Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2023

Defined Benefit Plan Disclosure [Line Items]

Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status

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 funded status as of December 31, 2023 and 2022:

	Pension Benefits				Retiree Medical and  Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Benefit obligation at beginning of period	$	14,037	$	18,910	$	906	$	1,098
Service cost	2		3		17		16
Interest cost	758		556		55		30
Actuarial loss (gain) (1), (2)	507		(4,563)		92		(167)
Plan amendments (3)	—		—		339		—
Other	—		—		—		3
Benefit payments	(894)		(869)		(84)		(74)
Benefit obligation at end of period	$	14,410	$	14,037	$	1,325	$	906

Fair value of plan assets at beginning of period	$	11,884	$	14,691	$	133	$	167
Actual return (loss) on plan assets	1,368		(1,943)		14		(18)
Employer contributions (4)	73		5		70		58
Benefit payments	(894)		(869)		(84)		(74)
Fair value of plan assets at end of period	$	12,431	$	11,884	$	133	$	133
Funded status at end of period	$	(1,979)	$	(2,153)	$	(1,192)	$	(773)

(1)The 2023 and 2022 pension actuarial loss (gain) primarily relates to the change in our weighted average discount rate assumption.

(2)The 2023 and 2022 retiree medical and other postretirement benefits actuarial loss (gain) primarily relates to the change in our weighted average discount rate assumption and, in 2023, the change in health care cost assumptions.

(3)As of September 30, 2023, we remeasured our retiree medical and other postretirement benefits to account for enhanced retirement benefits provided to our mainline pilots pursuant to the new collective bargaining agreement ratified in August 2023. As a result, we increased our postretirement benefits obligation by $339 million, which was included as a component of prior service cost in accumulated other comprehensive loss.

(4)In 2023, we made required contributions of $69 million to our defined benefit pension plans.

Schedule of Amounts Recognized in Consolidated Balance Sheets

Balance Sheet Position

	Pension Benefits				Retiree Medical and  Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
As of December 31,
Current liability	$	5	$	4	$	122	$	85
Noncurrent liability	1,974		2,149		1,070		688
Total liabilities	$	1,979	$	2,153	$	1,192	$	773

Schedule of Amounts Recognized in Other Comprehensive Income

	Pension Benefits				Retiree Medical and  Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Net actuarial loss (gain)	$	3,566	$	3,613	$	(383)	$	(505)
Prior service cost (benefit)	—		18		197		(148)
Total accumulated other comprehensive loss (income), pre-tax	$	3,566	$	3,631	$	(186)	$	(653)

Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets

Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets

	Pension Benefits
	2023		2022
	(In millions)
Projected benefit obligation	$	14,410	$	14,037
Fair value of plan assets	12,431		11,884

Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets

	Pension Benefits				Retiree Medical and  Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Accumulated benefit obligation	$	14,403	$	14,030	$	—	$	—
Accumulated postretirement benefit obligation	—		—		1,325		906
Fair value of plan assets	12,431		11,884		133		133

Components of Net Periodic Benefit Cost (Income)

Net Periodic Benefit Cost (Income)

	Pension Benefits						Retiree Medical and Other Postretirement Benefits
	2023		2022		2021		2023		2022		2021
	(In millions)
Defined benefit plans:
Service cost	$	2	$	3	$	4	$	17	$	16	$	12
Interest cost	758		556		526		55		30		30
Expected return on assets	(918)		(1,138)		(1,084)		(11)		(12)		(12)
Special termination benefits	—		—		—		—		—		139
Amortization of:
Prior service cost (benefit)	18		28		28		(6)		(14)		(13)
Unrecognized net loss (gain)	106		156		212		(34)		(30)		(24)
Net periodic benefit cost (income)	$	(34)	$	(395)	$	(314)	$	21	$	(10)	$	132

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 (income) for the periods presented:

	Pension Benefits		Retiree Medical and Other Postretirement Benefits
	2023	2022	2023	2022
Benefit obligations:
Weighted average discount rate	5.2%	5.6%	5.3%	5.7%

	Pension Benefits			Retiree Medical and Other Postretirement Benefits
	2023	2022	2021	2023	2022	2021
Net periodic benefit cost (income):
Weighted average discount rate	5.6%	3.0%	2.7%	5.7%	2.8%	2.4%
Weighted average expected rate of return on plan assets	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%
Weighted average health care cost trend rate assumed for next year (1)	N/A	N/A	N/A	6.5%	5.8%	4.8%

(1)The weighted average health care cost trend rate at December 31, 2023 is assumed to decline gradually to 4.5% by 2033 and remain level thereafter.

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):

	2024		2025		2026		2027		2028		2029-2033
Pension benefits	$	952	$	977	$	1,002	$	1,023	$	1,036	$	5,265
Retiree medical and other postretirement benefits	138		144		150		150		148		674

Schedule of Allocation of Plan Assets

The current strategic target asset allocation with the corresponding allowed range is as follows:

Asset Class/Sub-Class	Target Allocation		Allowed Range
Equity	61	%	30% - 85%
Public:
U.S. Large	19	%	10% - 40%
U.S. Small/Mid	5	%	0% - 10%
International Large	13	%	5% - 25%
International Small/Mid	3	%	0% - 10%
Emerging Markets	6	%	0% - 15%
Private Equity	15	%	5% - 30%
Fixed Income	39	%	15% - 70%
Public U.S. Fixed Income	30	%	15% - 60%
Private Income	9	%	0% - 20%
Other	—	%	0% - 5%
Cash Equivalents	—	%	0% - 20%

Changes in Fair Value Measurements of Level 3 Investments

Changes in fair value measurements of Level 3 investments during the years ended December 31, 2023 and 2022, were as follows (in millions):

	2023		2022
Balance at beginning of year	$	75	$	58
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date	(9)		1
Purchases	20		29
Sales	(2)		(9)
Transfers out	—		(4)
Balance at end of year	$	84	$	75

American Airlines, Inc.

Defined Benefit Plan Disclosure [Line Items]

Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status

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 funded status as of December 31, 2023 and 2022:

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Benefit obligation at beginning of period	$	13,948	$	18,791	$	906	$	1,098
Service cost	2		3		17		16
Interest cost	753		552		55		30
Actuarial loss (gain) (1), (2)	501		(4,534)		92		(167)
Plan amendments (3)	—		—		339		—
Other	—		—		—		3
Benefit payments	(890)		(864)		(84)		(74)
Benefit obligation at end of period	$	14,314	$	13,948	$	1,325	$	906

Fair value of plan assets at beginning of period	$	11,821	$	14,605	$	133	$	167
Actual return (loss) on plan assets	1,356		(1,924)		14		(18)
Employer contributions (4)	71		4		70		58
Benefit payments	(890)		(864)		(84)		(74)
Fair value of plan assets at end of period	$	12,358	$	11,821	$	133	$	133
Funded status at end of period	$	(1,956)	$	(2,127)	$	(1,192)	$	(773)

(1)The 2023 and 2022 pension actuarial loss (gain) primarily relates to the change in American’s weighted average discount rate assumption.

(2)The 2023 and 2022 retiree medical and other postretirement benefits actuarial loss (gain) primarily relates to the change in American’s weighted average discount rate assumption and, in 2023, the change in health care cost assumptions.

(3)As of September 30, 2023, American remeasured its retiree medical and other postretirement benefits to account for enhanced retirement benefits provided to its mainline pilots pursuant to the new collective bargaining agreement ratified in August 2023. As a result, American increased its postretirement benefits obligation by $339 million, which was included as a component of prior service cost in accumulated other comprehensive loss.

(4)In 2023, American made required contributions of $67 million to its defined benefit pension plans.

Schedule of Amounts Recognized in Consolidated Balance Sheets

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
As of December 31,
Current liability	$	6	$	4	$	122	$	85
Noncurrent liability	1,950		2,123		1,070		688
Total liabilities	$	1,956	$	2,127	$	1,192	$	773

Schedule of Amounts Recognized in Other Comprehensive Income

	Pension Benefits				Retiree Medical and  Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Net actuarial loss (gain)	$	3,561	$	3,609	$	(382)	$	(505)
Prior service cost (benefit)	—		18		197		(148)
Total accumulated other comprehensive loss (income), pre-tax	$	3,561	$	3,627	$	(185)	$	(653)

Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets

Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets

	Pension Benefits
	2023		2022
	(In millions)
Projected benefit obligation	$	14,314	$	13,948
Fair value of plan assets	12,358		11,821

Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets

	Pension Benefits				Retiree Medical and Other Postretirement Benefits
	2023		2022		2023		2022
	(In millions)
Accumulated benefit obligation	$	14,307	$	13,941	$	—	$	—
Accumulated postretirement benefit obligation	—		—		1,325		906
Fair value of plan assets	12,358		11,821		133		133

Components of Net Periodic Benefit Cost (Income)

	Pension Benefits						Retiree Medical and   Other Postretirement Benefits
	2023		2022		2021		2023		2022		2021
	(In millions)
Defined benefit plans:
Service cost	$	2	$	3	$	3	$	17	$	16	$	12
Interest cost	753		552		523		55		30		30
Expected return on assets	(914)		(1,133)		(1,078)		(11)		(12)		(12)
Special termination benefits	—		—		—		—		—		139
Amortization of:
Prior service cost (benefit)	18		28		28		(6)		(14)		(13)
Unrecognized net loss (gain)	106		156		211		(34)		(30)		(24)
Net periodic benefit cost (income)	$	(35)	$	(394)	$	(313)	$	21	$	(10)	$	132

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 (income) for the periods presented:

	Pension Benefits		Retiree Medical and Other Postretirement Benefits
	2023	2022	2023	2022
Benefit obligations:
Weighted average discount rate	5.2%	5.6%	5.3%	5.7%

	Pension Benefits			Retiree Medical and Other Postretirement Benefits
	2023	2022	2021	2023	2022	2021
Net periodic benefit cost (income):
Weighted average discount rate	5.6%	3.0%	2.7%	5.7%	2.8%	2.4%
Weighted average expected rate of return on plan assets	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%
Weighted average health care cost trend rate assumed for next year (1)	N/A	N/A	N/A	6.5%	5.8%	4.8%

(1)The weighted average health care cost trend rate at December 31, 2023 is assumed to decline gradually to 4.5% by 2033 and remain level thereafter.

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):

	2024		2025		2026		2027		2028		2029-2033
Pension benefits	$	947	$	972	$	996	$	1,017	$	1,030	$	5,232
Retiree medical and other postretirement benefits	138		144		150		150		148		674

Schedule of Allocation of Plan Assets

The current strategic target asset allocation with the corresponding allowed range is as follows:

Asset Class/Sub-Class	Target Allocation		Allowed Range
Equity	61	%	30% - 85%
Public:
U.S. Large	19	%	10% - 40%
U.S. Small/Mid	5	%	0% - 10%
International Large	13	%	5% - 25%
International Small/Mid	3	%	0% - 10%
Emerging Markets	6	%	0% - 15%
Private Equity	15	%	5% - 30%
Fixed Income	39	%	15% - 70%
Public U.S. Fixed Income	30	%	15% - 60%
Private Income	9	%	0% - 20%
Other	—	%	0% - 5%
Cash Equivalents	—	%	0% - 20%

Changes in Fair Value Measurements of Level 3 Investments

Changes in fair value measurements of Level 3 investments during the years ended December 31, 2023 and 2022, were as follows (in millions):

	2023		2022
Balance at beginning of year	$	75	$	58
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date	(9)		1
Purchases	20		29
Sales	(2)		(9)
Transfers out	—		(4)
Balance at end of year	$	84	$	75

Pension Benefits

Defined Benefit Plan Disclosure [Line Items]

Schedule of Allocation of Plan Assets

The fair value of our pension plan assets at December 31, 2023 and 2022, by asset category, were as follows (in millions) (1):

	December 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Equity (2)	$	3,182	$	—	$	—	$	3,182	$	3,097	$	—	$	—	$	3,097
Fixed income (3)	260		3,238		—		3,498		227		2,917		—		3,144
Other, net (4)	(6)		348		84		426		74		278		75		427
Measured at NAV (5):
Common collective trusts (6)	—		—		—		1,244		—		—		—		1,694
Private investments (7)	—		—		—		4,081		—		—		—		3,522
Total plan assets	$	3,436	$	3,586	$	84	$	12,431	$	3,398	$	3,195	$	75	$	11,884

(1)See Note 7 for a description of the levels within the fair value hierarchy.

(2)Equity investments include domestic and international common stock, preferred stock and mutual funds invested in equity securities.

(3)Fixed income investments include corporate, government and U.S. municipal bonds, as well as mutual funds invested in fixed income securities.

(4)Other primarily includes a short-term investment fund, net receivables and payables of the master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.

(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.

(6)Common collective trusts include commingled funds primarily invested in equity securities. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.

(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, 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 10 years. As of December 31, 2023, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.3 billion, most of which are expected to be called over the next five years.

Pension Benefits | American Airlines, Inc.

Defined Benefit Plan Disclosure [Line Items]

Schedule of Allocation of Plan Assets

The fair value of American’s pension plan assets at December 31, 2023 and 2022, by asset category, were as follows (in millions) (1):

	December 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Equity (2)	$	3,134	$	—	$	—	$	3,134	$	3,055	$	—	$	—	$	3,055
Fixed income (3)	235		3,238		—		3,473		206		2,917		—		3,123
Other, net (4)	(6)		348		84		426		74		278		75		427
Measured at NAV (5):
Common collective trusts (6)	—		—		—		1,244		—		—		—		1,694
Private investments (7)	—		—		—		4,081		—		—		—		3,522
Total plan assets	$	3,363	$	3,586	$	84	$	12,358	$	3,335	$	3,195	$	75	$	11,821

(1)See Note 6 for a description of the levels within the fair value hierarchy.

(2)Equity investments include domestic and international common stock and preferred stock.

(3)Fixed income investments include corporate, government and U.S. municipal bonds, as well as mutual funds invested in fixed income securities.

(4)Other primarily includes a short-term investment fund, net receivables and payables of the master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.

(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.

(6)Common collective trusts include commingled funds primarily invested in equity securities. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.

(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, 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 10 years. As of December 31, 2023, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.3 billion, most of which are expected to be called over the next five years.