Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Line Items]

Components of Income Tax Provision

The significant components of the income tax provision (benefit) were (in millions):

	Year Ended December 31,
	2023		2022		2021
Current income tax benefit:
State, local and foreign	$	—	$	(6)	$	—
Deferred income tax provision (benefit):
Federal	268		59		(508)
State and local	31		6		(47)
Deferred income tax provision (benefit)	299		65		(555)
Total income tax provision (benefit)	$	299	$	59	$	(555)

Reconciliation of Income Tax Provision

The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Statutory income tax provision (benefit)	$	235	$	39	$	(535)
State, local and foreign income tax provision (benefit), net of federal tax effect	22		—		(37)
Book expenses not deductible for tax purposes	38		22		23
Change in valuation allowance	3		—		—
Other, net	1		(2)		(6)
Income tax provision (benefit)	$	299	$	59	$	(555)

Deferred Tax Assets and Liabilities

The components of our deferred tax assets and liabilities were (in millions):

	December 31,
	2023		2022
Deferred tax assets:
Net operating loss and other carryforwards	$	4,238	$	4,679
Loyalty program liability	1,774		1,809
Leases	1,758		1,819
Pension benefits	434		474
Postretirement benefits other than pension benefits	274		179
Rent expense	84		130
Other	902		742
Total deferred tax assets	9,464		9,832
Valuation allowance	(22)		(19)
Net deferred tax assets	9,442		9,813
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,503)		(4,630)
Leases	(1,798)		(1,832)
Other	(262)		(262)
Total deferred tax liabilities	(6,563)		(6,724)
Net deferred tax asset	$	2,879	$	3,089

American Airlines, Inc.

Income Taxes [Line Items]

Components of Income Tax Provision

The significant components of the income tax provision (benefit) were (in millions):

	Year Ended December 31,
	2023		2022		2021
Current income tax benefit:
State, local and foreign	$	—	$	(6)	$	—
Deferred income tax provision (benefit):
Federal	361		112		(453)
State and local	33		10		(47)
Deferred income tax provision (benefit)	394		122		(500)
Total income tax provision (benefit)	$	394	$	116	$	(500)

Reconciliation of Income Tax Provision

The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
Statutory income tax provision (benefit)	$	332	$	95	$	(478)
State, local and foreign income tax provision (benefit), net of federal tax effect	25		3		(37)
Book expenses not deductible for tax purposes	35		20		21
Change in valuation allowance	3		—		—
Other, net	(1)		(2)		(6)
Income tax provision (benefit)	$	394	$	116	$	(500)

Deferred Tax Assets and Liabilities

The components of American’s deferred tax assets and liabilities were (in millions):

	December 31,
	2023		2022
Deferred tax assets:
Net operating loss and other carryforwards	$	3,960	$	4,492
Loyalty program liability	1,774		1,809
Leases	1,746		1,804
Pension benefits	428		467
Postretirement benefits other than pension benefits	273		179
Rent expense	84		130
Other	846		689
Total deferred tax assets	9,111		9,570
Valuation allowance	(12)		(9)
Net deferred tax assets	9,099		9,561
Deferred tax liabilities:
Accelerated depreciation and amortization	(4,479)		(4,603)
Leases	(1,786)		(1,817)
Other	(254)		(256)
Total deferred tax liabilities	(6,519)		(6,676)
Net deferred tax asset	$	2,580	$	2,885