Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2018

Selected Quarterly Financial Information [Line Items]

Unaudited summarized financial data by quarter for 2018 and 2017 (in millions, except share and per share amounts):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2018 ⁽¹⁾
Operating revenues	$	10,401	$	11,643	$	11,559	$	10,938
Operating expenses	10,005		10,639		10,874		10,367
Operating income	396		1,004		685		571
Net income	159		556		372		325
Earnings per share:
Basic	$	0.34	$	1.20	$	0.81	$	0.71
Diluted	$	0.34	$	1.20	$	0.81	$	0.70
Shares used for computation (in thousands):
Basic	472,297		463,533		460,526		460,589
Diluted	474,598		464,618		461,507		461,915

2017
Operating revenues	$	9,820	$	11,227	$	10,965	$	10,611
Operating expenses	9,083		9,628		9,709		9,973
Operating income	737		1,599		1,256		638
Net income (loss)	340		864		661		(583		)
Earnings (loss) per share:
Basic	$	0.67	$	1.76	$	1.36	$	(1.22	)
Diluted	$	0.67	$	1.75	$	1.36	$	(1.22	)
Shares used for computation (in thousands):
Basic	503,902		490,818		484,772		477,165
Diluted	507,797		492,965		486,625		477,165


⁽¹⁾	In the fourth quarter of 2018, we adopted the New Lease Standard as of January 1, 2018. In accordance with the New Lease Standard, prior 2018 periods have been recast to reflect the effects of this adoption. See Note 1(b) and Note 6 for further discussion of the New Lease Standard.

Our fourth quarter 2018 results include $225 million of total net special items that principally included $146 million of fleet restructuring expenses, $81 million of merger integration expenses, $37 million of severance costs associated with reductions of management and support staff team members, $22 million of mark-to-market net unrealized losses associated with certain equity investments, offset in part by a $37 million net credit resulting from mark-to-market adjustments on bankruptcy obligations and a $22 million income tax credit as a result of the reversal of the valuation allowance previously recognized in the first quarter of 2018 related to our estimated refund for AMT credits, which is no longer subject to sequestration.

Our fourth quarter 2017 results include $1.1 billion of total net special items that principally included a $149 million charge for the $1,000 cash bonus and associated payroll taxes granted to mainline employees as of December 31, 2017 in recognition of the 2017 Tax Act, $81 million of merger integration expenses, $58 million of fleet restructuring expenses, a $20 million net charge resulting from mark-to-market adjustments on bankruptcy obligations and an $823 million special non-cash charge to reflect the impact of lower corporate income tax rates on our deferred tax asset and liabilities due to the 2017 Tax Act, which reduced the federal corporate income tax rate from 35% to 21%.

American Airlines, Inc. [Member]

Selected Quarterly Financial Information [Line Items]

Quarterly Financial Data (Unaudited)

Unaudited summarized financial data by quarter for 2018 and 2017 (in millions):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2018 ⁽¹⁾
Operating revenues	$	10,398	$	11,640	$	11,556	$	10,936
Operating expenses	9,986		10,626		10,850		10,344
Operating income	412		1,014		706		592
Net income	209		609		433		407

2017
Operating revenues	$	9,817	$	11,224	$	10,962	$	10,607
Operating expenses	9,077		9,633		9,713		9,982
Operating income	740		1,591		1,249		625
Net income (loss)	369		888		686		(658		)


⁽¹⁾	In the fourth quarter of 2018, American adopted the New Lease Standard as of January 1, 2018. In accordance with the New Lease Standard, prior 2018 periods have been recast to reflect the effects of this adoption. See Note 1(b) and Note 4 for further discussion of the New Lease Standard.

American’s fourth quarter 2018 results include $220 million of total net special items that principally included $146 million of fleet restructuring expenses, $81 million of merger integration expenses, $37 million of severance costs associated with reductions of management and support staff team members, $22 million of mark-to-market net unrealized losses associated with certain equity investments, offset in part by a $37 million net credit resulting from mark-to-market adjustments on bankruptcy obligations and a $22 million income tax credit as a result of the reversal of the valuation allowance previously recognized in the first quarter of 2018 related to American’s estimated refund for AMT credits, which is no longer subject to sequestration.

American’s fourth quarter 2017 results include $1.2 billion of total net special items that principally included a $123 million charge for the $1,000 cash bonus and associated payroll taxes granted to mainline employees as of December 31, 2017 in recognition of the 2017 Tax Act, $81 million of merger integration expenses, $58 million of fleet restructuring expenses, a $20 million net charge resulting from mark-to-market adjustments on bankruptcy obligations and a $924 million special non-cash charge to reflect the impact of lower corporate income tax rates on the Company’s deferred tax asset and liabilities due to the 2017 Tax Act, which reduced the federal corporate income tax rate from 35% to 21%.