Debt

6 Months Ended

Jun. 30, 2014

Debt Instrument [Line Items]

Debt

Debt

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

	June 30, 2014		December 31, 2013
Secured
American
Secured indebtedness, fixed and variable interest rates ranging from 1.43% to 8.10%, maturing from 2014 to 2026	$	1,862	$	2,140
Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 4.00% to 7.00%, maturing from 2017 to 2025	3,415		3,516
Special facility revenue bonds, fixed interest rates ranging from 7.125% to 8.50%, maturing from 2016 to 2031	1,313		1,313
Senior secured credit facility, variable interest rate of 3.75%, installments through 2019	1,881		1,891
7.50% senior secured notes, interest only payments until due in 2016	900		1,000
AAdvantage Miles advance purchase, effective rate of 8.30%, installments through 2017	524		611
Other secured obligations, fixed interest rates ranging from 4.19% to 12.24%, maturing from 2014 to 2035	715		380
Total American secured debt	10,610		10,851
US Airways Group
2013 Citicorp Credit Facility tranche B-1, variable interest rate of 3.50%, installments through 2019	990		1,000
2013 Citicorp Credit Facility tranche B-2, variable interest rate of 3.00%, installments through 2016	594		600
Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.95% to 11.00%, maturing from 2014 to 2025	2,863		2,515
Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.55% to 8.48%, maturing from 2015 to 2029	1,193		1,330
Other secured obligations, fixed interest rates ranging from 5.20% to 8.00%, maturing from 2014 to 2015	45		47
Total US Airways Group secured debt	5,685		5,492
Total AAG secured debt	16,295		16,343
Unsecured
US Airways Group
6.125% senior notes, interest only payments until due in 2018	500		500
7.25% convertible senior notes	—		22
Industrial development bonds, fixed interest rate of 6.30%	—		29
Total US Airways Group unsecured debt	500		551
Total AAG unsecured debt	500		551
Total long-term debt and capital lease obligations	16,795		16,894
Less: total unamortized debt discount	67		95
Less: current maturities	1,523		1,446
Long-term debt and capital lease obligations, net of current maturities	$	15,205	$	15,353

Other Secured Indebtedness (American and US Airways)

In the first six months of 2014, US Airways issued $481 million of equipment notes in two series under its 2013-1 EETCs completed in April 2013: Series A equipment notes in the amount of $364 million bearing interest at 3.95% per annum and Series B equipment notes in the amount of $117 million bearing interest at 5.375% per annum. The equipment notes are secured by liens on aircraft.

In May 2014, the Company prepaid $113 million principal amount of outstanding debt secured by certain aircraft.

In June 2014, American entered into a loan agreement to borrow $53 million in connection with financing certain aircraft deliveries. The notes mature in 2026 and bear interest at a rate of LIBOR plus an applicable margin.

Senior Secured Notes (American)

In March 2014, American prepaid $100 million of its 7.50% senior secured notes at a redemption price of 103% of principal amount plus accrued and unpaid interest.

Obligations Associated with Special Facility Revenue Bonds (American and US Airways)

In June 2014, the Company prepaid $51 million of obligations, of which $29 million was reflected as debt on its balance sheet, associated with special facility revenue bonds issued by municipalities to build or improve certain airport and maintenance facilities. Also in June, the Company gave notice that it intends to prepay an additional $261 million of special facility bond related obligations in the third quarter of 2014, of which $106 million is reflected as debt on its balance sheet. The off-balance sheet portion of these obligations are accounted for as operating leases.

7.25% Convertible Notes (US Airways Group)

In March 2014, the Company notified the holders of US Airways Group's 7.25% convertible notes that it had elected to settle solely in cash instead of shares of AAG Common Stock all conversions during the period beginning on March 15, 2014 and ending on, and including, the second scheduled trading day immediately preceding the maturity date of May 15, 2014. In May 2014, the Company settled all outstanding 7.25% convertible notes in cash for approximately $175 million.

Guarantees

In March 2014, AAG, US Airways Group and US Airways entered into amended and restated guarantees of the payment obligations of US Airways under the equipment notes relating to each of its Series 2010-1, 2011-1, 2012-1, 2012-2 and 2013-1 Pass Through Certificates the result of which was to add AAG as a guarantor of such equipment notes on a joint and several basis with US Airways Group. Refer to Note 15 for further information.

AA [Member]

Debt Instrument [Line Items]

Debt

Debt

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

	June 30, 2014		December 31, 2013
Secured
Secured indebtedness, fixed and variable interest rates ranging from 1.43% to 8.10%, maturing from 2014 to 2026	$	1,862	$	2,140
Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 4.00% to 7.00%, maturing from 2017 to 2025	3,415		3,516
Special facility revenue bonds, fixed interest rates ranging from 7.125% to 8.50%, maturing from 2016 to 2031	1,313		1,313
Senior secured credit facility, variable interest rate of 3.75%, installments through 2019	1,881		1,891
7.50% senior secured notes, interest only payments until due in 2016	900		1,000
AAdvantage Miles advance purchase, effective rate of 8.30%, installments through 2017	524		611
Other secured obligations, fixed interest rates ranging from 4.19% to 12.24%, maturing from 2014 to 2035	715		380
	10,610		10,851
Unsecured
Affiliate unsecured obligations	27		27
	27		27
Total long-term debt and capital lease obligations	10,637		10,878
Less: total unamortized debt discount	49		69
Less: current maturities	1,003		957
Long-term debt and capital lease obligations, net of current maturities	$	9,585	$	9,852

Other Secured Indebtedness

In May 2014, American prepaid $61 million principal amount of outstanding debt secured by certain aircraft.

In June 2014, American entered into a loan agreement to borrow $53 million in connection with financing certain aircraft deliveries. The notes mature in 2026 and bear interest at a rate of LIBOR plus an applicable margin.

Senior Secured Notes

In March 2014, American prepaid $100 million of its 7.50% senior secured notes at a redemption price of 103% of principal amount plus accrued and unpaid interest.

Obligations Associated with Special Facility Revenue Bonds

In June 2014, American gave notice that it intends to prepay $98 million of obligations, of which $62 million is reflected as debt on its balance sheet, associated with special facility revenue bonds issued by municipalities to build or improve certain airport and maintenance facilities. The off-balance sheet portion of these obligations are accounted for as operating leases.