10-Q – 2026-07-23 – aal-20260630.htm

Passenger revenue increased $3.2 billion, or 13.0%, in the first six months of 2026 from the first six months of 2025, primarily due to strong domestic and international demand for air travel. PRASM increased 8.4% compared to the first six months of 2025, primarily driven by higher passenger yield, which increased 9.0% year over year.
Cargo revenue increased $87 million, or 21.7%, in the first six months of 2026 from the first six months of 2025, primarily due to a 16.0% increase in cargo ton miles and a 4.9% increase in cargo yield.
Other operating revenue increased $422 million, or 20.8%, in the first six months of 2026 from the first six months of 2025, driven primarily by higher revenue associated with our loyalty program. During the six months ended June 30, 2026 and 2025, cash payments from co-branded credit card and other partners were $4.7 billion and $3.2 billion, respectively. Cash remuneration for the first six months of 2026 included a one-time cash payment associated with the extension of a partner agreement announced in 2025.
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Operating Expenses

  Six Months Ended June 30, Increase
(Decrease) Percent
Increase
(Decrease)
  2026 2025
  (In millions, except percentage changes)
Aircraft fuel and related taxes $ 7,809  $ 5,250  $ 2,559  48.7
Salaries, wages and benefits 9,314  8,604  710  8.2
Regional expenses 2,839  2,683  156  5.8
Maintenance, materials and repairs 2,008  1,848  160  8.7
Other rent and landing fees 1,867  1,720  147  8.5
Aircraft rent 617  600  17  2.9
Selling expenses 1,110  985  125  12.7
Depreciation and amortization 953  944  9  1.0
Mainline operating special items, net 21  118  (97) (82.4)
Other 3,704  3,327  377  11.3
Total operating expenses $ 30,242  $ 26,079  $ 4,163  16.0

Aircraft fuel and related taxes increased $2.6 billion, or 48.7%, in the first six months of 2026 from the first six months of 2025, primarily due to a 44.5% increase in the average price per gallon of aircraft fuel including related taxes to $3.44 in the first six months of 2026 compared to $2.38 in the first six months of 2025 and a 2.9% increase in gallons of fuel consumed due to increased capacity.
Salaries, wages and benefits increased $710 million, or 8.2%, in the first six months of 2026 from the first six months of 2025, primarily due to annual contractual wage rate increases and a 3.4% increase in mainline full-time equivalent employees subsequent to the first six months of 2025.
Regional expenses increased $156 million, or 5.8%, in the first six months of 2026 from the first six months of 2025, primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased 6.8% in the first six months of 2026 from the first six months of 2025.
Maintenance, materials and repairs increased $160 million, or 8.7%, in the first six months of 2026 from the first six months of 2025, primarily due to increased costs for engine overhauls, component part repairs and airframe heavy checks driven by higher volume and flight hours.
Other rent and landing fees increased $147 million, or 8.5%, in the first six months of 2026 from the first six months of 2025, primarily due to rate increases at certain airports.
Selling expenses increased $125 million, or 12.7%, in the first six months of 2026 from the first six months of 2025, primarily due to higher commissions from renegotiated agency contracts, higher credit card fees driven by the overall increase in passenger revenue and increased advertising expenses.
Other operating expenses increased $377 million, or 11.3%, in the first six months of 2026 from the first six months of 2025, primarily driven by higher costs for onboard food and catering, crew travel, ground and cargo handling, Wi-Fi, international navigation fees and certain general and administrative expenses.
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Operating Special Items, Net

  Six Months Ended June 30,
  2026 2025
  (In millions)
Litigation reserve adjustments $ 12  $ 77 
Labor contract expenses (1)
2  31 

Other operating special items, net 7  10 
Mainline operating special items, net $ 21  $ 118 

(1) Labor contract expenses for the six months ended June 30, 2025 included a one-time charge resulting from adjustments to vacation accruals due to pay rate increases effective January 1, 2025, following the ratification of the contract extension in the fourth quarter of 2024 with our mainline maintenance and fleet service team members.
Nonoperating Results

  Six Months Ended June 30, Increase
(Decrease) Percent
Increase
(Decrease)
  2026 2025
  (In millions, except percentage changes)
Interest income $ 130  $ 194  $ (64) (33.3)
Interest expense, net (807) (861) 54  (6.4)
Other expense, net (97) (8) (89) nm
Total nonoperating expense, net $ (774) $ (675) $ (99) 14.7

Interest income decreased $64 million, or 33.3%, in the first six months of 2026 from the first six months of 2025, primarily due to a lower average balance of our short-term investments and lower interest rates, resulting in reduced returns. Interest expense, net decreased $54 million, or 6.4%, in the first six months of 2026 from the first six months of 2025, primarily due to repayments of higher interest debt, offset in part by the issuance of debt subsequent to the second quarter of 2025.
In the first six months of 2026, other nonoperating expense, net, included $164 million of net special charges primarily related to mark-to-market net unrealized losses associated with certain equity investments and costs associated with debt refinancings and extinguishments, offset in part by $36 million of non-service-related pension and other postretirement benefit plan income.
In the first six months of 2025, other nonoperating expense, net, included $32 million of net special charges primarily related to costs associated with debt refinancings and extinguishments and mark-to-market net unrealized losses associated with certain equity investments, offset in part by $22 million of non-service-related pension and other postretirement benefit plan income.
Income Taxes
In the first six months of 2026, we recorded an income tax benefit of $58 million. Substantially all of our loss before income taxes is attributable to the United States.
See Note 6 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for additional information on income taxes.

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American’s Results of Operations
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Operating Revenues

  Three Months Ended June 30, Increase Percent
Increase
  2026 2025
  (In millions, except percentage changes)
Passenger $ 15,214  $ 13,123  $ 2,091  15.9
Cargo 273  211  62  29.7
Other 1,247  1,056  191  18.0
Total operating revenues $ 16,734  $ 14,390  $ 2,344  16.3

Passenger revenue increased $2.1 billion, or 15.9%, in the second quarter of 2026 from the second quarter of 2025, primarily due to strong domestic and international demand for air travel. PRASM increased compared to the second quarter of 2025, primarily driven by higher passenger yield.
Cargo revenue increased $62 million, or 29.7%, in the second quarter of 2026 from the second quarter of 2025, primarily due to an increase in cargo ton miles and cargo yield.
Other operating revenue increased $191 million, or 18.0%, in the second quarter of 2026 from the second quarter of 2025, driven primarily by higher revenue associated with American’s loyalty program. During the three months ended June 30, 2026 and 2025, cash payments from co-branded credit card and other partners were $1.8 billion and $1.4 billion, respectively.
Operating Expenses  

  Three Months Ended June 30, Increase
(Decrease) Percent
Increase
(Decrease)
  2026 2025
  (In millions, except percentage changes)
Aircraft fuel and related taxes $ 4,881  $ 2,663  $ 2,218  83.3
Salaries, wages and benefits 4,636  4,379  257  5.9
Regional expenses 1,426  1,325  101  7.6
Maintenance, materials and repairs 1,027  927  100  10.8
Other rent and landing fees 976  894  82  9.2
Aircraft rent 308  303  5  1.8
Selling expenses 603  535  68  12.7
Depreciation and amortization 477  475  2  0.4
Mainline operating special items, net 7  47  (40) (85.1)
Other 1,936  1,700  236  13.8
Total operating expenses $ 16,277  $ 13,248  $ 3,029  22.9

Aircraft fuel and related taxes increased $2.2 billion, or 83.3%, in the second quarter of 2026 from the second quarter of 2025, primarily due to a 77.1% increase in the average price per gallon of aircraft fuel including related taxes to $4.05 in the second quarter of 2026 compared to $2.29 in the second quarter of 2025 and a 3.5% increase in gallons of fuel consumed due to increased capacity.
Salaries, wages and benefits increased $257 million, or 5.9%, in the second quarter of 2026 from the second quarter of 2025, primarily due to annual contractual wage rate increases and a 3.4% increase in mainline full-time equivalent employees subsequent to the second quarter of 2025.
Regional expenses increased $101 million, or 7.6%, in the second quarter of 2026 from the second quarter of 2025, primarily due to an increase in regional flight operations and costs at American’s regional carriers.
Maintenance, materials and repairs increased $100 million, or 10.8%, in the second quarter of 2026 from the second quarter of 2025, primarily due to increased costs for engine overhauls driven by higher volume.
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Other rent and landing fees increased $82 million, or 9.2%, in the second quarter of 2026 from the second quarter of 2025, primarily due to rate increases at certain airports.
Selling expenses increased $68 million, or 12.7%, in the second quarter of 2026 from the second quarter of 2025, primarily due to higher commissions from renegotiated agency contracts, higher credit card fees driven by the overall increase in passenger revenue and increased advertising expenses.
Other operating expenses increased $236 million, or 13.8%, in the second quarter of 2026 from the second quarter of 2025, primarily driven by higher costs for onboard food and catering, crew travel, international navigation fees, ground and cargo handling, Wi-Fi and certain general and administrative expenses.
Operating Special Items, Net

Three Months Ended June 30,
2026 2025
(In millions)
Litigation reserve adjustments $ —  $ 47 

Other operating special items, net 7  — 
Mainline operating special items, net $ 7  $ 47 

Nonoperating Results

  Three Months Ended June 30, Increase
(Decrease) Percent
Increase
(Decrease)
  2026 2025
  (In millions, except percentage changes)
Interest income $ 215  $ 247  $ (32) (12.7)
Interest expense, net (403) (440) 37  (8.5)
Other income (expense), net (5) 36  (41) nm
Total nonoperating expense, net $ (193) $ (157) $ (36) 22.0

Interest income decreased $32 million, or 12.7%, in the second quarter of 2026 from the second quarter of 2025, primarily due to lower interest rates and a lower average balance of American’s short-term investments, resulting in reduced returns. Interest expense, net decreased $37 million, or 8.5%, in the second quarter of 2026 from the second quarter of 2025, primarily due to repayments of higher interest debt, offset in part by the issuance of debt subsequent to the second quarter of 2025.
In the second quarter of 2026, other nonoperating expense, net, included $30 million of net special charges, primarily related to mark-to-market net unrealized losses associated with certain equity investments and costs associated with debt refinancings and extinguishments, offset in part by $18 million of non-service-related pension and other postretirement benefit plan income.
In the second quarter of 2025, other nonoperating income, net, primarily included $16 million of net special credits and $11 million of non-service-related pension and other postretirement benefit plan income.
Income Taxes
American is a member of AAG’s consolidated federal and certain state income tax returns.
In the second quarter of 2026, American recorded an income tax provision of $70 million. Substantially all of American’s income before income taxes is attributable to the United States.
See Note 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes.
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Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Operating Revenues  

  Six Months Ended June 30, Increase Percent
Increase
  2026 2025
  (In millions, except percentage changes)
Passenger $ 27,709  $ 24,514  $ 3,195  13.0
Cargo 487  400  87  21.7
Other 2,449  2,026  423  20.9
Total operating revenues $ 30,645  $ 26,940  $ 3,705  13.8

Passenger revenue increased $3.2 billion, or 13.0%, in the first six months of 2026 from the first six months of 2025, primarily due to strong domestic and international demand for air travel. PRASM increased compared to the first six months of 2025, primarily driven by higher passenger yield.
Cargo revenue increased $87 million, or 21.7%, in the first six months of 2026 from the first six months of 2025, primarily due to an increase in cargo ton miles and cargo yield.
Other operating revenue increased $423 million, or 20.9%, in the first six months of 2026 from the first six months of 2025, driven primarily by higher revenue associated with American’s loyalty program. During the six months ended June 30, 2026 and 2025, cash payments from co-branded credit card and other partners were $4.7 billion and $3.2 billion, respectively. Cash remuneration for the first six months of 2026 included a one-time cash payment associated with the extension of a partner agreement announced in 2025.
Operating Expenses

  Six Months Ended June 30, Increase
(Decrease) Percent
Increase
(Decrease)
  2026 2025
  (In millions, except percentage changes)
Aircraft fuel and related taxes $ 7,809  $ 5,250  $ 2,559  48.7
Salaries, wages and benefits 9,308  8,599  709  8.2
Regional expenses 2,826  2,674  152  5.7
Maintenance, materials and repairs 2,008  1,848  160  8.7
Other rent and landing fees 1,867  1,720  147  8.5
Aircraft rent 617  600  17  2.9
Selling expenses 1,110  985  125  12.7
Depreciation and amortization 951  941  10  1.0
Mainline operating special items, net 21  118  (97) (82.4)
Other 3,707  3,330  377  11.3
Total operating expenses $ 30,224  $ 26,065  $ 4,159  16.0

Aircraft fuel and related taxes increased $2.6 billion, or 48.7%, in the first six months of 2026 from the first six months of 2025, primarily due to a 44.5% increase in the average price per gallon of aircraft fuel including related taxes to $3.44 in the first six months of 2026 compared to $2.38 in the first six months of 2025 and a 2.9% increase in gallons of fuel consumed due to increased capacity.
Salaries, wages and benefits increased $709 million, or 8.2%, in the first six months of 2026 from the first six months of 2025, primarily due to annual contractual wage rate increases and a 3.4% increase in mainline full-time equivalent employees subsequent to the first six months of 2025.
Regional expenses increased $152 million, or 5.7%, in the first six months of 2026 from the first six months of 2025, primarily due to an increase in regional flight operations and costs at American’s regional carriers.
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Maintenance, materials and repairs increased $160 million, or 8.7%, in the first six months of 2026 from the first six months of 2025, primarily due to increased costs for engine overhauls, component part repairs and airframe heavy checks driven by higher volume and flight hours.
Other rent and landing fees increased $147 million, or 8.5%, in the first six months of 2026 from the first six months of 2025, primarily due to rate increases at certain airports.
Selling expenses increased $125 million, or 12.7%, in the first six months of 2026 from the first six months of 2025, primarily due to higher commissions from renegotiated agency contracts, higher credit card fees driven by the overall increase in passenger revenue and increased advertising expenses.
Other operating expenses increased $377 million, or 11.3%, in the first six months of 2026 from the first six months of 2025, primarily driven by higher costs for onboard food and catering, crew travel, ground and cargo handling, Wi-Fi, international navigation fees and certain general and administrative expenses.
Operating Special Items, Net

Six Months Ended June 30,
2026 2025
(In millions)
Litigation reserve adjustments $ 12  $ 77 
Labor contract expenses (1)
2  31 

Other operating special items, net 7  10 
Mainline operating special items, net $ 21  $ 118 

(1) Labor contract expenses for the six months ended June 30, 2025 included a one-time charge resulting from adjustments to vacation accruals due to pay rate increases effective January 1, 2025, following the ratification of the contract extension in the fourth quarter of 2024 with American’s mainline maintenance and fleet service team members.
Nonoperating Results  

  Six Months Ended June 30, Increase
(Decrease) Percent
Increase
(Decrease)
  2026 2025
  (In millions, except percentage changes)
Interest income $ 408  $ 483  $ (75) (15.6)
Interest expense, net (803) (893) 90  (10.0)
Other expense, net (99) (8) (91) nm
Total nonoperating expense, net $ (494) $ (418) $ (76) 18.3

Interest income decreased $75 million, or 15.6%, in the first six months of 2026 from the first six months of 2025, primarily due to a lower average balance of American’s short-term investments and lower interest rates, resulting in reduced returns. Interest expense, net decreased $90 million, or 10.0%, in the first six months of 2026 from the first six months of 2025, primarily due to repayments of higher interest debt, offset in part by the issuance of debt subsequent to the second quarter of 2025.
In the first six months of 2026, other nonoperating expense, net, included $164 million of net special charges primarily related to mark-to-market net unrealized losses associated with certain equity investments and costs associated with debt refinancings and extinguishments, offset in part by $35 million of non-service-related pension and other postretirement benefit plan income.
In the first six months of 2025, other nonoperating expense, net, included $32 million of net special charges primarily related to costs associated with debt refinancings and extinguishments and mark-to-market net unrealized losses associated with certain equity investments, offset in part by $21 million of non-service-related pension and other postretirement benefit plan income.
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Income Taxes
American is a member of AAG’s consolidated federal and certain state income tax returns.
In the first six months of 2026, American recorded an income tax provision of $7 million. Substantially all of American’s loss before income taxes is attributable to the United States.
See Note 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes.

Liquidity and Capital Resources
Liquidity
At June 30, 2026, AAG had $11.3 billion in total available liquidity and $709 million in restricted cash and short-term investments. Additional detail regarding our available liquidity is provided in the table below (in millions):  

  AAG American
  June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025
Cash $ 1,028  $ 954  $ 1,017  $ 936 
Short-term investments 6,742  4,882  6,739  4,880 
Undrawn facilities 3,510  3,397  3,510  3,397 
Total available liquidity $ 11,280  $ 9,233  $ 11,266  $ 9,213 

In the ordinary course of our business, we or our affiliates may, at any time and from time to time, seek to prepay, retire or repurchase our outstanding debt through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, prepayments, retirements or exchanges, if any, will be conducted on such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, legal and contractual restrictions and other factors. The amounts involved may be material.
Certain Covenants
Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, may restrict our ability and that of our subsidiaries to incur additional indebtedness, pay dividends or repurchase stock. Our debt agreements also contain customary change of control provisions, which may require us to repay or redeem such indebtedness upon certain events constituting a change of control under the relevant agreement, in certain cases at a premium. Additionally, certain of our debt financing agreements (including our secured notes, term loans and revolving credit facilities) contain loan to value (LTV) or collateral coverage ratio covenants and certain agreements require us to appraise the related collateral annually or semi-annually. Pursuant to such agreements, if the applicable LTV or collateral coverage ratio exceeds or falls below a specified threshold, as the case may be, we will be required, as applicable, to pledge additional qualifying collateral (which in some cases may include cash or investment securities), withhold additional cash in certain accounts, or pay down such financing, in whole or in part, or the interest rate for the relevant financing will be increased. Additionally, a significant portion of our debt financing agreements contain covenants requiring us to maintain an aggregate of at least $2.0 billion of unrestricted cash and cash equivalents and amounts available to be drawn under revolving credit facilities. The AAdvantage Financing contains a peak debt service coverage ratio, pursuant to which failure to comply with a certain threshold may result in early repayment, in whole or in part, of the AAdvantage Financing. As of the most recent applicable measurement dates, we were in compliance with each of the foregoing covenants.

Sources and Uses of Cash
AAG
Operating Activities
Our net cash provided by operating activities was $4.7 billion and $3.4 billion for the first six months of 2026 and 2025, respectively, a $1.3 billion period-over-period increase driven primarily by working capital increases principally in our air traffic liability and loyalty program deferred revenue, offset in part by lower profitability in the first six months of 2026 as compared to the same period in 2025.
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Investing Activities
Our net cash used in investing activities was $3.4 billion and $2.5 billion for the first six months of 2026 and 2025, respectively.
Our principal investing activities in the first six months of 2026 included $1.9 billion in net purchases of short-term investments and $1.6 billion of capital expenditures, which primarily related to the purchase of 14 Boeing 737 MAX aircraft, eight Embraer E175 aircraft, four Bombardier CRJ900 aircraft, one Airbus A319 aircraft lease repurchase, 10 aircraft engines and aircraft purchase deposits.
Our principal investing activities in the first six months of 2025 included $1.3 billion of capital expenditures, which primarily related to the purchase of 11 Boeing 737 MAX aircraft, three Bombardier CRJ900 aircraft, two Embraer E175 aircraft, one Airbus A321neo aircraft, one Boeing 787-9 aircraft, one Airbus A320 aircraft lease repurchase and five aircraft engines. Additionally, we had $1.6 billion in net purchases of short-term investments. These cash outflows were offset in part by $328 million in net proceeds from the issuance of the Tulsa Municipal Airport Trust (TMAT) special facility revenue bonds and $200 million in proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at Los Angeles International Airport (LAX).
Financing Activities
Our net cash used in financing activities was $1.2 billion and $912 million for the first six months of 2026 and 2025, respectively.
Our principal financing activities in the first six months of 2026 included $4.7 billion in long-term debt and finance lease repayments, consisting of $2.1 billion in scheduled repayments, $1.3 billion of early repayments, including $1.0 billion of the outstanding principal amount of the 8.50% senior secured notes and $310 million of equipment notes issued under EETCs, and $1.1 billion from the refinancing in connection with the 2014 Term Loan Facility. Additionally, we repaid all outstanding fuel financing obligations, including $914 million of repayments. These cash outflows were offset in part by $4.5 billion of proceeds from the issuance of long-term debt, primarily consisting of $2.7 billion from the issuance of EETCs, equipment loans and other notes payable in connection with the financing of certain aircraft and spare engines and proceeds from the 2014 Term Loan Facility, which refinanced $1.1 billion of existing term loans and provided $703 million of incremental term loan borrowings.
Our principal financing activities in the first six months of 2025 primarily included $2.4 billion in long-term debt and finance lease repayments, consisting of $1.6 billion in scheduled repayments, $487 million of early repayments for the outstanding principal amount of equipment notes issued under EETCs and $308 million of early repayments toward portions of the outstanding principal amounts of the 10.75% senior secured IP notes (IP Notes) and 10.75% senior secured LGA/DCA notes (LGA/DCA Notes). These cash outflows were offset in part by $1.7 billion of proceeds from the issuance of long-term debt, consisting of $1.0 billion from the issuance of the 2025 AAdvantage Term Loan Facility and $712 million from the issuance of equipment loans and other notes payable in connection with the financing of certain aircraft.
American
Operating Activities
American’s net cash provided by operating activities was $4.6 billion and $3.3 billion for the first six months of 2026 and 2025, respectively, a $1.4 billion period-over-period increase driven primarily by working capital increases principally in American’s air traffic liability and loyalty program deferred revenue, offset in part by lower profitability in the first six months of 2026 as compared to the same period in 2025.
Investing Activities
American’s net cash used in investing activities was $3.4 billion and $2.4 billion for the first six months of 2026 and 2025, respectively.
American’s principal investing activities in the first six months of 2026 included $1.9 billion in net purchases of short-term investments and $1.6 billion of capital expenditures, which primarily related to the purchase of 14 Boeing 737 MAX aircraft, eight Embraer E175 aircraft, four Bombardier CRJ900 aircraft, one Airbus A319 aircraft lease repurchase, 10 aircraft engines and aircraft purchase deposits.
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American’s principal investing activities in the first six months of 2025 included $1.3 billion of capital expenditures, which primarily related to the purchase of 11 Boeing 737 MAX aircraft, three Bombardier CRJ900 aircraft, two Embraer E175 aircraft, one Airbus A321neo aircraft, one Boeing 787-9 aircraft, one Airbus A320 aircraft lease repurchase and five aircraft engines. Additionally, American had $1.6 billion in net purchases of short-term investments. These cash outflows were offset in part by $328 million in net proceeds from the issuance of the TMAT special facility revenue bonds and $200 million in proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.
Financing Activities
American’s net cash used in financing activities was $1.2 billion and $817 million for the first six months of 2026 and 2025, respectively.
American’s principal financing activities in the first six months of 2026 included $4.7 billion in long-term debt and finance lease repayments, consisting of $2.1 billion in scheduled repayments, $1.3 billion of early repayments, including $1.0 billion of the outstanding principal amount of the 8.50% senior secured notes and $310 million of equipment notes issued under EETCs, and $1.1 billion from the refinancing in connection with the 2014 Term Loan Facility. Additionally, American repaid all outstanding fuel financing obligations, including $914 million of repayments. These cash outflows were offset in part by $4.5 billion of proceeds from the issuance of long-term debt, primarily consisting of $2.7 billion from the issuance of EETCs, equipment loans and other notes payable in connection with the financing of certain aircraft and spare engines and proceeds from the 2014 Term Loan Facility, which refinanced $1.1 billion of existing term loans and provided $703 million of incremental term loan borrowings.
American’s principal financing activities in the first six months of 2025 primarily included $2.4 billion in long-term debt and finance lease repayments, consisting of $1.6 billion in scheduled repayments, $487 million of early repayments for the outstanding principal amount of equipment notes issued under EETCs and $308 million of early repayments toward portions of the outstanding principal amounts of the IP Notes and LGA/DCA Notes. These cash outflows were offset in part by $1.7 billion of proceeds from the issuance of long-term debt, consisting of $1.0 billion from the issuance of the 2025 AAdvantage Term Loan Facility and $712 million from the issuance of equipment loans and other notes payable in connection with the financing of certain aircraft.

Commitments
Significant Indebtedness
As of June 30, 2026, AAG had $28.6 billion in long-term debt, including current maturities of $3.0 billion. As of June 30, 2026, American had $24.8 billion in long-term debt, including current maturities of $3.0 billion. All material changes in our significant indebtedness since our 2025 Form 10-K are discussed in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A and Note 4 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B.
Aircraft and Engine Purchase Commitments
As of June 30, 2026, we had definitive purchase agreements for the acquisition of the following new aircraft (1) :  

Remainder
of 2026 2027 2028 2029 and Thereafter Total
Airbus
A320 Family (2)
15  25  36  91  167 
Boeing
737 Family —  —  —  115  115 
787 Family —  6  3  10  19 
Embraer
E175 11  14  17  30  72 

Total 26  45  56  246  373 

(1) Delivery schedule represents our best estimate as of the date of this report as described in footnote (d) to the “Contractual Obligations” table below. Actual delivery dates are subject to change, which could be material, based on various potential factors including production delays by the manufacturer and regulatory concerns. See Part I, Item 1A. Risk Factors – “We depend on a limited number of suppliers for aircraft, aircraft engines and parts. Delays in
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scheduled aircraft deliveries, unexpected grounding of aircraft or aircraft engines whether by regulators or by us, or other loss of anticipated fleet capacity, and failure of new aircraft to receive regulatory approval, be produced or otherwise perform as and when expected, adversely impacts our business, results of operations and financial condition” in our 2025 Form 10-K.
(2) The table above and the “ Contractual Obligations ” table below reflect our exercise of purchase options for six Airbus A320 Family aircraft in July 2026.
In addition, we have agreements for 58 spare engines to be delivered in the third quarter of 2026 and beyond. The “Contractual Obligations” table below reflects these commitments.
We intend to finance future aircraft deliveries and option exercises using cash on hand and long-term debt.
Off-Balance Sheet Arrangements
An off-balance sheet arrangement is any transaction, agreement or other contractual arrangement involving an unconsolidated entity under which a company has (1) made guarantees, (2) a retained or a contingent interest in transferred assets, (3) an obligation under derivative instruments classified as equity or (4) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or that engages in leasing, hedging or research and development arrangements with us.
There have been no material changes in our off-balance sheet arrangements as discussed in our 2025 Form 10-K.
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Contractual Obligations
The following table provides details of our estimated material cash requirements from contractual obligations as of June 30, 2026 (in millions). The table does not include commitments that are contingent on events or other factors that are uncertain or unknown at this time and is subject to other conventions as set forth in the applicable accompanying footnotes.

  Payments Due by Period
  Remainder
of 2026 2027 2028 2029 2030 2031 and Thereafter Total
American
Long-term debt:
Principal amount (a), (c)
$ 1,279  $ 3,448  $ 7,743  $ 3,775  $ 869  $ 7,705  $ 24,819 
Interest obligations (b), (c)
687  1,288  957  626  495  1,322  5,375 
Finance lease obligations 72  156  121  108  102  319  878 
Aircraft and engine purchase commitments (d)
1,404  3,145  3,712  5,593  3,526  6,944  24,324 
Operating lease commitments 751  1,405  1,298  1,186  1,014  3,235  8,889 
Regional capacity purchase agreements (e)
581  1,151  1,080  899  457  398  4,566 
Minimum pension obligations (f)
—  89  21  —  —  —  110 
Retiree medical and other postretirement benefits (f)
56  113  116  115  112  588  1,100 
Other purchase obligations (g)
4,900  4,476  3,550  1,894  694  4,433  19,947 
Total American Contractual Obligations 9,730  15,271  18,598  14,196  7,269  24,944  90,008 

AAG Parent and Other AAG Subsidiaries
Long-term debt:
Principal amount (a)
—  —  —  —  1,757  1,989  3,746 
Interest obligations (b)
105  229  227  221  176  50  1,008 
Finance lease obligations 4  5  5  5  2  —  21 
Operating lease commitments 7  9  8  7  6  35  72 
Minimum pension obligations (f)
1  1  1  1  1  1  6 
Other purchase obligations 8  13  5  2  —  —  28 
Total AAG Contractual Obligations $ 9,855  $ 15,528  $ 18,844  $ 14,432  $ 9,211  $ 27,019  $ 94,889 

(a) Amounts represent contractual amounts due. Excludes $330 million and $2 million of unamortized debt discount, premium and issuance costs as of June 30, 2026 for American and AAG Parent, respectively. For additional information, see Note 5 and Note 4 to AAG’s and American’s Condensed Consolidated Financial Statements in Part I, Items 1A and 1B, respectively.
(b) For variable-rate debt, future interest obligations are estimated using the current forward rates at June 30, 2026.
(c) Includes $8.6 billion of future principal payments and $1.6 billion of future interest payments as of June 30, 2026, related to EETCs associated with mortgage financings of certain aircraft and spare engines.
(d) See “ Aircraft and Engine Purchase Commitments” above for additional information about the firm commitments for the acquisition of aircraft and engines, including the anticipated aircraft delivery schedule. Due to uncertainty surrounding the timing of delivery of certain aircraft, the amounts in the table represent our most current estimate based on contractual delivery schedules adjusted for updates and revisions to such schedules communicated to management by the applicable equipment manufacturer and certain management assumptions. However, the actual delivery schedule may differ, potentially materially, based on various potential factors including production delays by the equipment manufacturers and regulatory concerns.
(e) These commitments are estimates of costs based on assumed minimum levels of flying under the capacity purchase agreements and American’s actual payments could differ materially.
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(f) Represents minimum pension contributions and expected contributions to our retiree medical and other postretirement plans based on actuarially determined estimates as of December 31, 2025 and is based on estimated payments through 2035. During the first six months of 2026, we made required contributions of $237 million and supplemental contributions of $50 million to our defined benefit pension plans.
(g) Includes purchase commitments for aircraft fuel, flight equipment maintenance and information technology support and excludes obligations under certain fuel offtake agreements or other agreements for which the timing of the related expenditure is uncertain, or which are subject to material contingencies, such as the construction of a production facility.

Capital Raising Activity and Other Possible Actions
In light of our significant financial commitments related to, among other things, the servicing and amortization of existing debt and equipment leasing arrangements and new flight equipment, we and our subsidiaries will regularly consider, and enter into negotiations related to, capital raising and liability management activity, which may include the entry into leasing transactions and future issuances of, and transactions designed to manage the timing and amount of, secured or unsecured debt obligations or additional equity or equity-linked securities in public or private offerings or otherwise. The cash available from operations (if any) and these sources, however, may not be sufficient to cover our cash obligations because economic factors may reduce the amount of cash generated by operations or increase costs. For instance, an economic downturn or general global instability caused by governmental actions, military actions, terrorism, disease outbreaks, natural disasters or other causes could reduce the demand for air travel, which would reduce the amount of cash generated by operations. See Part I, Item 1A. Risk Factors – “Downturns in economic conditions could adversely affect our business” in our 2025 Form 10-K for additional discussion. An increase in costs, either due to an increase in borrowing costs caused by a reduction in credit ratings or a general increase in interest rates, due to an increase in the cost of fuel, maintenance, aircraft, aircraft engines or parts, or due to an increase in tariffs, could decrease the amount of cash available to cover cash contractual obligations. Moreover, certain of our financing arrangements contain significant minimum cash balance or similar liquidity requirements. As a result, we cannot use all of our available cash to fund operations, capital expenditures and cash obligations without violating these requirements.
In the past, we have from time to time refinanced, redeemed or repurchased our debt and taken other steps to reduce or otherwise manage the aggregate amount and cost of our debt, lease and other obligations or otherwise improve our balance sheet. Going forward, depending on market conditions, our cash position and other considerations, we may continue to take such actions, and the amounts involved may be material.
Critical Accounting Policies and Estimates
For information regarding our critical accounting policies and estimates, see Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – “Critical Accounting Policies and Estimates” in our 2025 Form 10-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
AAG’s and American’s Market Risk Sensitive Instruments and Positions
Our primary market risk exposures include the price of aircraft fuel, foreign currency exchange rates and interest rate risk. Our exposure to these market risks has not changed materially from our exposure discussed in our 2025 Form 10-K, except as updated below.
Aircraft Fuel
As of June 30, 2026, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption. Our current policy is not to enter into transactions to hedge our fuel consumption, although we review this policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices. Based on our 2026 forecasted fuel consumption, we estimate that a one cent per gallon increase in the price of aircraft fuel would increase our 2026 annual fuel expense by approximately $45 million. See Part I, Item 1A. Risk Factors – “Our business is very dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity” in our 2025 Form 10-K .
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Foreign Currency
We are exposed to the effect of foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated transactions. Our largest exposure comes from the Euro, Canadian dollar, British pound sterling and various Latin American currencies (primarily the Brazilian real). We do not currently have a foreign currency hedge program.
Generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by us and can significantly affect the value of our assets located outside the United States. These conditions, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect our business, results of operations and financial condition. See Part I, Item 1A. Risk Factors – “We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control” in our 2025 Form 10-K for additional discussion of this and other currency risks.
Interest
Our earnings and cash flow are affected by changes in interest rates due to the impact those changes have on our interest expense from variable-rate debt instruments and our interest income from short-term, interest-bearing investments. If annual interest rates increase 100 basis points, based on our June 30, 2026 variable-rate debt and short-term investments balances, annual interest expense on variable-rate debt would increase by approximately $150 million and annual interest income on short-term investments would increase by approximately $80 million.

ITEM 4. CONTROLS AND PROCEDURES
Management’s Evaluation of Disclosure Controls and Procedures
The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and is accumulated and communicated to the company’s management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of AAG’s and American’s disclosure controls and procedures as of June 30, 2026 was performed under the supervision and with the participation of AAG’s and American’s management, including AAG’s and American’s principal executive officer, the Chief Executive Officer (CEO), and principal financial officer, the Chief Financial Officer (CFO). Based on that evaluation, AAG’s and American’s management, including AAG’s and American’s CEO and CFO, concluded that AAG’s and American’s disclosure controls and procedures were effective as of June 30, 2026 at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
During the quarter ended June 30, 2026, there have been no changes in AAG’s or American’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, AAG’s and American’s internal control over financial reporting.
Limitation on the Effectiveness of Controls
We believe that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, and, as noted above, the CEO and CFO of AAG and American believe that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2026.
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PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
See Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part I, Item 1B, respectively, for information on legal proceedings.

ITEM 1A. RISK FACTORS
There have been no material changes in our risk factors as previously disclosed in Part I, Item 1A in our 2025 Form 10-K. The risks in our 2025 Form 10-K are not the only risks facing AAG and American. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, could also materially adversely affect our business, financial condition or future results.

ITEM 5. OTHER INFORMATION
Securities Trading Plans of Directors and Executive Officers
During the quarter ended June 30, 2026, none of our directors or “officers” (as defined in Rule 16a-1(f) under the Exchange Act) adopted , modified or terminated any contract, instruction or written plan for the purchase or sale of AAG securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”
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ITEM 6. EXHIBITS
Exhibits required to be filed by Item 601 of Regulation S-K: Where the amount of securities authorized to be issued under any of our long-term debt agreements does not exceed 10% of our assets, pursuant to paragraph (b)(4) of Item 601 of Regulation S-K, in lieu of filing such as an exhibit, we hereby agree to furnish to the Commission upon request a copy of any agreement with respect to such long-term debt.

Exhibit
Number
Description

4.1 Trust Supplement No. 2026-1A, dated as of May 11, 2026, between American Airlines, Inc. and Wilmington Trust Company, as Trustee, to the Pass Through Trust Agreement, dated as of September 16, 2014 (incorporated by reference to Exhibit 4.2 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.2 Trust Supplement No. 2026-1B, dated as of May 11, 2026, between American Airlines, Inc. and Wilmington Trust Company, as Trustee, to the Pass Through Trust Agreement, dated as of September 16, 2014 (incorporated by reference to Exhibit 4.3 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.3 Intercreditor Agreement (2026-1), dated as of May 11, 2026, among Wilmington Trust Company, as Trustee of the American Airlines Pass Through Trust 2026-1A and as Trustee of the American Airlines Pass Through Trust 2026-1B, Natixis, New York Branch, as Class A Liquidity Provider and Class B Liquidity Provider, and Wilmington Trust Company, as Subordination Agent (incorporated by reference to Exhibit 4.4 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.4 Deposit Agreement (Class A), dated as of May 11, 2026, between Wilmington Trust, National Association, as Escrow Agent, and Sumitomo Mitsui Banking Corporation, acting through its New York Branch, as Depositary (incorporated by reference to Exhibit 4.5 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.5 Deposit Agreement (Class B), dated as of May 11, 2026, between Wilmington Trust, National Association, as Escrow Agent, and Sumitomo Mitsui Banking Corporation, acting through its New York Branch, as Depositary (incorporated by reference to Exhibit 4.6 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.6 Escrow and Paying Agent Agreement (Class A), dated as of May 11, 2026, among Wilmington Trust, National Association, as Escrow Agent, Goldman Sachs & Co. LLC and MUFG Securities Americas Inc., for themselves and on behalf of the several Underwriters, Wilmington Trust Company, not in its individual capacity, but solely as Pass Through Trustee for and on behalf of American Airlines Pass Through Trust 2026-1A, and Wilmington Trust Company, as Paying Agent (incorporated by reference to Exhibit 4.7 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.7 Escrow and Paying Agent Agreement (Class B), dated as of May 11, 2026, among Wilmington Trust, National Association, as Escrow Agent, Goldman Sachs & Co. LLC and MUFG Securities Americas Inc., for themselves and on behalf of the several Underwriters, Wilmington Trust Company, not in its individual capacity, but solely as Pass Through Trustee for and on behalf of American Airlines Pass Through Trust 2026-1B, and Wilmington Trust Company, as Paying Agent (incorporated by reference to Exhibit 4.8 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.8 Note Purchase Agreement, dated as of May 11, 2026, among American Airlines, Inc., Wilmington Trust Company, as Pass Through Trustee under each of the Pass Through Trust Agreements, Wilmington Trust Company, as Subordination Agent, Wilmington Trust, National Association, as Escrow Agent, and Wilmington Trust Company, as Paying Agent (incorporated by reference to Exhibit 4.9 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.9 Form of Participation Agreement (Participation Agreement among American Airlines, Inc., Wilmington Trust Company, as Pass Through Trustee under each of the Pass Through Trust Agreements, Wilmington Trust Company, as Subordination Agent, Wilmington Trust Company, as Loan Trustee, and Wilmington Trust Company, in its individual capacity as set forth t herein) (incorporated by reference to Exhibit 4.10 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.10 Form of Indenture and Security Agreement (Indenture and Security Agreement between American Airlines, Inc., and Wilmington Trust Company, as Loan Trustee) (incorporated by reference to Exhibit 4.11 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.11 Form of Pass Through Trust Certificate, Series 2026-1A (incorporated by reference to Exhibit 4.12 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.12 Form of Pass Through Trust Certificate, Series 2026-1B (incorporated by reference to Exhibit 4.13 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

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Exhibit
Number
Description
4.13 Revolving Credit Agreement (2026-1A), dated as of May 11, 2026, between Wilmington Trust Company, as Subordination Agent, as agent and trustee for the trustee of the American Airlines Pass Through Trust 2026-1A, as Borrower, and Natixis, New York Branch, as Liquidity Provider (incorporated by reference to Exhibit 4.14 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

4.14 Revolving Credit Agreement (2026-1B), dated as of May 11, 2026, between Wilmington Trust Company, as Subordination Agent, as agent and trustee for the trustee of the American Airlines Pass Through Trust 2026-1B, as Borrower, and Natixis, New York Branch, as Liquidity Provider (incorporated by reference to Exhibit 4.15 to American's Current Report on Form 8-K filed on May 15, 2026 (Commission File No. 001-02691)).

10.1 Fourth Amendment to Term Loan Credit and Guaranty Agreement, dated as of February 12, 2026, among American Airlines, Inc., AAdvantage Loyalty IP Ltd . , Barclays Bank PLC, as administrative agent, and Citibank, N.A.*

10.2 Twelfth Amendment to Amended and Restated Credit and Guaranty Agreement, dated as of May 29, 2026, amending the Amended and Restated Credit and Guaranty Agreement, dated as of April 20, 2015, among American Airlines, Inc., American Airlines Group Inc., the lenders from time to time party thereto and Citibank, N.A., as administrative agent (incorporated by reference as Exhibit 10.1 to AAG’s Current Report on Form 8-K filed on May 29, 2026 (Commission File No. 1-8400)).*

31.1 Certification of AAG Chief Executive Officer pursuant to Rule 13a-14(a).

31.2 Certification of AAG Chief Financial Officer pursuant to Rule 13a-14(a).

31.3 Certification of American Chief Executive Officer pursuant to Rule 13a-14(a).

31.4 Certification of American Chief Financial Officer pursuant to Rule 13a-14(a).

32.1 AAG Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code).

32.2 American Certification pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code).

101.1 Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL (eXtensible Business Reporting Language).
104.1 Cover page interactive data file (formatted in Inline XBRL and contained in Exhibit 101.1).

* Portions of this exhibit have been omitted in accordance with Item 601(b)(10) of Regulation S-K.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

  American Airlines Group Inc.

Date: July 23, 2026 By:   /s/ Devon E. May
  Devon E. May
  Executive Vice President and Chief Financial Officer
  (Duly Authorized Officer and Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

  American Airlines, Inc.

Date: July 23, 2026 By:   /s/ Devon E. May
  Devon E. May
  Executive Vice President and Chief Financial Officer
  (Duly Authorized Officer and Principal Financial Officer)

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