Massachusetts ~~issued~~and anthe ~~order~~U.S. ~~permanently~~District ~~enjoining~~Court ~~AAG~~for ~~and~~the ~~JetBlue~~Eastern ~~from~~District ~~continuing~~of ~~and~~New ~~further~~York, ~~implementing~~respectively. ~~the~~In ~~NEA.~~March ~~Following~~2023, ~~JetBlue’s~~AAG ~~notice~~filed ofa ~~termination~~motion ofin the ~~NEA,~~U.S. ~~effective~~District ~~July~~Court ~~29,~~for ~~2023,~~ the ~~airlines~~District ~~conducted~~of aMassachusetts ~~wind-down~~case ofasking to transfer the ~~NEA~~case to the U.S. ~~AAG~~District ~~filed~~Court afor ~~notice~~the Eastern District of ~~appeal~~New toYork and consolidate it with the cases pending in that venue. The U.S. District Court ~~of Appeals~~ for the ~~First~~District ~~Circuit~~of onMassachusetts ~~September~~granted ~~25,~~that ~~2023~~motion. The ~~First~~remaining ~~Circuit~~cases ~~affirmed~~were consolidated with the other actions in the Eastern District ~~Court’s~~of ~~decision~~New onYork. ~~November~~In 8June 2023, ~~2024.~~the ~~AAG~~private party plaintiffs filed a ~~petition~~second ~~for~~amended ~~writ~~consolidated ofcomplaint, ~~certiorari~~followed toby ~~the~~a ~~U.S.~~third ~~Supreme~~amended ~~Court~~complaint onfiled ~~February~~in ~~27,~~August ~~2025~~2023. OnIn ~~June~~September 302023, ~~2025~~AAG, together with JetBlue, filed a motion to dismiss the Uthird amended complaint.S. ~~Supreme~~In ~~Court~~September 2024, the court denied that motion. AAG and JetBlue filed answers to the ~~petition~~private ~~for~~party ~~writ~~plaintiffs’ ofthird ~~certiorari~~amended complaint in October 2024, and the parties are now engaged in discovery. AAG believes these lawsuits are without merit and is defending against them vigorously.

Private Party Antitrust Actions Related to the Northeast Alliance. On December 5, 2022 and December 7, 2022, two private party plaintiffs filed putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the Eastern District of New York alleging that AAG and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. In March 2023, AAG filed a motion in the U.S. District Court for the District of Massachusetts case asking to transfer the case to the U.S. District Court for the Eastern District of New York and consolidate it with the cases pending in that venue. The U.S. District Court for the District of Massachusetts granted that motion. The remaining cases were consolidated with the other actions in the Eastern District of New York. In June 2023, the private party plaintiffs filed a second amended consolidated complaint, followed by a third amended complaint filed in August 2023. In September 2023, AAG, together with JetBlue, filed a motion to dismiss the third amended complaint. In September 2024, the court denied that motion. AAG and JetBlue filed answers to the private party plaintiffs’ third amended complaint in October 2024, and the parties are now engaged in discovery. AAG believes these lawsuits are without merit and is defending against them vigorously.

Additionally, on September 19, 2024, certain of AAG’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit (in which AAG is a nominal defendant) filed in the U.S. District Court for the Northern District of Texas, captioned Hollin v. Isom, et al. The Hollin complaint asserts violations of Section 10(b) of the Exchange Act, breach of fiduciary duty, and claims for unjust enrichment and corporate waste. On September 26, 2024, a second derivative complaint was filed in the same court, similarly naming certain of AAG’s current and former directors and officers (as well as AAG as a nominal defendant), captioned Leon v. Isom, et al. The Leon complaint asserts violations of Section 14(a) of the Exchange Act, breaches of fiduciary duty, claims of unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and a claim for contribution. The Hollin and Leon complaints generally allege the same purported misconduct as alleged in the securities class actions. On November 25, 2024, the Hollin and Leon complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Stockholder Derivative Action. The derivative actions are currently stayed pending resolution of the securities class action. AAG believes both the securities class action and shareholder derivative lawsuit are without merit and intends to defend against them vigorously.

37General. In addition to the specifically identified legal proceedings, American and its subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depending on a number of variables, some of which are not within American’s control. Therefore, although American will vigorously defend itself in each of the actions described above and such other legal proceedings, their ultimate resolution and potential financial and other impacts on American are uncertain but could be material.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.

(Unaudited)

~~believes~~13. ~~both~~Subsequent ~~the securities class action and shareholder derivative lawsuit are without merit and intends to defend against them vigorously.~~Events

~~General.~~ In ~~addition~~October to2025, American refinanced the ~~specifically~~$629 million ~~identified~~remaining ~~legal~~outstanding ~~proceedings,~~principal ~~American~~amount ~~and~~of ~~its~~the ~~subsidiaries~~10.75% ~~are~~senior ~~also~~secured ~~engaged~~IP innotes ~~other~~and ~~legal~~the ~~proceedings~~10.75% ~~from~~senior ~~time~~secured toLGA/DCA ~~time. Legal~~notes ~~proceedings~~due ~~can~~February be2026 ~~complex~~with ~~and~~$629 million ~~take~~borrowed ~~many~~under ~~months,~~a orsenior ~~even~~unsecured ~~years,~~short-term toloan ~~reach~~facility. ~~resolution,~~Term ~~with~~loans under the ~~final~~facility ~~outcome~~mature ~~depending~~ on aJanuary ~~number of variables~~21, ~~some~~2026 ofand ~~which~~bear ~~are~~interest ~~not~~at ~~within~~SOFR ~~American’s~~for ~~control.~~a ~~Therefore,~~tenor ~~although~~of ~~American~~one ~~will~~month ~~vigorously~~plus ~~defend~~an ~~itself~~applicable inmargin ~~each~~ of ~~the~~2.375% ~~actions~~per ~~described~~annum ~~above~~(6.40% ~~and~~as ~~such~~of ~~other~~the ~~legal~~closing ~~proceedings,~~date). ~~their~~The ~~ultimate~~resulting ~~resolution~~transactions ~~and~~also ~~potential~~accelerated ~~financial~~the ~~and~~release ~~other~~of ~~impacts~~the on10.75% ~~American~~senior ~~are~~secured ~~uncertain~~LGA/DCA ~~but~~notes ~~could be material~~collateral.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Part I, Item 2 of this report should be read in conjunction with Part II, Item 7 of AAG’s and American’s Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Form 10-K). The information contained herein is not a comprehensive discussion and analysis of the financial condition and results of operations of AAG and American, but rather updates disclosures made in the 2024 Form 10-K.

Financial Overview

Business and Macroeconomic Conditions

Starting in the first quarter of 2025, the U.S. Government has promoted and implemented plans to place additional tariffs on goods imported into the U.S. from numerous countries and has pursued other trade policies intended to restrict imports and, in response, multiple nations have countered with reciprocal tariffs and other actions.

These or additional changes in U.S. or international trade policies, along with continued uncertainty surrounding such policies, could lead to further weakened business conditions for the transportation industry, which may adversely impact our operations through increased supply chain challenges, commodity price volatility and a decline in discretionary spending and consumer confidence, among others. We continue to monitor the situation.

~~AAG’s~~Many ~~Second~~aspects ~~Quarter~~of ~~2025~~our ~~Results~~airline operations depend on the U.S. Government. The current shutdown, if it continues for an extended period of time, could strain air traffic control and security staffing, reduce air traffic capacity at key airports in the U.S. and have a material and adverse impact on our results of operations.

AAG’s Third Quarter 2025 Results

The selected financial data presented below is derived from AAG’s unaudited condensed consolidated financial statements included in Part I, Item 1A of this report and should be read in conjunction with those financial statements and the related notes thereto.

	Three Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	Three Months Ended September 30,				Increase(Decrease)		PercentIncrease(Decrease)
	2025		2024
	(In millions, except percentage changes)
Passenger revenue	$	1312,~~123~~471	$	1312,~~202~~523	$	(7952)	(0.64)
Cargo revenue	~~211~~212		~~195~~202		1610		85.20
Other operating revenue	1,~~058~~008		~~937~~922		~~121~~86		139.04
Total operating revenues	1413,~~392~~691		1413,~~334~~647		5844		0.43
Aircraft fuel and related taxes	2,~~663~~767		32,~~061~~874		(~~398~~107)		(133.07)
Salaries, wages and benefits	4,~~382~~461		34,~~953~~098		~~429~~363		108.9
Total operating expenses	13,~~257~~540		1213,~~950~~558		~~307~~(18)		2(0.41)
Operating income	~~1,135~~151		~~1,384~~89		~~(249)~~62		~~(18~~69.0)4
Pre-tax income	838		1,028		(190)		(18.5)
Pre-tax loss	(142)		(256)		(114)		(44.7)
Income tax provision	239		311		(72)		(23.4)
Income tax benefit	(28)		(107)		(79)		(74.1)
Net income	599		717		(118)		(16.4)
Net loss	(114)		(149)		(35)		(23.5)
Pre-tax income – GAAP	$	838	$	1,028	$	(190)	(18.5)
Pre-tax loss – GAAP	$	(142)	$	(256)	$	(114)	(44.7)
Adjusted for: pre-tax net special items (1)	313		12527		19(524)		nm (299.4)
Pre-tax income excluding net special items	$	869	$	1,040	$	(171)	(16.4)
Pre-tax income (loss) excluding net special items	$	(139)	$	271	$	(410)	nm (2)

(1)See “Reconciliation of GAAP to Non-GAAP Financial Measures” below and Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for details on the components of net special items.

(2)Not meaningful or greater than 100% change.

~~Pre-Tax Income and Net Income~~41

Pre-tax income and net income were $838 million and $599 million, respectively, in the second quarter of 2025. This compares to second quarter of 2024 pre-tax income and net income of $1.0 billion and $717 million, respectively. Excluding the effects of pre-tax net special items, pre-tax income was $869 million and $1.0 billion in the second quarters of 2025 and 2024, respectively.

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~~The period~~Pre-~~over-period~~Tax ~~decrease~~Loss ~~in our pre-tax income on both a GAAP basis~~ and ~~excluding~~Net pre-tax net special items was principally driven by increases in operating expenses including salaries, wages and benefits and selling expenses, offset in part by lower costs for aircraft fuel and related taxes.Loss

Pre-tax loss and net loss were $142 million and $114 million, respectively, in the third quarter of 2025. This compares to third quarter of 2024 pre-tax loss and net loss of $256 million and $149 million, respectively. The period-over-period decrease in pre-tax loss on a GAAP basis was principally driven by a decrease in pre-tax net special items and lower costs for aircraft fuel and related taxes, offset in part by increases in certain operating expenses including salaries, wages and benefits and regional expenses.

Excluding the effects of pre-tax net special items, pre-tax loss was $139 million in the third quarter of 2025 and pre-tax income was $271 million in the third quarter of 2024. The period-over-period decrease in our pre-tax income excluding pre-tax net special items was principally driven by increases in certain operating expenses including salaries, wages and benefits and regional expenses, offset in part by lower costs for aircraft fuel and related taxes.

Revenue

In the ~~second~~third quarter of 2025, we reported total operating revenues of $1413.47 billion, an increase of $5844 million, or 0.43%, from the ~~second~~third quarter of 2024. Passenger revenue was $1312.15 billion, a decrease of $7952 million, or 0.64%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024. Our passenger revenue in the ~~second~~third quarter of 2025 was impacted by ~~softness~~weakness in ~~domestic~~international ~~demand for air~~ travel, ~~offset~~primarily in ~~part~~the byLatin ~~continued~~America ~~strength in international air travel~~region, ~~particularly~~offset in ~~the~~part ~~Atlantic~~by ~~region.~~improvement ~~Atlantic PRASM increased 5.0%~~ in ~~the~~domestic ~~second quarter of 2025 as compared to the second quarter of 2024~~revenue.

Cargo revenue increased $1610 million, or 85.20%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to a 64.93% increase in cargo yield ~~and a 1~~.~~2% increase in cargo ton miles.~~

Other operating revenue increased $~~121~~86 million, or 139.04%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, driven primarily by higher revenue associated with our loyalty program. During the three months ended ~~June~~September 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $1.415 billion and $1.364 billion, respectively.

Our total revenue per available seat mile (TRASM) was 1817.5469 cents in the ~~second~~third quarter of 2025, a 21.79% decrease as compared to 1918.0504 cents in the ~~second~~third quarter of 2024.

Fuel

Aircraft fuel and related taxes was $2.78 billion in the ~~second~~third quarter of 2025, which was $~~398~~107 million, or 133.07%, lower as compared to the ~~second~~third quarter of 2024. This was primarily due to a 155.35% decrease in the average price per gallon of aircraft fuel including related taxes to $2.2937 in the ~~second~~third quarter of 2025 from $2.7050 in the ~~second~~third quarter of 2024, offset in part by a 21.79% increase in gallons of fuel consumed due to increased capacity.

As of ~~June~~September 30, 2025, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption. Our current policy is not to enter into transactions to hedge our fuel consumption, although we review this policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices. See Part I, Item 1A. Risk Factors – “Our business is very dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity” in our 2024 Form 10-K.

Other Costs

We remain committed to actively managing our cost structure, which we believe is necessary in an industry whose economic prospects are heavily dependent upon two variables we cannot control: general economic conditions and the price of fuel. Additionally, we continue to focus on initiatives to reengineer our business through the use of digital solutions, process enhancements and procurement transformation and we intend to continue to invest in reengineering our business through the remainder of 2025 and beyond to build an even more efficient airline and continue to manage costs while delivering a better experience for our customers and team.

Our 2025 ~~second~~third quarter total operating cost per available seat mile (CASM) was 17.0849 cents, a decrease of 02.84% from 17.2192 cents in the ~~second~~third quarter of 2024. The decrease in CASM was primarily driven by a decrease in operating net special items and lower aircraft fuel costs, offset in part by higher costs for salaries, wages and benefits and ~~selling~~regional expenses.

Our 2025 second quarter CASM excluding net special items and fuel was 13.59 cents, an increase of 3.4% from 13.14 cents in the second quarter of 2024, which was primarily driven by higher costs for salaries, wages and benefits and selling expenses.42

For a reconciliation of CASM to CASM excluding net special items and fuel, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

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Our 2025 third quarter CASM excluding net special items and fuel was 13.91 cents, an increase of 3.9% from 13.39 cents in the third quarter of 2024, which was primarily driven by higher costs for salaries, wages and benefits and regional expenses.

For a reconciliation of CASM to CASM excluding net special items and fuel, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Liquidity

As of ~~June~~September 30, 2025, we had $1210.03 billion in total available liquidity, consisting of $8.6.9 billion in unrestricted cash and short-term investments, and $3.4 billion in total undrawn capacity under revolving credit and other facilities.

During the first ~~six~~nine months of 2025, we completed the following financing transactions (see Note 1 and Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on 2025 financing activities):

•amended the AAdvantage term loan credit and guaranty agreement to reduce the applicable interest rate margin and to reduce the scheduled quarterly principal amortization amount;

•issued $1.0 billion of incremental term loans pursuant to the AAdvantage term loan credit guaranty agreement (2025 AAdvantage Term Loan Facility), as amended;

•prepaid $487 million of the outstanding principal amounts of certain equipment notes issued under enhanced equipment trust certificates (EETCs);

•increased the aggregate revolving commitments under the 2013, 2014 and 2023 Revolving Facilities from $2.9 billion to $3.0 billion;

•received $432 million of gross proceeds pursuant to special facility revenue bonds issued by the Tulsa Municipal Airport Trust (TMAT), of which a portion was used to fund the redemption of other bonds related to TMAT and the remaining amount will be used to finance the cost of improvements at American’s overhaul and maintenance base at Tulsa International Airport;

•prepaid $308 million toward portions of the outstanding principal amounts of the 10.75% senior secured IP notes (the IP Notes) and the 10.75% senior secured LGA/DCA notes (LGA/DCA Notes); and

•issued $~~712~~1.2 ~~million~~billion of equipment loans and other notes payable in connection with the financing of certain aircraft.

American Eagle Flight 5342

On January 29, 2025, American Eagle flight 5342 was involved in a fatal accident in Washington, D.C. The Bombardier ~~CRJ~~CRJ700 ~~700~~ aircraft operated by PSA Airlines, Inc. was en route to Washington, D.C. from Wichita, Kansas when it was involved in a midair collision near Ronald Reagan Washington National Airport. We estimate that the accident reduced first quarter 2025 total operating revenues by approximately $200 million, of which the impacted revenue is not covered by insurance. In September 2025, the families of two passengers on flight 5342 filed complaints against the U.S. Government, PSA Airlines, Inc. and American seeking unspecified damages, and we currently expect that additional lawsuits will be filed. While we cannot predict the outcome of these lawsuits, American has industry standard insurance coverage for this incident and is continuing to assess the full impact on its business resulting from the accident.

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Reconciliation of GAAP to Non-GAAP Financial Measures

We sometimes use financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordance with accounting principles generally accepted in the U.S. (GAAP) to understand and evaluate our current operating performance and to allow for period-to-period comparisons. We believe these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. We are providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.

The following table presents the reconciliation of pre-tax income (loss) (GAAP measure) to pre-tax income (loss) excluding net special items (non-GAAP measure). Management uses this non-GAAP financial measure to evaluate our current operating performance and to allow for period-to-period comparisons. As net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items provides management with an additional tool to understand our core operating performance.

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In millions)
Reconciliation of Pre-Tax Income Excluding Net Special Items:
Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items:
Pre-tax income – GAAP	$	838	$	1,028	$	189	$	615
Pre-tax income (loss) – GAAP	$	(142)	$	(256)	$	48	$	359
Pre-tax net special items (1):
Mainline operating special items, net	477		—554		~~118~~125		70625
Nonoperating special items, net	(164)		12(27)		3228		5830
Total pre-tax net special items	313		12527		~~150~~153		~~128~~655
Pre-tax income excluding net special items	$	869	$	1,040	$	339	$	743
Pre-tax income (loss) excluding net special items	$	(139)	$	271	$	201	$	1,014

(1)See Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on net special items.

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Additionally, the table below presents the reconciliation of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non-GAAP measure) and CASM to CASM excluding net special items and fuel. Management uses total operating costs excluding net special items and fuel and CASM excluding net special items and fuel to evaluate our current operating performance and for period-to-period comparisons. The price of fuel, over which we have no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude net special items and fuel provides management with an additional tool to understand and analyze our non-fuel costs and core operating performance. Amounts may not recalculate due to rounding.

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Reconciliation of CASM Excluding Net Special Items and Fuel:
(In millions)
Total operating expenses – GAAP	$	13,~~257~~540	$	1213,~~950~~558	$	2639,~~079~~619	$	2539,~~513~~071
Operating net special items (1):
Mainline operating special items, net	(477)		—(554)		(~~118~~125)		(70625)
Aircraft fuel and related taxes	(2,~~663~~767)		(32,~~061~~874)		(58,~~250~~017)		(68,~~042~~916)
Total operating expenses, excluding net special items and fuel	$	10,~~547~~766	$	910,~~889~~130	$	2031,~~711~~477	$	1929,~~401~~530
Total available seat miles (ASM)	77,~~636~~400		75,~~263~~665		~~147~~224,~~539~~939		~~145~~221,~~779~~445
(In cents)
CASM	17.0849		17.2192		17.6861		17.5064
Operating net special items per ASM (1):
Mainline operating special items, net	(0.0601)		—(0.73)		(0.0806)		(0.0528)
Aircraft fuel and related taxes per ASM	(3.4358)		(43.0780)		(3.56)		(4.1403)
CASM, excluding net special items and fuel	13.5991		13.1439		1413.0499		13.3134

(1)See Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on net special items.

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AAG’s Results of Operations

Operating Statistics

The table below sets forth selected operating data for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024. Amounts may not recalculate due to rounding.

	Three Months Ended June 30,		Increase(Decrease)	Six Months EndedJune 30,		Increase(Decrease)
	Three Months Ended September 30,		Increase(Decrease)	Nine Months EndedSeptember 30,		Increase(Decrease)
	2025	2024		2025	2024
Revenue passenger miles (millions) (a)	6566,~~762~~580	65,~~144~~502	01.96%	~~122~~188,~~118~~698	~~122~~188,~~617~~120	(0.4)3%
Available seat miles (millions) (b)	77,~~636~~400	75,~~263~~665	3.2.3%	~~147~~224,~~539~~939	~~145~~221,~~779~~445	1.26%
Passenger load factor (percent) (c)	8486.70	86.6	(10.96)pts	8283.89	8485.10	(1.31)pts
Yield (cents) (d)	1918.9673	2019.2712	(12.50)%	2019.0760	2019.1177	(0.28)%
Passenger revenue per available seat mile (cents) (e)	16.9011	1716.5455	(32.67)%	16.6244	16.9279	(12.81)%
Total revenue per available seat mile (cents) (f)	1817.5469	1918.0504	(21.79)%	18.2606	18.4631	(1.04)%
Fuel consumption (gallons in millions)	1,~~163~~169	1,~~132~~147	21.79%	23,~~206~~375	23,~~174~~322	1.46%
Average aircraft fuel price including related taxes (dollars per gallon)	2.2937	2.7050	(155.35)%	2.38	2.7868	(1411.35)%
Total operating cost per available seat mile (cents) (g)	17.0849	17.2192	(02.84)%	17.6861	17.5064	1.(0.2)%
Aircraft at end of period (h)	1,~~539~~555	1,~~529~~546	0.76%	1,~~539~~555	1,~~529~~546	0.76%
Full-time equivalent employees at end of period	~~138~~136,~~100~~900	~~137~~134,~~400~~200	02.50%	~~138~~136,~~100~~900	~~137~~134,~~400~~200	02.50%

(a)Revenue passenger mile (RPM) – A basic measure of sales volume. One RPM represents one passenger flown one mile.

(b)Available seat mile (ASM) – A basic measure of production. One ASM represents one seat flown one mile.

(c)Passenger load factor – The percentage of available seats that are filled with revenue passengers.

(d)Yield – A measure of airline revenue derived by dividing passenger revenue by RPMs.

(e)Passenger revenue per available seat mile (PRASM) – Passenger revenue divided by ASMs.

(f)Total revenue per available seat mile (TRASM) – Total revenues divided by ASMs.

(g)Total operating cost per available seat mile (CASM) – Total operating expenses divided by ASMs.

(h)Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above ~~are~~as ~~six~~of ~~regional~~September 30, 2025 are aircraft in temporary storage including two mainline Airbus A321XLR aircraft as ofwell ~~June 30,~~as ~~2025~~four regional aircraft as follows: ~~four~~three Bombardier ~~CRJ~~CRJ900 ~~900~~ and ~~two~~one Embraer ~~145~~ERJ145.

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Table of Contents

Three Months Ended ~~June~~September 30, 2025 Compared to Three Months Ended ~~June~~September 30, 2024

Operating Revenues

	Three Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	Three Months EndedSeptember 30,				Increase(Decrease)		PercentIncrease(Decrease)
	2025		2024
	(In millions, except percentage changes)
Passenger	$	1312,~~123~~471	$	1312,~~202~~523	$	(7952)	(0.64)
Cargo	~~211~~212		~~195~~202		1610		85.20
Other	1,~~058~~008		~~937~~922		~~121~~86		139.04
Total operating revenues	$	1413,~~392~~691	$	1413,~~334~~647	$	5844	0.43

This table presents our passenger revenue and the period-over-period change in certain operating statistics:

Increase (Decrease)vs. Three Months Ended June 30, 2024

Increase (Decrease)vs. Three Months Ended September 30, 2024

Three Months EndedJune 30, 2025

RPMs

ASMs

LoadFactor

PassengerYield

PRASM

Three Months EndedSeptember 30, 2025

RPMs

ASMs

LoadFactor

PassengerYield

PRASM

(In millions)

Passenger revenue

1312,~~123~~471

01.96%

3.2.3%

(10.96)pts

(12.50)%

(32.67)%

Passenger revenue decreased $7952 million, or 0.64%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024. Our passenger revenue in the ~~second~~third quarter of 2025 was impacted by ~~softness~~weakness in ~~domestic~~international ~~demand for air~~ travel, ~~offset~~primarily in ~~part~~the byLatin ~~continued~~America ~~strength in international air travel~~region, ~~particularly~~offset in ~~the~~part ~~Atlantic~~by ~~region.~~improvement ~~Atlantic PRASM increased 5.0%~~ in ~~the~~domestic ~~second quarter of 2025 as compared to the second quarter of 2024~~revenue.

Operating Expenses

Three Months Ended June 30,

Increase(Decrease)

PercentIncrease(Decrease)

Three Months EndedSeptember 30,

Increase(Decrease)

PercentIncrease(Decrease)

2025

2024

(In millions, except percentage changes)

Aircraft fuel and related taxes

2,~~663~~767

32,~~061~~874

(~~398~~107)

(133.07)

Salaries, wages and benefits

4,~~382~~461

34,~~953~~098

~~429~~363

108.9

Regional expenses

1,~~331~~370

1,~~268~~264

63106

58.04

Maintenance, materials and repairs

~~927~~1,028

~~950~~989

~~(23)~~39

(23.5)9

Other rent and landing fees

~~894~~906

~~834~~861

6045

75.23

Aircraft rent

~~303~~310

~~314~~303

~~(11)~~7

(32.8)4

Selling expenses

~~535~~483

~~456~~468

7915

173.52

Depreciation and amortization

~~476~~474

~~474~~479

2(5)

0(1.51)

Mainline operating special items, net

477

—554

47(547)

nm(98.7)

Other

1,~~699~~734

1,~~640~~668

5966

34.60

Total operating expenses

13,~~257~~540

1213,~~950~~558

~~307~~(18)

2(0.41)

Aircraft fuel and related taxes decreased $~~398~~107 million, or 133.07%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to a 155.35% decrease in the average price per gallon of aircraft fuel including related taxes to $2.2937 in the ~~second~~third quarter of 2025 from $2.7050 in the ~~second~~third quarter of 2024, offset in part by a 21.79% increase in gallons of fuel consumed due to increased capacity.

4547

Table of Contents

Salaries, wages and benefits increased $~~429~~363 million, or 108.9%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in our other labor agreements.

Regional expenses increased $63106 million, or 58.04%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased ~~11.~~7.6% in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024.

Maintenance, materials and repairs ~~decreased~~increased $2339 million, or 23.59%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to ~~a decrease in the volume of engine overhauls, offset in part by~~ increased costs for component part repairs and airframe heavy checks driven by higher volume, offset in part by a decrease in the volume of engine overhauls.

Other rent and landing fees increased $6045 million, or 75.23%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.

Selling expenses increased $79 million, or 17.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in credit card fees driven by higher rates. Higher advertising expenses also contributed to the increase in selling expenses.

Operating Special Items, Net

	Three Months Ended June 30,
	Three Months Ended September 30,
	2025		2024
	(In millions)
Litigation reserve adjustments	$	47	$	—
Severance expenses	$	3	$	—
Labor contract expenses (1)	—		516
Other operating special items, net	4		38
Mainline operating special items, net	$	7	$	554

(1)Labor contract expenses for the three months ended September 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline flight attendants, including a one-time payment of $514 million.

Nonoperating Results

	Three Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	Three Months Ended September 30,				Increase(Decrease)		Percent Increase (Decrease)
	2025		2024
	(In millions, except percentage changes)
Interest income	$	~~100~~90	$	~~128~~117	$	(2827)	(2122.58)
Interest expense, net	(~~433~~432)		(~~486~~480)		5348		(10.90)
Other income, net	3649		218		3431		nm
Total nonoperating expense, net	$	(~~297~~293)	$	(~~356~~345)	$	5952	(1615.63)

Interest income decreased $2827 million, or 2122.58%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to lower interest rates that reduced returns on our short-term investments. Interest expense, net decreased $5348 million, or 10.90%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to lower interest rates on our variable-rate debt instruments and lower outstanding debt subsequent to the ~~second~~third quarter of 2024, as we continue our efforts to strengthen the balance sheet.

In the ~~second~~third quarter of 2025, other nonoperating income, net primarily included $16 31 million of net ~~special~~earnings ~~credits~~related to our equity investments accounted for under the equity method and $1117 million of non-service related pension and other postretirement benefit plan income.

In the ~~second~~third quarter of 2024, other nonoperating income, net primarily included $2427 million of non-service related pension and other postretirement benefit plan income and $27 million of net special credits for mark-to-market net unrealized gains associated with certain equity investments, offset in part by $12 21 million of ~~net~~foreign ~~special~~currency ~~charges~~losses.

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Income Taxes

In the ~~second~~third quarter of 2025, we recorded an income tax ~~provision~~benefit of $~~239~~28 million. Substantially all of our ~~income~~loss before income taxes is attributable to the United States.

See Note 6 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for additional information on income taxes.

46Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Table of Contents

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Operating Revenues

	Six Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	Nine Months EndedSeptember 30,				Increase(Decrease)		PercentIncrease(Decrease)
	2025		2024
	(In millions, except percentage changes)
Passenger	$	2436,~~514~~985	$	2437,~~661~~184	$	(~~147~~199)	(0.65)
Cargo	~~400~~612		~~382~~584		1828		4.78
Other	23,~~029~~037		12,~~861~~783		~~168~~254		9.01
Total operating revenues	$	2640,~~943~~634	$	2640,~~904~~551	$	3983	0.12

This table presents our passenger revenue and the period-over-period change in certain operating statistics:

Increase (Decrease)vs. Six Months Ended June 30, 2024

Increase (Decrease)vs. Nine Months Ended September 30, 2024

Six Months EndedJune 30, 2025

RPMs

ASMs

LoadFactor

PassengerYield

PRASM

Nine Months EndedSeptember 30, 2025

RPMs

ASMs

LoadFactor

PassengerYield

PRASM

(In millions)

Passenger revenue

2436,~~514~~985

(0.4)3%

1.26%

(1.31)pts

(0.28)%

(12.81)%

Passenger revenue decreased $~~147~~199 million, or 0.65%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024. Our passenger revenue in the first ~~six~~nine months of 2025 was impacted by softness in domestic demand for air travel and the American Eagle Flight 5342 accident, offset in part by ~~continued~~ strength in international air travel, particularly in the Atlantic and Pacific regions. ~~Atlantic and Pacific PRASM increased 7.5% and 2.7%, respectively, in the first six months of 2025 as compared to the first six months of 2024.~~

Cargo revenue increased $1828 million, or 4.78%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to a 4.2% increase in cargo yield.

Other operating revenue increased $~~168~~254 million, or 9.01%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, driven primarily by higher revenue associated with our loyalty program. During the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $34.27 billion and $34.04 billion, respectively.

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Operating Expenses

Six Months Ended June 30,

Increase(Decrease)

PercentIncrease(Decrease)

Nine Months EndedSeptember 30,

Increase(Decrease)

PercentIncrease(Decrease)

2025

2024

(In millions, except percentage changes)

Aircraft fuel and related taxes

58,~~250~~017

68,~~042~~916

(~~792~~899)

(1310.1)

Salaries, wages and benefits

813,~~604~~065

711,~~820~~917

~~784~~1,148

109.06

Regional expenses

24,~~683~~053

23,~~469~~733

~~214~~320

8.76

Maintenance, materials and repairs

12,~~848~~876

12,~~834~~823

1453

01.89

Other rent and landing fees

12,~~720~~627

12,~~653~~514

67113

4.15

Aircraft rent

~~600~~910

~~642~~945

(4235)

(63.68)

Selling expenses

~~985~~1,467

~~864~~1,331

~~121~~136

1410.02

Depreciation and amortization

~~944~~1,418

~~944~~1,424

—(6)

—(0.3)

Mainline operating special items, net

~~118~~125

70625

48(500)

67(80.90)

Other

35,~~327~~061

34,~~175~~843

~~152~~218

4.85

Total operating expenses

2639,~~079~~619

2539,~~513~~071

~~566~~548

21.24

Aircraft fuel and related taxes decreased $~~792~~899 million, or 1310.1%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to aan 1411.35% decrease in the average price per gallon of aircraft fuel including related taxes to $2.38 in the first ~~six~~nine months of 2025 from $2.7868 in the first ~~six~~nine months of 2024, offset in part by a 1.46% increase in gallons of fuel consumed due to increased capacity.

47Salaries, wages and benefits increased $1.1 billion, or 9.6%, in the first nine months of 2025 from the first nine months of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in our other labor agreements.

Regional expenses increased $320 million, or 8.6%, in the first nine months of 2025 from the first nine months of 2024, primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased 11.3% in the first nine months of 2025 from the first nine months of 2024. In addition, higher maintenance, materials and repair costs driven by an increase in the volume of airframe heavy checks and engine overhauls also contributed to the increase in regional expenses.

Maintenance, materials and repairs increased $53 million, or 1.9%, in the first nine months of 2025 from the first nine months of 2024, primarily due to increased costs for component part repairs and airframe heavy checks driven by higher volume, offset in part by a decrease in the volume of engine overhauls.

Other rent and landing fees increased $113 million, or 4.5%, in the first nine months of 2025 from the first nine months of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.

Selling expenses increased $136 million, or 10.2%, in the first nine months of 2025 from the first nine months of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in advertising expenses. Higher credit card fees driven by higher rates also contributed to the increase in selling expenses.

Table of Contents

Salaries, wages and benefits increased $784 million, or 10.0%, in the first six months of 2025 from the first six months of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in our other labor agreements.

Regional expenses increased $214 million, or 8.7%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased 13.4% in the first six months of 2025 from the first six months of 2024. In addition, higher maintenance, materials and repair costs driven by an increase in the volume of airframe heavy checks and engine overhauls also contributed to the increase in regional expenses.

Maintenance, materials and repairs increased $14 million, or 0.8%, in the first six months of 2025 from the first six months of 2024, primarily due to increased costs for component part repairs and airframe heavy checks driven by higher volume, offset in part by a decrease in the volume of engine overhauls.

Other rent and landing fees increased $67 million, or 4.1%, in the first six months of 2025 from the first six months of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.

Aircraft rent decreased $42 million, or 6.6%, in the first six months of 2025 from the first six months of 2024, primarily due to decreased rental payments associated with aircraft lease extensions.

Selling expenses increased $121 million, or 14.0%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in advertising expenses. Higher credit card fees driven by higher rates also contributed to the increase in selling expenses.

Operating Special Items, Net

	Six Months Ended June 30,
	Nine Months Ended September 30,
	2025		2024
	(In millions)
Litigation reserve adjustments	$	77	$	—
Labor contract expenses (1)	31		57573
Severance expenses	58		13
Other operating special items, net	59		—39
Mainline operating special items, net	$	~~118~~125	$	70625

Labor contract expenses for the ~~six~~nine months ended ~~June~~September 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline ~~passenger~~flight ~~service team members~~attendants, including a one-time ~~signing~~payment ~~bonus~~of $514 million, and from the ratification of a new collective bargaining agreement with our mainline passenger service team members.

Nonoperating Results

	Six Months Ended June 30,				Increase(Decrease)		PercentDecrease
	Nine Months Ended September 30,				Increase(Decrease)		Percent Increase(Decrease)
	2025		2024
	(In millions, except percentage changes)
Interest income	$	~~194~~285	$	~~246~~363	$	(5278)	(2021.95)
Interest expense, net	(~~861~~1,294)		(~~984~~1,464)		~~123~~170		(1211.46)
Other expense, net	(8)		(38)		30		(80.0)
Other income (expense), net	42		(20)		62		nm
Total nonoperating expense, net	$	(~~675~~967)	$	(~~776~~1,121)	$	~~101~~154	(13.07)

Interest income decreased $5278 million, or 2021.95%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to lower interest rates that reduced returns on our short-term investments. Interest expense, net decreased $170 million, or 11.6%, in the first nine months of 2025 from the first nine months of 2024, primarily due to lower interest rates on our variable-rate debt instruments and lower outstanding debt subsequent to the third quarter of 2024, as we continue our efforts to strengthen the balance sheet.

48In the first nine months of 2025, other nonoperating income, net included $46 million of net earnings related to our equity investments accounted for under the equity method and $39 million of non-service related pension and other postretirement benefit plan income, offset in part by $28 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and debt refinancings and extinguishments.

~~Table~~In the first nine months of ~~Contents~~2024, other nonoperating expense, net included $31 million of foreign currency losses, $30 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $27 million of net losses related to our equity investments accounted for under the equity method, offset in part by $76 million of non-service related pension and other postretirement benefit plan income.

$123 million, or 12.4%, in the first six months of 2025 from the first six months of 2024, primarily due to lower interest rates on our variable-rate debt instruments and lower outstanding debt subsequent to the second quarter of 2024, as we continue our efforts to strengthen the balance sheet.

In the first six months of 2025, other nonoperating expense, net included $32 million of net special charges primarily for debt refinancings and extinguishments and mark-to-market net unrealized losses associated with certain equity investments, offset in part by $22 million of non-service related pension and other postretirement benefit plan income.

In the first six months of 2024, other nonoperating expense, net included $58 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $10 million of foreign currency losses, offset in part by $50 million of non-service related pension and other postretirement benefit plan income.

Income Taxes

In the first ~~six~~nine months of 2025, we recorded an income tax provision of $6336 million. Substantially all of our income before income taxes is attributable to the United States.

See Note 6 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for additional information on income taxes.

Table of Contents

American’s Results of Operations

Three Months Ended ~~June~~September 30, 2025 Compared to Three Months Ended ~~June~~September 30, 2024

Operating Revenues

	Three Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	Three Months EndedSeptember 30,				Increase(Decrease)		PercentIncrease(Decrease)
	2025		2024
	(In millions, except percentage changes)
Passenger	$	1312,~~123~~471	$	1312,~~202~~523	$	(7952)	(0.64)
Cargo	~~211~~212		~~195~~202		1610		85.20
Other	1,~~056~~005		~~936~~920		~~120~~85		~~12.~~9.4
Total operating revenues	$	1413,~~390~~688	$	1413,~~333~~645	$	5743	0.43

Passenger revenue decreased $7952 million, or 0.64%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024. American’s passenger revenue in the ~~second~~third quarter of 2025 was impacted by ~~softness~~weakness in ~~domestic~~international ~~demand for air~~ travel, ~~offset~~primarily in ~~part~~the byLatin ~~continued~~America ~~strength~~region, offset in ~~international~~part ~~air~~by ~~travel,~~improvement ~~particularly~~ in ~~the~~domestic ~~Atlantic region~~revenue.

Cargo revenue increased $1610 million, or 85.20%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to an increase in cargo yield ~~and an increase in cargo ton miles~~.

Other operating revenue increased $~~120~~85 million, or ~~12.~~9.4%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, driven primarily by higher revenue associated with American’s loyalty program. During the three months ended ~~June~~September 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $1.415 billion and $1.364 billion, respectively.

Table of Contents

Operating Expenses

Three Months Ended June 30,

Increase(Decrease)

PercentIncrease(Decrease)

Three Months EndedSeptember 30,

Increase(Decrease)

PercentIncrease(Decrease)

2025

2024

(In millions, except percentage changes)

Aircraft fuel and related taxes

2,~~663~~767

32,~~061~~874

(~~398~~107)

(133.07)

Salaries, wages and benefits

4,~~379~~459

34,~~950~~096

~~429~~363

108.9

Regional expenses

1,~~325~~353

1,~~260~~268

6585

56.27

Maintenance, materials and repairs

~~927~~1,028

~~950~~989

~~(23)~~39

(23.5)9

Other rent and landing fees

~~894~~906

~~834~~861

6045

75.23

Aircraft rent

~~303~~310

~~314~~303

~~(11)~~7

(32.8)4

Selling expenses

~~535~~483

~~456~~468

7915

173.52

Depreciation and amortization

~~475~~473

~~472~~477

3(4)

(0.79)

Mainline operating special items, net

477

—554

47(547)

nm(98.7)

Other

1,~~700~~735

1,~~642~~665

5870

34.62

Total operating expenses

13,~~248~~521

1213,~~939~~555

~~309~~(34)

2(0.43)

Regional expenses increased $6585 million, or 56.27%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to an increase in regional flight operations and costs at American’s regional carriers.

Maintenance, materials and repairs decreased $23 million, or 2.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a decrease in the volume of engine overhauls, offset in part by increased costs for component part repairs and airframe heavy checks driven by higher volume.52

Other rent and landing fees increased $60 million, or 7.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.

Operating Special Items, Net

	Three Months Ended June 30,
	2025		2024
	(In millions)
Litigation reserve adjustments	$	47	$	—

Table of Contents

Maintenance, materials and repairs increased $39 million, or 3.9%, in the third quarter of 2025 from the third quarter of 2024, primarily due to increased costs for component part repairs and airframe heavy checks driven by higher volume, offset in part by a decrease in the volume of engine overhauls.

Other rent and landing fees increased $45 million, or 5.3%, in the third quarter of 2025 from the third quarter of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.

Operating Special Items, Net


	Three Months Ended September 30,
	2025		2024
	(In millions)

Severance expenses	$	3	$	—
Labor contract expenses (1)	—		516

Other operating special items, net	4		38
Mainline operating special items, net	$	7	$	554

(1)Labor contract expenses for the three months ended September 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with American’s mainline flight attendants, including a one-time payment of $514 million.

Nonoperating Results

	Three Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	Three Months Ended September 30,				Increase(Decrease)		PercentIncrease(Decrease)
	2025		2024
	(In millions, except percentage changes)
Interest income	$	~~247~~249	$	~~275~~268	$	(2819)	(107.1)
Interest expense, net	(~~440~~450)		(~~511~~505)		7155		(1310.78)
Other income, net	3649		218		3431		nm
Total nonoperating expense, net	$	(~~157~~152)	$	(~~234~~219)	$	7767	(3230.65)

Interest income decreased $2819 million, or 107.1%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to lower interest rates that reduced returns on American’s short-term investments. Interest expense, net decreased $7155 million, or 1310.78%, in the ~~second~~third quarter of 2025 from the ~~second~~third quarter of 2024, primarily due to lower interest rates on its variable-rate debt instruments and lower outstanding debt subsequent to the ~~second~~third quarter of 2024, as American continues its efforts to strengthen the balance sheet.

In the ~~second~~third quarter of 2025, other nonoperating income, net primarily included $16 31 million of net ~~special~~earnings ~~credits~~related to American’s equity investments accounted for under the equity method and $1117 million of non-service related pension and other postretirement benefit plan income.

Income Taxes

American is a member of AAG’s consolidated federal and certain state income tax returns.

In the ~~second~~third quarter of 2025, American recorded an income tax provision of $~~267~~5 million. Substantially all of American’s income before income taxes is attributable to the United States.

See Note 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes.

~~Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024~~ 53

Operating Revenues

	Six Months Ended June 30,				Increase(Decrease)		PercentIncrease(Decrease)
	2025		2024
	(In millions, except percentage changes)
Passenger	$	24,514	$	24,661	$	(147)	(0.6)
Cargo	400		382		18		4.7
Other	2,026		1,859		167		8.9
Total operating revenues	$	26,940	$	26,902	$	38	0.1

Passenger revenue decreased $147 million, or 0.6%, in the first six months of 2025 from the first six months of 2024. American’s passenger revenue in the first six months of 2025 was impacted by softness in domestic demand for air travel and the American Eagle Flight 5342 accident, offset in part by continued strength in international air travel, particularly in the Atlantic and Pacific regions.

Cargo revenue increased $18 million, or 4.7%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in cargo yield.

Other operating revenue increased $167 million, or 8.9%, in the first six months of 2025 from the first six months of 2024, driven primarily by higher revenue associated with American’s loyalty program. During the six months ended June 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $3.2 billion and $3.0 billion, respectively.

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Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Operating Revenues


	Nine Months Ended September 30,				Increase (Decrease)		Percent Increase (Decrease)
	2025		2024
	(In millions, except percentage changes)
Passenger	$	36,985	$	37,184	$	(199)	(0.5)
Cargo	612		584		28		4.8
Other	3,031		2,778		253		9.1
Total operating revenues	$	40,628	$	40,546	$	82	0.2

Passenger revenue decreased $199 million, or 0.5%, in the first nine months of 2025 from the first nine months of 2024. American’s passenger revenue in the first nine months of 2025 was impacted by softness in domestic demand for air travel and the American Eagle Flight 5342 accident, offset in part by strength in international air travel, particularly in the Atlantic and Pacific regions.

Cargo revenue increased $28 million, or 4.8%, in the first nine months of 2025 from the first nine months of 2024, primarily due to an increase in cargo yield.

Other operating revenue increased $253 million, or 9.1%, in the first nine months of 2025 from the first nine months of 2024, driven primarily by higher revenue associated with American’s loyalty program. During the nine months ended September 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $4.7 billion and $4.4 billion, respectively.

Operating Expenses

Six Months Ended June 30,

Increase(Decrease)

PercentIncrease(Decrease)

Nine Months EndedSeptember 30,

Increase(Decrease)

PercentIncrease(Decrease)

2025

2024

(In millions, except percentage changes)

Aircraft fuel and related taxes

58,~~250~~017

68,~~042~~916

(~~792~~899)

(1310.1)

Salaries, wages and benefits

813,~~599~~058

711,~~816~~911

~~783~~1,147

109.06

Regional expenses

24,~~674~~027

23,~~457~~725

~~217~~302

8.81

Maintenance, materials and repairs

12,~~848~~876

12,~~834~~823

1453

01.89

Other rent and landing fees

12,~~720~~627

12,~~653~~514

67113

4.15

Aircraft rent

~~600~~910

~~642~~945

(4235)

(63.68)

Selling expenses

~~985~~1,467

~~864~~1,331

~~121~~136

1410.02

Depreciation and amortization

~~941~~1,414

~~939~~1,416

(2)

(0.21)

Mainline operating special items, net

~~118~~125

70625

48(500)

67(80.90)

Other

35,~~330~~065

34,~~178~~844

~~152~~221

4.86

Total operating expenses

2639,~~065~~586

2539,~~495~~050

~~570~~536

21.24

Salaries, wages and benefits increased $~~783~~1.1 ~~million~~billion, or 109.06%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in American’s other labor agreements.

Regional expenses increased $~~217~~302 million, or 8.81%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to an increase in regional flight operations and costs at American’s regional carriers.

Aircraft rent decreased $42 million, or 6.6%, in the first six months of 2025 from the first six months of 2024, primarily due to decreased rental payments associated with aircraft lease extensions.

Operating Special Items, Net

	Six Months Ended June 30,
	2025		2024
	(In millions)
Litigation reserve adjustments	$	77	$	—
Labor contract expenses (1)	31		57
Severance expenses	5		13
Other operating special items, net	5		—
Mainline operating special items, net	$	118	$	70

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~~(1)Labor~~Maintenance, ~~contract~~materials ~~expenses~~and ~~for~~repairs ~~the~~increased ~~six~~$53 ~~months~~million, ~~ended~~or ~~June 30~~1.9%, ~~2025~~in ~~included~~the afirst ~~one-time~~nine ~~charge~~months ~~for~~of ~~adjustments~~2025 tofrom ~~vacation~~the ~~accruals~~first ~~resulting~~nine ~~from~~months ~~pay~~of ~~rate~~2024, ~~increases~~primarily ~~effective~~due ~~January~~to 1,increased ~~2025,~~costs ~~related~~for tocomponent ~~the~~part ~~ratification~~repairs ofand ~~the~~airframe ~~contract~~heavy ~~extension~~checks indriven ~~the~~by ~~fourth~~higher ~~quarter~~volume, ofoffset ~~2024~~in ~~with~~part ~~American’s~~by ~~mainline~~a ~~maintenance~~decrease ~~and~~in ~~fleet~~the ~~service~~volume ~~team~~of ~~members~~engine overhauls.

~~Labor~~Other ~~contract~~rent ~~expenses~~and ~~for~~landing ~~the~~fees ~~six~~increased ~~months~~$113 ~~ended~~million, ~~June~~or 304.5%, ~~2024~~in ~~included~~the ~~one-time~~first ~~charges~~nine ~~resulting~~months of 2025 from the ~~ratification~~first nine months of a2024, ~~new~~primarily ~~collective~~due ~~bargaining~~to ~~agreement~~rate ~~with~~increases ~~American’s~~at ~~mainline~~certain ~~passenger~~airports, ~~service~~offset ~~team~~in ~~members,~~part ~~including~~by a ~~one-time~~decrease ~~signing~~in ~~bonus~~leased engines.

Operating Special Items, Net


	Nine Months Ended September 30,
	2025		2024
	(In millions)
Litigation reserve adjustments	$	77	$	—
Labor contract expenses (1)	31		573
Severance expenses	8		13

Other operating special items, net	9		39
Mainline operating special items, net	$	125	$	625

(1)Labor contract expenses for the nine months ended September 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with American’s mainline maintenance and fleet service team members.

Labor contract expenses for the nine months ended September 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with American’s mainline flight attendants, including a one-time payment of $514 million, and from the ratification of a new collective bargaining agreement with American’s mainline passenger service team members.

Nonoperating Results

	Six Months Ended June 30,				Increase(Decrease)		PercentDecrease
	Nine Months Ended September 30,				Increase(Decrease)		Percent Increase(Decrease)
	2025		2024
	(In millions, except percentage changes)
Interest income	$	~~483~~732	$	~~537~~805	$	(5473)	(9.90)
Interest expense, net	(~~893~~1,343)		(1,~~031~~536)		~~138~~193		(1312.35)
Other expense, net	(8)		(39)		31		(79.3)
Other income (expense), net	41		(21)		62		nm
Total nonoperating expense, net	$	(~~418~~570)	$	(~~533~~752)	$	~~115~~182	(2124.62)

Interest income decreased $5473 million, or 9.90% in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to lower interest rates that reduced returns on American’s short-term investments. Interest expense, net decreased $~~138~~193 million, or 1312.35%, in the first ~~six~~nine months of 2025 from the first ~~six~~nine months of 2024, primarily due to lower interest rates on its variable-rate debt instruments and lower outstanding debt subsequent to the ~~second~~third quarter of 2024, as American continues its efforts to strengthen the balance sheet.

In the first ~~six~~nine months of 2025, other nonoperating ~~expense~~income, net included $32 46 million of net ~~special~~earnings ~~charges~~related ~~primarily~~to American’s equity investments accounted for ~~debt~~under ~~refinancings~~the ~~and~~equity ~~extinguishments~~method and ~~mark~~$39 million of non-~~to-market~~service ~~net~~related ~~unrealized~~pension ~~losses~~and ~~associated~~other ~~with~~postretirement ~~certain~~benefit ~~equity~~plan ~~investments~~income, offset in part by $2128 million of ~~non~~net special charges primarily for mark-~~service~~to-market ~~related~~net ~~pension~~unrealized ~~and~~losses ~~other~~associated ~~postretirement~~with ~~benefit~~certain ~~plan~~equity ~~income~~investments and debt refinancings and extinguishments.

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In the first nine months of 2024, other nonoperating expense, net included $31 million of foreign currency losses, $30 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $27 million of net losses related to American’s equity investments accounted for under the equity method, offset in part by $75 million of non-service related pension and other postretirement benefit plan income.

Income Taxes

American is a member of AAG’s consolidated federal and certain state income tax returns.

In the first ~~six~~nine months of 2025, American recorded an income tax provision of $~~123~~128 million. Substantially all of American’s income before income taxes is attributable to the United States.

See Note 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes.

Liquidity and Capital Resources

Liquidity

At ~~June~~September 30, 2025, AAG had $1210.03 billion in total available liquidity and $~~807~~760 million in restricted cash and short-term investments. Additional detail regarding our available liquidity is provided in the table below (in millions):

	AAG				American
	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
	September 30, 2025		December 31, 2024		September 30, 2025		December 31, 2024
Cash	$	~~833~~835	$	804	$	~~824~~825	$	795
Short-term investments	76,~~740~~023		6,180		76,~~737~~020		6,177
Undrawn facilities	3,400		3,289		3,400		3,289
Total available liquidity	$	1110,~~973~~258	$	10,273	$	1110,~~961~~245	$	10,261

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In the ordinary course of our business, we or our affiliates may, at any time and from time to time, seek to prepay, retire or repurchase our outstanding debt through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, prepayments, retirements or exchanges, if any, will be conducted on such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, legal and contractual restrictions and other factors. The amounts involved may be material.

Certain Covenants

Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, may restrict our ability and that of our subsidiaries to incur additional indebtedness, pay dividends or repurchase stock. Our debt agreements also contain customary change of control provisions, which may require us to repay or redeem such indebtedness upon certain events constituting a change of control under the relevant agreement, in certain cases at a premium. Additionally, certain of our debt financing agreements (including our secured notes, term loans, revolving credit facilities and spare engine EETCs) contain loan to value (LTV) or collateral coverage ratio covenants and certain agreements require us to appraise the related collateral annually or semiannually. Pursuant to such agreements, if the applicable LTV or collateral coverage ratio exceeds or falls below a specified threshold, as the case may be, we will be required, as applicable, to pledge additional qualifying collateral (which in some cases may include cash or investment securities), withhold additional cash in certain accounts, or pay down such financing, in whole or in part, or the interest rate for the relevant financing will be increased. Additionally, a significant portion of our debt financing agreements contain covenants requiring us to maintain an aggregate of at least $2.0 billion of unrestricted cash and cash equivalents and amounts available to be drawn under revolving credit facilities. Our 5.50% senior secured notes due 2026, 5.75% senior secured notes due 2029 and the 2021 and 2025 AAdvantage Term Loan Facilities (collectively, the AAdvantage Financing) contain a peak debt service coverage ratio, pursuant to which failure to comply with a certain threshold may result in early repayment, in whole or in part, of the AAdvantage Financing. As of the most recent applicable measurement dates, we were in compliance with each of the foregoing covenants.

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Sources and Uses of Cash

AAG

Operating Activities

Our net cash provided by operating activities was $3.4 billion and $3.36 billion for the first ~~six~~nine months of 2025 and 2024, respectively, a $~~111~~212 million period-over-period ~~increase~~decrease driven byprimarily ~~net working capital changes, offset in part~~ by lower profitability in the first ~~six~~nine months of 2025 as compared to the same period in 2024.

Investing Activities

Our net cash used in investing activities was $21.5 billion and $1.98 billion for the first ~~six~~nine months of 2025 and 2024, respectively.

Our principal investing activities in the first ~~six~~nine months of 2025 included $12.31 billion of capital expenditures, which primarily related to the purchase of 1113 Boeing 737 MAX aircraft, ~~three~~six ~~Bombardier~~Embraer ~~CRJ~~E175 ~~900~~aircraft, five Bombardier CRJ900 aircraft, ~~two~~three ~~Embraer~~Boeing ~~175~~787-9 aircraft, ~~one~~two Airbus ~~A321neo~~A321XLR aircraft, one ~~Boeing~~Airbus ~~787-9~~A321neo aircraft, one Airbus A320 aircraft lease repurchase and ~~five~~seven aircraft engines. ~~Additionally, we had $1.6 billion in net purchases of short-term investments.~~ These cash outflows were offset in part by $328 million in net proceeds from the issuance of the TMAT special facility revenue bonds and $~~200~~243 million in proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at Los Angeles International Airport (LAX). Additionally, we had $143 million in net sales of short-term investments.

Our principal investing activities in the first ~~six~~nine months of 2024 included $1.59 billion of capital expenditures, which primarily related to the purchase of 12 Embraer ~~175~~E175 aircraft, three Boeing 737 MAX aircraft, three Boeing 737-800 aircraft lease repurchases, two Airbus A321neo aircraft, 3239 aircraft engines and aircraft purchase deposits. Additionally, we had $~~833~~627 million in net purchases of short-term investments. These cash outflows were offset in part by $~~353~~598 million of proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.

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Financing Activities

Our net cash used in financing activities was $~~912~~1.8 ~~million~~billion and $1.45 billion for the first ~~six~~nine months of 2025 and 2024, respectively.

Our principal financing activities in the first ~~six~~nine months of 2025 primarily included $2.4.1 billion in debt and finance lease repayments, consisting of $13.63 billion in scheduled repayments, including the $~~487~~1.0 billion ~~million~~cash settlement of AAG’s 6.50% convertible senior notes. Debt and finance lease repayments also included early repayments of $487 million for the outstanding principal amount of equipment notes issued under EETCs and $308 million ~~of early repayments~~ toward portions of the outstanding principal amounts of the IP Notes and LGA/DCA Notes. These cash outflows were offset in part by $12.72 billion of proceeds from the issuance of long-term debt, consisting of $1.0 billion from the issuance of the 2025 AAdvantage Term Loan Facility and $~~712~~1.2 ~~million~~billion from the issuance of equipment loans and other notes payable in connection with the financing of certain aircraft.

Our principal financing activities in the first ~~six~~nine months of 2024 included $12.87 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset in part by $~~527~~1.3 billion of proceeds from issuance of long-term debt, consisting of $684 million ~~borrowed~~from the issuance of EETCs in connection with the financing of certain aircraft that had been previously delivered and $571 million from the issuance of equipment loans and other notes payable.

American

Operating Activities

American’s net cash provided by operating activities was $32.32 billion ~~for~~and ~~each~~$3.5 ofbillion for the first ~~six~~nine months of 2025 and 2024., ~~American’s~~respectively, ~~operating~~a ~~cash~~$1.3 ~~flow~~billion inperiod-over-period ~~the~~decrease ~~first~~driven ~~six~~by ~~months~~a ofnet ~~2025~~increase ~~was~~in ~~flat~~receivables ~~compared~~from torelated ~~the~~parties, ~~first~~including ~~six~~the ~~months~~scheduled repayment of ~~2024~~AAG’s ~~driven~~$1.0 billion by6.50% convertible senior notes. Excluding this net ~~working~~increase ~~capital~~in ~~changes~~receivables from related parties, ~~offset~~American’s byoperating cash flow decreased $198 million primarily due to lower profitability in the first ~~six~~nine months of 2025 as compared to the same period in 2024.

Investing Activities

American’s net cash used in investing activities was $21.45 billion and $1.98 billion for the first ~~six~~nine months of 2025 and 2024, respectively.

American’s principal investing activities in the first six months of 2025 included $1.3 billion of capital expenditures, which primarily related to the purchase of 11 Boeing 737 MAX aircraft, three Bombardier CRJ 900 aircraft, two Embraer 175 aircraft, one Airbus A321neo aircraft, one Boeing 787-9 aircraft, one Airbus A320 aircraft lease repurchase and five aircraft engines. Additionally, American had $1.6 billion in net purchases of short-term investments. These cash outflows were offset in part by $328 million in net proceeds from the issuance of the TMAT special facility revenue bonds and $200 million in proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.57

American’s principal investing activities in the first six months of 2024 included $1.4 billion of capital expenditures, which primarily related to the purchase of 12 Embraer 175 aircraft, three Boeing 737 MAX aircraft, two Airbus A321neo aircraft, 32 aircraft engines and aircraft purchase deposits. Additionally, American had $831 million in net purchases of short-term investments. These cash outflows were offset in part by $353 million of proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.

Financing Activities

American’s net cash used in financing activities was $817 million and $1.3 billion for the first six months of 2025 and 2024, respectively.

American’s principal financing activities in the first six months of 2025 primarily included $2.4 billion in debt and finance lease repayments, consisting of $1.6 billion in scheduled repayments, $487 million of early repayments for the outstanding principal amount of equipment notes issued under EETCs and $308 million of early repayments toward portions of the outstanding principal amounts of the IP Notes and LGA/DCA Notes. These cash outflows were offset in part by $1.7 billion of proceeds from the issuance of long-term debt, consisting of $1.0 billion from the issuance of the 2025 AAdvantage Term Loan Facility and $712 million from the issuance of equipment loans and other notes payable in connection with the financing of certain aircraft.

American’s principal financing activities in the first six months of 2024 included $1.8 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $527 million borrowed in connection with the financing of certain aircraft.

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American’s principal investing activities in the first nine months of 2025 included $2.1 billion of capital expenditures, which primarily related to the purchase of 13 Boeing 737 MAX aircraft, six Embraer E175 aircraft, five Bombardier CRJ900 aircraft, three Boeing 787-9 aircraft, two Airbus A321XLR aircraft, one Airbus A321neo aircraft, one Airbus A320 aircraft lease repurchase and seven aircraft engines. These cash outflows were offset in part by $328 million in net proceeds from the issuance of the TMAT special facility revenue bonds and $243 million in proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX. Additionally, American had $143 million in net sales of short-term investments.

American’s principal investing activities in the first nine months of 2024 included $1.9 billion of capital expenditures, which primarily related to the purchase of 12 Embraer E175 aircraft, three Boeing 737 MAX aircraft, three Boeing 737-800 aircraft lease repurchases, two Airbus A321neo aircraft, 39 aircraft engines and aircraft purchase deposits. Additionally, American had $626 million in net purchases of short-term investments. These cash outflows were offset in part by $598 million of proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.

Financing Activities

American’s net cash used in financing activities was $737 million and $1.5 billion for the first nine months of 2025 and 2024, respectively.

American’s principal financing activities in the first nine months of 2025 primarily included $3.1 billion in debt and finance lease repayments, consisting of $2.3 billion in scheduled repayments and early repayments of $487 million for the outstanding principal amount of equipment notes issued under EETCs and $308 million toward portions of the outstanding principal amounts of the IP Notes and LGA/DCA Notes. These cash outflows were offset in part by $2.2 billion of proceeds from the issuance of long-term debt, consisting of $1.0 billion from the issuance of the 2025 AAdvantage Term Loan Facility and $1.2 billion from the issuance of equipment loans and other notes payable in connection with the financing of certain aircraft.

American’s principal financing activities in the first nine months of 2024 included $2.7 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset in part by $1.3 billion of proceeds from issuance of long-term debt, consisting of $684 million from the issuance of EETCs in connection with the financing of certain aircraft that had been previously delivered and $571 million from the issuance of equipment loans and other notes payable.

Commitments

Significant Indebtedness

As of ~~June~~September 30, 2025, AAG had $2928.64 billion in long-term debt, including current maturities of $43.5 billion. As of ~~June~~September 30, 2025, American had $24.86 billion in long-term debt, including current maturities of $3.5 billion. All material changes in our significant indebtedness since our 2024 Form 10-K are discussed in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A and Note 4 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B.

Aircraft and Engine Purchase Commitments

As of ~~June~~September 30, 2025, we had definitive purchase agreements for the acquisition of the following new aircraft (1):

	Remainderof 2025	2026	2027	2028 and Thereafter	Total
Airbus
A320neo Family	5	22	23	101	151
A320 Family	3	21	24	104	152
Boeing
737 MAX Family	10	16	—	115	141
737 Family	9	15	—	115	139
787 Family	73	1	3	15	2622
Embraer
175	10	20	15	45	90
E175	6	16	17	47	86
Total	3221	5953	4144	~~276~~281	~~408~~399

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(1)Delivery schedule represents our best estimate as of the date of this report as described in footnote (d) to the “Contractual Obligations” table below. Actual delivery dates are subject to change, which could be material, based on various potential factors including production delays by the manufacturer and regulatory concerns. See Part I, Item 1A. Risk Factors – “We depend on a limited number of suppliers for aircraft, aircraft engines and parts. Delays in scheduled aircraft deliveries, unexpected grounding of aircraft or aircraft engines whether by regulators or by us, or other loss of anticipated fleet capacity, and failure of new aircraft to receive regulatory approval, be produced or otherwise perform as and when expected, adversely impacts our business, results of operations and financial condition” in our 2024 Form 10-K.

In addition, we have committed to purchase ~~nine~~seven used Bombardier ~~CRJ~~CRJ900 ~~900~~ aircraft which are scheduled to be delivered from the ~~third~~fourth quarter of 2025 through 2026. We also have agreements for 4449 spare engines to be delivered in the ~~third~~fourth quarter of 2025 and beyond. The “Contractual Obligations” table below reflects these commitments.

We intend to finance future aircraft deliveries and option exercises using long-term debt.

Off-Balance Sheet Arrangements

An off-balance sheet arrangement is any transaction, agreement or other contractual arrangement involving an unconsolidated entity under which a company has (1) made guarantees, (2) a retained or a contingent interest in transferred assets, (3) an obligation under derivative instruments classified as equity or (4) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or that engages in leasing, hedging or research and development arrangements with us.

There have been no material changes in our off-balance sheet arrangements as discussed in our 2024 Form 10-K.

5659

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Contractual Obligations

The following table provides details of our estimated material cash requirements from contractual obligations as of ~~June~~September 30, 2025 (in millions). The table does not include commitments that are contingent on events or other factors that are uncertain or unknown at this time and is subject to other conventions as set forth in the applicable accompanying footnotes.

	Payments Due by Period
	Remainderof 2025		2026		2027		2028		2029		2030 and Thereafter		Total
American
Long-term debt:
Principal amount (a), (c)	$	~~1,436~~749	$	3,~~577~~611	$	4,~~360~~395	$	7,~~228~~264	$	3,~~948~~985	$	4,~~256~~615	$	24,~~805~~619
Interest obligations (b), (c)	~~716~~340		1,~~222~~251		~~958~~986		~~668~~690		~~355~~373		~~720~~807		4,~~639~~447
Finance lease obligations	7337		~~141~~147		~~131~~138		94100		8994		~~324~~354		~~852~~870
Aircraft and engine purchase commitments (d)	1,~~782~~280		32,~~021~~891		2,~~764~~784		4,~~620~~057		34,~~442~~252		9,~~811~~847		25,~~440~~111
Operating lease commitments	~~820~~412		1,~~541~~572		1,~~388~~413		1,~~259~~283		1,~~156~~175		3,~~740~~773		9,~~904~~628
Regional capacity purchase agreements (e)	~~542~~275		1,~~057~~051		1,~~054~~049		~~981~~976		~~815~~809		~~819~~808		54,~~268~~968
Minimum pension obligations (f)	—		251		157		107		81		46		642
Retiree medical and other postretirement benefits (f)	6734		138		135		131		128		615		1,~~214~~181
Other purchase obligations (g)	21,~~791~~401		23,~~968~~122		1,~~707~~811		~~953~~1,285		~~408~~424		3,~~666~~824		1211,~~493~~867
Total American Contractual Obligations	84,~~227~~528		1314,~~916~~034		12,~~654~~868		1615,~~041~~893		1011,~~422~~321		2324,~~997~~689		8583,~~257~~333
AAG Parent and Other AAG Subsidiaries
Long-term debt:
Principal amount (a)	~~1,000~~—		—		—		—		—		3,746		43,746
Interest obligations (b)	91—		~~169~~172		~~189~~194		~~195~~198		~~201~~203		~~213~~214		~~1,058~~981
Finance lease obligations	43		—		—		—		—		—		43
Operating lease commitments	74		1314		89		78		67		40		8182
Minimum pension obligations (f)	1—		2		1		1		1		2		87
Other purchase obligations	41		14		12		5		2		—		3734
Total AAG Contractual Obligations	$	94,~~334~~536	$	14,~~114~~236	$	1213,~~864~~084	$	16,~~249~~105	$	1011,~~632~~534	$	2728,~~998~~691	$	9188,~~191~~186

(a)Amounts represent contractual amounts due. Excludes $~~330~~317 million and $2 million of unamortized debt discount, premium and issuance costs as of ~~June~~September 30, 2025 for American and AAG Parent, respectively. For additional information, see Note 5 and Note 4 to AAG’s and American’s Condensed Consolidated Financial Statements in Part I, Items 1A and 1B, respectively.

(b)For variable-rate debt, future interest obligations are estimated using the current forward rates at ~~June~~September 30, 2025.

(c)Includes $6.42 billion of future principal payments and $~~729~~664 million of future interest payments as of ~~June~~September 30, 2025, related to EETCs associated with mortgage financings of certain aircraft and spare engines.

(d)See “Aircraft and Engine Purchase Commitments” above for additional information about the firm commitments for the acquisition of aircraft and engines, including the anticipated aircraft delivery schedule. Due to uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent our most current estimate based on contractual delivery schedules adjusted for updates and revisions to such schedules communicated to management by the applicable equipment manufacturer and certain management assumptions. However, the actual delivery schedule may differ, potentially materially, based on various potential factors including production delays by the manufacturer and regulatory concerns. Additionally, the amounts in the table above exclude two Boeing 787 Family aircraft scheduled to be delivered in 2025, for which we have obtained committed lease financing. This financing is reflected in the operating lease commitments line.

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(e)These commitments are estimates of costs based on assumed minimum levels of flying under the capacity purchase agreements and American’s actual payments could differ materially. Rental payments under operating leases for certain aircraft flown under these capacity purchase agreements are reflected in the operating lease commitments line above.

(f)Represents minimum pension contributions and expected contributions to our retiree medical and other postretirement plans based on actuarially determined estimates as of December 31, 2024 and is based on estimated payments through 2034. During the first ~~six~~nine months of 2025, we made required contributions of $~~223~~224 million to our defined benefit pension plans.

(g)Includes purchase commitments for aircraft fuel, flight equipment maintenance and information technology support and excludes obligations under certain fuel offtake agreements or other agreements for which the timing of the related expenditure is uncertain, or which are subject to material contingencies, such as the construction of a production facility.

Capital Raising Activity and Other Possible Actions

In light of our significant financial commitments related to, among other things, the servicing and amortization of existing debt and equipment leasing arrangements and new flight equipment, we and our subsidiaries will regularly consider, and enter into negotiations related to, capital raising and liability management activity, which may include the entry into leasing transactions and future issuances of, and transactions designed to manage the timing and amount of, secured or unsecured debt obligations or additional equity or equity-linked securities in public or private offerings or otherwise. The cash available from operations (if any) and these sources, however, may not be sufficient to cover our cash obligations because economic factors may reduce the amount of cash generated by operations or increase costs. For instance, an economic downturn or general global instability caused by governmental actions, military actions, terrorism, disease outbreaks, natural disasters or other causes could reduce the demand for air travel, which would reduce the amount of cash generated by operations. See Part I, Item 1A. Risk Factors – “Downturns in economic conditions could adversely affect our business” in our 2024 Form 10-K for additional discussion. An increase in costs, either due to an increase in borrowing costs caused by a reduction in credit ratings or a general increase in interest rates, due to an increase in the cost of fuel, maintenance, aircraft, aircraft engines or parts, or due to an increase in tariffs, could decrease the amount of cash available to cover cash contractual obligations. Moreover, certain of our financing arrangements contain significant minimum cash balance or similar liquidity requirements. As a result, we cannot use all of our available cash to fund operations, capital expenditures and cash obligations without violating these requirements.

In the past, we have from time to time refinanced, redeemed or repurchased our debt and taken other steps to reduce or otherwise manage the aggregate amount and cost of our debt, lease and other obligations or otherwise improve our balance sheet. Going forward, depending on market conditions, our cash position and other considerations, we may continue to take such actions, and the amounts involved may be material.

Critical Accounting Policies and Estimates

For information regarding our critical accounting policies and estimates, see Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – “Critical Accounting Policies and Estimates” in our 2024 Form 10-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

AAG’s and American’s Market Risk Sensitive Instruments and Positions

Our primary market risk exposures include the price of aircraft fuel, foreign currency exchange rates and interest rate risk. Our exposure to these market risks has not changed materially from our exposure discussed in our 2024 Form 10-K except as updated below.

Aircraft Fuel

As of ~~June~~September 30, 2025, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption. Our current policy is not to enter into transactions to hedge our fuel consumption, although we review this policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices. Based on our 2025 forecasted fuel consumption, we estimate that a one cent per gallon increase in the price of aircraft fuel would increase

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our 2025 annual fuel expense by approximately $45 million. See Part I, Item 1A. Risk Factors – “Our business is very dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity” in our 2024 Form 10-K.

Foreign Currency

We are exposed to the effect of foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated transactions. Our largest exposure comes from the Euro, Canadian dollar, British pound sterling and various Latin American currencies (primarily the Brazilian real). We do not currently have a foreign currency hedge program.

Generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by us and can significantly affect the value of our assets located outside the United States. These conditions, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect our business, results of operations and financial condition. See Part I, Item 1A. Risk Factors – “We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control” in our 2024 Form 10-K for additional discussion of this and other currency risks.

Interest

Our earnings and cash flow are affected by changes in interest rates due to the impact those changes have on our interest expense from variable-rate debt instruments and our interest income from short-term, interest-bearing investments. If annual interest rates increase 100 basis points, based on our ~~June~~September 30, 2025 variable-rate debt and short-term investments balances, annual interest expense on variable rate debt would increase by approximately $130 million and annual interest income on short-term investments would increase by approximately $9070 million.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Evaluation of Disclosure Controls and Procedures

The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and is accumulated and communicated to the company’s management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of AAG’s and American’s disclosure controls and procedures as of ~~June~~September 30, 2025 was performed under the supervision and with the participation of AAG’s and American’s management, including AAG’s and American’s principal executive officer, the Chief Executive Officer (CEO), and principal financial officer, the Chief Financial Officer (CFO). Based on that evaluation, AAG’s and American’s management, including AAG’s and American’s CEO and CFO, concluded that AAG’s and American’s disclosure controls and procedures were effective as of ~~June~~September 30, 2025 at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

During the quarter ended ~~June~~September 30, 2025, there have been no changes in AAG’s or American’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, AAG’s and American’s internal control over financial reporting.

Limitation on the Effectiveness of Controls

We believe that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, and, as noted above, the CEO and CFO of AAG and American believe that our disclosure controls and procedures were effective at the reasonable assurance level as of ~~June~~September 30, 2025.

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PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part I, Item 1B, respectively, for information on legal proceedings.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors as previously disclosed in Part I, Item 1A in our 2024 Form 10-K. The risks in our 2024 Form 10-K are not the only risks facing AAG and American. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, could also materially adversely affect our business, financial condition or future results.

ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

~~During~~On ~~the~~July ~~quarter ended June 30~~28, 2025, ~~none~~David ofG. ~~our~~Seymour, ~~directors~~Executive orVice ~~“officers”~~President ~~(as~~and ~~defined~~Chief inOperating ~~Rule~~Officer, ~~16a-1(f) under the Exchange Act)~~ adopted ora ~~terminated~~Rule ~~any~~10b5-1 ~~contract,~~trading ~~instruction~~agreement ~~or written plan for the purchase or sale of AAG securities~~ that ~~was~~is intended to satisfy the affirmative defense ~~conditions~~ of Rule 10b5-1(c) orfor ~~any~~the ~~“non-Rule~~sale ~~10b5-1~~of ~~trading~~up ~~arrangement~~to 363,193 shares of AAG’s common stock until July 30, 2027.”

60Other than noted above, during the quarter ended September 30, 2025, none of our directors or “officers” (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of AAG securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

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ITEM 6. EXHIBITS

Exhibits required to be filed by Item 601 of Regulation S-K: Where the amount of securities authorized to be issued under any of our long-term debt agreements does not exceed 10% of our assets, pursuant to paragraph (b)(4) of Item 601 of Regulation S-K, in lieu of filing such as an exhibit, we hereby agree to furnish to the Commission upon request a copy of any agreement with respect to such long-term debt.

ExhibitNumber			Description
10.1			Increase Joinder, dated as of April 21, 2025, amending that certain Credit and Guaranty Agreement, dated as of December 4, 2023 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), by and among American Airlines, Inc., as borrower, American Airlines Group Inc., as guarantor, the lenders from time to time party thereto and Citibank, N.A., as administrative agent.*
3.1			Fifth Amended and Restated Bylaws of American Airlines Group Inc. (incorporated by reference to Exhibit 3.1 to American Airlines Group Inc.’s Current Report on Form 8-K filed on August 7, 2025 (Commission File No. 1-8400)).
10.2			Increase Joinder, dated as of April 21, 2025, amending that certain Amended and Restated Credit and Guaranty Agreement, dated as of May 21, 2015 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), by and among American Airlines, Inc., as borrower, American Airlines Group Inc., as guarantor, the lenders from time to time party thereto and Barclays Bank PLC, as administrative agent.*
10.3			Increase Joinder, dated as of April 21, 2025, amending that certain Amended and Restated Credit and Guaranty Agreement, dated as of April 20, 2015 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), by and among American Airlines, Inc., as borrower, American Airlines Group Inc., as guarantor, the lenders from time to time party thereto and Citibank, N.A., as administrative agent.*
10.4			Third Amendment to Term Loan Credit and Guaranty Agreement, dated as of May 28, 2025, among American Airlines, Inc., AAdvantage Loyalty IP Ltd., Barclays Bank PLC, as administrative agent, and Citibank, N.A., as Designated 2025 Incremental Term Lender (incorporated by reference as Exhibit 10.1 to AAG’s Current Report on Form 8-K filed on May 29, 2025 (Commission File No. 1-8400)).**
10.5			American Airlines Group Inc. 2023 Incentive Award Plan, as amended, dated as of April 29, 2025.
10.6			Supplemental Agreement No. 35, dated as of June 30, 2025, to Purchase Agreement No. 03735 dated as of February 1, 2013, by and between American Airlines, Inc. and The Boeing Company.*
31.1			Certification of AAG Chief Executive Officer pursuant to Rule 13a-14(a).
31.2			Certification of AAG Chief Financial Officer pursuant to Rule 13a-14(a).
31.3			Certification of American Chief Executive Officer pursuant to Rule 13a-14(a).
31.4			Certification of American Chief Financial Officer pursuant to Rule 13a-14(a).
32.1			AAG Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code).
32.2			American Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code).
101.1			Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL (eXtensible Business Reporting Language).
104.1			Cover page interactive data file (formatted in Inline XBRL and contained in Exhibit 101.1).

* Portions of this exhibit have been omitted in accordance with Item 601(b)(10) of Regulation S-K.64

** Portions of this exhibit have been redacted in accordance with Item 601(a)(6) of Regulation S-K.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		American Airlines Group Inc.
Date: July 24, 2025	By:	/s/ Devon E. May
Date: October 23, 2025	By:	/s/ Devon E. May
		Devon E. May
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		American Airlines, Inc.
Date: July 24, 2025	By:	/s/ Devon E. May
Date: October 23, 2025	By:	/s/ Devon E. May
		Devon E. May
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

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