American Airlines Group Inc.

American Airlines Group Inc. is the holding company for American Airlines and its regional affiliates, including Envoy, PSA and Piedmont. The business operates a large scheduled air transportation network for passengers and cargo, centered on major hubs in the United States and supported by American Eagle regional flying. It serves more than 350 destinations worldwide and uses a mix of mainline, regional and partner-gateway flying to connect domestic and international traffic. The company also monetizes a loyalty ecosystem through AAdvantage and related co-branded partner relationships, which is an important part of its revenue mix.

6,7 %

0,2 %

+0,8 %

0.50

0.50

— American Airlines Group Inc.
%
Passenger air transportation91% Scheduled domestic and international passenger flights sold through direct and third-party channels.
Loyalty and other ancillary revenue7% AAdvantage-related partner payments, redemptions, seat fees and other non-ticket revenue.
Cargo2% Freight and mail transport across the network, including time-sensitive shipments.

American sells primarily to leisure travelers, business travelers and corporate travel programs that need scheduled...

  • Leisure passengersprimary

    Buy domestic and international flights for discretionary travel, with demand sensitive to fares, schedules and consumer confidence.

  • Business and corporate travelersprimary

    Buy higher-yield tickets and value frequency, nonstop options, on-time performance and network breadth.

  • Connecting passengersprimary

    Use American’s hubs and American Eagle feeders to connect smaller markets to the broader network.

  • Cargo and mail customerssecondary

    Ship freight and mail that require network coverage, reliability and time-sensitive delivery.

  • Loyalty program members and partnerssecondary

    Redeem awards and generate partner cash flows through co-branded cards, hotels, car rentals and other partners.

American’s business is anchored in the United States, where substantially all income before taxes is attributable and...

  • •United States is the core market and the source of substantially all pretax income
  • •Major hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C.
  • •International flying spans Canada, Mexico, the Caribbean, Central and South America, Europe and Asia-Pacific
  • •Partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo extend the network
  • •Atlantic and Pacific demand has been relatively stronger than Latin America in recent periods
  • •Geographic mix matters because long-haul routes, hub banks and foreign demand affect yields and load factors

American’s strategy is to defend and grow its network by combining mainline flying, regional feeders and partner...

01
Network optimization and route growthmedium-term

A broader and better-timed network improves connectivity, supports higher load factors and helps defend share against network and low-cost competitors.

02
Direct distribution and NDC adoptionshort-term

Moving customers away from expensive third-party channels can lower selling costs and improve control over ancillary revenue.

03
Fleet modernizationmedium-term

Newer aircraft can improve fuel efficiency, range and product quality while supporting international expansion.

04
Loyalty monetizationmedium-term

AAdvantage partner payments and redemptions provide a recurring revenue stream and strengthen customer retention.

American is exposed to cyclical demand because both leisure and business travel are discretionary and sensitive to...

high

Cyclical travel demand

Passenger revenue depends heavily on discretionary business and leisure spending, which falls in weaker economic conditions.

Scope
Passenger ticket revenue and load factors
Materiality
high
high

Intense fare competition

American competes with network, low-cost and ultra-low-cost carriers on many routes, limiting pricing power.

Scope
Domestic and international passenger yields
Materiality
high
high

Government and regulatory disruption

Airline operations depend on air traffic control, security and regulatory approvals; shutdowns or policy changes can reduce capacity.

Scope
Hub operations and schedule reliability
Materiality
high
high

Fuel and operating cost volatility

Jet fuel, labor, maintenance and airport-related costs can move quickly and are difficult to fully pass through.

Scope
Operating margins
Materiality
high
medium

Loyalty and distribution dependence

AAdvantage partner economics and third-party channel functionality affect non-ticket revenue and customer acquisition costs.

Scope
Other revenue and selling expenses
Materiality
medium
Passenger revenue recognition
Revenue timing and deferred revenue
Loyalty program accounting
Other operating revenue and contract liabilities
Pension and retiree benefits
Operating expense and equity
Deferred tax assets
Income tax expense and net assets
Aircraft and lease transactions
Operating expense, investing cash flow and leverage

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: 11/08/2026