Basis of Presentation

3 Months Ended

Mar. 31, 2014

On December 9, 2013 (the Effective Date), AMR Merger Sub, Inc. (Merger Sub) merged with and into US Airways Group, Inc. (US Airways Group) (the Merger), with US Airways Group surviving as a wholly-owned subsidiary of American Airlines Group Inc., a Delaware corporation (formerly known as AMR Corporation and referred to herein as AAG and, together with its consolidated subsidiaries, the Company), following the Merger. "AMR" refers to the Company during the period of time prior to its emergence from Chapter 11 and the Effective Date of the Merger.

The accompanying unaudited condensed consolidated financial statements of AAG should be read in conjunction with the consolidated financial statements contained in AAG's Annual Report on Form 10-K for the year ended December 31, 2013. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Principal subsidiaries include American and, effective December 9, 2013, US Airways Group. Because the Merger did not occur until December 2013, the unaudited condensed consolidated financial statements presented do not include the accounts of US Airways Group for the three months ended March 31, 2013. Certain prior period amounts have been reclassified to conform to the current year financial statement presentation as described below. 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 requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the frequent traveler programs, pensions and retiree medical and other benefits and the deferred tax asset valuation allowance.

Chapter 11 Matters

In accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Debtors (as defined in Note 2 below) applied ASC 852 "Reorganizations" (ASC 852) in preparing the condensed consolidated financial statements for periods subsequent to the Chapter 11 Cases (as defined in Note 2 below). ASC 852 requires that the financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain revenues, expenses (including professional fees), realized gains and losses and provisions for losses that are realized or incurred in the Chapter 11 Cases for the 2013 period are recorded in Reorganization items, net on the accompanying unaudited condensed consolidated statement of operations.

Reclassifications

Certain prior period amounts have been reclassified between various financial statement line items to conform to the current year financial statement presentation. These reclassifications do not impact the historic net loss and are comprised principally of the following items:


•	Reclassifications between various operating income line items to conform the presentation of Cargo and Other revenues.


•	Reclassifications between various operating expense line items to conform the presentation of Regional expenses.


•	Reclassifications between Other nonoperating income (expense), net and Operating expenses to conform the presentation of foreign currency gains and losses.

The following table summarizes the historical and revised financial statement amounts for AAG (in millions):



	Three Months Ended March 31,
	2013
	As Reclassified			Historical
Operating revenues:
Mainline passenger	$	4,614		$	4,614
Regional passenger	679			679
Cargo	156			155
Other	649			650
Total operating revenues	6,098			6,098
Operating expenses:
Aircraft fuel and related taxes	1,934			2,200
Salaries, wages and benefits	1,267			1,484
Regional expenses	780			—
Maintenance, materials and repairs	326			383
Other rent and landing fees	288			346
Aircraft rent	165			164
Selling expenses	290			276
Depreciation and amortization	204			246
Special items, net	71			28
Other	702			919
Total operating expenses	6,027			6,046
Operating income	71			52
Nonoperating income (expense):
Interest income	4			4
Interest expense, net of capitalized interest	(254		)	(250		)
Other, net	(24		)	(9		)
Total nonoperating expense, net	$	(274	)	$	(255	)

AA [Member]

Accounting Policies [Line Items]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of 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, 2013. American is a wholly-owned subsidiary of AAG. Certain prior period amounts have been reclassified to conform to the current year financial statement presentation as described below. 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 requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of long-lived and intangible assets, the frequent traveler program, pensions and retiree medical and other benefits and the deferred tax asset valuation allowance.

Chapter 11 Matters

Reclassifications


•	Reclassifications between various operating income line items to conform the presentation of Cargo and Other revenues.


•	Reclassifications between various operating expense line items to conform the presentation of Regional expenses.


•	Reclassifications between Other nonoperating income (expense), net and Operating expenses to conform the presentation of foreign currency gains and losses.

The following table summarizes the historical and revised financial statement amounts for American (in millions):



	Three Months Ended March 31,
	2013
	As Reclassified			Historical
Operating revenues:
Mainline passenger	$	4,614		$	4,614
Regional passenger	679			679
Cargo	156			155
Other	636			637
Total operating revenues	6,085			6,085
Operating expenses:
Aircraft fuel and related taxes	1,934			2,199
Salaries, wages and benefits	1,264			1,312
Regional expenses	766			269
Maintenance, materials and repairs	326			318
Other rent and landing fees	287			342
Aircraft rent	165			164
Selling expenses	290			276
Depreciation and amortization	204			241
Special items, net	71			28
Other	712			889
Total operating expenses	6,019			6,038
Operating income	66			47
Nonoperating income (expense):
Interest income	4			4
Interest expense, net of capitalized interest	(169		)	(165		)
Other, net	(24		)	(9		)
Total nonoperating expense, net	$	(189	)	$	(170	)