Business Summary

Business Outlook & Financial Sufficiency

Management Sentiments & Priorities

Risk Factors

References

1. [1] "Together with our wholly-owned regional airline subsidiaries and third-party regional carriers operating as American Eagle, our primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through our hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo (among others). We provide service to over 350 destinations around the world, and in 2025, approximately 224 million passengers boarded our flights." — Item 1, Business — Airline Operations
2. [2] "The markets in which we operate are highly competitive. On most of our domestic nonstop routes, we face competing service from other domestic airlines, including major network airlines, low-cost carriers and ultra-low-cost carriers such as Alaska Airlines, Allegiant Air, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines and United Airlines. Between cities that require a connection, where the major airlines compete via their respective hubs, competition is significant. In addition, we face competition on some of our connecting routes from airlines operating point-to-point service. We also compete with all-cargo and charter airlines and, particularly on shorter segments, ground and rail transportation. In general, beyond nonstop city pairs, carriers that have the greatest ability to seamlessly connect passengers to and from markets have a competitive advantage. In some cases, however, foreign governments limit U.S. air carriers’ rights to transport passengers beyond designated gateway cities in foreign countries. In order to improve access to domestic and foreign markets, we have arrangements with other airlines including through the one world Alliance, joint business agreements and other cooperation agreements and marketing relationships, as further discussed herein. On all of our routes, pricing decisions are affected, in large part, by the need to meet competition from other airlines. Price competition occurs on a market-by-market basis through price discounts, changes in pricing structures, fare matching, targeted promotions and loyalty program initiatives. Airlines typically use discounted fares and other promotions to stimulate traffic during normally weak travel periods, when they begin service to new cities, when they have excess capacity, to generate cash flow, to maximize revenue per available seat mile or to establish, increase or preserve market share. Most airlines will quickly match price reductions in a particular market, and we have often elected to match discounted or promotional fares initiated by other air carriers in certain markets in order to compete in those markets. In addition, we face pricing pressures from so-called ultra-low-cost carriers, such as Allegiant Air, Frontier Airlines and Spirit Airlines, which compete in many of the markets in which we operate. In addition to price competition, airlines compete for market share by increasing the size of their route system and the number of markets they serve. The American Eagle regional carriers increase the number of markets we serve by flying to smaller markets and providing connections at our hubs. Many of our competitors also own or have agreements with regional airlines that provide similar services at their hubs and other locations. We also compete on the basis of scheduling (frequency and flight times), availability of nonstop flights, on-time performance, type of equipment, cabin configuration, amenities provided to passengers, loyalty programs, the automation of travel agent reservation systems, onboard products, health and safety, sustainability initiatives and other services." — Item 1, Business — Industry Competition
3. [3] "We recognize all revenues generated from transportation on American and our regional flights operated under the brand name American Eagle, including associated baggage fees and other inflight services, as passenger revenue when transportation is provided." — Item 1, Business — Revenue Recognition
4. [4] "Our AAdvantage program was established to enhance passenger loyalty by offering benefits and rewards to travelers for their continued patronage with American and our partners. AAdvantage members enjoy exclusive benefits and earn AAdvantage mileage credits (miles) for flying on eligible tickets on American, American Eagle, any one world Alliance airline or other partner airlines. Along with AAdvantage miles, members also earn Loyalty Points, which unlock AAdvantage status and rewards for our AAdvantage members. For every dollar spent by flying on an eligible American ticket, members earn mileage credits, and AAdvantage Gold ®, AAdvantage Platinum ®, AAdvantage Platinum Pro ® and AAdvantage Executive Platinum ® status holders earn additional bonus mileage credits of 40%, 60%, 80% and 120%, respectively. Members also earn mileage credits and Loyalty Points by using the services of more than 1,000 non-flight partners, such as our co-branded credit cards, certain hotel, car rental and cruise companies and shopping and dining partners." — Item 1, Business — AAdvantage Program
5. [5] "Cash payments from co-branded credit card and other partners were $6.2 billion and $6.1 billion during 2025 and 2024, respectively." — Item 1, Business — AAdvantage Program
6. [6] "Cash payments from co-branded credit card and other partners were $6.2 billion and $6.1 billion during 2025 and 2024, respectively." — Item 1, Business — AAdvantage Program
7. [7] "Cash remuneration in 2024 included a one-time cash payment related to the new co-branded credit card agreement announced in December 2024." — Item 1, Business — AAdvantage Program
8. [8] "Other revenue includes revenue associated with our loyalty program, which is comprised principally of the marketing component of mileage credit sales to co-branded credit card and other partners and other marketing related payments. The accounting and recognition for the loyalty program marketing services are discussed above in “Loyalty Revenue.” The remaining amounts included within other revenue relate to airport clubs, other commission revenue, advertising and vacation-related services." — Item 1, Business — Revenue Recognition
9. [9] "As of December 31, 2025, American operated a mainline fleet of 1,013 aircraft." — Item 2, Properties — Flight Equipment
10. [10] "Total 14.3" — Item 2, Properties — Mainline
11. [11] "Airbus A319 128 21.7 21 111 132" — Item 2, Properties — Mainline
12. [12] "Airbus A320 150 24.7 12 36 48" — Item 2, Properties — Mainline
13. [13] "Airbus A321 184 13.4 164 54 218" — Item 2, Properties — Mainline
14. [14] "Airbus A321neo 195 4.8 49 35 84" — Item 2, Properties — Mainline
15. [15] "Airbus A321XLR (1) 155 0.1 2 — 2" — Item 2, Properties — Mainline
16. [16] "Boeing 737-800 172 16.1 138 165 303" — Item 2, Properties — Mainline
17. [17] "Boeing 737-8 MAX 172 3.7 56 33 89" — Item 2, Properties — Mainline
18. [18] "Boeing 777-200ER 273 25.0 44 3 47" — Item 2, Properties — Mainline
19. [19] "Boeing 777-300ER 304 11.8 18 2 20" — Item 2, Properties — Mainline
20. [20] "Boeing 787-8 234 7.1 20 17 37" — Item 2, Properties — Mainline
21. [21] "Boeing 787-9 271 5.6 23 10 33" — Item 2, Properties — Mainline
22. [22] "As of December 31, 2025, American Eagle operated 567 regional aircraft." — Item 2, Properties — Flight Equipment
23. [23] "Bombardier CRJ700 65 57 3 62 122" — Item 2, Properties — Regional
24. [24] "Bombardier CRJ900 (1) 76 86 — — 86" — Item 2, Properties — Regional
25. [25] "Embraer E170 65 6 37 13 56" — Item 2, Properties — Regional
26. [26] "Embraer E175 76 136 — 96 232" — Item 2, Properties — Regional
27. [27] "Embraer ERJ145 50 71 — — 71" — Item 2, Properties — Regional
28. [28] "Total operating revenues $ 54,633" — Item 6, Selected Consolidated Financial Data — Consolidated Statements of Operations data
29. [29] "Total operating revenues 54,633 54,211 422 0.8" — Item 7, MD&A — AAG's 2025 Financial Results
30. [30] "Total operating revenues $ 54,211" — Item 6, Selected Consolidated Financial Data — Consolidated Statements of Operations data
31. [31] "Operating income 1,467" — Item 6, Selected Consolidated Financial Data — Consolidated Statements of Operations data
32. [32] "Net income $ 111" — Item 6, Selected Consolidated Financial Data — Consolidated Statements of Operations data
33. [33] "Diluted $ 0.17" — Item 6, Selected Consolidated Financial Data — Consolidated Statements of Operations data
34. [34] "unrestricted cash and short-term investments and $3.4 billion in total undrawn capacity under revolving credit and other facilities." — Item 7, MD&A — Liquidity
35. [35] "Debt and finance leases 29,007" — Item 6, Selected Consolidated Financial Data — Consolidated Balance Sheet data
36. [36] "Total operating revenues 54,633 54,211 422 0.8" — Item 7, MD&A — AAG's 2025 Financial Results
37. [37] "Total operating revenues 54,633 54,211 422 0.8" — Item 7, MD&A — AAG's 2025 Financial Results
38. [38] "Passenger revenue $ 49,643 $ 49,586 $ 57 0.1" — Item 7, MD&A — Operating Revenues
39. [39] "Passenger revenue $ 49,643 $ 49,586 $ 57 0.1" — Item 7, MD&A — Operating Revenues
40. [40] "Passenger revenue $ 49,643" — Item 7, MD&A — Operating Revenues
41. [41] "Cargo revenue 839 804 35 4.3" — Item 7, MD&A — Operating Revenues
42. [42] "Cargo revenue 839 804 35 4.3" — Item 7, MD&A — Operating Revenues
43. [43] "Cargo 839" — Item 7, MD&A — Operating Revenues
44. [44] "Other operating revenue 4,151 3,821 330 8.7" — Item 7, MD&A — AAG's 2025 Financial Results
45. [45] "Other operating revenue 4,151 3,821 330 8.7" — Item 7, MD&A — AAG's 2025 Financial Results
46. [46] "Other 4,151" — Item 7, MD&A — Operating Revenues
47. [47] "Other operating revenue increased $330 million, or 8.7%, in 2025 from 2024 driven primarily by higher revenue associated with our loyalty program." — Item 7, MD&A — Operating Revenues
48. [48] "Total operating expenses 53,166 51,597 1,569 3.0" — Item 7, MD&A — AAG's 2025 Financial Results
49. [49] "Total operating expenses 53,166 51,597 1,569 3.0" — Item 7, MD&A — AAG's 2025 Financial Results
50. [50] "Total operating expenses 53,166" — Item 7, MD&A — AAG's 2025 Financial Results
51. [51] "Aircraft fuel and related taxes 10,718 11,418 (700) (6.1)" — Item 7, MD&A — Operating Expenses
52. [52] "Aircraft fuel and related taxes 10,718 11,418 (700) (6.1)" — Item 7, MD&A — Operating Expenses
53. [53] "This decrease was primarily driven by an 8.2% decrease in the average price per gallon of aircraft fuel including related taxes to $2.39 in 2025 from $2.60 in 2024" — Item 7, MD&A — Fuel
54. [54] "This decrease was primarily driven by an 8.2% decrease in the average price per gallon of aircraft fuel including related taxes to $2.39 in 2025 from $2.60 in 2024" — Item 7, MD&A — Fuel
55. [55] "offset in part by a 2.2% increase in gallons of fuel consumed due to increased capacity." — Item 7, MD&A — Fuel
56. [56] "offset in part by a 2.2% increase in gallons of fuel consumed due to increased capacity." — Item 7, MD&A — Fuel
57. [57] "Salaries, wages and benefits 17,566 16,021 1,545 9.6" — Item 7, MD&A — Operating Expenses
58. [58] "Salaries, wages and benefits 17,566 16,021 1,545 9.6" — Item 7, MD&A — Operating Expenses
59. [59] "Salaries, wages and benefits 17,566" — Item 7, MD&A — Operating Expenses
60. [60] "Salaries, wages and benefits increased $1.5 billion, or 9.6%, in 2025 from 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." — Item 7, MD&A — Operating Expenses
61. [61] "Regional expenses 5,448 5,042 406 8.1" — Item 7, MD&A — Operating Expenses
62. [62] "Regional expenses 5,448 5,042 406 8.1" — Item 7, MD&A — Operating Expenses
63. [63] "Regional expenses 5,448" — Item 7, MD&A — Operating Expenses
64. [64] "Regional expenses increased $406 million, or 8.1%, in 2025 from 2024 primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased 10.3% year over year. Higher maintenance, materials and repair costs driven by an increase in the volume of airframe heavy checks and cost of materials also contributed to the increase in regional expenses." — Item 7, MD&A — Operating Expenses
65. [65] "On January 29, 2025, American Eagle flight 5342 was involved in a fatal accident in Washington, D.C. The Bombardier CRJ700 aircraft operated by PSA was en route to Washington, D.C. from Wichita, Kansas when it was involved in a midair collision near Ronald Reagan Washington National Airport." — Item 7, MD&A — American Eagle Flight 5342
66. [66] "We estimate that the accident reduced first quarter 2025 total operating revenues by approximately $200 million" — Item 7, MD&A — American Eagle Flight 5342
67. [67] "of which the impacted revenue is not covered by insurance." — Item 7, MD&A — American Eagle Flight 5342
68. [68] "Beginning on September 24, 2025, multiple wrongful death and survival actions have been filed against the U.S. Government, PSA and American seeking unspecified damages, and we expect that additional lawsuits will be filed." — Item 7, MD&A — American Eagle Flight 5342
69. [69] "In 2025, we took delivery of 40 latest-generation aircraft, including 23 Boeing 737-8 MAX, 11 Boeing 787-9, five Airbus A321XLR and one Airbus A321neo." — Item 1, Business — Environmental Sustainability
70. [70] "In July 2025, we extended our agreement with Mastercard pursuant to a new 10-year contract, under which Mastercard remains the exclusive payment network for our AAdvantage co-branded credit cards." — Item 1, Business — AAdvantage Program
71. [71] "In August 2025, the CMA accepted binding commitments and closed the case. The commitments will replace the prior interim measures." — Item 1, Business — Joint Business Agreements and Other Cooperation Agreements
72. [72] "The one world Alliance links the networks of member carriers and their respective affiliates to enhance customer service and provide smooth connections to the destinations served by the alliance, including linking member carriers’ loyalty programs and providing reciprocal access to the carriers’ airport lounge facilities." — Item 1, Business — Distribution and Marketing Agreements
73. [73] "We believe that the A321XLR, a longer-range version of the A321neo, will enable us to serve transatlantic markets using an estimated 10% less jet fuel per seat than current widebody aircraft due to latest-generation engines, improved aerodynamics and lighter weight materials." — Item 1, Business — Environmental Sustainability
74. [74] "American has invested in ZeroAvia to help advance the development of its hydrogen fuel cell-powered electric aircraft engines. ZeroAvia’s technology uses green hydrogen to produce electricity through a catalytic chemical reaction, which then powers the motors of the aircraft. ZeroAvia is working to retrofit and linefit its powertrains to existing FAA-certified fixed-wing aircraft, a strategy aimed at simplifying the regulatory process and reducing time to market. American has also entered into a conditional purchase agreement for up to 100 engines, which we hope will ultimately allow us to retrofit and power aircraft like the Bombardier CRJ700 regional jet with ZeroAvia’s hydrogen-electric powertrain." — Item 1, Business — Environmental Sustainability
75. [75] "In addition, we are an investor in and customer of Vertical Aerospace, thereby supporting the development of an emissions-free electric vertical takeoff and landing aircraft for passenger transportation. In 2025, Vertical Aerospace advanced its piloted prototype program from hover testing to high-speed wingborne flight." — Item 1, Business — Environmental Sustainability
76. [76] "Our long-term goal is to reduce our GHG emissions to reach net-zero emissions by 2050." — Item 1, Business — Environmental Sustainability
77. [77] "Our strategy focuses on protecting the safety of team members and customers, attracting and developing top talent, providing a world-class travel experience and positioning American to compete in a low-carbon economy." — Item 1, Business — Sustainability
78. [78] "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." — Item 7, MD&A — Other Costs
79. [79] "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 2026 and beyond to build an even more efficient airline and continue to manage costs while delivering a better experience for our customers and team." — Item 7, MD&A — Other Costs
80. [80] "Our flight management system, which enables pilots to see real-time weather and other information in flight to inform adjustments to their flight paths, saved approximately 12.3 million gallons of fuel in 2025 and nearly 44 million gallons since we introduced it in late 2020." — Item 1, Business — Environmental Sustainability
81. [81] "In 2025, we also began the reconfiguration of our Boeing 777-300ER fleet to add seats, which will result in a nearly 8% improvement in fuel efficiency per seat when the project is complete." — Item 1, Business — Environmental Sustainability
82. [82] "In 2025, we also began the reconfiguration of our Boeing 777-300ER fleet to add seats, which will result in a nearly 8% improvement in fuel efficiency per seat when the project is complete." — Item 1, Business — Environmental Sustainability
83. [83] "We estimate that, based on our commitments as of December 31, 2025, our planned aggregate expenditures for aircraft purchase commitments and certain engines on a consolidated basis for calendar years 2026 through 2030 would be approximately $17.5 billion." — Item 1A, Risk Factors — We will need to obtain sufficient financing or other capital to operate successfully.
84. [84] "We intend to finance future aircraft deliveries and option exercises using long-term debt." — Item 2, Properties — Aircraft and Engine Purchase Commitments
85. [85] "In January 2026, we made required contributions of $236 million and a supplemental contribution of $50 million to our defined benefit pension plans." — Item 7, MD&A — Contractual Obligations
86. [86] "In January 2026, we made required contributions of $236 million and a supplemental contribution of $50 million to our defined benefit pension plans." — Item 7, MD&A — Contractual Obligations
87. [87] "In January 2026, we made required contributions of $236 million and a supplemental contribution of $50 million to our defined benefit pension plans." — Item 7, MD&A — Contractual Obligations
88. [88] "Our business plan contemplates continued significant investments related to our fleet, improving the experience of our customers, updating our facilities and deploying technology. Significant capital resources will be required to execute this plan." — Item 1A, Risk Factors — We will need to obtain sufficient financing or other capital to operate successfully.
89. [89] "It may be difficult for us to raise additional capital on acceptable terms, or at all, due to, among other factors: our substantial level of existing indebtedness; our non-investment grade corporate credit rating; volatile or otherwise unfavorable market conditions; and the availability of corporate assets to use as collateral for loans or other indebtedness." — Item 1A, Risk Factors — We will need to obtain sufficient financing or other capital to operate successfully.
90. [90] "An inability to obtain necessary financing on acceptable terms would limit our ability to execute necessary capital projects and would have a material adverse impact on our business, results of operations and financial condition." — Item 1A, Risk Factors — We will need to obtain sufficient financing or other capital to operate successfully.
91. [91] "The airline industry is subject to extensive government fees and taxation that negatively impact our revenue and profitability. The U.S. airline industry is one of the most heavily taxed of all industries." — Item 1A, Risk Factors — The airline industry is heavily taxed.
92. [92] "Our ability to meet our publicly stated targets depends on a number of factors outside our control, including the ability of third parties, such as engine and airframe manufacturers, SAF producers and other industry participants, to timely develop and commercialize these technological solutions at scale and competitive prices." — Item 1A, Risk Factors — We are subject to risks associated with climate change, including increased regulation of our GHG emissions, changing consumer preferences and the potential for increased impacts of severe weather events on our operations and infrastructure.
93. [93] "Industrial production of SAF continues to be small in scale and well below the volumes needed to meet these goals. Furthermore, current SAF prices are significantly higher than the price of conventional jet fuel." — Item 1A, Risk Factors — We are subject to risks associated with climate change, including increased regulation of our GHG emissions, changing consumer preferences and the potential for increased impacts of severe weather events on our operations and infrastructure.
94. [94] "Additionally, the government shutdown-related uncertainty temporarily impacted customer bookings in the fourth quarter of 2025 and negatively impacted our revenue by approximately $325 million." — Item 7, MD&A — 2025 Financial Overview
95. [95] "Shutdown-related uncertainty can also dampen both business and leisure travel demand and slow booking trends, causing short-term business challenges." — Item 1A, Risk Factors — We can be adversely affected by any prolonged U.S. Government shutdown.
96. [96] "Additionally, fluctuations in foreign currencies, including devaluations, exchange controls and other restrictions on the repatriation of funds, have significantly affected and may continue to significantly affect our operating performance, liquidity and the value of any cash held outside the U.S. in local currency." — 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.
97. [97] "Under these revisions, the allocation of free emissions allowances to aircraft operators was phased out by the end of 2025. Also, by July 2026, the EC will have to undertake a review to determine whether CORSIA sufficiently delivers on the goals of the Paris Agreement. Depending on the outcome of that review, the EU may expand the scope of the EU ETS, which is currently limited to flights within the European Economic Area (EEA), to include any flight departing the EEA. Should the EU expand the EU ETS scope, there could be serious repercussions for our business and the broader industry, and our costs to comply with the EU ETS would likely be significant." — Item 1, Business — European GHG Emissions Regulations
98. [98] "The EU’s ReFuelEU Aviation initiative, which creates a SAF blending mandate for aviation fuel suppliers, took effect January 1, 2025. This regulation requires fuel suppliers to blend minimum shares of SAF with petroleum jet fuel in the fuel delivered to aircraft operators at EU airports. The minimum requirements are 2% from 2025, 6% from 2030, 20% from 2035, 34% from 2040, 42% from 2045 and 70% from 2050. A specific proportion of the fuel mix (an average of 1.2% in 2030-2031, an average of 2% in 2032-2034, a minimum of 5% from 2035 and progressively reaching a minimum of 35% from 2050) must comprise synthetic fuels such as e-kerosene. The UK also adopted a SAF mandate for aviation fuel suppliers, starting January 1, 2025, with minimum requirements that increase linearly from 2% in 2025, to 10% in 2030 and to 22% in 2040." — Item 1, Business — European GHG Emissions Regulations
99. [99] "Due to the discretionary nature of business and leisure travel spending and the highly competitive nature of the airline industry, our revenues are heavily influenced by the condition of the U.S. economy and economies in other regions of the world. Unfavorable conditions in these broader economies have resulted, and may result in the future, in decreased passenger demand for air travel, changes in booking practices and related reactions by our competitors, all of which in turn have had, and may have in the future, a strong negative effect on our business." — Item 1A, Risk Factors — Downturns in economic conditions could adversely affect our business.
100. [100] "We have significant amounts of indebtedness and other financial obligations, including obligations to make future payments on flight equipment and property leases related to airport and other facilities, and substantial non-cancelable obligations under aircraft and related spare engine purchase agreements. Moreover, currently a very significant portion of our assets are pledged to secure our indebtedness. Our substantial indebtedness and other obligations, which are generally greater than the indebtedness and other obligations of our competitors, could have important consequences." — Item 1A, Risk Factors — Our high level of debt and other obligations may limit our ability to fund general corporate requirements and obtain additional financing, may limit our flexibility in responding to competitive developments and may cause our business to be vulnerable to adverse economic and industry conditions.
101. [101] "Based on our 2026 forecasted mainline and regional fuel consumption, we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2026 annual fuel expense by approximately $50 million." — Item 1, Business — Aircraft Fuel
102. [102] "As of December 31, 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 aircraft fuel prices." — Item 1, Business — Aircraft Fuel
103. [103] "The airline industry is intensely competitive and dynamic. Our competitors include other major domestic airlines and foreign, regional and new entrant airlines, as well as joint ventures formed by some of these airlines, many of which have greater financial or other resources and/or lower cost structures than ours, as well as other forms of transportation, such as rail and private automobiles or alternatives to commuting or business travel including remote or flexible working policies and communication alternatives such as videoconferencing. In many of our markets, we compete with at least one low-cost carrier (including so-called ultra-low-cost carriers). Our revenues are sensitive to the actions of other carriers in many areas, including pricing, scheduling, capacity, fees (including cancellation, change and baggage fees), amenities, loyalty benefits and promotions, which can have a substantial adverse effect on our and industry revenues." — Item 1A, Risk Factors — The airline industry is intensely competitive and dynamic.
104. [104] "As of December 31, 2025, approximately 86% of our employees were represented for collective bargaining purposes by labor unions" — Item 1, Business — Labor Relations
105. [105] "and 15% were covered by CBAs that are currently amendable or that will become amendable within one year." — Item 1A, Risk Factors — Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations and financial performance.
106. [106] "Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations and financial performance." — Item 1A, Risk Factors — Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations and financial performance.
107. [107] "The pilot shortage has been most acute for regional airlines. It remains possible that our regional airline subsidiaries and other regional partners could have difficulties hiring adequate numbers of pilots to meet their needs, which could result in a reduction in the number of flights offered, operational disruptions, increased compensation expense and costs of operations, financial difficulties and other adverse effects." — Item 1A, Risk Factors — A high level of pilot retirements, stringent duty time regulations, increased flight hour requirements for commercial airline pilots, reductions in the number of military pilots entering the commercial workforce, increased training requirements and other factors have caused a shortage of pilots that could materially adversely affect our business.
108. [108] "For example, the CrowdStrike-caused systems outage in July 2024 significantly impacted airline operations, including our own, and forced several carriers to ground flights for a prolonged period and incur significant costs associated with reaccommodating and compensating affected passengers." — Item 1A, Risk Factors — We rely heavily on technology and automated systems, including AI, to operate our business and any failure of these technologies or systems could harm our business, results of operations and financial condition.
109. [109] "Similarly, in September 2025, hundreds of our flights were delayed or cancelled out of Dallas/Fort Worth International Airport (DFW) when FAA fiberoptic cables were accidentally cut by a third party." — Item 1A, Risk Factors — We rely heavily on technology and automated systems, including AI, to operate our business and any failure of these technologies or systems could harm our business, results of operations and financial condition.
110. [110] "Significant cybersecurity incidents involving us, our third-party service providers, or one of our AAdvantage partners or other business partners, have in the past and may in the future result in a range of potentially material negative consequences for us, including unauthorized access to, disclosure, modification, misuse, loss or destruction of company systems or data; theft of sensitive, regulated or confidential data, such as personal information or our intellectual property; the loss of functionality of critical systems through ransomware, denial of service or other cyberattacks; a diminished ability to retain or attract new customers; a deterioration in our relationships with business partners and other third parties; interruptions or failures in our technology systems; and business delays, service or system disruptions, damage to equipment and injury to persons or property. The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are constantly evolving and may be difficult to anticipate or to detect for long periods of time. The constantly changing nature of the threats means that we cannot and have not been able to prevent all data security breaches or misuse of data, and there is a risk that our security measures will not be fully effective in the future. Similarly, we depend on the ability of our key commercial partners, including AAdvantage partners, other business partners, our regional carriers, distribution partners and technology vendors, to conduct their businesses in a manner that complies with applicable security standards and ensures their ability to perform on a timely basis. A security failure, including a failure to meet data security requirements, breach or other significant cybersecurity incident affecting one of our partners, interruptions or failures in our technology systems, could result in potentially material negative consequences for us, including loss of critical data, service interruptions, delays in operations, and the potential for fines, restrictions and expulsion from credit card acceptance programs. In addition, we use third party service providers to help us deliver services to customers. These service providers may store personal information, credit card information and/or other confidential information. Such information has been and will be the target of unauthorized access or subject to security breaches because of third-party action, employee error, malfeasance or otherwise. Any of these could (a) result in the loss of information, litigation, indemnity obligations, expensive and inconsistent cybersecurity incident and data breach notification requirements, damage to our reputation, regulatory scrutiny, and other liability, or (b) have a material adverse effect on our business, financial condition and results of operations. The threat of cybersecurity incidents continues to increase as the frequency, intensity and sophistication of cyberattacks and intrusions increase around the world. The rapid evolution and increased adoption of AI and machine learning technologies may increase certain cybersecurity risks. To the extent AI and/or machine learning capabilities improve and are increasingly adopted, they may be used to identify vulnerabilities and craft increasingly sophisticated cybersecurity attacks. Vulnerabilities may be introduced from the use of AI and/or machine learning by us, our counterparties, vendors and other business partners and third-party providers. Diverse threat actors, such as state-sponsored organizations, opportunistic hackers and hacktivists, as well as diverse attack vectors such as social engineering/phishing, use of AI techniques such as deepfakes, malware (including ransomware), malfeasance by insiders, human or technological error, denial of service attacks or exploitation of vulnerabilities, threaten the confidentiality, integrity, and availability of our and our third party service providers’ and business partners’ information systems, personal information and confidential information. For example, starting in 2025, a sophisticated and well-known threat actor began targeting the aviation industry using social engineering tactics. Geopolitical issues also continue to increase our cybersecurity risk and potential for cybersecurity incidents, for example, the conflict involving Russia and Ukraine, which has resulted in a heightened risk of cyberattacks against companies like ours that have operations, vendors and/or supply chain providers located in or around the region of conflict or are otherwise related to the conflict. Despite ongoing efforts to maintain and improve the security of our information systems and digital information, individuals, including employees, contractors, and external threat actors, may be able to circumvent the security measures we put in place, and we may be unable to anticipate new techniques used for these attacks and intrusions, such as the use of AI applications, and implement adequate preventative measures. We, our business partners and service providers have been the target of cybersecurity attacks in the past and expect that we, our business and service partners, will continue to experience cybersecurity incidents in the future. The costs and operational consequences of defending against, preparing for, responding to and remediating a cybersecurity incident are substantial. As cybersecurity incidents become more frequent, intense and sophisticated, costs of proactive defense measures are increasing. Further, we could be exposed to litigation, regulatory enforcement or other legal action as a result of an incident, carrying the potential for damages, fines, sanctions or other penalties, as well as injunctive relief and enforcement actions requiring costly compliance measures. The airline industry, including other large airlines, have suffered a significant number of data privacy and cybersecurity incidents and these incidents have resulted in substantial adverse financial consequences to those companies. A cybersecurity incident could also impact our brand, including that of the AAdvantage program, harm our reputation and adversely impact our relationship with our customers, employees and stockholders. The increased regulatory focus on data privacy practices apart from how personal information is secured, such as how personal information is collected, used for marketing purposes, and shared with third parties – including with our AAdvantage and other business partners – also may require changes to our processes and increase compliance costs. There is also an increased risk to our business in the event of a significant cybersecurity or data privacy violation, including additional compliance costs, reputational harm, disruption to the manner in which we provide our services, including the geographies we service, and being subject to complaints and/or regulatory investigations, significant monetary liability, fines, penalties, regulatory enforcement, individual or class action lawsuits, public criticism, loss of customers, loss of goodwill or other additional liabilities, such as claims by industry groups or other third parties. Accordingly, failure to appropriately address data privacy and cybersecurity issues could result in material financial and other liabilities and cause significant reputational harm to our company." — Item 1A, Risk Factors — Evolving data privacy requirements (in particular, compliance with applicable federal, state and foreign laws relating to handling of personal information about individuals) could increase our costs, and any significant cybersecurity incident could disrupt our operations, harm our reputation, expose us to legal risks and otherwise materially adversely affect our business, results of operations and financial condition.
111. [111] "Airlines are subject to extensive domestic and international regulatory requirements. In the last several years, the U.S. executive branch, Congress and state and local and foreign governments have issued orders, passed laws, and launched regulatory initiatives, and federal agencies, including but not limited to the DOT, the FAA, the TSA, the Centers for Disease Control, the DOJ, and their respective international counterparts have issued regulations and a number of other directives that affect the airline industry. These requirements impose substantial costs on us and restrict the ways we may conduct our business. For example, the FAA from time-to-time issues directives and other regulations relating to the maintenance and operation of aircraft that require significant expenditures or operational restrictions. These requirements can be issued with little or no notice, or can otherwise impact our ability to efficiently or fully utilize our aircraft, and in some instances have resulted in the temporary or prolonged grounding of aircraft or engine types altogether including, for example, the March 2019 grounding of all Boeing 737 MAX Family aircraft, which was not lifted in the United States until November 2020, the January 2024 grounding of 737-9 MAX aircraft (a model we do not operate), and the significant limitations imposed on the use of Pratt & Whitney GTF aircraft engines on certain Airbus aircraft (an engine we do not use in our fleet), or otherwise caused substantial disruption and resulted in material costs to us and lost revenues. In 2023, the telecom industry rolled out 5G technology, and concerns were raised by the FAA regarding its possible interference with aircraft navigation systems, which resulted in regulatory uncertainty and the potential for operational impacts, including possible suspension of service to certain airports or the operation of certain aircraft. Although the issue was resolved through an agreement between the FAA, the FCC, and telecommunications industry, that agreement expires in 2028 and will need to be extended or modified. Additionally, the passage of OBBBA included the requirement for the FCC to auction additional spectrum, which could lead to new impacts on aviation. See “We rely heavily on technology and automated systems, including AI, to operate our business and any failure of these technologies or systems could harm our business, results of operations and financial condition.” The FAA also exercises comprehensive regulatory authority over nearly all technical aspects of our operations. Our failure to comply with such requirements has in the past and may in the future result in fines and other enforcement actions by the FAA or other regulators. In the future, any new regulatory requirements, particularly requirements that limit our ability to operate or price our products, could have a material adverse effect on us and the industry. In May 2024, Congress passed a five-year funding authorization for the FAA (FAA Authorization Renewal). Among other things, the FAA Authorization Renewal increased the authorized funding level for the FAA and required the hiring of additional air traffic controllers, an effort to address staffing and resource shortages and improve the operation of the ATC system in the U.S. The FAA Authorization Renewal also codified several consumer protection rulemakings that could be challenging to implement and have negative financial impacts. Any new or enhanced requirements resulting from the FAA Authorization Renewal, including any new fees, costs we may be required to incur to comply with new rules and compensation or other penalties we may be required to pay for violations of such rules, have the potential to increase our costs or adversely impact our operation. The OBBBA included $12.5 billion in additional funding for ATC infrastructure and modernization. While this recent law and new funding should lead to ATC improvements, there is uncertainty on how and when the funding will be spent and if there will be any operational impacts as certain systems and infrastructure are modernized. DOT consumer rules, and rules promulgated by certain comparable agencies in other countries we serve, dictate procedures for many aspects of our customer’s journey, including at the time of ticket purchase, at the airport and onboard the aircraft. For example, in April 2024, the DOT issued a final rule mandating refunds in certain circumstances (refund rule), and a final rule requiring disclosure of certain ancillary fees by air carriers and travel agents (ancillary fee rule). Also in December 2024, the DOT published a final rule on “Ensuring Safe Accommodations for Air Travelers with Disabilities Using Wheelchairs” which sets new standards for assistance, mandates hands-on training for airline employees and contractors who physically assist passengers with disabilities and handle passengers’ wheelchairs, and specifies actions that airlines must take to protect passengers when a wheelchair is damaged or delayed during transport. Individual requirements in the final rule have varying implementation timelines, ranging from January 16, 2025 (the effective date of the final rule) to June 17, 2026 (wheelchair rule). On September 4, 2025, the Trump Administration released its Unified Agenda of Regulatory and Deregulatory Actions, outlining planned priorities, timelines, and policy directions across federal agencies. The agenda signals DOT’s intent to roll back existing regulations, including the refund rule, ancillary fee rule, compensation rule, and wheelchair rule. DOT has already begun taking action, such as rescinding an Advance Notice of Proposed Rulemaking titled “Airline Passenger Rights,” which sought comments on requiring airlines to provide cash compensation, free rebooking, meal coverage, and overnight lodging with related transportation when disruptions are airline-caused." — Item 1A, Risk Factors — Our business is subject to extensive government regulation, which may increase our costs, disrupt our operations, limit our operating flexibility, reduce the demand for air travel, and create competitive disadvantages.
112. [112] "Global efforts to address climate change have prompted regulators worldwide to promulgate regulations to reduce GHG emissions, including those from the airline industry. Several countries and U.S. states have adopted or are considering adopting programs, including potentially new taxes, designed to cap or reduce aviation’s GHG emissions. In addition, certain airports have proposed, and in the future could adopt, GHG emission or climate-related goals or measures that could impact our operations or require us to make further investments in our infrastructure. These regulations may also lead to attempts to adopt requirements or change business environments related to aviation that may result in increased costs to us and the airline industry. Internationally, ICAO has adopted rules, including those pertaining to CORSIA, which will require us to mitigate the growth of emissions associated with a significant majority of our international flights. At this time, the costs of complying with our future obligations under CORSIA are uncertain, primarily due to significant uncertainty with respect to the status of the U.S. government implementation of CORSIA requirements, the future growth of covered GHG emissions, the supply and price of eligible carbon credits and the future development of the market for eligible renewable fuels. We and other airlines are increasingly subject to an unpredictable and inconsistent array of international, national and regional emissions restrictions, creating a patchwork of complex regulatory requirements that could lead to increased expenses related to the emissions of our flights. Furthermore, recent implementation of and potential for other new regulatory initiatives to reduce airline GHG emissions may increase our compliance costs. For more information on these regulatory developments, see “Environmental Matters” under Part I, Item 1. Business – “Domestic and Global Regulatory Landscape.”" — Item 1A, Risk Factors — We are subject to risks associated with climate change, including increased regulation of our GHG emissions, changing consumer preferences and the potential for increased impacts of severe weather events on our operations and infrastructure.
113. [113] "We aim to run a resilient, profitable enterprise that will thrive over the long term. Our strategy focuses on protecting the safety of team members and customers, attracting and developing top talent, providing a world-class travel experience and positioning American to compete in a low-carbon economy." — Item 1, Business — Sustainability
114. [114] "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 2026 and beyond to build an even more efficient airline and continue to manage costs while delivering a better experience for our customers and team." — Item 7, MD&A — Other Costs
115. [115] "Since 2019, our fleet renewal and optimization efforts have led to an estimated 6.7% improvement in mainline fuel efficiency." — Item 1, Business — Environmental Sustainability
116. [116] "Since 2019, our fleet renewal and optimization efforts have led to an estimated 6.7% improvement in mainline fuel efficiency." — Item 1, Business — Environmental Sustainability
117. [117] "We continue to make our mainline fleet more efficient. In 2025, we took delivery of 40 latest-generation aircraft, including 23 Boeing 737-8 MAX, 11 Boeing 787-9, five Airbus A321XLR and one Airbus A321neo. We believe that the A321XLR, a longer-range version of the A321neo, will enable us to serve transatlantic markets using an estimated 10% less jet fuel per seat than current widebody aircraft due to latest-generation engines, improved aerodynamics and lighter weight materials. Since 2019, our fleet renewal and optimization efforts have led to an estimated 6.7% improvement in mainline fuel efficiency. In 2025, we also began the reconfiguration of our Boeing 777-300ER fleet to add seats, which will result in a nearly 8% improvement in fuel efficiency per seat when the project is complete." — Item 1, Business — Environmental Sustainability
118. [118] "Our long-term goal is to reduce our GHG emissions to reach net-zero emissions by 2050." — Item 1, Business — Environmental Sustainability
119. [119] "We are committed to working to improve the efficiency of our own operations, primarily through fleet renewal, and to partnering with other businesses, policymakers, scientists and innovators to scale alternative energy sources and propulsion systems with the potential to reduce our industry’s GHG emissions. In 2025, we advanced a range of innovative initiatives aimed at reducing those emissions and minimizing environmental impacts across our operations. American has invested in ZeroAvia to help advance the development of its hydrogen fuel cell-powered electric aircraft engines. American has also entered into a conditional purchase agreement for up to 100 engines, which we hope will ultimately allow us to retrofit and power aircraft like the Bombardier CRJ700 regional jet with ZeroAvia’s hydrogen-electric powertrain. In addition, we are an investor in and customer of Vertical Aerospace, thereby supporting the development of an emissions-free electric vertical takeoff and landing aircraft for passenger transportation. We also pursued the purchase of SAF in the voluntary market and in 2025, took delivery of more than 6.8 million gallons of SAF, which represents a small fraction of our overall fuel consumption but more than twice the volume of SAF we purchased voluntarily in 2024." — Item 1, Business — Environmental Sustainability
120. [120] "Cash payments from co-branded credit card and other partners were $6.2 billion and $6.1 billion during 2025 and 2024, respectively." — Item 1, Business — AAdvantage Program
121. [121] "Cash payments from co-branded credit card and other partners were $6.2 billion and $6.1 billion during 2025 and 2024, respectively." — Item 1, Business — AAdvantage Program
122. [122] "We continued to rigorously measure and track customer satisfaction through passenger surveys in 2025, efforts that led to further improvements in the services we provide and our customer experience. In 2025, we appointed a Chief Customer Officer to lead a newly created Customer Experience organization, which drives the strategy and coordinates the implementation of initiatives that enhance our customers’ journeys. We continue to invest in the customer experience and our premium products and services, and in 2025, we advanced this strategy through the following: introduced the new premium Flagship Suite ® on our Boeing 787-9s and Airbus A321XLRs and announced plans to expand this product to our Boeing 777 fleet; enhanced our inflight services with new food and beverage offerings as well as upgraded amenity kits; redesigned the American Airlines mobile application to better support customers with new features and a more intuitive, modern design; announced complimentary high-speed Wi-Fi sponsored by AT&T, exclusive to our AAdvantage members, which became effective in January 2026 on our narrowbody and dual-class regional fleets and will be available on nearly every American Airlines flight by spring 2026; opened the first Flagship ® lounge in Philadelphia and debuted Provisions by Admirals Club SM lounge in Charlotte, a first-of-its-kind space created for travelers on the go. We also announced plans to expand our premium lounge footprint with new Flagship ® lounges in Miami and Charlotte and upgrades to our existing Admirals Club ® lounges in Washington D.C, Miami and Charlotte; and established new partnerships, including with FIFA, U.S. Soccer and PGA of America, enabling American to connect customers to major events, including the FIFA World Cup 26 TM." — Item 1, Business — Customers