Regional Expenses

6 Months Ended

Jun. 30, 2019

Expenses associated with American Eagle operations are classified as regional expenses on the condensed consolidated statements of operations. Regional expenses consist of the following (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Aircraft fuel and related taxes	$	487	$	465	$	909	$	863
Salaries, wages and benefits	439		389		848		772
Capacity purchases from third-party regional carriers ⁽¹⁾	352		364		692		717
Maintenance, materials and repairs	101		89		195		168
Other rent and landing fees	162		153		329		300
Aircraft rent	8		8		15		17
Selling expenses	106		96		197		181
Depreciation and amortization	83		82		162		165
Other	148		147		301		307
Total regional expenses	$	1,886	$	1,793	$	3,648	$	3,490

⁽¹⁾

During the three months ended June 30, 2019 and 2018, we recognized $149 million and $144 million, respectively, of expense under our capacity purchase agreement with Republic Airline Inc. (Republic). During the six months ended June 30, 2019 and 2018, we recognized $292 million and $282 million, respectively, of expense under our capacity purchase agreement with Republic. We hold a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.

American Airlines, Inc. [Member]

Regional Expenses [Line Items]

Regional Expenses



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Aircraft fuel and related taxes	$	487	$	465	$	909	$	863
Salaries, wages and benefits	85		87		165		169
Capacity purchases from third-party regional carriers ⁽¹⁾	907		825		1,765		1,622
Maintenance, materials and repairs	5		3		9		5
Other rent and landing fees	154		147		313		288
Aircraft rent	8		7		15		14
Selling expenses	105		96		197		181
Depreciation and amortization	71		67		138		135
Other	89		87		191		188
Total regional expenses	$	1,911	$	1,784	$	3,702	$	3,465

⁽¹⁾

During the three months ended June 30, 2019 and 2018, American recognized $149 million and $144 million, respectively, of expense under its capacity purchase agreement with Republic Airline Inc. (Republic). During the six months ended June 30, 2019 and 2018, American recognized $292 million and $282 million, respectively, of expense under its capacity purchase agreement with Republic. American holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic.