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Reconciliation of GAAP Financial Information to Non-GAAP Financial Information American Airlines Group Inc. (the Company) sometimes uses financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordance with GAAP to understand and evaluate its current operating performance and to allow for period-to-period comparisons. The Company believes 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. The Company is providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis. The tables below present the reconciliations of the following GAAP measures to their non-GAAP measures: - Operating Income (GAAP measure) to Operating Income Excluding Net Special Items (non-GAAP measure) - Operating Margin (GAAP measure) to Operating Margin Excluding Net Special Items (non-GAAP measure) - Pre-Tax Income (Loss) (GAAP measure) to Pre-Tax Income (Loss) Excluding Net Special Items (non-GAAP measure) - Pre-Tax Margin (GAAP measure) to Pre-Tax Margin Excluding Net Special Items (non-GAAP measure) - Net Income (Loss) (GAAP measure) to Net Income (Loss) Excluding Net Special Items (non-GAAP measure) - Basic and Diluted Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items (non-GAAP measure) Management uses these non-GAAP financial measures to evaluate the Company's 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 the Company’s core operating performance. Additionally, the tables below present the reconciliations of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non- GAAP measure) and total operating costs per available seat mile (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 the Company's current operating performance and for period-to-period comparisons. The price of fuel, over which the Company has no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude fuel and net special items provides management with an additional tool to understand and analyze the Company’s non-fuel costs and core operating performance. 10
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Reconciliation of Operating Income Excluding Net Special Items 3 Months Ended September 30, Percent Increase 9 Months Ended September 30, Percent Increase 2025 2024 (Decrease) 2025 2024 (Decrease) (in millions) (in millions) Operating income as reported $ 151 $ 89 $ 1,015 $ 1,480 Operating net special items: Mainline operating special items, net (1) 7 554 125 625 Operating income excluding net special items $ 158 $ 643 (75.5%) $ 1,140 $ 2,105 (45.8%) Calculation of Operating Margin Operating income as reported $ 151 $ 89 $ 1,015 $ 1,480 Total operating revenues as reported $ 13,691 $ 13,647 $ 40,634 $ 40,551 Operating margin 1.1% 0.7% 2.5% 3.7% Calculation of Operating Margin Excluding Net Special Items Operating income excluding net special items $ 158 $ 643 $ 1,140 $ 2,105 Total operating revenues as reported $ 13,691 $ 13,647 $ 40,634 $ 40,551 Operating margin excluding net special items 1.2% 4.7% 2.8% 5.2% Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items Pre-tax income (loss) as reported $ (142) $ (256) $ 48 $ 359 Pre-tax net special items: Mainline operating special items, net (1) 7 554 125 625 Nonoperating special items, net (2) (4) (27) 28 30 Total pre-tax net special items 3 527 153 655 Pre-tax income (loss) excluding net special items $ (139) $ 271 nm $ 201 $ 1,014 (80.2%) Calculation of Pre-Tax Margin Pre-tax income (loss) as reported $ (142) $ (256) $ 48 $ 359 Total operating revenues as reported $ 13,691 $ 13,647 $ 40,634 $ 40,551 Pre-tax margin (1.0%) (1.9%) 0.1% 0.9% Calculation of Pre-Tax Margin Excluding Net Special Items Pre-tax income (loss) excluding net special items $ (139) $ 271 $ 201 $ 1,014 Total operating revenues as reported $ 13,691 $ 13,647 $ 40,634 $ 40,551 Pre-tax margin excluding net special items (1.0%) 2.0% 0.5% 2.5% 11
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3 Months Ended September 30, Percent Increase 9 Months Ended September 30, Percent Increase Reconciliation of Net Income (Loss) Excluding Net Special Items 2025 2024 (Decrease) 2025 2024 (Decrease) (in millions, except share and per share amounts) (in millions, except share and per share amounts) Net income (loss) as reported $ (114) $ (149) $ 12 $ 256 Net special items: Total pre-tax net special items (1), (2) 3 527 153 655 Net tax effect of net special items - (173) (34) (158) Net income (loss) excluding net special items $ (111) $ 205 nm $ 131 $ 753 (82.6%) Reconciliation of Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items Net income (loss) excluding net special items $ (111) $ 205 $ 131 $ 753 Shares used for computation (in thousands): Basic 660,358 657,424 659,788 656,745 Diluted 660,358 720,086 660,784 720,503 Earnings (loss) per share excluding net special items: Basic $ (0.17) $ 0.31 $ 0.20 $ 1.15 Diluted $ (0.17) $ 0.30 $ 0.20 $ 1.10 Reconciliation of Total Operating Costs per ASM Excluding Net Special Items and Fuel Total operating expenses as reported $ 13,540 $ 13,558 $ 39,619 $ 39,071 Operating net special items: Mainline operating special items, net (1) (7) (554) (125) (625) Total operating expenses excluding net special items 13,533 13,004 39,494 38,446 Aircraft fuel and related taxes (2,767) (2,874) (8,017) (8,916) Total operating expenses excluding net special items and fuel $ 10,766 $ 10,130 $ 31,477 $ 29,530 (in cents) (in cents) Total operating expenses per ASM as reported 17.49 17.92 17.61 17.64 Operating net special items per ASM: Mainline operating special items, net (1) (0.01) (0.73) (0.06) (0.28) Total operating expenses per ASM excluding net special items 17.48 17.19 17.56 17.36 Aircraft fuel and related taxes per ASM (3.58) (3.80) (3.56) (4.03) Total operating expenses per ASM excluding net special items and fuel 13.91 13.39 13.99 13.34 Note: Amounts may not recalculate due to rounding. FOOTNOTES:(1) The 2025 nine month period mainline operating special items, net principally 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 and adjustments to litigation reserves. The 2024 third quarter mainline operating special items, net principally included $516 million of one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline flight attendants. The 2024 nine month period mainline operating special items, net included $573 million of one-time charges resulting from the ratification of new collective bargaining agreements with our mainline flight attendants and mainline passenger service team members. (2) Principally included charges associated with debt refinancings and extinguishments as well as mark-to-market net unrealized gains and losses associated with certain equity investments. 12
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The Company's free cash flow summary is presented in the table below, which is a non-GAAP measure that management believes is useful information to investors and others in evaluating the Company's ability to generate cash from its core operating performance that is available for use to reinvest in the business or to reduce debt. The Company defines free cash flows as net cash provided by operating activities less net cash used in investing activities, adjusted for (1) net sales of short- term investments and (2) change in restricted cash. We believe that calculating free cash flow as adjusted for these items is more useful for investors because short- term investment activity and restricted cash are not representative of activity core to our operations. This non-GAAP measure 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. Our calculation of free cash flow is not intended, and should not be used, to measure the residual cash flow available for discretionary expenditures because, among other things, it excludes mandatory debt service requirements and certain other non-discretionary expenditures. 9 Months Ended September 30, 2025 (in millions) Net cash provided by operating activities $ 3,373 Adjusted net cash used in investing activities (1) (1,652) Free cash flow $ 1,721 (1) The following table provides a reconciliation of adjusted net cash used in investing activities for the nine months ended September 30, 2025 (in millions): Net cash used in investing activities $ (1,504) Adjustments: Net sales of short-term investments (143) Increase in restricted cash (5) Adjusted net cash used in investing activities $ (1,652) 13
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14 The Company's total debt and net debt are presented below, which are non-GAAP measures that management believes are useful for assessing the Company's debt profile. Total debt is defined as debt, finance and operating lease liabilities and pension obligations, and net debt is defined as total debt, net of unrestricted cash and short-term investments. Total Debt and Net Debt (at end of period) September 30, 2025 (in millions) Debt and finance leases $ 28,717 Operating lease liabilities 7,347 Pension obligations 721 Total debt 36,785 Less: cash and short-term investments 6,858 Net debt $ 29,927