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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Changes in Projected Benefit Obligations
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2018 and 2017:
 
Pension Benefits
 
Retiree Medical and 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Benefit obligation at beginning of period
$
18,275

 
$
17,238

 
$
1,011

 
$
991

Service cost
3

 
2

 
5

 
4

Interest cost
674

 
721

 
35

 
39

Actuarial (gain) loss (1) (2)
(1,910
)
 
1,016

 
(133
)
 
49

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(662
)
 
(726
)
 
(81
)
 
(80
)
Other
2

 
28

 
—

 
8

Benefit obligation at end of period
$
16,378

 
$
18,275

 
$
837

 
$
1,011


Fair value of plan assets at beginning of period
$
11,395

 
$
10,017

 
$
295

 
$
266

Actual return on plan assets
(1,151
)
 
1,797

 
(24
)
 
37

Employer contributions (3)
475

 
286

 
35

 
72

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(662
)
 
(726
)
 
(81
)
 
(80
)
Other
—

 
25

 
—

 
—

Fair value of plan assets at end of period
$
10,053

 
$
11,395

 
$
225

 
$
295

Funded status at end of period
$
(6,325
)
 
$
(6,880
)
 
$
(612
)
 
$
(716
)
 
(1) 
The December 31, 2018 and 2017 pension actuarial (gain) loss primarily relates to changes in our weighted average discount rate and mortality assumptions and, in 2018, changes to our retirement rate assumptions.
(2) 
The December 31, 2018 and 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to weighted average discount rate assumption changes and, in 2018, changes to our medical trend and per capita claim assumptions.
(3) 
During 2018, we contributed $475 million to our defined benefit pension plans, including supplemental contributions of $433 million in addition to a $42 million minimum required contribution. During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required contribution.
Schedule of Changes in Fair Value of Plan Assets
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2018 and 2017:
 
Pension Benefits
 
Retiree Medical and 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Benefit obligation at beginning of period
$
18,275

 
$
17,238

 
$
1,011

 
$
991

Service cost
3

 
2

 
5

 
4

Interest cost
674

 
721

 
35

 
39

Actuarial (gain) loss (1) (2)
(1,910
)
 
1,016

 
(133
)
 
49

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(662
)
 
(726
)
 
(81
)
 
(80
)
Other
2

 
28

 
—

 
8

Benefit obligation at end of period
$
16,378

 
$
18,275

 
$
837

 
$
1,011


Fair value of plan assets at beginning of period
$
11,395

 
$
10,017

 
$
295

 
$
266

Actual return on plan assets
(1,151
)
 
1,797

 
(24
)
 
37

Employer contributions (3)
475

 
286

 
35

 
72

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(662
)
 
(726
)
 
(81
)
 
(80
)
Other
—

 
25

 
—

 
—

Fair value of plan assets at end of period
$
10,053

 
$
11,395

 
$
225

 
$
295

Funded status at end of period
$
(6,325
)
 
$
(6,880
)
 
$
(612
)
 
$
(716
)
 
(1) 
The December 31, 2018 and 2017 pension actuarial (gain) loss primarily relates to changes in our weighted average discount rate and mortality assumptions and, in 2018, changes to our retirement rate assumptions.
(2) 
The December 31, 2018 and 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to weighted average discount rate assumption changes and, in 2018, changes to our medical trend and per capita claim assumptions.
(3) 
During 2018, we contributed $475 million to our defined benefit pension plans, including supplemental contributions of $433 million in addition to a $42 million minimum required contribution. During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required contribution.
Schedule of Amounts Recognized in Consolidated Balance Sheets
Balance Sheet Position
 
Pension Benefits
 
Retiree Medical and 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
As of December 31,
 
 
 
 
 
 
 
Current liability
$
7

 
$
10

 
$
23

 
$
89

Noncurrent liability
6,318

 
6,870

 
589

 
627

Total liabilities
$
6,325

 
$
6,880

 
$
612

 
$
716
Schedule of Amounts Recognized in Other Comprehensive Income
Net actuarial loss (gain)
$
5,356

 
$
5,351

 
$
(452
)
 
$
(388
)
Prior service cost (benefit)
131

 
160

 
(362
)
 
(600
)
Total accumulated other comprehensive loss (income), pre-tax
$
5,487

 
$
5,511

 
$
(814
)
 
$
(988
)
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 
Pension Benefits
 
Retiree Medical and 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Projected benefit obligation
$
16,351

 
$
18,245

 
$
—

 
$
—

Accumulated benefit obligation (ABO)
16,341

 
18,235

 
—

 
—

Accumulated postretirement benefit obligation
—

 
—

 
837

 
1,011

Fair value of plan assets
10,023

 
11,364

 
225

 
295

ABO less fair value of plan assets
6,318

 
6,871

 
—

 
—
Components of Net Periodic Benefit Cost (Income)
Net Periodic Benefit Cost (Income)
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
(In millions)
Defined benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
3

 
$
2

 
$
2

 
$
5

 
$
4

 
$
3

Interest cost
674

 
721

 
749

 
35

 
39

 
47

Expected return on assets
(905
)
 
(790
)
 
(750
)
 
(24
)
 
(21
)
 
(20
)
Settlements
—

 
1

 
—

 
—

 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (benefit)
28

 
28

 
28

 
(236
)
 
(237
)
 
(240
)
Unrecognized net loss (gain)
141

 
144

 
126

 
(21
)
 
(23
)
 
(17
)
Net periodic benefit cost (income)
$
(59
)
 
$
106

 
$
155

 
$
(241
)
 
$
(238
)
 
$
(227
)
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost for the periods presented:
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Benefit obligations:
 
 
 
 
 
 
 
Weighted average discount rate
4.40%
 
3.80%
 
4.30%
 
3.60%
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Weighted average discount rate
3.80%
 
4.30%
 
4.70%
 
3.60%
 
4.10%
 
4.42%
Weighted average expected rate of return on plan assets
8.00%
 
8.00%
 
8.00%
 
8.00%
 
8.00%
 
8.00%
Weighted average health care cost trend rate assumed for next year (1)
N/A
 
N/A
 
N/A
 
3.91%
 
4.19%
 
4.25%
 
(1) 
The weighted average health care cost trend rate at December 31, 2018 is assumed to decline gradually to 3.45% by 2026 and remain level thereafter.
Schedule of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one percentage point change in the assumed health care cost trend rates would have the following effects on our retiree medical and other postretirement benefits plans (in millions):
 
1% Increase
 
1% Decrease
Increase (decrease) on 2018 service and interest cost
$
2

 
$
(2
)
Increase (decrease) on benefit obligation as of December 31, 2018
47

 
(43
)
Schedule of Expected Future Service Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024-2028
Pension benefits
$
720

 
$
758

 
$
797

 
$
836

 
$
876

 
$
4,917

Retiree medical and other postretirement benefits
84

 
75

 
71

 
66

 
64

 
280
Schedule of Allocation of Plan Assets
The current strategic target asset allocation is as follows:
Asset Class/Sub-Class
Allowed Range
Equity
60% - 85%
Public:
 
U.S. Large
20% - 50%
U.S. Small/Mid
0% - 10%
International
17% - 27%
Emerging Markets
5% - 11%
Alternative Investments
5% - 20%
Fixed Income
15% - 40%
Public:
 
U.S. Long Duration
15% - 30%
High Yield and Emerging Markets
0% - 10%
Private Income
0% - 10%
Cash Equivalents
0% -  5%
Changes in Fair Value Measurements of Level 3 Investments
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2018, were as follows (in millions):
 
Private Market Partnerships
 
Insurance Group
Annuity Contracts
Beginning balance at December 31, 2017
$
14

 
$
2

Actual loss on plan assets:
 
 
 
Relating to assets still held at the reporting date
(2
)
 
—

Purchases
1

 
—

Sales
(6
)
 
—

Ending balance at December 31, 2018
$
7

 
$
2

Changes in fair value measurements of Level 3 investments during the year ended December 31, 2017, were as follows (in millions):
 
Private Market
Partnerships
 
Insurance Group
Annuity Contracts
Beginning balance at December 31, 2016
$
21

 
$
2

Actual loss on plan assets:
 
 
 
Relating to assets still held at the reporting date
(4
)
 
—

Purchases
1

 
—

Sales
(1
)
 
—

Transfers out
(3
)
 
—

Ending balance at December 31, 2017
$
14

 
$
2
Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of our pension plan assets at December 31, 2018 and 2017, by asset category, are as follows (in millions):
 
Fair Value Measurements as of December 31, 2018
Asset Category
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Cash and cash equivalents
$
23

 
$
—

 
$
—

 
$
23

Equity securities:
 
 
 
 
 
 
 
International markets (a) (b)
3,181

 
—

 
—

 
3,181

Large-cap companies (b)
2,021

 
—

 
—

 
2,021

Mid-cap companies (b)
583

 
—

 
—

 
583

Small-cap companies (b)
122

 
—

 
—

 
122

Mutual funds (c)
52

 
—

 
—

 
52

Fixed income:
 
 
 
 
 
 
 
Corporate debt (d)
—

 
2,116

 
—

 
2,116

Government securities (e)
—

 
228

 
—

 
228

U.S. municipal securities
—

 
40

 
—

 
40

Alternative instruments:
 
 
 
 
 
 
 
Private market partnerships (f)
—

 
—

 
7

 
7

Private market partnerships measured at net asset value (f) (h)
—

 
—

 
—

 
1,188

Common/collective trusts (g)
—

 
218

 
—

 
218

Common/collective trusts and 103-12 Investment Trust measured at net asset value (g) (h)
—

 
—

 
—

 
227

Insurance group annuity contracts
—

 
—

 
2

 
2

Dividend and interest receivable
47

 
—

 
—

 
47

Due to/from brokers for sale of securities – net
5

 
—

 
—

 
5

Other liabilities – net
(7
)
 
—

 
—

 
(7
)
Total
$
6,027

 
$
2,602

 
$
9

 
$
10,053

 
(a) 
Holdings are diversified as follows: 17% United Kingdom, 10% Japan, 8% France, 7% Switzerland, 6% Ireland, 17% emerging markets and the remaining 35% with no concentration greater than 5% in any one country.
(b) 
There are no significant concentrations of holdings by company or industry.
(c) 
Investment includes mutual funds invested 37% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 38% in U.S. treasuries and corporate bonds and 25% in equity securities of international companies.
(d) 
Includes approximately 77% investments in corporate debt with a S&P rating lower than A and 23% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies.
(e) 
Includes approximately 32% investments in U.S. domestic government securities, 37% in emerging market government securities and 31% in international government securities. There are no significant foreign currency risks within this classification.
(f) 
Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $1.0 billion over the next ten years.
(g) 
Investment includes 45% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 37% in a collective interest trust investing primarily in short-term securities, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 6% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(h) 
Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.
 
Fair Value Measurements as of December 31, 2017
Asset Category
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Cash and cash equivalents
$
28

 
$
—

 
$
—

 
$
28

Equity securities:
 
 
 
 
 
 
 
International markets (a) (b)
3,837

 
—

 
—

 
3,837

Large-cap companies (b)
2,451

 
—

 
—

 
2,451

Mid-cap companies (b)
744

 
—

 
—

 
744

Small-cap companies (b)
125

 
—

 
—

 
125

Mutual funds (c)
55

 
—

 
—

 
55

Fixed income:
 
 
 
 
 
 
 
Corporate bonds (d)
—

 
2,344

 
—

 
2,344

Government securities (e)
—

 
238

 
—

 
238

U.S. municipal securities
—

 
39

 
—

 
39

Alternative instruments:
 
 
 
 
 
 
 
Private market partnerships (f)
—

 
—

 
14

 
14

Private market partnerships measured at net asset value (f) (h)
—

 
—

 
—

 
879

Common/collective trusts (g)
—

 
315

 
—

 
315

Common/collective trusts and 103-12 Investment Trust measured at net asset value (g) (h)
—

 
—

 
—

 
283

Insurance group annuity contracts
—

 
—

 
2

 
2

Dividend and interest receivable
44

 
—

 
—

 
44

Due to/from brokers for sale of securities – net
3

 
—

 
—

 
3

Other liabilities – net
(6
)
 
—

 
—

 
(6
)
Total
$
7,281

 
$
2,936

 
$
16

 
$
11,395

 
(a) 
Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% with no concentration greater than 5% in any one country.
(b) 
There are no significant concentrations of holdings by company or industry.
(c) 
Investment includes mutual funds invested 39% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 34% in U.S. treasuries and corporate bonds and 27% in equity securities of international companies.
(d) 
Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies.
(e) 
Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification.
(f) 
Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $903 million over the next ten years.
(g) 
Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(h) 
Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.
Retiree Medical And Other Postretirement Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2018 by asset category, were as follows (in millions):
 
Fair Value Measurements as of December 31, 2018
Asset Category
Quoted Prices in
Active Markets for Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Money market fund
$
4

 
$
—

 
$
—

 
$
4

Mutual funds – AAL Class
—

 
221

 
—

 
221

Total
$
4

 
$
221

 
$
—

 
$
225

The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions):
 
Fair Value Measurements as of December 31, 2017
Asset Category
Quoted Prices in
Active Markets for Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Money market fund
$
5

 
$
—

 
$
—

 
$
5

Mutual funds – AAL Class
—

 
290

 
—

 
290

Total
$
5

 
$
290

 
$
—

 
$
295
American Airlines, Inc. [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Changes in Projected Benefit Obligations
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2018 and 2017:
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Benefit obligation at beginning of period
$
18,175

 
$
17,148

 
$
1,010

 
$
990

Service cost
2

 
2

 
5

 
4

Interest cost
670

 
717

 
35

 
39

Actuarial (gain) loss (1) (2)
(1,905
)
 
1,007

 
(132
)
 
49

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(659
)
 
(723
)
 
(81
)
 
(80
)
Other
3

 
28

 
—

 
8

Benefit obligation at end of period
$
16,282

 
$
18,175

 
$
837

 
$
1,010

Fair value of plan assets at beginning of period
$
11,340

 
$
9,968

 
$
295

 
$
266

Actual return on plan assets
(1,148
)
 
1,788

 
(24
)
 
37

Employer contributions (3)
472

 
286

 
35

 
72

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(659
)
 
(723
)
 
(81
)
 
(80
)
Other
—

 
25

 
—

 
—

Fair value of plan assets at end of period
$
10,001

 
$
11,340

 
$
225

 
$
295

Funded status at end of period
$
(6,281
)
 
$
(6,835
)
 
$
(612
)
 
$
(715
)
 

(1) 
The December 31, 2018 and 2017 pension actuarial (gain) loss primarily relates to changes in American’s weighted average discount rate and mortality assumptions and, in 2018, changes to American’s retirement rate assumptions.
(2) 
The December 31, 2018 and 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to weighted average discount rate assumption changes and, in 2018, changes to American’s medical trend and per capita claim assumptions.
(3) 
During 2018, American contributed $472 million to its defined benefit pension plans, including supplemental contributions of $433 million in addition to a $39 million minimum required contribution. During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required contribution.
Schedule of Changes in Fair Value of Plan Assets
Fair value of plan assets at beginning of period
$
11,340

 
$
9,968

 
$
295

 
$
266

Actual return on plan assets
(1,148
)
 
1,788

 
(24
)
 
37

Employer contributions (3)
472

 
286

 
35

 
72

Settlements
(4
)
 
(4
)
 
—

 
—

Benefit payments
(659
)
 
(723
)
 
(81
)
 
(80
)
Other
—

 
25

 
—

 
—

Fair value of plan assets at end of period
$
10,001

 
$
11,340

 
$
225

 
$
295

Funded status at end of period
$
(6,281
)
 
$
(6,835
)
 
$
(612
)
 
$
(715
)
 

(1) 
The December 31, 2018 and 2017 pension actuarial (gain) loss primarily relates to changes in American’s weighted average discount rate and mortality assumptions and, in 2018, changes to American’s retirement rate assumptions.
(2) 
The December 31, 2018 and 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to weighted average discount rate assumption changes and, in 2018, changes to American’s medical trend and per capita claim assumptions.
(3) 
During 2018, American contributed $472 million to its defined benefit pension plans, including supplemental contributions of $433 million in addition to a $39 million minimum required contribution. During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required contribution.
Schedule of Amounts Recognized in Consolidated Balance Sheets
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
As of December 31,
 
Current liability
$
7

 
$
10

 
$
23

 
$
88

Noncurrent liability
6,274

 
6,825

 
589

 
627

Total liabilities
$
6,281

 
$
6,835

 
$
612

 
$
715
Schedule of Amounts Recognized in Other Comprehensive Income
Net actuarial loss (gain)
$
5,341

 
$
5,337

 
$
(452
)
 
$
(388
)
Prior service cost (benefit)
131

 
159

 
(362
)
 
(600
)
Total accumulated other comprehensive loss (income), pre-tax
$
5,472

 
$
5,496

 
$
(814
)
 
$
(988
)
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Projected benefit obligation
$
16,254

 
$
18,144

 
$
—

 
$
—

Accumulated benefit obligation (ABO)
16,246

 
18,135

 
—

 
—

Accumulated postretirement benefit obligation
—

 
—

 
837

 
1,010

Fair value of plan assets
9,971

 
11,307

 
225

 
295

ABO less fair value of plan assets
6,275

 
6,828

 
—

 
—
Components of Net Periodic Benefit Cost (Income)
 
Pension Benefits
 
Retiree Medical and
  Other Postretirement Benefits  
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
(In millions)
Defined benefit plans:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
2

 
$
2

 
$
2

 
$
5

 
$
4

 
$
3

Interest cost
670

 
717

 
746

 
35

 
39

 
47

Expected return on assets
(901
)
 
(786
)
 
(747
)
 
(24
)
 
(21
)
 
(20
)
Settlements
—

 
1

 
—

 
—

 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (benefit)
28

 
28

 
28

 
(236
)
 
(237
)
 
(240
)
Unrecognized net loss (gain)
140

 
144

 
125

 
(21
)
 
(23
)
 
(16
)
Net periodic benefit cost (income)
$
(61
)
 
$
106

 
$
154

 
$
(241
)
 
$
(238
)
 
$
(226
)
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost for the periods presented:
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Benefit obligations:
 
 
 
 
 
 
 
Weighted average discount rate
4.40%
 
3.80%
 
4.30%
 
3.60%
 
Pension Benefits
 
Retiree Medical and
Other Postretirement Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Weighted average discount rate
3.80%
 
4.30%
 
4.70%
 
3.60%
 
4.10%
 
4.42%
Weighted average expected rate of return on plan assets
8.00%
 
8.00%
 
8.00%
 
8.00%
 
8.00%
 
8.00%
Weighted average health care cost trend rate assumed for next year (1)
N/A
 
N/A
 
N/A
 
3.91%
 
4.19%
 
4.25%
 
(1) 
The weighted average health care cost trend rate at December 31, 2018 is assumed to decline gradually to 3.45% by 2026 and remain level thereafter.
Schedule of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one percentage point change in the assumed health care cost trend rates would have the following effects on American’s retiree medical and other postretirement benefits plans (in millions):
 
1% Increase
 
1% Decrease
Increase (decrease) on 2018 service and interest cost
$
2

 
$
(2
)
Increase (decrease) on benefit obligation as of December 31, 2018
47

 
(43
)
Schedule of Expected Future Service Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024-2028
Pension benefits
$
717

 
$
754

 
$
793

 
$
831

 
$
872

 
$
4,891

Retiree medical and other postretirement benefits
84

 
75

 
71

 
66

 
64

 
280
Schedule of Allocation of Plan Assets
The current strategic target asset allocation is as follows:
Asset Class/Sub-Class
Allowed Range
Equity
60% - 85%
Public:
 
U.S. Large
20% - 50%
U.S. Small/Mid
0% - 10%
International
17% - 27%
Emerging Markets
5% - 11%
Alternative Investments
5% - 20%
Fixed Income
15% - 40%
Public:
 
U.S. Long Duration
15% - 30%
High Yield and Emerging Markets
0% - 10%
Private Income
0% - 10%
Cash Equivalents
0% -   5%
Changes in Fair Value Measurements of Level 3 Investments
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2018, were as follows (in millions):
 
Private Market Partnerships
 
Insurance Group
Annuity Contracts
Beginning balance at December 31, 2017
$
14

 
$
2

Actual loss on plan assets:
 
 
 
Relating to assets still held at the reporting date
(2
)
 
—

Purchases
1

 
—

Sales
(6
)
 
—

Ending balance at December 31, 2018
$
7

 
$
2

Changes in fair value measurements of Level 3 investments during the year ended December 31, 2017, were as follows (in millions):
 
Private Market
Partnerships
 
Insurance Group
Annuity Contracts
Beginning balance at December 31, 2016
$
21

 
$
2

Actual loss on plan assets:
 
 
 
Relating to assets still held at the reporting date
(4
)
 
—

Purchases
1

 
—

Sales
(1
)
 
—

Transfers out
(3
)
 
—

Ending balance at December 31, 2017
$
14

 
$
2
American Airlines, Inc. [Member] | Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of American’s pension plan assets at December 31, 2018 and 2017, by asset category, are as follows (in millions):
 
Fair Value Measurements as of December 31, 2018
Asset Category
Quoted Prices in
Active Markets 
for Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Cash and cash equivalents
$
23

 
$
—

 
$
—

 
$
23

Equity securities:
 
 
 
 
 
 
 
International markets (a) (b)
3,181

 
—

 
—

 
3,181

Large-cap companies (b)
2,021

 
—

 
—

 
2,021

Mid-cap companies (b)
583

 
—

 
—

 
583

Small-cap companies (b)
122

 
—

 
—

 
122

Fixed income:
 
 
 
 
 
 
 
Corporate debt (c)
—

 
2,116

 
—

 
2,116

Government securities (d)
—

 
228

 
—

 
228

U.S. municipal securities
—

 
40

 
—

 
40

Alternative instruments:
 
 
 
 
 
 
 
Private market partnerships (e)
—

 
—

 
7

 
7

Private market partnerships measured at net asset value (e) (g)
—

 
—

 
—

 
1,188

Common/collective trusts (f)
—

 
218

 
—

 
218

Common/collective trusts and 103-12 Investment Trust measured at net asset value (f) (g)
—

 
—

 
—

 
227

Insurance group annuity contracts
—

 
—

 
2

 
2

Dividend and interest receivable
47

 
—

 
—

 
47

Due to/from brokers for sale of securities – net
5

 
—

 
—

 
5

Other liabilities – net
(7
)
 
—

 
—

 
(7
)
Total
$
5,975

 
$
2,602

 
$
9

 
$
10,001

 
(a) 
Holdings are diversified as follows: 17% United Kingdom, 10% Japan, 8% France, 7% Switzerland, 6% Ireland, 17% emerging markets and the remaining 35% with no concentration greater than 5% in any one country.
(b) 
There are no significant concentrations of holdings by company or industry.
(c) 
Includes approximately 77% investments in corporate debt with a S&P rating lower than A and 23% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies.
(d) 
Includes approximately 32% investments in U.S. domestic government securities, 37% in emerging market government securities and 31% in international government securities. There are no significant foreign currency risks within this classification.
(e) 
Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $1.0 billion over the next ten years.
(f) 
Investment includes 45% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 37% in a collective interest trust investing primarily in short-term securities, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 6% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(g) 
Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.
 
Fair Value Measurements as of December 31, 2017
Asset Category
Quoted Prices in
Active Markets 
for Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Cash and cash equivalents
$
28

 
$
—

 
$
—

 
$
28

Equity securities:
 
 
 
 
 
 
 
International markets (a) (b)
3,837

 
—

 
—

 
3,837

Large-cap companies (b)
2,451

 
—

 
—

 
2,451

Mid-cap companies (b)
744

 
—

 
—

 
744

Small-cap companies (b)
125

 
—

 
—

 
125

Fixed income:
 
 
 
 
 
 
 
Corporate bonds (c)
—

 
2,344

 
—

 
2,344

Government securities (d)
—

 
238

 
—

 
238

U.S. municipal securities
—

 
39

 
—

 
39

Alternative instruments:
 
 
 
 
 
 
 
Private market partnerships (e)
—

 
—

 
14

 
14

Private market partnerships measured at net asset value (e) (g)
—

 
—

 
—

 
879

Common/collective trusts (f)
—

 
315

 
—

 
315

Common/collective trusts and 103-12 Investment Trust measured at net asset value (f) (g)
—

 
—

 
—

 
283

Insurance group annuity contracts
—

 
—

 
2

 
2

Dividend and interest receivable
44

 
—

 
—

 
44

Due to/from brokers for sale of securities – net
3

 
—

 
—

 
3

Other liabilities – net
(6
)
 
—

 
—

 
(6
)
Total
$
7,226

 
$
2,936

 
$
16

 
$
11,340

 
(a) 
Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% with no concentration greater than 5% in any one country.
(b) 
There are no significant concentrations of holdings by company or industry.
(c) 
Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies.
(d) 
Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification.
(e) 
Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $903 million over the next ten years.
(f) 
Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(g) 
Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements.
American Airlines, Inc. [Member] | Retiree Medical And Other Postretirement Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2018 by asset category, were as follows (in millions):
 
Fair Value Measurements as of December 31, 2018
Asset Category
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Money market fund
$
4

 
$
—

 
$
—

 
$
4

Mutual funds – AAL Class
—

 
221

 
—

 
221

Total
$
4

 
$
221

 
$
—

 
$
225

The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions):
 
Fair Value Measurements as of December 31, 2017
Asset Category
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Money market fund
$
5

 
$
—

 
$
—

 
$
5

Mutual funds – AAL Class
—

 
290

 
—

 
290

Total
$
5

 
$
290

 
$
—

 
$
295