Operating Segments and Related Disclosures

12 Months Ended

Dec. 31, 2016

Operating Segments and Related Disclosures

13.  Operating Segments and Related Disclosures

We are managed as a single business unit that provides air transportation for passengers and cargo. This allows us to benefit from an integrated revenue pricing and route network that includes American and our wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle. The flight equipment of all these carriers is combined to form one fleet that is deployed through a single route scheduling system. When making resource allocation decisions, the chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but gives no weight to the financial impact of the resource allocation decision on an individual carrier basis. The objective in making resource allocation decisions is to maximize consolidated financial results, not the individual results of American or American Eagle.

Our operating revenues by geographic region as defined by the United States Department of Transportation (DOT) are summarized below (in millions):

	Year Ended December 31,
	2016		2015		2014
DOT Domestic	$	28,620	$	28,761	$	28,568
DOT Latin America		4,995		5,539		6,964
DOT Atlantic		4,769		5,146		5,652
DOT Pacific		1,796		1,544		1,466
Total operating revenues	$	40,180	$	40,990	$	42,650

We attribute operating revenues by geographic region based upon the origin and destination of each flight segment. Our tangible assets consist primarily of flight equipment, which are mobile across geographic markets and, therefore, have not been allocated.

American Airlines, Inc. [Member]

Operating Segments and Related Disclosures

11.  Operating Segments and Related Disclosures

American is managed as a single business unit that provides air transportation for passengers and cargo. This allows it to benefit from an integrated revenue pricing and route network that includes American and AAG’s wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle. The flight equipment of all these carriers is combined to form one fleet that is deployed through a single route scheduling system. When making resource allocation decisions, the chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but gives no weight to the financial impact of the resource allocation decision on an individual carrier basis. The objective in making resource allocation decisions is to maximize consolidated financial results, not the individual results of American or American Eagle.

American’s operating revenues by geographic region as defined by the United States Department of Transportation (DOT) are summarized below (in millions):

	Year Ended December 31,
	2016		2015		2014
DOT Domestic	$	28,603	$	28,709	$	28,584
DOT Latin America		4,995		5,539		6,974
DOT Atlantic		4,769		5,146		5,652
DOT Pacific		1,796		1,544		1,466
Total operating revenues	$	40,163	$	40,938	$	42,676

American attributes operating revenues by geographic region based upon the origin and destination of each flight segment. American’s tangible assets consist primarily of flight equipment, which are mobile across geographic markets and, therefore, have not been allocated.