XML 74 R30.htm IDEA: XBRL DOCUMENT v3.20.4
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2020
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]  
Schedule of Estimated Useful Lives of Principal Property and Equipment The estimated useful lives for the principal property and equipment classifications are as follows:
Principal Property and Equipment ClassificationEstimated Useful Life
Aircraft, engines and related rotable parts
20 – 30 years
Buildings and improvements
5 – 30 years
Furniture, fixtures and other equipment
3 – 10 years
Capitalized software
5 – 10 years
Schedule of Amortizable Intangible Assets
The following table provides information relating to our amortizable intangible assets as of December 31, 2020 and 2019 (in millions):
 December 31,
 20202019
Domestic airport slots$365 $365 
Customer relationships300 300 
Marketing agreements105 105 
Tradenames35 35 
Airport gate leasehold rights137 137 
Accumulated amortization(745)(704)
Total$197 $238 
Schedule of Future Amortization Expense We expect to record annual amortization expense for these intangible assets as follows (in millions):
2021$41 
202241 
2023
2024
2025
2026 and thereafter94 
Total$197 
Disaggregation of Revenue
The following are the significant categories comprising our reported operating revenues (in millions):
Year Ended December 31,
 202020192018
Passenger revenue:
Passenger travel$13,456 $38,831 $37,457 
Loyalty revenue - travel (1)
1,062 3,179 3,219 
Total passenger revenue14,518 42,010 40,676 
Cargo769 863 1,013 
Other:
Loyalty revenue - marketing services1,825 2,361 2,352 
Other revenue225 534 500 
Total other revenue2,050 2,895 2,852 
Total operating revenues$17,337 $45,768 $44,541 
(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. See “Loyalty Revenue” below for further discussion on these mileage credits.
The following is our total passenger revenue by geographic region (in millions):
Year Ended December 31,
 202020192018
Domestic$11,765 $30,881 $29,573 
Latin America1,852 5,047 5,125 
Atlantic
654 4,624 4,376 
Pacific247 1,458 1,602 
Total passenger revenue$14,518 $42,010 $40,676 
Schedule of Contract Balances
December 31,
20202019
(in millions)
Loyalty program liability$9,195 $8,615 
Air traffic liability4,757 4,808 
Total$13,952 $13,423 
Changes in loyalty program liability are as follows (in millions):
Balance at December 31, 2019$8,615 
Deferral of revenue1,812 
Recognition of revenue (1)
(1,232)
Balance at December 31, 2020 (2)
$9,195 
(1)Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period.
(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As previously discussed, in response to the COVID-19 pandemic, we suspended the expiration of mileage credits through June 30, 2021 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2020, our current loyalty program liability was $2.0 billion and represents our current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to the COVID-19 pandemic, we will continue to monitor redemption patterns and may adjust our estimates in the future.
Components of Regional Expenses Regional expenses consist of the following (in millions):
 Year Ended December 31,
 202020192018
Aircraft fuel and related taxes$821 $1,869 $1,843 
Salaries, wages and benefits1,591 1,781 1,591 
Capacity purchases from third-party regional carriers (1)
1,054 1,398 1,431 
Maintenance, materials and repairs314 403 340 
Other rent and landing fees496 651 610 
Aircraft rent13 29 32 
Selling expenses153 402 369 
Depreciation and amortization325 336 318 
Special items, net(309)
Other434 626 593 
Total regional expenses$4,892 $7,501 $7,133 
(1)In 2020, 2019, and 2018, we recognized $438 million, $590 million and $565 million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). We hold a 25% equity interest in Republic Airways Holdings Inc. (Republic Holdings), the parent company of Republic.
American Airlines, Inc.  
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]  
Schedule of Estimated Useful Lives of Principal Property and Equipment The estimated useful lives for the principal property and equipment classifications are as follows:
Principal Property and Equipment ClassificationEstimated Useful Life
Aircraft, engines and related rotable parts
20 – 30 years
Buildings and improvements
5 – 30 years
Furniture, fixtures and other equipment
3 – 10 years
Capitalized software
5 – 10 years
Schedule of Amortizable Intangible Assets
The following table provides information relating to American’s amortizable intangible assets as of December 31, 2020 and 2019 (in millions):
 December 31,
 20202019
Domestic airport slots$365 $365 
Customer relationships300 300 
Marketing agreements105 105 
Tradenames35 35 
Airport gate leasehold rights137 137 
Accumulated amortization(745)(704)
Total$197 $238 
Schedule of Future Amortization Expense American expects to record annual amortization expense for these intangible assets as follows (in millions):
2021$41 
202241 
2023
2024
2025
2026 and thereafter94 
Total$197 
Disaggregation of Revenue
The following are the significant categories comprising American’s reported operating revenues (in millions):
Year Ended December 31,
 202020192018
Passenger revenue:
Passenger travel$13,456 $38,831 $37,457 
Loyalty revenue - travel (1)
1,062 3,179 3,219 
Total passenger revenue14,518 42,010 40,676 
Cargo769 863 1,013 
Other:
Loyalty revenue - marketing services1,825 2,361 2,352 
Other revenue223 527 489 
Total other revenue2,048 2,888 2,841 
Total operating revenues$17,335 $45,761 $44,530 
(1)Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions, which were earned from travel or co-branded credit card and other partners. See “Loyalty Revenue” below for further discussion on these mileage credits.
The following is American’s total passenger revenue by geographic region (in millions):
Year Ended December 31,
 202020192018
Domestic$11,765 $30,881 $29,573 
Latin America1,852 5,047 5,125 
Atlantic
654 4,624 4,376 
Pacific247 1,458 1,602 
Total passenger revenue$14,518 $42,010 $40,676 
Schedule of Contract Balances
December 31,
20202019
(in millions)
Loyalty program liability$9,195 $8,615 
Air traffic liability4,757 4,808 
Total$13,952 $13,423 
Changes in loyalty program liability are as follows (in millions):
Balance at December 31, 2019$8,615 
Deferral of revenue1,812 
Recognition of revenue (1)
(1,232)
Balance at December 31, 2020 (2)
$9,195 
(1)Principally relates to revenue recognized from the redemption of mileage credits for both air and non-air travel awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of miles that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as miles that were issued during the period.
(2)Mileage credits can be redeemed at any time and generally do not expire as long as that AAdvantage member has any type of qualifying activity at least every 18 months. As previously discussed, in response to the COVID-19 pandemic, American suspended the expiration of mileage credits through June 30, 2021 and eliminated mileage reinstatement fees for canceled award tickets. As of December 31, 2020, American’s current loyalty program liability was $2.0 billion and represents American’s current estimate of revenue expected to be recognized in the next 12 months based on historical as well as projected trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter. Given the inherent uncertainty of the current operating environment due to the COVID-19 pandemic, American will continue to monitor redemption patterns and may adjust its estimates in the future.
Components of Regional Expenses Regional expenses consist of the following (in millions):
 Year Ended December 31,
 202020192018
Aircraft fuel and related taxes$821 $1,869 $1,843 
Salaries, wages and benefits275 325 338 
Capacity purchases from third-party regional carriers (1)
2,750 3,562 3,267 
Maintenance, materials and repairs30 
Other rent and landing fees468 621 583 
Aircraft rent13 29 27 
Selling expenses153 402 369 
Depreciation and amortization273 286 267 
Special items, net(338)— — 
Other258 394 362 
Total regional expenses$4,676 $7,518 $7,064 
(1)In 2020, 2019, and 2018, American recognized $438 million, $590 million and $565 million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). American holds a 25% equity interest in Republic Airways Holdings Inc. (Republic Holdings), the parent company of Republic.