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American Airlines Group Inc. - Quarter Report: 2025 June (Form 10-Q)

Other financing activities()()Net cash used in financing activities()()Net increase in cash and restricted cash  Cash and restricted cash at beginning of period  
Cash and restricted cash at end of period (1)
$ $ Non-cash transactions:Right-of-use (ROU) assets acquired through operating leases$ $ Property and equipment acquired through finance leases and other  Operating leases converted to finance leases  Finance leases converted to operating leases  Supplemental information:Interest paid, net  Income taxes paid  
(1)
 $ Restricted cash included in restricted cash and short-term investments  Total cash and restricted cash$ $ 
See accompanying notes to condensed consolidated financial statements.
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AMERICAN AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In millions, except share amounts)(Unaudited)
Common
Stock
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Deficit		Total
Balance at December 31, 2024$ $ $()$()$()
Net loss— — — ()()
Other comprehensive income, net— —  —  
Settlement of PSP1 and Treasury Loan Warrants
   (see Note 3)
— ()— — ()
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes
— ()— — ()
Share-based compensation expense
—  — —  
Balance at March 31, 2025  ()()()
Net income— — —   
Other comprehensive income, net— —  —  
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes
— ()— — ()
Share-based compensation expense—  — —  
Balance at June 30, 2025$ $ $()$()$()
Common
Stock
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Deficit		Total
Balance at December 31, 2023$ $ $()$()$()
Net loss— — — ()()
Other comprehensive income, net— —  —  
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes
— ()— — ()
Share-based compensation expense
—  — —  
Modification of share-based awards— ()— — ()
Balance at March 31, 2024  ()()()
Net income— — —   
Other comprehensive income, net— —  —  
Issuance of shares of AAG common stock pursuant to employee stock plans net of shares withheld for cash taxes
— ()— — ()
Share-based compensation expense—  — —  
Balance at June 30, 2024$ $ $()$()$()
See accompanying notes to condensed consolidated financial statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
1.
(b)
to align with the extended lives of aircraft included in our long-term fleet plan. In conjunction with this change, we also reduced the salvage values for most of these assets from % to % of original cost to more closely reflect the estimated value at the end of the useful life.  –  years
The effect of these changes did not have a material impact to depreciation and amortization expense in the condensed consolidated statement of operations for the three and six months ended June 30, 2025.
(c) Construction Projects
American’s improvements to the overhaul and maintenance base at Tulsa International Airport (Tulsa Maintenance Base) include the design, construction and renovation of various facilities at the Tulsa Maintenance Base. The Tulsa Maintenance Base is American’s largest maintenance facility and is an integral part of operating its mainline fleet. American has concluded that it does not control the underlying assets being constructed, and therefore, it recognizes operating lease liabilities with corresponding right-of-use assets on the condensed consolidated balance sheet as individual project stages are completed and leases commence.
In May 2025, the Tulsa Municipal Airport Trust (TMAT) issued $ million aggregate principal amount of special facility revenue bonds on behalf of American, with $ million maturing on December 1, 2035 and $ million maturing on December 1, 2040 (collectively, the 2025 TMAT Bonds). The 2025 TMAT Bond due December 1, 2035 was priced at % of par value and the 2025 TMAT Bond due December 1, 2040 was priced at % of par value. The gross proceeds from the issuance of the 2025 TMAT Bonds were approximately $ million. Of this amount, $ million was used to fund the redemption of the aggregate principal amount of TMAT’s outstanding 2015 special facility revenue bonds (the 2015 TMAT Bonds) and the remaining $ million will be used to finance the cost of improvements at the Tulsa Maintenance Base. The net proceeds received from the 2025 TMAT Bonds, offset by related project spend, are reflected within other investing activities in the condensed consolidated statement of cash flows.
The 2025 TMAT Bonds bear interest at % per annum commencing on May 8, 2025, until the day preceding the applicable maturity date, on which date the bonds will be subject to mandatory tender for purchase by American. American is required to pay rent equal to the annual principal and interest requirement on the 2025 TMAT Bonds through payments under a sublease agreement with TMAT (as amended), and AAG guarantees the 2025 TMAT Bonds. American’s
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
2.
 $ $ $ 
Labor contract expenses (1)
    Severance expenses    Other operating special items, net    Mainline operating special items, net    Debt refinancing, extinguishment and other, net()   
Mark-to-market adjustments on equity investments, net (2)
()   Nonoperating special items, net()   
(1)Labor contract expenses for the six months ended June 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with our mainline maintenance and fleet service team members.
Labor contract expenses for the six months ended June 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline passenger service team members, including a one-time signing bonus.
(2)Mark-to-market adjustments on equity investments, net included unrealized gains and losses associated with certain equity investments.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
3.
 $ $ $ Weighted average common shares outstanding (in thousands)    Basic EPS$ $ $ $ Diluted EPS:Net income$ $ $ $ 
Interest expense on % convertible senior notes
    Net income for purposes of computing diluted EPS$ $ $ $ Share computation for diluted EPS (in thousands):Basic weighted average common shares outstanding    Dilutive effect of restricted stock unit awards    Dilutive effect of certain PSP Warrants and Treasury Loan Warrants    
Assumed conversion of % convertible senior notes
    Diluted weighted average common shares outstanding    Diluted EPS$ $ $ $ % convertible senior notes (1)    Restricted stock unit awards    
(1)On March 27, 2025, we provided notice to the holders of our Convertible Notes that we would settle our Convertible Notes at their upcoming maturity on July 1, 2025, in cash (including any conversions up to a price per share of AAG common stock of approximately $). As a result, for the three months ended June 30, 2025, we have excluded the assumed conversion of the Convertible Notes from the calculation of diluted EPS.
In addition, excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive, are certain shares underlying the warrants issued pursuant to (i) the payroll support program established under the Coronavirus Aid, Relief, and Economic Security Act (PSP1 Warrants), (ii) the payroll support program established under the Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP2 Warrants), (iii) the payroll support program established under the American Rescue Plan Act of 2021 (PSP3 Warrants) and (iv) the Loan and Guarantee Agreement with the U.S. Department of Treasury (Treasury Loan Warrants).
During the first quarter of 2025, all of the PSP1 Warrants and Treasury Loan Warrants, million shares and million shares, respectively, were exercised at an exercise price of $ per share and net settled in cash for $ million.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
 January 2026 to April 2026PSP3 Warrants April 2026 to June 2026
(1)The PSP2 Warrants and PSP3 Warrants are subject to certain anti-dilution provisions, do not have any voting rights and are freely transferable, with registration rights. Each warrant will be exercisable either through net share settlement or cash, at our option. The warrants were issued solely as compensation to the U.S. Government related to entry into the payroll support program agreements. No separate proceeds (apart from the financial assistance previously received in 2021 and 2020) were received upon issuance of the warrants or will be received upon exercise thereof.
4.
 $ $ $ 
Loyalty revenue - travel (1)
    Total passenger revenue    Cargo    Other:Loyalty revenue - marketing services     Other revenue    Total other revenue    Total operating revenues$ $ $ $ 
(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.
The following is our total passenger revenue by geographic region (in millions):
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Domestic$ $ $ $ 
Latin America    
Atlantic
    
Pacific    
Total passenger revenue$ $ $ $ 
We attribute passenger revenue by geographic region based upon the origin and destination of each flight segment.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
 $ Air traffic liability  Total$ $ 
The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue).
 Deferral of revenue 
Recognition of revenue (1)
()
Balance at June 30, 2025 (2)
$ 
(1)Principally relates to revenue recognized from the redemption of mileage credits for air travel, non-air travel and other awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.
months or if the AAdvantage member is the primary holder of a co-branded credit card. As of June 30, 2025, our current loyalty program liability was $ billion and represents our current estimate of revenue expected to be recognized in the next months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.
. Accordingly, any revenue associated with tickets sold for future travel will be recognized within months. For the six months ended June 30, 2025, $ billion of revenue was recognized in passenger revenue that was included in our air traffic liability at December 31, 2024.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
5.
%, installments until due in February 2028$ $ 
2014 Term Loan Facility, variable interest rate of %, installments until due in January 2027
  
2023 Term Loan Facility, variable interest rate of %, installments until due in June 2029
  
% senior secured IP notes, interest only payments until due in February 2026
  
% senior secured LGA/DCA notes, interest only payments until due in February 2026
  
% senior secured notes, interest only payments until due in February 2028
  
% senior secured notes, interest only payments until due in May 2029
  
% senior secured notes, installments until due in April 2026 (1)
  
% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)
  
2021 AAdvantage Term Loan Facility, variable interest rate of %, installments until due in April 2028 (1)
  
2025 AAdvantage Term Loan Facility, variable interest rate of %, installments beginning in July 2025 until due in May 2032 (1)
  
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from % to %, averaging %, maturing from 2025 to 2034
  
Equipment loans and other notes payable, fixed and variable interest rates ranging from % to %, averaging %, maturing from 2025 to 2037
  
Special facility revenue bonds, fixed interest rates ranging from % to %, maturing from 2026 to 2036
    Unsecured
PSP1 Promissory Note, variable interest rate of %, interest only payments until due in April 2030
  
PSP2 Promissory Note, interest only payments until due in January 2031 (2)
  
PSP3 Promissory Note, interest only payments until due in April 2031 (2)
  
% convertible senior notes, interest only payments until due in July 2025
    Total long-term debt  Less: Total unamortized debt discount, premium and issuance costs  Less: Current maturities  Long-term debt, net of current maturities$ $ 
(1)Collectively referred to as the AAdvantage Financing.
(2)PSP2 and PSP3 notes bear interest at a fixed interest rate of % until the first and second quarters of 2026, respectively. Thereafter and until maturity, the notes bear interest at % plus an interest rate based on the Secured Overnight Financing Rate (SOFR) or other benchmark replacement rate consistent with customary market conventions.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
 
2014 Revolving Facility (1)
 
2023 Revolving Facility (1)
 
Other facilities (2)
 Total$ 
(1)On April 21, 2025, the aggregate revolving commitments under the 2013, 2014 and 2023 Revolving Facilities were increased from $ billion to $ billion upon the upsize of commitments by certain existing lenders. No other terms were changed and there are borrowings outstanding under the facilities.
(2)Includes a revolving credit facility that provides for borrowing capacity of up to $ million, maturing in March 2027 with an option to extend for an additional year. Additionally, American currently has $ million of available borrowing base under a cargo receivables facility that is set to expire in December 2025. There are amounts drawn under these facilities.
Secured financings, including revolving credit and other facilities, are collateralized by assets, consisting primarily of aircraft, engines, simulators, airport gate leasehold rights, route authorities, airport slots, certain receivables, certain intellectual property and certain loyalty program assets.
AAdvantage Term Loan Facilities
On March 24, 2025, American and AAdvantage Loyalty IP Ltd. (the Borrowers) entered into a second amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Second Amendment). As a result of the Second Amendment, the term loans outstanding with a principal amount of approximately $ billion (the 2021 AAdvantage Term Loan Facility) were replaced with new term loans in the same principal amount. The terms of the new term loans are substantially similar to the prior term loans; however, the new term loans bear interest at a base rate (subject to a floor of %) plus an applicable margin of % per annum or, at the Borrowers’ option, the SOFR for a tenor of three months (subject to a floor of %), plus an applicable margin of % per annum. Additionally, the scheduled quarterly principal amortization amount was reduced to % of the principal amount of term loans outstanding as of March 24, 2025 (approximately $ million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in April 2028. Pursuant to the Second Amendment, the new term loans are not subject to a cost spread adjustment.
On May 28, 2025, the Borrowers entered into a third amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Third Amendment). As a result of the Third Amendment, the Borrowers incurred $ billion of incremental term loans (the 2025 AAdvantage Term Loan Facility) due on May 28, 2032. The terms of the 2025 AAdvantage Term Loan Facility are substantially similar to the 2021 AAdvantage Term Loan Facility; however, the 2025 AAdvantage Term Loan Facility bears interest at a base rate (subject to a floor of %) plus an applicable margin of % per annum or, at the Borrowers’ option, the SOFR rate for a tenor of three months (subject to a floor of %), plus an applicable margin of % per annum. Additionally, the scheduled quarterly principal amortization amount is equal to % of the original aggregate principal amount of the 2025 AAdvantage Term Loan Facility (approximately $ million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in May 2032. Pursuant to the Third Amendment, the 2025 AAdvantage Term Loan Facility is not subject to a cost spread adjustment. The net proceeds from the 2025 AAdvantage Term Loan Facility were used to repay near term maturities, including the Convertible Notes described further below.
% Convertible Senior Notes (the Convertible Notes)
On March 27, 2025, we provided notice to the holders of our Convertible Notes that we would settle our Convertible Notes at their maturity in cash (including any conversions up to a price per share of AAG common stock of approximately $). We changed the default settlement method applicable to conversions of the Convertible Notes to provide that no shares of AAG common stock would be due upon settlement of the conversion of any Convertible Note (and, accordingly, such conversion would be settled entirely in cash) if the volume-weighted average price per share of AAG common stock did not exceed approximately $ on any trading day of the -trading day “observation period” over which the consideration due upon conversion is calculated and determined. Pursuant to the terms of the indenture governing the Convertible Notes, the holders of the Convertible Notes could convert at their option beginning April 1, 2025, until the
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
on any trading day of the -trading day “observation period” and therefore the Convertible Notes were settled at their maturity in cash for $ billion.
Equipment Loans and Other Notes Payable Issued in 2025
During the first six months of 2025, American entered into agreements under which it borrowed $ million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2036 through 2037 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging % as of June 30, 2025.
Other Financing Activities
During the first six months of 2025, American prepaid $ million of the outstanding principal amounts of equipment notes issued under EETCs, and these amounts were applied to repay the related trust certificates. Additionally, American prepaid $ million toward portions of the outstanding principal amounts of the % senior secured IP notes and % senior secured LGA/DCA notes.
6. 
billion of gross federal net operating losses (NOLs) and $ billion of other carryforwards available to reduce future federal taxable income, of which $ billion will expire beginning in 2033 if unused and $ billion can be carried forward indefinitely. We also had approximately $ billion of NOL carryforwards to reduce future state taxable income at December 31, 2024, which will expire in taxable years 2024 through 2044 if unused.
Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs and other carryforwards, when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. We consider all available positive and negative evidence and make certain assumptions in evaluating the realizability of our deferred tax assets. Many factors are considered that impact our assessment of future profitability, including conditions which are beyond our control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. We have determined that positive factors outweigh negative factors in the determination of the realizability of our deferred tax assets.
We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full year to income or loss for the reporting period. We have changed to use the discrete method to calculate taxes for the three and six months ended June 30, 2025. At this time, we believe that the use of the discrete method for the three and six months ended June 30, 2025 is more appropriate than the estimated annual effective tax rate method due to the fact that small changes in projected full year income could cause material fluctuations in our annual effective tax rate applied during each quarter.
During the three and six months ended June 30, 2025, we recorded an income tax provision of $ million and $ million, respectively, which was substantially non-cash due to the utilization of the NOLs described above. Substantially all of our income before income taxes is attributable to the United States.
On July 4, 2025, H.R. 1, the “One Big Beautiful Bill Act” (the OBBBA) was signed into law in the U.S. Among other changes, the OBBBA modifies key business tax provisions, including by restoring 100% bonus depreciation under Section 168(k), reverting to the higher, EBITDA-based, business interest expense limitation under Section 163(j) and changing the computation of taxes related to international operations. Based on our current analysis of these provisions, we do not believe these provisions will have a material impact on our consolidated financial statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
7.
 $ $ $ Corporate obligations    Bank notes/certificates of deposit/time deposits    Repurchase agreements        
Restricted cash and short-term investments (1), (3)
    
Long-term investments (4)
    Total$ $ $ $ 
(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.
(2)Our short-term investments mature in one year or less.
(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance the cost of improvements at the Tulsa Maintenance Base. Restricted short-term investments mature in one year or less except for $ million as of June 30, 2025.
(4)Long-term investments primarily include our equity investment in China Southern Airlines Company Limited (China Southern Airlines). See Note 8 for further information on our equity investments.
Fair Value of Debt
The fair value of our long-term debt was estimated using quoted market prices or discounted cash flow analyses based on our current estimated incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Convertible Notes, which would have been classified as Level 2, was $ billion and $ billion as of June 30, 2025 and December 31, 2024, respectively.
 $ $ $ $ December 31, 2024Fair Value
Carrying
Value
TotalLevel 1Level 2Level 3Long-term debt, including current maturities$ $ $ $ $ 
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
8.
 % %$ $ China Southern AirlinesFair Value % %  
Other investments (1)
Various  Total$ $ 
(1)Primarily includes our investment in JetSMART Holdings Limited, which is accounted for under the equity method.
9.
 $ $ $ Interest cost    Expected return on assets()()()()Amortization of:Prior service cost    Unrecognized net loss (gain)  ()()Net periodic benefit cost (income)$()$()$ $  Pension BenefitsRetiree Medical and Other
Postretirement BenefitsSix Months Ended June 30,2025202420252024Service cost$ $ $ $ Interest cost    Expected return on assets()()()()()$()))()$()
(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income until the obligations are fully extinguished.
(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision on the condensed consolidated statements of operations.
 $ $ $ Nonoperating other income (expense), netActuarial loss    Nonoperating other income (expense), netTotal reclassifications for the period, net of tax$ $ $ $ 
11.
 million and $ million of depreciation and amortization, respectively, and each includes $ million of aircraft rent. Regional expenses for the six months ended June 30, 2025 and 2024 include $ million and $ million of depreciation and amortization, respectively, and $ million and $ million of aircraft rent, respectively.
During the three months ended June 30, 2025 and 2024, we recognized $ million and $ million, respectively, of expense under our capacity purchase agreement with Republic Airways Inc. (Republic). During the six months ended June 30, 2025 and 2024, we recognized $ million and $ million, respectively, of expense under our capacity purchase agreement with Republic. We hold a % equity interest in Republic Airways Holdings Inc., the parent company of Republic.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
12.
private party plaintiffs filed putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the Eastern District of New York alleging that AAG and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed additional putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. In March 2023, AAG filed a motion in the U.S. District Court for the District of Massachusetts case asking to transfer the case to the U.S. District Court for the Eastern District of New York and consolidate it with the cases pending in that venue. The U.S. District Court for the District of Massachusetts granted that motion. The remaining cases were consolidated with the other actions in the Eastern District of New York. In June 2023, the private party plaintiffs filed a second amended consolidated complaint, followed by a third amended complaint filed in August 2023. In September 2023, AAG, together with JetBlue, filed a motion to dismiss the third amended complaint. In September 2024, the court denied that motion. AAG and JetBlue filed answers to the private party plaintiffs’ third amended complaint in October 2024, and the parties are now engaged in discovery. We believe these lawsuits are without merit and are defending against them vigorously.
Securities and Stockholder Derivative Litigation. On July 18, 2024, AAG and certain of its current and former officers were named as defendants in a putative class action lawsuit filed in the U.S. District Court for the Northern District of Texas, captioned Qawasmi v. American Airlines Group Inc., et al. The Qawasmi plaintiff purports to represent investors who acquired AAG securities between January 25, 2024 and May 28, 2024. On August 28, 2024, AAG and certain of its current and former officers were named as defendants in a second putative class action lawsuit filed in the same court, captioned Thornburg v. American Airlines Group Inc., et al. The Thornburg plaintiff purports to represent investors who acquired AAG securities between July 20, 2023 and May 28, 2024. Both the Qawasmi and Thornburg complaints assert violations of Sections 10(b) and 20(a) of the Exchange Act based on allegations that, during the relevant periods, AAG misrepresented and/or omitted material facts related to its financial outlook and certain commercial initiatives. On September 16, 2024, certain purported AAG investors moved for consolidation of the Qawasmi and Thornburg actions as well as appointment as lead plaintiff. On November 22, 2024, the Qawasmi and Thornburg complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Securities Litigation. The court also appointed co-lead plaintiffs and lead counsel to represent the putative class in the consolidated action. Plaintiffs filed a consolidated complaint on January 21, 2025, and an amended consolidated complaint on March 19, 2025. The consolidated complaint makes similar factual allegations to the prior complaints regarding AAG’s financial outlook and certain commercial initiatives. AAG and the individual defendants filed a joint motion to dismiss on March 21, 2025 that was fully submitted on May 23, 2025. That motion is currently pending.
Additionally, on September 19, 2024, certain of AAG’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit (in which AAG is a nominal defendant) filed in the U.S. District Court for the Northern District of Texas, captioned Hollin v. Isom, et al. The Hollin complaint asserts violations of Section 10(b) of the Exchange Act, breach of fiduciary duty, and claims for unjust enrichment and corporate waste. On September 26, 2024, a second derivative complaint was filed in the same court, similarly naming certain of AAG’s current and former directors and officers (as well as AAG as a nominal defendant), captioned Leon v. Isom, et al. The Leon complaint asserts violations of Section 14(a) of the Exchange Act, breaches of fiduciary duty, claims of unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and a claim for contribution. The Hollin and Leon complaints generally allege the same purported misconduct as alleged in the securities class actions. On November 25, 2024, the Hollin and Leon complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Stockholder Derivative Action. The derivative actions are currently stayed pending resolution of the securities class action. We believe
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
(Unaudited)
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ITEM 1B. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions)(Unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Operating revenues:
Passenger$ $ $ $ 
Cargo    
Other    
Total operating revenues    
Operating expenses:
Aircraft fuel and related taxes    
Salaries, wages and benefits    
Regional expenses    
Maintenance, materials and repairs    
Other rent and landing fees    
Aircraft rent    
Selling expenses    
Depreciation and amortization    
Special items, net    
Other    
Total operating expenses    
Operating income    
Nonoperating income (expense):
Interest income    
Interest expense, net()()()()
Other income (expense), net  ()()
Total nonoperating expense, net()()()()
Income before income taxes    
Income tax provision    
Net income$ $ $ $ 
See accompanying notes to condensed consolidated financial statements.

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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)(Unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Net income$ $ $ $ 
Other comprehensive income (loss), net of tax:
Pension, retiree medical and other postretirement benefits    
Investments   ()
Total other comprehensive income, net of tax    
Total comprehensive income$ $ $ $ 
See accompanying notes to condensed consolidated financial statements.

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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share and par value amounts)
June 30, 2025December 31, 2024
(Unaudited)
ASSETS
Current assets
Cash$ $ 
Short-term investments  
Restricted cash and short-term investments  
Accounts receivable, net  
Receivables from related parties, net  
Aircraft fuel, spare parts and supplies, net  
Prepaid expenses and other  
Total current assets  
Operating property and equipment
Flight equipment  
Ground property and equipment  
Equipment purchase deposits  
Total property and equipment, at cost  
Less accumulated depreciation and amortization()()
Total property and equipment, net  
Operating lease right-of-use assets  
Other assets
Goodwill  
Intangibles, net of accumulated amortization of $ and $, respectively
  
Deferred tax asset  
Other assets  
Total other assets  
Total assets$ $ 
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities
Current maturities of long-term debt and finance leases$ $ 
Accounts payable  
Accrued salaries and wages  
Air traffic liability  
Loyalty program liability  
Operating lease liabilities  
Other accrued liabilities  
Total current liabilities  
Noncurrent liabilities
Long-term debt and finance leases, net of current maturities  
Pension and postretirement benefits  
Loyalty program liability  
Operating lease liabilities  
Other liabilities  
Total noncurrent liabilities  
Commitments and contingencies
Stockholder’s equity
Common stock, $ par value;  shares authorized, issued and outstanding
  
Additional paid-in capital  
Accumulated other comprehensive loss()()
Retained deficit()()
Total stockholder’s equity  
Total liabilities and stockholder’s equity$ $ 
See accompanying notes to condensed consolidated financial statements.
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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)(Unaudited)
 Six Months Ended June 30,
 20252024
Net cash provided by operating activities$ $ 
Cash flows from investing activities:
Capital expenditures and aircraft purchase deposits()()
Proceeds from sale-leaseback transactions and sale of property and equipment  
Purchases of short-term investments()()
Sales of short-term investments  
Decrease (increase) in restricted short-term investments() 
Other investing activities ()
Net cash used in investing activities()()
Cash flows from financing activities:
Payments on long-term debt and finance leases()()
Proceeds from issuance of long-term debt  
Other financing activities()()
Net cash used in financing activities()()
Net increase in cash and restricted cash  
Cash and restricted cash at beginning of period  
Cash and restricted cash at end of period (1)
$ $ 
Non-cash transactions:
Right-of-use (ROU) assets acquired through operating leases$ $ 
Property and equipment acquired through finance leases and other  
Operating leases converted to finance leases  
Finance leases converted to operating leases  
Supplemental information:
Interest paid, net  
Income taxes paid  
(1)
 $ Restricted cash included in restricted cash and short-term investments  Total cash and restricted cash$ $ 
See accompanying notes to condensed consolidated financial statements.

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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY
(In millions)(Unaudited)
Common
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Loss		Retained
Deficit		Total
Balance at December 31, 2024$ $ $()$()$ 
Net loss— — — ()()
Other comprehensive income, net— —  —  
Share-based compensation expense—  — —  
Intercompany equity transfer—  — —  
Balance at March 31, 2025  ()() 
Net income— — —   
Other comprehensive income, net— —  —  
Share-based compensation expense—  — —  
Intercompany equity transfer—  — —  
Balance at June 30, 2025$ $ $()$()$ 
Common
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Loss		Retained
Deficit		Total
Balance at December 31, 2023$ $ $()$()$ 
Net loss— — — ()()
Other comprehensive income, net— —  —  
Share-based compensation expense—  — —  
Modification of share-based awards— ()— — ()
Intercompany equity transfer—  — —  
Balance at March 31, 2024  ()() 
Net income— — —   
Other comprehensive income, net— —  —  
Share-based compensation expense—  — —  
Intercompany equity transfer—  — —  
Balance at June 30, 2024$ $ $()$()$ 
See accompanying notes to condensed consolidated financial statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)
1.
(b)
to align with the extended lives of aircraft included in American’s long-term fleet plan. In conjunction with this change, American also reduced the salvage values for most of these assets from % to % of original cost to more closely reflect the estimated value at the end of the useful life.  –  years
The effect of these changes did not have a material impact to depreciation and amortization expense in the condensed consolidated statement of operations for the three and six months ended June 30, 2025.
(c) Construction Projects
American’s improvements to the overhaul and maintenance base at Tulsa International Airport (Tulsa Maintenance Base) include the design, construction and renovation of various facilities at the Tulsa Maintenance Base. The Tulsa Maintenance Base is American’s largest maintenance facility and is an integral part of operating its mainline fleet. American has concluded that it does not control the underlying assets being constructed, and therefore, it recognizes operating lease liabilities with corresponding right-of-use assets on the condensed consolidated balance sheet as individual project stages are completed and leases commence.
In May 2025, the Tulsa Municipal Airport Trust (TMAT) issued $ million aggregate principal amount of special facility revenue bonds on behalf of American, with $ million maturing on December 1, 2035 and $ million maturing on December 1, 2040 (collectively, the 2025 TMAT Bonds). The 2025 TMAT Bond due December 1, 2035 was priced at % of par value and the 2025 TMAT Bond due December 1, 2040 was priced at % of par value. The gross proceeds from the issuance of the 2025 TMAT Bonds were approximately $ million. Of this amount, $ million was used to fund the redemption of the aggregate principal amount of TMAT’s outstanding 2015 special facility revenue bonds (the 2015 TMAT Bonds) and the remaining $ million will be used to finance the cost of improvements at the Tulsa Maintenance Base. The net proceeds received from the 2025 TMAT Bonds, offset by related project spend, are reflected within other investing activities in the condensed consolidated statement of cash flows.
The 2025 TMAT Bonds bear interest at % per annum commencing on May 8, 2025, until the day preceding the applicable maturity date, on which date the bonds will be subject to mandatory tender for purchase by American. American is required to pay rent equal to the annual principal and interest requirement on the 2025 TMAT Bonds through payments under a sublease agreement with TMAT (as amended), and AAG guarantees the 2025 TMAT Bonds. American’s obligations under both the sublease agreement with TMAT and the 2025 TMAT Bonds are secured by a leasehold mortgage on American’s lease of the Tulsa Maintenance Base.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

2.
 $ $ $ 
Labor contract expenses (1)
    Severance expenses    Other operating special items, net     Mainline operating special items, net    Debt refinancing, extinguishment and other, net()   
Mark-to-market adjustments on equity investments, net (2)
()   Nonoperating special items, net()   
(1)Labor contract expenses for the six months ended June 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with American’s mainline maintenance and fleet service team members.
Labor contract expenses for the six months ended June 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with American’s mainline passenger service team members, including a one-time signing bonus.
(2)Mark-to-market adjustments on equity investments, net included unrealized gains and losses associated with certain equity investments.
3.
 $ $ $ 
Loyalty revenue - travel (1)
    Total passenger revenue    Cargo    Other:Loyalty revenue - marketing services    Other revenue    Total other revenue    Total operating revenues$ $ $ $ 
(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.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

 $ $ $ Latin America    
Atlantic
    Pacific    Total passenger revenue$ $ $ $ 
American attributes passenger revenue by geographic region based upon the origin and destination of each flight segment.
Contract Balances
American’s significant contract liabilities are comprised of (1) outstanding loyalty program mileage credits that may be redeemed for future air travel, non-air travel and other awards, reported as loyalty program liability on the condensed consolidated balance sheets and (2) ticket sales for transportation that has not yet been provided, reported as air traffic liability on the condensed consolidated balance sheets.
 $ Air traffic liability  Total$ $ 
The balance of the loyalty program liability fluctuates based on seasonal patterns, which impact the volume of mileage credits issued through travel or sold to co-branded credit card and other partners (deferral of revenue) and mileage credits redeemed (recognition of revenue). Changes in loyalty program liability are as follows (in millions):
Balance at December 31, 2024$ 
Deferral of revenue 
Recognition of revenue (1)
()
Balance at June 30, 2025 (2)
$ 
(1)Principally relates to revenue recognized from the redemption of mileage credits for air travel, non-air travel and other awards. Mileage credits are combined in one homogenous pool and are not separately identifiable. As such, the revenue is comprised of mileage credits that were part of the loyalty program deferred revenue balance at the beginning of the period, as well as mileage credits that were issued during the period.
(2)Mileage credits can be redeemed at any time and generally do not expire as long as the AAdvantage member has any type of qualifying activity at least every months or if the AAdvantage member is the primary holder of a co-branded credit card. As of June 30, 2025, American’s current loyalty program liability was $ billion and represents American’s current estimate of revenue expected to be recognized in the next months based on historical trends, with the balance reflected in long-term loyalty program liability expected to be recognized as revenue in periods thereafter.
The air traffic liability principally represents tickets sold for future travel on American and partner airlines. The balance in American’s air traffic liability also fluctuates with seasonal travel patterns. The contract duration of passenger tickets is generally . Accordingly, any revenue associated with tickets sold for future travel will be recognized within months. For the six months ended June 30, 2025, $ billion of revenue was recognized in passenger revenue that was included in American’s air traffic liability at December 31, 2024.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

4.
%, installments until due in February 2028$ $ 
2014 Term Loan Facility, variable interest rate of %, installments until due in January 2027
  
2023 Term Loan Facility, variable interest rate of %, installments until due in June 2029
  
% senior secured IP notes, interest only payments until due in February 2026
  
% senior secured LGA/DCA notes, interest only payments until due in February 2026
  
% senior secured notes, interest only payments until due in February 2028
  
% senior secured notes, interest only payments until due in May 2029
  
% senior secured notes, installments until due in April 2026 (1)
  
% senior secured notes, installments beginning in July 2026 until due in April 2029 (1)
  
2021 AAdvantage Term Loan Facility, variable interest rate of %, installments until due in April 2028 (1)
  
2025 AAdvantage Term Loan Facility, variable interest rate of %, installments beginning in July 2025 until due in May 2032 (1)
  
Enhanced equipment trust certificates (EETCs), fixed interest rates ranging from % to %, averaging %, maturing from 2025 to 2034
  
Equipment loans and other notes payable, fixed and variable interest rates ranging from % to %, averaging %, maturing from 2025 to 2037
  
Special facility revenue bonds, fixed interest rates ranging from % to %, maturing from 2026 to 2036
  Total long-term debt  Less: Total unamortized debt discount, premium and issuance costs  Less: Current maturities  Long-term debt, net of current maturities$ $ 
(1)Collectively referred to as the AAdvantage Financing.
 
2014 Revolving Facility (1)
 
2023 Revolving Facility (1)
 
Other facilities (2)
 Total$ 
(1)On April 21, 2025, the aggregate revolving commitments under the 2013, 2014 and 2023 Revolving Facilities were increased from $ billion to $ billion upon the upsize of commitments by certain existing lenders. No other terms were changed and there are borrowings outstanding under the facilities.
(2)Includes a revolving credit facility that provides for borrowing capacity of up to $ million, maturing in March 2027 with an option to extend for an additional year. Additionally, American currently has $ million of available borrowing base under a cargo receivables facility that is set to expire in December 2025. There are amounts drawn under these facilities.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

 billion (the 2021 AAdvantage Term Loan Facility) were replaced with new term loans in the same principal amount. The terms of the new term loans are substantially similar to the prior term loans; however, the new term loans bear interest at a base rate (subject to a floor of %) plus an applicable margin of % per annum or, at the Borrowers’ option, the Secured Overnight Financing Rate (SOFR) for a tenor of three months (subject to a floor of %), plus an applicable margin of % per annum. Additionally, the scheduled quarterly principal amortization amount was reduced to % of the principal amount of term loans outstanding as of March 24, 2025 (approximately $ million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in April 2028. Pursuant to the Second Amendment, the new term loans are not subject to a cost spread adjustment.
On May 28, 2025, the Borrowers entered into a third amendment to the term loan credit and guaranty agreement dated March 24, 2021 (the Third Amendment). As a result of the Third Amendment, the Borrowers incurred $ billion of incremental term loans (the 2025 AAdvantage Term Loan Facility) due on May 28, 2032. The terms of the 2025 AAdvantage Term Loan Facility are substantially similar to the 2021 AAdvantage Term Loan Facility; however, the 2025 AAdvantage Term Loan Facility bears interest at a base rate (subject to a floor of %) plus an applicable margin of % per annum or, at the Borrowers’ option, the SOFR rate for a tenor of three months (subject to a floor of %), plus an applicable margin of % per annum. Additionally, the scheduled quarterly principal amortization amount is equal to % of the original aggregate principal amount of the 2025 AAdvantage Term Loan Facility (approximately $ million each quarter), payable beginning in July 2025, and the remaining balance is due at maturity in May 2032. Pursuant to the Third Amendment, the 2025 AAdvantage Term Loan Facility is not subject to a cost spread adjustment. The net proceeds from the 2025 AAdvantage Term Loan Facility were used to repay near term maturities, including the % convertible senior notes described in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A.
Equipment Loans and Other Notes Payable Issued in 2025
During the first six months of 2025, American entered into agreements under which it borrowed $ million in connection with the financing of certain aircraft. Debt incurred under these agreements matures in 2036 through 2037 and bears interest at variable rates (comprised of SOFR plus an applicable margin) averaging % as of June 30, 2025.
Other Financing Activities
During the first six months of 2025, American prepaid $ million of the outstanding principal amounts of equipment notes issued under EETCs, and these amounts were applied to repay the related trust certificates. Additionally, American prepaid $ million toward portions of the outstanding principal amounts of the % senior secured IP notes and % senior secured LGA/DCA notes.
5. 
billion of gross federal net operating losses (NOLs) and $ billion of other carryforwards available to reduce future federal taxable income, of which $ billion will expire beginning in 2033 if unused and $ billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $ billion of NOL carryforwards to reduce future state taxable income at December 31, 2024, which will expire in taxable years 2024 through 2044 if unused.
American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include its NOLs and other carryforwards, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

million and $ million, respectively, which was substantially non-cash due to the utilization of the NOLs described above. Substantially all of American’s income before income taxes is attributable to the United States.
On July 4, 2025, H.R. 1, the “One Big Beautiful Bill Act” (the OBBBA) was signed into law in the U.S. Among other changes, the OBBBA modifies key business tax provisions, including by restoring 100% bonus depreciation under Section 168(k), reverting to the higher, EBITDA-based, business interest expense limitation under Section 163(j) and changing the computation of taxes related to international operations. Based on American’s current analysis of these provisions, American does not believe these provisions will have a material impact on its consolidated financial statements.
6.
 $ $ $ Corporate obligations    Bank notes/certificates of deposit/time deposits    Repurchase agreements        
Restricted cash and short-term investments (1), (3)
    
Long-term investments (4)
    Total$ $ $ $ 
(1)All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses.
(2)American’s short-term investments mature in one year or less.
(3)Restricted cash and short-term investments primarily include collateral held to support workers’ compensation obligations, collateral associated with the payment of interest for the AAdvantage Financing and money market funds to be used to finance the cost of improvements at the Tulsa Maintenance Base. Restricted short-term investments mature in one year or less except for $ million as of June 30, 2025.
(4)Long-term investments primarily include American’s equity investment in China Southern Airlines Company Limited (China Southern Airlines). See Note 7 for further information on American’s equity investments.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

 $ $ $ $ December 31, 2024Fair Value
Carrying
Value
TotalLevel 1Level 2Level 3Long-term debt, including current maturities$ $ $ $ $ 
7.
 % %$ $ China Southern AirlinesFair Value % %  
Other investments (1)
Various  Total$ $ 
(1)Primarily includes American’s investment in JetSMART Holdings Limited, which is accounted for under the equity method.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

8.
 $ $ $ Interest cost    Expected return on assets()()()()Amortization of:Prior service cost    Unrecognized net loss (gain)  ()()Net periodic benefit cost (income)$()$()$ $  Pension BenefitsRetiree Medical and Other
Postretirement BenefitsSix Months Ended June 30,2025202420252024Service cost$ $ $ $ Interest cost    Expected return on assets()()()()()$()))()$()
(1)Relates principally to pension, retiree medical and other postretirement benefits obligations that will not be recognized in net income until the obligations are fully extinguished.
(2)Relates to pension, retiree medical and other postretirement benefits obligations and is recognized within the income tax provision on the condensed consolidated statements of operations.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

 $ $ $ Nonoperating other income (expense), netActuarial loss    Nonoperating other income (expense), netTotal reclassifications for the period, net of tax$ $ $ $ 
10.
 million and $ million of depreciation and amortization, respectively, and each includes $ million of aircraft rent. Regional expenses for the six months ended June 30, 2025 and 2024 include $ million and $ million of depreciation and amortization, respectively, and $ million and $ million of aircraft rent, respectively.
During the three months ended June 30, 2025 and 2024, American recognized $ million and $ million, respectively, of expense under its capacity purchase agreement with Republic Airways Inc. (Republic). During the six months ended June 30, 2025 and 2024, American recognized $ million and $ million, respectively, of expense under its capacity purchase agreement with Republic. American holds a % equity interest in Republic Airways Holdings Inc., the parent company of Republic.
11.
 $ 
AAG’s wholly-owned subsidiaries (1)
()()Total$ $ 
(1)The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

12.
private party plaintiffs filed putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the Eastern District of New York alleging that AAG and JetBlue violated U.S. antitrust law in connection with the previously disclosed NEA. These actions were consolidated on January 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed additional putative class action antitrust complaints against AAG and JetBlue in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the Eastern District of New York, respectively. In March 2023, AAG filed a motion in the U.S. District Court for the District of Massachusetts case asking to transfer the case to the U.S. District Court for the Eastern District of New York and consolidate it with the cases pending in that venue. The U.S. District Court for the District of Massachusetts granted that motion. The remaining cases were consolidated with the other actions in the Eastern District of New York. In June 2023, the private party plaintiffs filed a second amended consolidated complaint, followed by a third amended complaint filed in August 2023. In September 2023, AAG, together with JetBlue, filed a motion to dismiss the third amended complaint. In September 2024, the court denied that motion. AAG and JetBlue filed answers to the private party plaintiffs’ third amended complaint in October 2024, and the parties are now engaged in discovery. AAG believes these lawsuits are without merit and is defending against them vigorously.
Securities and Stockholder Derivative Litigation. On July 18, 2024, AAG and certain of its current and former officers were named as defendants in a putative class action lawsuit filed in the U.S. District Court for the Northern District of Texas, captioned Qawasmi v. American Airlines Group Inc., et al. The Qawasmi plaintiff purports to represent investors who acquired AAG securities between January 25, 2024 and May 28, 2024. On August 28, 2024, AAG and certain of its current and former officers were named as defendants in a second putative class action lawsuit filed in the same court, captioned Thornburg v. American Airlines Group Inc., et al. The Thornburg plaintiff purports to represent investors who acquired AAG securities between July 20, 2023 and May 28, 2024. Both the Qawasmi and Thornburg complaints assert violations of Sections 10(b) and 20(a) of the Exchange Act based on allegations that, during the relevant periods, AAG misrepresented and/or omitted material facts related to its financial outlook and certain commercial initiatives. On September 16, 2024, certain purported AAG investors moved for consolidation of the Qawasmi and Thornburg actions as well as appointment as lead plaintiff. On November 22, 2024, the Qawasmi and Thornburg complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Securities Litigation. The court also appointed co-lead plaintiffs and lead counsel to represent the putative class in the consolidated action. Plaintiffs filed a consolidated complaint on January 21, 2025, and an amended consolidated complaint on March 19, 2025. The consolidated complaint makes similar factual allegations to the prior complaints regarding AAG’s financial outlook and certain commercial initiatives. AAG and the individual defendants filed a joint motion to dismiss on March 21, 2025 that was fully submitted on May 23, 2025. That motion is currently pending.
Additionally, on September 19, 2024, certain of AAG’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit (in which AAG is a nominal defendant) filed in the U.S. District Court for the Northern District of Texas, captioned Hollin v. Isom, et al. The Hollin complaint asserts violations of Section 10(b) of the Exchange Act, breach of fiduciary duty, and claims for unjust enrichment and corporate waste. On September 26, 2024, a second derivative complaint was filed in the same court, similarly naming certain of AAG’s current and former directors and officers (as well as AAG as a nominal defendant), captioned Leon v. Isom, et al. The Leon complaint asserts violations of Section 14(a) of the Exchange Act, breaches of fiduciary duty, claims of unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and a claim for contribution. The Hollin and Leon complaints generally allege the same purported misconduct as alleged in the securities class actions. On November 25, 2024, the Hollin and Leon complaints were consolidated into a single action bearing the caption In re American Airlines Group Inc. Stockholder Derivative Action. The derivative actions are currently stayed pending resolution of the securities class action. AAG
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
(Unaudited)

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Part I, Item 2 of this report should be read in conjunction with Part II, Item 7 of AAG’s and American’s Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Form 10-K). The information contained herein is not a comprehensive discussion and analysis of the financial condition and results of operations of AAG and American, but rather updates disclosures made in the 2024 Form 10-K.
Financial Overview
Business and Macroeconomic Conditions
Starting in the first quarter of 2025, the U.S. Government has promoted and implemented plans to place additional tariffs on goods imported into the U.S. from numerous countries and has pursued other trade policies intended to restrict imports and, in response, multiple nations have countered with reciprocal tariffs and other actions.
These or additional changes in U.S. or international trade policies, along with continued uncertainty surrounding such policies, could lead to further weakened business conditions for the transportation industry, which may adversely impact our operations through increased supply chain challenges, commodity price volatility and a decline in discretionary spending and consumer confidence, among others. We continue to monitor the situation.
AAG’s Second Quarter 2025 Results
The selected financial data presented below is derived from AAG’s unaudited condensed consolidated financial statements included in Part I, Item 1A of this report and should be read in conjunction with those financial statements and the related notes thereto.
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Passenger revenue$13,123 $13,202 $(79)(0.6)
Cargo revenue211 195 16 8.2
Other operating revenue1,058 937 121 13.0
Total operating revenues14,392 14,334 58 0.4
Aircraft fuel and related taxes2,663 3,061 (398)(13.0)
Salaries, wages and benefits4,382 3,953 429 10.9
Total operating expenses13,257 12,950 307 2.4
Operating income1,135 1,384 (249)(18.0)
Pre-tax income838 1,028 (190)(18.5)
Income tax provision239 311 (72)(23.4)
Net income599 717 (118)(16.4)
Pre-tax income – GAAP$838 $1,028 $(190)(18.5)
Adjusted for: pre-tax net special items (1)
31 12 19 
 nm (2)
Pre-tax income excluding net special items$869 $1,040 $(171)(16.4)
(1)See “Reconciliation of GAAP to Non-GAAP Financial Measures” below and Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for details on the components of net special items.
(2)Not meaningful or greater than 100% change.
Pre-Tax Income and Net Income
Pre-tax income and net income were $838 million and $599 million, respectively, in the second quarter of 2025. This compares to second quarter of 2024 pre-tax income and net income of $1.0 billion and $717 million, respectively. Excluding the effects of pre-tax net special items, pre-tax income was $869 million and $1.0 billion in the second quarters of 2025 and 2024, respectively.
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The period-over-period decrease in our pre-tax income on both a GAAP basis and excluding pre-tax net special items was principally driven by increases in operating expenses including salaries, wages and benefits and selling expenses, offset in part by lower costs for aircraft fuel and related taxes.
Revenue
In the second quarter of 2025, we reported total operating revenues of $14.4 billion, an increase of $58 million, or 0.4%, from the second quarter of 2024. Passenger revenue was $13.1 billion, a decrease of $79 million, or 0.6%, in the second quarter of 2025 from the second quarter of 2024. Our passenger revenue in the second quarter of 2025 was impacted by softness in domestic demand for air travel, offset in part by continued strength in international air travel, particularly in the Atlantic region. Atlantic PRASM increased 5.0% in the second quarter of 2025 as compared to the second quarter of 2024.
Cargo revenue increased $16 million, or 8.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a 6.9% increase in cargo yield and a 1.2% increase in cargo ton miles.
Other operating revenue increased $121 million, or 13.0%, in the second quarter of 2025 from the second quarter of 2024, driven primarily by higher revenue associated with our loyalty program. During the three months ended June 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $1.41 billion and $1.36 billion, respectively.
Our total revenue per available seat mile (TRASM) was 18.54 cents in the second quarter of 2025, a 2.7% decrease as compared to 19.05 cents in the second quarter of 2024.
Fuel
Aircraft fuel and related taxes was $2.7 billion in the second quarter of 2025, which was $398 million, or 13.0%, lower as compared to the second quarter of 2024. This was primarily due to a 15.3% decrease in the average price per gallon of aircraft fuel including related taxes to $2.29 in the second quarter of 2025 from $2.70 in the second quarter of 2024, offset in part by a 2.7% increase in gallons of fuel consumed due to increased capacity.
As of June 30, 2025, 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. 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 2024 Form 10-K.
Other Costs
We remain committed to actively managing our cost structure, which we believe is necessary in an industry whose economic prospects are heavily dependent upon two variables we cannot control: general economic conditions and the price of fuel. Additionally, we continue to focus on initiatives to reengineer our business through the use of digital solutions, process enhancements and procurement transformation and we intend to continue to invest in reengineering our business through the remainder of 2025 and beyond to build an even more efficient airline and continue to manage costs while delivering a better experience for our customers and team.
Our 2025 second quarter total operating cost per available seat mile (CASM) was 17.08 cents, a decrease of 0.8% from 17.21 cents in the second quarter of 2024. The decrease in CASM was primarily driven by lower aircraft fuel costs, offset in part by higher costs for salaries, wages and benefits and selling expenses.
Our 2025 second quarter CASM excluding net special items and fuel was 13.59 cents, an increase of 3.4% from 13.14 cents in the second quarter of 2024, which was primarily driven by higher costs for salaries, wages and benefits and selling expenses.
For a reconciliation of CASM to CASM excluding net special items and fuel, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
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Liquidity
As of June 30, 2025, we had $12.0 billion in total available liquidity, consisting of $8.6 billion in unrestricted cash and short-term investments, and $3.4 billion in total undrawn capacity under revolving credit and other facilities.
During the first six months of 2025, we completed the following financing transactions (see Note 1 and Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on 2025 financing activities):
•amended the AAdvantage term loan credit and guaranty agreement to reduce the applicable interest rate margin and reduce the scheduled quarterly principal amortization amount;
•issued $1.0 billion of incremental term loans pursuant to the AAdvantage term loan credit guaranty agreement (2025 AAdvantage Term Loan Facility), as amended;
•prepaid $487 million of the outstanding principal amounts of certain equipment notes issued under enhanced equipment trust certificates (EETCs);
•received $432 million of gross proceeds pursuant to special facility revenue bonds issued by the Tulsa Municipal Airport Trust (TMAT), of which a portion was used to fund the redemption of other bonds related to TMAT and the remaining amount will be used to finance the cost of improvements at American’s overhaul and maintenance base at Tulsa International Airport;
•prepaid $308 million toward portions of the outstanding principal amounts of the 10.75% senior secured IP notes (the IP Notes) and the 10.75% senior secured LGA/DCA notes (LGA/DCA Notes); and
•issued $712 million of equipment loans and other notes payable in connection with the financing of certain aircraft.
American Eagle Flight 5342
On January 29, 2025, American Eagle flight 5342 was involved in a fatal accident in Washington, D.C. The Bombardier CRJ 700 aircraft operated by PSA Airlines, Inc. was en route to Washington, D.C. from Wichita, Kansas when it was involved in a midair collision near Ronald Reagan Washington National Airport. We estimate that the accident reduced first quarter 2025 total operating revenues by approximately $200 million, of which the impacted revenue is not covered by insurance. American has industry standard insurance coverage for this incident and is continuing to assess the full impact on its business resulting from the accident.
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Reconciliation of GAAP to Non-GAAP Financial Measures
We sometimes use financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordance with accounting principles generally accepted in the U.S. (GAAP) to understand and evaluate our current operating performance and to allow for period-to-period comparisons. We believe these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. We are providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.
The following table presents the reconciliation of pre-tax income (GAAP measure) to pre-tax income excluding net special items (non-GAAP measure). Management uses this non-GAAP financial measure to evaluate our current operating performance and to allow for period-to-period comparisons. As net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items provides management with an additional tool to understand our core operating performance.
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
(In millions)
Reconciliation of Pre-Tax Income Excluding Net Special Items:
Pre-tax income – GAAP$838 $1,028 $189 $615 
Pre-tax net special items (1):
Mainline operating special items, net47 — 118 70 
Nonoperating special items, net(16)12 32 58 
Total pre-tax net special items31 12 150 128 
Pre-tax income excluding net special items$869 $1,040 $339 $743 
(1)See Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on net special items.
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Additionally, the table below presents the reconciliation of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non-GAAP measure) and CASM to CASM excluding net special items and fuel. Management uses total operating costs excluding net special items and fuel and CASM excluding net special items and fuel to evaluate our current operating performance and for period-to-period comparisons. The price of fuel, over which we have no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude net special items and fuel provides management with an additional tool to understand and analyze our non-fuel costs and core operating performance. Amounts may not recalculate due to rounding.
 Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Reconciliation of CASM Excluding Net Special Items and Fuel:
(In millions)
Total operating expenses – GAAP$13,257 $12,950 $26,079 $25,513 
Operating net special items (1):
Mainline operating special items, net
(47)— (118)(70)
Aircraft fuel and related taxes(2,663)(3,061)(5,250)(6,042)
Total operating expenses, excluding net special items and fuel$10,547 $9,889 $20,711 $19,401 
Total available seat miles (ASM)77,636 75,263 147,539 145,779 
(In cents)
CASM17.08 17.21 17.68 17.50 
Operating net special items per ASM (1):
Mainline operating special items, net (0.06)— (0.08)(0.05)
Aircraft fuel and related taxes per ASM(3.43)(4.07)(3.56)(4.14)
CASM, excluding net special items and fuel13.59 13.14 14.04 13.31 
(1)See Note 2 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information on net special items.
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AAG’s Results of Operations
Operating Statistics
The table below sets forth selected operating data for the three and six months ended June 30, 2025 and 2024. Amounts may not recalculate due to rounding.
 Three Months Ended June 30,Increase
(Decrease)		Six Months Ended
June 30,		Increase
(Decrease)
 2025202420252024
Revenue passenger miles (millions) (a)
65,762 65,144 0.9%122,118 122,617 (0.4)%
Available seat miles (millions) (b)
77,636 75,263 3.2%147,539 145,779 1.2%
Passenger load factor (percent) (c)
84.7 86.6 (1.9)pts82.8 84.1 (1.3)pts
Yield (cents) (d)
19.96 20.27 (1.5)%20.07 20.11 (0.2)%
Passenger revenue per available seat mile (cents) (e)
16.90 17.54 (3.6)%16.62 16.92 (1.8)%
Total revenue per available seat mile (cents) (f)
18.54 19.05 (2.7)%18.26 18.46 (1.0)%
Fuel consumption (gallons in millions)
1,163 1,132 2.7%2,206 2,174 1.4%
Average aircraft fuel price including related taxes (dollars per gallon)
2.29 2.70 (15.3)%2.38 2.78 (14.3)%
Total operating cost per available seat mile (cents) (g)
17.08 17.21 (0.8)%17.68 17.50 1.0%
Aircraft at end of period (h)
1,539 1,529 0.7%1,539 1,529 0.7%
Full-time equivalent employees at end of period
138,100 137,400 0.5%138,100 137,400 0.5%
(a)Revenue passenger mile (RPM) – A basic measure of sales volume. One RPM represents one passenger flown one mile.
(b)Available seat mile (ASM) – A basic measure of production. One ASM represents one seat flown one mile.
(c)Passenger load factor – The percentage of available seats that are filled with revenue passengers.
(d)Yield – A measure of airline revenue derived by dividing passenger revenue by RPMs.
(e)Passenger revenue per available seat mile (PRASM) – Passenger revenue divided by ASMs.
(f)Total revenue per available seat mile (TRASM) – Total revenues divided by ASMs.
(g)Total operating cost per available seat mile (CASM) – Total operating expenses divided by ASMs.
(h)Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above are six regional aircraft in temporary storage as of June 30, 2025 as follows: four Bombardier CRJ 900 and two Embraer 145.
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Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
Operating Revenues
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Passenger$13,123 $13,202 $(79)(0.6)
Cargo211 195 16 8.2
Other1,058 937 121 13.0
Total operating revenues$14,392 $14,334 $58 0.4
This table presents our passenger revenue and the period-over-period change in certain operating statistics:
  
Increase (Decrease)
vs. Three Months Ended June 30, 2024
 Three Months Ended
June 30, 2025		RPMsASMs
Load
Factor
Passenger
Yield
PRASM
 (In millions)     
Passenger revenue$13,123 0.9%3.2%(1.9)pts(1.5)%(3.6)%
Passenger revenue decreased $79 million, or 0.6%, in the second quarter of 2025 from the second quarter of 2024. Our passenger revenue in the second quarter of 2025 was impacted by softness in domestic demand for air travel, offset in part by continued strength in international air travel, particularly in the Atlantic region. Atlantic PRASM increased 5.0% in the second quarter of 2025 as compared to the second quarter of 2024.
Cargo revenue increased $16 million, or 8.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a 6.9% increase in cargo yield and a 1.2% increase in cargo ton miles.
Other operating revenue increased $121 million, or 13.0%, in the second quarter of 2025 from the second quarter of 2024, driven primarily by higher revenue associated with our loyalty program. During the three months ended June 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $1.41 billion and $1.36 billion, respectively.
Operating Expenses
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Aircraft fuel and related taxes$2,663 $3,061 $(398)(13.0)
Salaries, wages and benefits4,382 3,953 429 10.9
Regional expenses1,331 1,268 63 5.0
Maintenance, materials and repairs927 950 (23)(2.5)
Other rent and landing fees894 834 60 7.2
Aircraft rent303 314 (11)(3.8)
Selling expenses535 456 79 17.5
Depreciation and amortization476 474 2 0.5
Mainline operating special items, net47 — 47  nm
Other1,699 1,640 59 3.6
Total operating expenses$13,257 $12,950 $307 2.4
Aircraft fuel and related taxes decreased $398 million, or 13.0%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a 15.3% decrease in the average price per gallon of aircraft fuel including related taxes to $2.29 in the second quarter of 2025 from $2.70 in the second quarter of 2024, offset in part by a 2.7% increase in gallons of fuel consumed due to increased capacity.
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Salaries, wages and benefits increased $429 million, or 10.9%, in the second quarter of 2025 from the second quarter of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in our other labor agreements.
Regional expenses increased $63 million, or 5.0%, in the second quarter of 2025 from the second quarter of 2024, primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased 11.7% in the second quarter of 2025 from the second quarter of 2024.
Maintenance, materials and repairs decreased $23 million, or 2.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a decrease in the volume of engine overhauls, offset in part by increased costs for component part repairs and airframe heavy checks driven by higher volume.
Other rent and landing fees increased $60 million, or 7.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.
Selling expenses increased $79 million, or 17.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in credit card fees driven by higher rates. Higher advertising expenses also contributed to the increase in selling expenses.
Operating Special Items, Net
 Three Months Ended June 30,
 20252024
(In millions)
Litigation reserve adjustments$47 $— 
Nonoperating Results
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Interest income$100 $128 $(28)(21.5)
Interest expense, net(433)(486)53 (10.9)
Other income, net36 2 34  nm
Total nonoperating expense, net$(297)$(356)$59 (16.6)
Interest income decreased $28 million, or 21.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to lower interest rates that reduced returns on our short-term investments. Interest expense, net decreased $53 million, or 10.9%, in the second quarter of 2025 from the second quarter of 2024, primarily due to lower interest rates on our variable-rate debt instruments and lower outstanding debt subsequent to the second quarter of 2024, as we continue our efforts to strengthen the balance sheet.
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.
In the second quarter of 2024, other nonoperating income, net primarily included $24 million of non-service related pension and other postretirement benefit plan income, offset in part by $12 million of net special charges.
Income Taxes
In the second quarter of 2025, we recorded an income tax provision of $239 million. Substantially all of our income 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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Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Operating Revenues
 Six Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Passenger$24,514 $24,661 $(147)(0.6)
Cargo400 382 18 4.7
Other2,029 1,861 168 9.0
Total operating revenues$26,943 $26,904 $39 0.1
This table presents our passenger revenue and the period-over-period change in certain operating statistics: 
  
Increase (Decrease)
vs. Six Months Ended June 30, 2024
 Six Months Ended
June 30, 2025		RPMsASMs
Load
Factor
Passenger
Yield
PRASM
 (In millions)     
Passenger revenue$24,514 (0.4)%1.2%(1.3)pts(0.2)%(1.8)%
Passenger revenue decreased $147 million, or 0.6%, in the first six months of 2025 from the first six months of 2024. Our passenger revenue in the first six months of 2025 was impacted by softness in domestic demand for air travel and the American Eagle Flight 5342 accident, offset in part by continued strength in international air travel, particularly in the Atlantic and Pacific regions. Atlantic and Pacific PRASM increased 7.5% and 2.7%, respectively, in the first six months of 2025 as compared to the first six months of 2024.
Cargo revenue increased $18 million, or 4.7%, in the first six months of 2025 from the first six months of 2024, primarily due to a 4.2% increase in cargo yield.
Other operating revenue increased $168 million, or 9.0%, in the first six months of 2025 from the first six months of 2024, driven primarily by higher revenue associated with our loyalty program. During the six months ended June 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $3.2 billion and $3.0 billion, respectively.
Operating Expenses
 Six Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Aircraft fuel and related taxes$5,250 $6,042 $(792)(13.1)
Salaries, wages and benefits8,604 7,820 784 10.0
Regional expenses2,683 2,469 214 8.7
Maintenance, materials and repairs1,848 1,834 14 0.8
Other rent and landing fees1,720 1,653 67 4.1
Aircraft rent600 642 (42)(6.6)
Selling expenses985 864 121 14.0
Depreciation and amortization944 944 — —
Mainline operating special items, net118 70 48 67.9
Other3,327 3,175 152 4.8
Total operating expenses$26,079 $25,513 $566 2.2
Aircraft fuel and related taxes decreased $792 million, or 13.1%, in the first six months of 2025 from the first six months of 2024, primarily due to a 14.3% decrease in the average price per gallon of aircraft fuel including related taxes to $2.38 in the first six months of 2025 from $2.78 in the first six months of 2024, offset in part by a 1.4% increase in gallons of fuel consumed due to increased capacity.
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Salaries, wages and benefits increased $784 million, or 10.0%, in the first six months of 2025 from the first six months of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in our other labor agreements.
Regional expenses increased $214 million, or 8.7%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in regional flight operations as regional capacity, as measured by ASMs, increased 13.4% in the first six months of 2025 from the first six months of 2024. In addition, higher maintenance, materials and repair costs driven by an increase in the volume of airframe heavy checks and engine overhauls also contributed to the increase in regional expenses.
Maintenance, materials and repairs increased $14 million, or 0.8%, in the first six months of 2025 from the first six months of 2024, primarily due to increased costs for component part repairs and airframe heavy checks driven by higher volume, offset in part by a decrease in the volume of engine overhauls.
Other rent and landing fees increased $67 million, or 4.1%, in the first six months of 2025 from the first six months of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.
Aircraft rent decreased $42 million, or 6.6%, in the first six months of 2025 from the first six months of 2024, primarily due to decreased rental payments associated with aircraft lease extensions.
Selling expenses increased $121 million, or 14.0%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in advertising expenses. Higher credit card fees driven by higher rates also contributed to the increase in selling expenses.
Operating Special Items, Net
 Six Months Ended June 30,
 20252024
 (In millions)
Litigation reserve adjustments$77 $— 
Labor contract expenses (1)
31 57 
Severance expenses5 13 
Other operating special items, net5 — 
Mainline operating special items, net$118 $70 
(1)Labor contract expenses for the six months ended June 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with our mainline maintenance and fleet service team members.
Labor contract expenses for the six months ended June 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline passenger service team members, including a one-time signing bonus.
Nonoperating Results
 Six Months Ended June 30,Increase
(Decrease)		Percent
Decrease
 20252024
 (In millions, except percentage changes)
Interest income$194 $246 $(52)(20.9)
Interest expense, net(861)(984)123 (12.4)
Other expense, net(8)(38)30 (80.0)
Total nonoperating expense, net$(675)$(776)$101 (13.0)
Interest income decreased $52 million, or 20.9%, in the first six months of 2025 from the first six months of 2024, primarily due to lower interest rates that reduced returns on our short-term investments. Interest expense, net decreased
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$123 million, or 12.4%, in the first six months of 2025 from the first six months of 2024, primarily due to lower interest rates on our variable-rate debt instruments and lower outstanding debt subsequent to the second quarter of 2024, as we continue our efforts to strengthen the balance sheet.
In the first six months of 2025, other nonoperating expense, net included $32 million of net special charges primarily for 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.
In the first six months of 2024, other nonoperating expense, net included $58 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $10 million of foreign currency losses, offset in part by $50 million of non-service related pension and other postretirement benefit plan income.
Income Taxes
In the first six months of 2025, we recorded an income tax provision of $63 million. Substantially all of our income 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.
American’s Results of Operations
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
Operating Revenues
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Passenger$13,123 $13,202 $(79)(0.6)
Cargo211 195 16 8.2
Other1,056 936 120 12.9
Total operating revenues$14,390 $14,333 $57 0.4
Passenger revenue decreased $79 million, or 0.6%, in the second quarter of 2025 from the second quarter of 2024. American’s passenger revenue in the second quarter of 2025 was impacted by softness in domestic demand for air travel, offset in part by continued strength in international air travel, particularly in the Atlantic region.
Cargo revenue increased $16 million, or 8.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to an increase in cargo yield and an increase in cargo ton miles.
Other operating revenue increased $120 million, or 12.9%, in the second quarter of 2025 from the second quarter of 2024, driven primarily by higher revenue associated with American’s loyalty program. During the three months ended June 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $1.41 billion and $1.36 billion, respectively.
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Operating Expenses 
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Aircraft fuel and related taxes$2,663 $3,061 $(398)(13.0)
Salaries, wages and benefits4,379 3,950 429 10.9
Regional expenses1,325 1,260 65 5.2
Maintenance, materials and repairs927 950 (23)(2.5)
Other rent and landing fees894 834 60 7.2
Aircraft rent303 314 (11)(3.8)
Selling expenses535 456 79 17.5
Depreciation and amortization475 472 3 0.7
Mainline operating special items, net47 — 47 nm
Other1,700 1,642 58 3.6
Total operating expenses$13,248 $12,939 $309 2.4
Aircraft fuel and related taxes decreased $398 million, or 13.0%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a 15.3% decrease in the average price per gallon of aircraft fuel including related taxes to $2.29 in the second quarter of 2025 from $2.70 in the second quarter of 2024, offset in part by a 2.7% increase in gallons of fuel consumed due to increased capacity.
Salaries, wages and benefits increased $429 million, or 10.9%, in the second quarter of 2025 from the second quarter of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in American’s other labor agreements.
Regional expenses increased $65 million, or 5.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to an increase in regional flight operations and costs at American’s regional carriers.
Maintenance, materials and repairs decreased $23 million, or 2.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to a decrease in the volume of engine overhauls, offset in part by increased costs for component part repairs and airframe heavy checks driven by higher volume.
Other rent and landing fees increased $60 million, or 7.2%, in the second quarter of 2025 from the second quarter of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.
Selling expenses increased $79 million, or 17.5%, in the second quarter of 2025 from the second quarter of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in credit card fees driven by higher rates. Higher advertising expenses also contributed to the increase in selling expenses.
Operating Special Items, Net
Three Months Ended June 30,
20252024
(In millions)
Litigation reserve adjustments$47 $— 
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Nonoperating Results
 Three Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Interest income$247 $275 $(28)(10.1)
Interest expense, net(440)(511)71 (13.7)
Other income, net36 2 34 nm
Total nonoperating expense, net$(157)$(234)$77 (32.6)
Interest income decreased $28 million, or 10.1%, in the second quarter of 2025 from the second quarter of 2024, primarily due to lower interest rates that reduced returns on American’s short-term investments. Interest expense, net decreased $71 million, or 13.7%, in the second quarter of 2025 from the second quarter of 2024, primarily due to lower interest rates on its variable-rate debt instruments and lower outstanding debt subsequent to the second quarter of 2024, as American continues its efforts to strengthen the balance sheet.
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.
In the second quarter of 2024, other nonoperating income, net primarily included $24 million of non-service related pension and other postretirement benefit plan income, offset in part by $12 million of net special charges.
Income Taxes
American is a member of AAG’s consolidated federal and certain state income tax returns.
In the second quarter of 2025, American recorded an income tax provision of $267 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.
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Operating Revenues 
 Six Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Passenger$24,514 $24,661 $(147)(0.6)
Cargo400 382 18 4.7
Other2,026 1,859 167 8.9
Total operating revenues$26,940 $26,902 $38 0.1
Passenger revenue decreased $147 million, or 0.6%, in the first six months of 2025 from the first six months of 2024. American’s passenger revenue in the first six months of 2025 was impacted by softness in domestic demand for air travel and the American Eagle Flight 5342 accident, offset in part by continued strength in international air travel, particularly in the Atlantic and Pacific regions.
Cargo revenue increased $18 million, or 4.7%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in cargo yield.
Other operating revenue increased $167 million, or 8.9%, in the first six months of 2025 from the first six months of 2024, driven primarily by higher revenue associated with American’s loyalty program. During the six months ended June 30, 2025 and 2024, cash payments from co-branded credit card and other partners were $3.2 billion and $3.0 billion, respectively.
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Operating Expenses
 Six Months Ended June 30,Increase
(Decrease)		Percent
Increase
(Decrease)
 20252024
 (In millions, except percentage changes)
Aircraft fuel and related taxes$5,250 $6,042 $(792)(13.1)
Salaries, wages and benefits8,599 7,816 783 10.0
Regional expenses2,674 2,457 217 8.8
Maintenance, materials and repairs1,848 1,834 14 0.8
Other rent and landing fees1,720 1,653 67 4.1
Aircraft rent600 642 (42)(6.6)
Selling expenses985 864 121 14.0
Depreciation and amortization941 939 2 0.2
Mainline operating special items, net118 70 48 67.9
Other3,330 3,178 152 4.8
Total operating expenses$26,065 $25,495 $570 2.2
Aircraft fuel and related taxes decreased $792 million, or 13.1%, in the first six months of 2025 from the first six months of 2024, primarily due to a 14.3% decrease in the average price per gallon of aircraft fuel including related taxes to $2.38 in the first six months of 2025 from $2.78 in the first six months of 2024, offset in part by a 1.4% increase in gallons of fuel consumed due to increased capacity.
Salaries, wages and benefits increased $783 million, or 10.0%, in the first six months of 2025 from the first six months of 2024, primarily due to contractual wage rate increases and higher costs for benefit-related items associated with newly ratified and extended labor agreements reached in 2024, as well as annual contractual wage rate increases in American’s other labor agreements.
Regional expenses increased $217 million, or 8.8%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in regional flight operations and costs at American’s regional carriers.
Maintenance, materials and repairs increased $14 million, or 0.8%, in the first six months of 2025 from the first six months of 2024, primarily due to increased costs for component part repairs and airframe heavy checks driven by higher volume, offset in part by a decrease in the volume of engine overhauls.
Other rent and landing fees increased $67 million, or 4.1%, in the first six months of 2025 from the first six months of 2024, primarily due to rate increases at certain airports, offset in part by a decrease in leased engines.
Aircraft rent decreased $42 million, or 6.6%, in the first six months of 2025 from the first six months of 2024, primarily due to decreased rental payments associated with aircraft lease extensions.
Selling expenses increased $121 million, or 14.0%, in the first six months of 2025 from the first six months of 2024, primarily due to an increase in commissions expense, driven by higher costs resulting from renegotiated agency contracts, as well as an increase in advertising expenses. Higher credit card fees driven by higher rates also contributed to the increase in selling expenses.
Operating Special Items, Net
Six Months Ended June 30,
20252024
(In millions)
Litigation reserve adjustments$77 $— 
Labor contract expenses (1)
31 57 
Severance expenses5 13 
Other operating special items, net 5 — 
Mainline operating special items, net$118 $70 
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(1)Labor contract expenses for the six months ended June 30, 2025 included a one-time charge for adjustments to vacation accruals resulting from pay rate increases effective January 1, 2025, related to the ratification of the contract extension in the fourth quarter of 2024 with American’s mainline maintenance and fleet service team members.
Labor contract expenses for the six months ended June 30, 2024 included one-time charges resulting from the ratification of a new collective bargaining agreement with American’s mainline passenger service team members, including a one-time signing bonus.
Nonoperating Results 
 Six Months Ended June 30,Increase
(Decrease)		Percent
Decrease
 20252024
 (In millions, except percentage changes)
Interest income$483 $537 $(54)(9.9)
Interest expense, net(893)(1,031)138 (13.3)
Other expense, net(8)(39)31 (79.3)
Total nonoperating expense, net$(418)$(533)$115 (21.6)
Interest income decreased $54 million, or 9.9% in the first six months of 2025 from the first six months of 2024, primarily due to lower interest rates that reduced returns on American’s short-term investments. Interest expense, net decreased $138 million, or 13.3%, in the first six months of 2025 from the first six months of 2024, primarily due to lower interest rates on its variable-rate debt instruments and lower outstanding debt subsequent to the second quarter of 2024, as American continues its efforts to strengthen the balance sheet.
In the first six months of 2025, other nonoperating expense, net included $32 million of net special charges primarily for 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.
In the first six months of 2024, other nonoperating expense, net included $58 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $10 million of foreign currency losses, offset in part by $50 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 first six months of 2025, American recorded an income tax provision of $123 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.
Liquidity and Capital Resources
Liquidity
At June 30, 2025, AAG had $12.0 billion in total available liquidity and $807 million in restricted cash and short-term investments. Additional detail regarding our available liquidity is provided in the table below (in millions): 
 AAGAmerican
 June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Cash$833 $804 $824 $795 
Short-term investments7,740 6,180 7,737 6,177 
Undrawn facilities3,400 3,289 3,400 3,289 
Total available liquidity$11,973 $10,273 $11,961 $10,261 
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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, revolving credit facilities and spare engine EETCs) contain loan to value (LTV) or collateral coverage ratio covenants and certain agreements require us to appraise the related collateral annually or semiannually. 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. Our 5.50% senior secured notes due 2026, 5.75% senior secured notes due 2029 and the 2021 and 2025 AAdvantage Term Loan Facilities (collectively, the AAdvantage Financing) contain 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 $3.4 billion and $3.3 billion for the first six months of 2025 and 2024, respectively, a $111 million period-over-period increase driven by net working capital changes, offset in part by lower profitability in the first six months of 2025 as compared to the same period in 2024.
Investing Activities
Our net cash used in investing activities was $2.5 billion and $1.9 billion for the first six months of 2025 and 2024, respectively.
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 CRJ 900 aircraft, two Embraer 175 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 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).
Our principal investing activities in the first six months of 2024 included $1.5 billion of capital expenditures, which primarily related to the purchase of 12 Embraer 175 aircraft, three Boeing 737 MAX aircraft, two Airbus A321neo aircraft, 32 aircraft engines and aircraft purchase deposits. Additionally, we had $833 million in net purchases of short-term investments. These cash outflows were offset in part by $353 million of proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.
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Financing Activities
Our net cash used in financing activities was $912 million and $1.4 billion for the first six months of 2025 and 2024, respectively.
Our principal financing activities in the first six months of 2025 primarily included $2.4 billion in 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.
Our principal financing activities in the first six months of 2024 included $1.8 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $527 million borrowed in connection with the financing of certain aircraft.
American
Operating Activities
American’s net cash provided by operating activities was $3.3 billion for each of the first six months of 2025 and 2024. American’s operating cash flow in the first six months of 2025 was flat compared to the first six months of 2024 driven by net working capital changes, offset by lower profitability in the first six months of 2025 as compared to the same period in 2024.
Investing Activities
American’s net cash used in investing activities was $2.4 billion and $1.9 billion for the first six months of 2025 and 2024, respectively.
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 CRJ 900 aircraft, two Embraer 175 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.
American’s principal investing activities in the first six months of 2024 included $1.4 billion of capital expenditures, which primarily related to the purchase of 12 Embraer 175 aircraft, three Boeing 737 MAX aircraft, two Airbus A321neo aircraft, 32 aircraft engines and aircraft purchase deposits. Additionally, American had $831 million in net purchases of short-term investments. These cash outflows were offset in part by $353 million of 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 $817 million and $1.3 billion for the first six months of 2025 and 2024, respectively.
American’s principal financing activities in the first six months of 2025 primarily included $2.4 billion in 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.
American’s principal financing activities in the first six months of 2024 included $1.8 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $527 million borrowed in connection with the financing of certain aircraft.
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Commitments
Significant Indebtedness
As of June 30, 2025, AAG had $29.6 billion in long-term debt, including current maturities of $4.5 billion. As of June 30, 2025, American had $24.8 billion in long-term debt, including current maturities of $3.5 billion. All material changes in our significant indebtedness since our 2024 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, 2025, we had definitive purchase agreements for the acquisition of the following new aircraft (1): 
Remainder
of 2025		202620272028 and ThereafterTotal
Airbus
A320neo Family5 22 23 101 151 
Boeing
737 MAX Family10 16 — 115 141 
787 Family7 1 3 15 26 
Embraer
17510 20 15 45 90 
* Portions of this exhibit have been omitted in accordance with Item 601(b)(10) of Regulation S-K.
** Portions of this exhibit have been redacted in accordance with Item 601(a)(6) 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 24, 2025By: /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 24, 2025By: /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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