Corporate

2018
Responsibility
Report

2018 Corporate Responsibility Report

About American Airlines
Every day, more than half a million people depend
on American Airlines to take them to the moments
that matter most in their lives. We fly over borders, TABLE OF CONTENTS
walls and stereotypes to connect people from
different races, religions, nationalities, economic 3 Message from Our CEO
backgrounds and sexual orientations. We make the
world a more connected and inclusive place. And we 4 2018 Highlights and Awards
do it professionally and safely for more than 500,000
customers per day across five continents.
4 Association Memberships
5 Our Approach to Corporate Responsibility
Together, American and American Eagle offer an
average of nearly 6,700 flights per day to nearly 350 9 Make Culture a Competitive Advantage
destinations in more than 50 countries. American has
hubs in Charlotte, Chicago, Dallas-Fort Worth, Los 19 Create a World-Class Customer Experience
Angeles, Miami, New York, Philadelphia, Phoenix and
Washington, D.C. We’re a founding member of the 24 Build American Airlines to Thrive Forever
oneworld® alliance, whose members serve more than
1,000 destinations with about 14,250 daily flights to 29 Think Forward, Lead Forward
over 150 countries. Shares of American Airlines Group
Inc. trade on Nasdaq under the ticker symbol AAL. In
35 Performance Tables
2015, our stock joined the S&P 500 index. Connect
with American on our social media channels.
41 About This Report
42 GRI Content Index

2018 Corporate Responsibility Report 2

Message from Our CEO
In 2018, our team celebrated five years since the We’ve also added more than 200 new routes and 41 new stations
merger of American Airlines and US Airways. to our network over the past five years and combined more than
With most of the integration work now behind 650 systems to help our team members serve customers better.
us and $25 billion invested in our team and On board our aircraft, customers now enjoy greater connectivity
product, our efforts are poised to pay off. We to high-speed Wi-Fi and enhanced entertainment, while visitors
made great strides in delivering a world-class to our lounges in many airports are enjoying recent upgrades. All
customer experience, improving our revenue of this adds up to a more modern, comfortable and connected
performance and taking care of our team members. experience for our customers.

At the same time, 2018 presented challenges to our business as we faced •• Build American Airlines to Thrive Forever: With the merger
rising fuel prices, difficult weather events, uncertain economic conditions of American and US Airways, we created the largest airline in
in some parts of the world and the early stages of a government the world, and we’re committed to ensuring that our airline
shutdown at the end of the year. We did not meet all our targets for will continue to thrive, now and into the future. Achieving our
operational performance, which we know had an impact on customer financial objectives and investing heavily in airport infrastructure
satisfaction. — such as our $1.6 billion project at Los Angeles International
Airport (LAX) — will help us better serve our customers and team
But we are a team that collaborates, adapts and continues to move members while positioning our company for success for many
forward. We identified challenges and implemented action plans to more years to come.
adjust and correct. By the end of 2018, the hard work and dedication of
our team members helped produce pre-tax profit of $1.9 billion, or $2.8 Thriving in the future also means being mindful of our
billion excluding net special charges.1 Looking ahead, we will continue environmental impacts as an airline and doing our part toward
to focus on our bedrock principle that when we take care of our team responsible energy use and fuel conservation. Currently, 100
members, they will take the best possible care of our customers, which, in percent of electricity purchased at our Dallas-Fort Worth-area
turn, takes care of our great company. facilities is from renewable sources. We’ve taken delivery of more
than 500 aircraft since the merger, giving American the youngest
We are guided by our three long-term strategic objectives: fleet of any U.S. network carrier. And we continue to introduce
•• Make Culture a Competitive Advantage: Our team members are new, more fuel-efficient aircraft into our fleet while retiring the
our most important asset. We’ve added more than 15,000 people same number of older planes.
to our team since the merger, and we’re focused on supporting
their professional growth by building a culture of learning and Together, these three strategic objectives represent the important
development. In 2018, we partnered with Harvard Business responsibility we have to protect the pride each of us has in American
School Publishing to launch Harvard ManageMentor, which and to ensure that it lives on for those who will take care of this great
offers on-demand online courses with skill-building exercises and airline long after we are gone.
business development guidance for more than 40 topics.
With that in mind, we have organized our 2018 Corporate Responsibility
Our company’s focus on inclusion and diversity has never been Report around these themes to highlight our achievements and to
more deliberate. In 2018, we responded to feedback in this area acknowledge the work that remains. We’ve made tremendous progress
by engaging an industry expert to look more closely at inclusion to date, and we look forward to continuing the journey with you as we
and diversity at American to highlight where we can better meet reach many more exciting milestones in the years ahead.
the needs of our team members, customers and the communities
we serve. Some 75,000 team members completed computer- Sincerely,
based implicit bias training in 2018, and all 130,000 will complete
the training in 2019. We will roll out in-person implicit bias
training for all team members beginning this year as well.

•• Create a World-Class Customer Experience: Since the merger,

creating a consistent and exceptional experience for customers Doug Parker
across our network has been a top priority. We have invested Chairman and Chief Executive Officer
billions in new products and services and have more than
500 customer-facing projects underway, with most of them 1
Please see Annex I for a reconciliation of pre-tax profit excluding special
taking place at our airports. items, a non-GAAP measure.

2018 Corporate Responsibility Report 3

2018 Highlights and Awards
•• Airline Passenger Experience Association (APEX):
American was named a Five Star Global Airline by APEX.

•• Caribbean World magazine: American was named Best

Airline of the Year to the Caribbean in the 2018 Travel
and Living Awards for the third consecutive year.

•• Disability Equality Index® (DEI): American received the

top score of 100 on the DEI and was named one of the
2018 DEI Best Places to Work for Disability Inclusion for
the third consecutive year.

•• FTSE4Good, the JUST ETF, and ECPI ESG indices selected

American Airlines Group stock for inclusion in their
sustainability focused funds.

•• Global Traveler, the leading magazine for luxury business

and leisure travelers, awarded American multiple awards
in the annual Tested Reader Survey and Wines on the
Wing Airline Wine Survey.

•• Human Rights Campaign (HRC): For the 17th consecutive

year, the HRC honored American with the highest
possible rating in the prestigious Corporate Equality
Index.
•• The Wall Street Journal: American ranked No. 69 in the
•• Indeed, the world’s No. 1 job website, named American Journal’s Management Top 250, which ranks the most
to its 50 Best Places to Work list for the second effectively managed companies in the U.S. American had
consecutive year. the highest placement of any airline.

•• The International SOS Foundation, which annually •• Trazee Travel, a web publication focused on travelers ages
honors organizations and individuals making a significant 18 to 35, presented American with two Trazees awards:
contribution to protecting people while they travel or Favorite International Airline and Favorite Airline Website.
work remotely, presented American with the first-ever The oneworld® alliance was also honored as Favorite
Duty of Care Award in the aviation category. Airline Alliance.

Association Memberships
•• Airlines for America (A4A) •• National Urban League
•• American Association of People with Disabilities •• National Veteran-Owned Business Association
•• Human Rights Campaign •• Organization of Black Aerospace Professionals
•• International Air Transportation Association (IATA) •• Regional Airline Association (RAA)
•• Latin American and Caribbean Air Transport •• United States Hispanic Chamber of Commerce
Association (ALTA) •• Women in Aviation International
•• National Minority Supplier Development Council •• Women’s Business Enterprise National Council

2018 Corporate Responsibility Report 4

Our Approach to Corporate Responsibility
Sustainability is at the core of American’s business strategy. Our board of directors and leadership team are committed to
our efforts to be responsible corporate citizens. We have a long history of transparency and disclosure and have produced
an annual corporate responsibility report since 2007.

CORPORATE RESPONSIBILITY GOVERNANCE

In 2018, we formalized the internal oversight of corporate responsibility at American by establishing a committee of high-level leaders who
meet on a regular basis to monitor global trends, determine our response to stakeholder inquiries, and assess risks and opportunities around
specific environmental, social and governance (ESG) issues. This committee also offers recommendations to our senior leadership team regarding
corporate responsibility strategy and engages on these topics with our board of directors.

STAKEHOLDER ENGAGEMENT
As part of our commitment to corporate responsibility, we believe in contributing to the well-being of our team members, shareholders,
customers and communities. Specifically, we strive to understand their concerns and expectations as they relate to the ESG issues where we can
make the biggest positive impact.

Stakeholder Stakeholder Group Types and Frequency Strategic Relevance Key Issues
Group of Engagement of Engagement Raised

•• Regulatory filings, annual and quarterly Shareholders, analysts and potential

reports, proxy statement investors need to have a clear
•• Quarterly earnings conference calls understanding of our strategic •• Return on investment
•• Annual shareholder meetings framework and tactical plans to properly •• Transparency and
Investors assess their investment in the company.
•• Press releases and online information disclosure
By providing clear and timely information
•• Responses to investor questionnaires and
to this stakeholder group, we build
shareholder proposals confidence and establish relationships
•• Ratings and rankings that position us for continued growth.

•• Reliable and on-time

performance
•• Customer correspondence Our success as a business depends •• Reliable baggage
•• Online surveys on anticipating the needs of our service
•• Visits to the corporate website and social customers and exceeding their •• Efficient cargo delivery
media channels expectations. By establishing open lines •• Inflight comfort and
•• In-person focus groups of communication with our customers, amenities, such as
Customers
we can identify and address areas of
•• Personal contact with frontline team faster and more
opportunity, deliver innovations to meet
members while traveling consistent Wi-Fi
customer preferences, and position
•• AAdvantage® customer service ourselves as the airline of choice for any connectivity
type of traveler. •• Airport and facilities
comfort and
convenience

2018 Corporate Responsibility Report 5

Our Approach to Corporate Responsibility (continued)

Stakeholder Stakeholder Group Types and Frequency Strategic Relevance of Key Issues Raised
Group of Engagement Engagement

Our team members are both the •• Competitive

•• Employee Engagement Survey external face of the company and the compensation and
•• Employee Business Resource Groups internal heart of our operations. Our benefits packages
continuous, two-way communication
(EBRGs) •• Workplace safety
with them ensures we effectively
Team members •• Direct dialogue, such as Town Hall meetings •• Professional
set expectations for performance,
•• Emails and announcements development
understand and respond to concerns
•• Labor negotiations updates and grievances, and maintain a working opportunities
environment that is welcoming, safe, •• Inclusion and diversity
professional and productive.

•• Partnerships with governments and We are an integral part of communities

non-governmental organizations around the world. By reaching out
through both formal channels of
•• Briefings to local, state and federal officials •• Employee volunteerism
engagement and informal interaction,
•• Philanthropic activities and employee •• Opportunities for
we better understand the needs and
outreach to communities financial or in-kind
Communities concerns of the communities where
•• Membership in various local chambers of we live, work and play. Through these support
commerce and related organizations interactions, we build relationships
•• Contributions to nonprofit organizations of trust and respect and are viewed
as a valued member of the broader
community.

Our industry involvement allows us to •• Creation of competitive

gain insight into core issues relevant to marketplaces
our own business and advocate jointly •• Collaboration on
for regulations and policies that support
efforts such as
Industry and Trade Ongoing participation and board membership in a healthy, competitive industry. We also
enhancing safety
Associations trade associations and industry groups benefit from the opportunity to share
and encouraging
noncompetitive technical expertise
and operational knowledge that leads investment in
to better customer safety, service and infrastructure
overall efficiency.

The airline industry is one of the most •• Safety and security

heavily regulated sectors today. We work
initiatives
with numerous regulatory agencies
•• Ongoing engagement through permitting, •• Cross-border travel
and bodies on a local, state, national
Regulators compliance and reporting activities and international level to ensure our facilitation
•• Safety testing, audits and screenings operations are safe, environmentally •• Certifications of
sound and socially responsible. We also new aircraft
contribute to national and international •• Transparent disclosures
public policy discussions.

2018 Corporate Responsibility Report 6

Our Approach to Corporate Responsibility (continued)
MATERIALITY
American undertook a materiality analysis in 2018 to identify the most important ESG and economic
issues for the company. We considered the concerns and expectations of both our internal and external
stakeholders to identify areas of risk and opportunity. To gain maximum insights, we also evaluated
where the key impacts of material issues occur across our value chain, which has allowed us to more
precisely define our scope of reporting while prioritizing strategic actions for each issue. This work builds
on a preliminary issue prioritization and stakeholder document analysis first conducted in 2015. Going
forward, this work will serve as a foundation for ongoing stakeholder engagement and the development
of more targeted initiatives and messaging related to our corporate responsibility strategy.

As part of the 2018 analysis, in cooperation with an independent partner, we

•• Identified and updated a list of all potentially material topics for American, based on changes in
our business context and external environment since the first 2015 analysis.
•• Conducted an internal survey to gauge the viewpoints of company leaders across our value chain.
•• Reviewed a comprehensive set of stakeholder source materials, such as peer and industry
reports, investor requests, ESG ratings and rankings criteria, and customer RFPs, among other
documentation.

The results — mapped on the matrix below — identified six material issues for the company: Operational
Performance, Customer Satisfaction, Energy and Fuel Conservation, Inclusion and Diversity, Team
Member Health and Safety, and Labor Relations. We identify where impacts occur for each material issue
in the Topic Boundary section (GRI 103) of the GRI Content Index on page 45.

Operational
Performance
HIGH

Energy and
Fuel Conservation Customer
Satisfaction

Team Member
Health and Safety
Climate
Change Risks
Inclusion and Diversity
Ethical Conduct and
Stakeholder concern

Anti-corruption

Talent
Supply Chain Management
Management Labor Relations

Waste
Reduction Customer Health
Corporate Route Network Team Member
and Safety
Governance and Alliances Engagement
Water
Business Continuity Innovation
Philanthropy Community
Data Privacy and Investments
and Volunteerism Economic Impacts
Compliance and and Protection
Public Policy
Noise Impact on Engagement
Local Communities

Illegal
Trafficking
LOW

Local Air
Quality

Impact on company HIGH

The issues of highest priority are shown in the top right area of the materiality matrix. These results
are helping to better define our corporate responsibility strategy and disclosure priorities.

2018 Corporate Responsibility Report 7

Our Approach to Corporate Responsibility (continued)

CORPORATE RESPONSIBILITY GOALS

Following the materiality analysis, we identified corporate goals for each material issue that are in alignment with American’s
three strategic objectives. Going forward, we will track and disclose our continuous improvement against these goals and their
related key performance indicators.

Inclusion and Diversity Customer Satisfaction

Launch in-person implicit bias training for all team Improve Likelihood to Recommend scores.
members systemwide.
Operational Performance
Labor Relations Achieve improved systemwide operational metrics, including
Achieve a joint collective bargaining agreement (CBA) on-time performance percentage, completion factor
with mainline fleet service and maintenance teams. percentage and mishandled baggage rate.

Propose industry-leading offers for mainline pilot and Energy and Fuel Conservation
flight attendant teams and complete CBAs before Achieve an average improvement in fuel efficiency
contract amendable dates. systemwide of 1.5 percent per year from 2014 to 2020.

Team Member Health and Safety Source 2.5 million gigajoules of cost competitive renewable
Reduce on-the-job injuries for all team members energy by 2025 (equivalent to almost 20 million gallons of
systemwide. jet fuel).

2018 Corporate Responsibility Report 8

 Make Culture a Competitive Advantage
Our goal is to create an environment where our 130,000 team members feel supported so they can provide
excellent care for our customers. In order to truly care for our teams, we must give them the tools, training
and facilities they need to do their best work. We are developing innovative, inspiring and caring leaders
who will continue to help American develop our corporate culture into a defining characteristic of our
organization — and a competitive advantage.

To execute on this goal, we are focused on building four specific aspects of culture at American Airlines:
•• Culture of talent: We are investing in our team members to ensure we are hiring the right people in the right roles with
the right skills, so they can succeed and lead others to success.
•• Culture of learning: We strive to grow personally and professionally by seeking opportunities to learn new skills and
absorb new knowledge.
•• Culture of feedback: We welcome input from our team members, customers and all stakeholders, creating a feedback
loop that allows us to continuously improve.
•• Culture of recognition: We give and receive appreciation to highlight the exemplary work of our team members.

TALENT MANAGEMENT
Since the merger in 2013, we have grown our team by more than 15,000 people and created a new hire orientation program
that gives participants a sense of pride and excitement in their decision to join American. As they progress in their roles, we
want them to feel fulfilled and challenged as they grow professionally. To that end, our Emerging Leaders Program focuses on
succession planning and developing our internal talent pipeline. We currently have 250 team members in management roles
participating, and, in the last two years, more than 50 have received promotions.

The global aviation industry is facing a pilot shortage. Within the next 15 years, 75 percent of the entire pilot workforce will
retire. Segments such as military, cargo and certified flight instruction are already facing an imbalance in the flight supply, with
more people leaving than joining. While American has not experienced a pilot shortage and has thousands of current and
competitive pilot applications on hand, we feel a responsibility to keep the next generation excited about aviation and lift up
tomorrow’s pilots, particularly those who find flight training to be prohibitively expensive or otherwise out of reach. Some of our
key initiatives to develop the pilot talent pipeline include:
•• The American Airlines Cadet Academy is a first-of-its-kind integrated flight training program designed to help build
the next generation of aviation talent. The Cadet Academy provides opportunities for financial assistance and a clearly
defined path to becoming a commercial airline pilot. It makes flight training cost-effective, efficient and more accessible
to aspiring aviators who wouldn’t normally have the opportunity. We selected 200 candidates to go through the
program in 2018.

•• Our Pilot Recruiting & Development team works with kids of all ages to generate interest in the aviation industry
through tours of airplanes, airports, and operational and training centers around the nation. The team focuses on
opportunities for U.S. junior high through college students to sit in the flight deck of an aircraft, get a peek inside a flight
training center or, in some cases, visit the airport in their hometown.

•• We continue to partner with leading schools and nonprofit organizations that work to get kids interested in aviation
careers. In 2017, American awarded a $25,000 grant to the Tuskegee NEXT organization, which provides youth with role
models and a route toward aviation careers through flight training, life skills and educational assistance. Over the past
two years, we have awarded 34 grants totaling $789,000 to flight schools, school districts and nonprofit organizations
that generate innovative ideas for growing the nation’s pool of pilots.

2018 Corporate Responsibility Report 9

 Make Culture a Competitive Advantage

DEVELOPING OUR TEAM MEMBERS

Our leaders at American have no greater charge than making sure they are creating
OH, THE PL ACES an environment that cares for our frontline team. Since the merger, leaders have
WE’LL GROW completed 360,000 hours of new training focused on ways to support the front line.
American Airlines is building a We are focused on training, education, recruiting, hiring and retention.
strong and diverse pipeline for
the future. Since 2013, we’ve In 2018, we announced new resources to help team members develop professionally.
partnered with groups such In partnership with Harvard Business School Publishing, we now provide mainline
as the Organization of Black team members access to Harvard ManageMentor, a trusted on-demand professional
Aerospace Professionals, Society development resource. It covers 41 essential business topics, organized by American’s
of Women Engineers, Allies leadership attributes, our three strategic objectives and Harvard’s development
in Service and the National categories. Each topic features a collection of concise lessons, videos and tools for fast
Black MBA Association. We also and effective learning of new skills, such as how to lead teams more effectively, how to
launched a partnership with W.H. create an engaging presentation or how to improve time management. Once a course
Adamson High School in Dallas is completed, team members can print a certificate and keep track of their courses in
to help create IT career tracks our Learning Hub system.
for high school students. More
than a dozen American team Elevating our training
members moved their offices American’s team members participate in our systemwide training, Elevate the Everyday
to the school, giving students a Experience, on an ongoing basis. The training aims to inspire our frontline colleagues
firsthand look at IT careers. to provide service that will set American apart from our competitors. In 2018, the
program expanded to all frontline team members, including customer service agents,
reservations representatives, flight attendants and pilots. Some 30,000 team members
completed the training in 2018. In 2019, we plan for up to 70,000 team members
to participate.

Through the first six months of Elevate 2018 training, complaints to the Department
of Transportation about American's customer service decreased 19 percent year over
year. In addition, our customer surveys indicate an upward trend in scores specific to
questions about the five Elevate behaviors — Acknowledge the Customer, Be Present,
Show You Care, Proactively Communicate and Give Options. Even more importantly,
our customers say they’ve noticed our team members smiling more, being more
engaged and giving more options during interactions.

AMERICAN VOICE
We’re committed to providing a great place for our team members to work — and
that starts by listening to what they have to say. Beginning in 2017, we set out
to supplement the other avenues we use for regular dialogue (such as town hall
meetings) with a team member engagement survey called American Voice. This
online platform gives every team member a quick and confidential way to tell us
how they feel about working at American.

In 2018, to better understand survey insights and develop responsive action plans,
1,600 listening sessions were held with our team members systemwide, and 1,956
leaders were tasked with creating a company action plan. The plan covered three
focus areas: ensuring team members have a clear understanding of the goals and
objectives of American; ensuring team members have the appropriate training and
development opportunities to help them grow professionally; and having leaders at
American listen and seek to understand the frontline team member experience.

2018 Corporate Responsibility Report 10

 Make Culture a Competitive Advantage

RECOGNIZING OUR TEAM MEMBERS

Our team members are our most valuable asset, and recognizing their work
is an important part of our culture. In 2018, we awarded $11 million in cash
and recognition points to thank team members for good work in supporting BEST PL ACES TO WORK
customers and their colleagues. We introduced or enhanced several programs In 2018, Indeed named American
to ensure we meaningfully recognize our team members for a job well done. to its 50 Best Places to Work list for
For example: the second year in a row. Companies
•• Since the merger, team members have received more than $25 million are ranked based on the ratings and
in recognition through our peer-to-peer recognition programs that reviews listed on Indeed Company
highlight our team’s everyday efforts, including the Above & Beyond Pages for firms in the Fortune
(A&B) and Spot On programs. A new recognition site allows these 500. Feedback relates to company
programs to carry value in the form of points that can be redeemed culture, compensation advancement
in a rewards mall. Team members have received $11.5 million in A&Bs opportunities, and more.
since 2013 and have been recognized for their “Spot On” work nearly
150,000 times since 2017. Additionally, The Wall Street Journal
ranked American No. 69 in its
•• Almost 300 Reservations representatives and Customer Care Management Top 250, which ranks
managers were honored at the inaugural Global Reservations the most effectively managed
recognition banquet in April 2018. These hardworking team members companies in the U.S. American had
represented the top 5 percent in global sales performance through the highest placement of any airline
the Reservations channel and went above and beyond to provide on the list.
exemplary service to our customers.

•• Since the merger, we’ve recognized 528 team members as Real

American Heroes for saving a customer’s or colleague’s life or helping
in life-threatening situations.

•• Our Chairman’s Award

continues to be the most
prestigious recognition
and highest honor for
team members who have
dedicated stellar careers
to American. In 2018,
American celebrated more
than 100 Annual Chairman’s Award honorees for their longstanding
commitment to our customers, the operation and their colleagues.
Since the merger, 1,500 team members have been honored and
awarded more than $8.2 million.

•• At our Service Anniversary Dinner in August 2018, we recognized more

than 450 team members celebrating 45 years or more (and pilots
celebrating 35 years or more) of service with the company. Our 2018
honorees have contributed a combined 10,780 years of experience to
our airline — and gathered plenty of memorable stories along the way.

2018 Corporate Responsibility Report 11

 Make Culture a Competitive Advantage

Employee Recognition Programs

Chairman’s
Award
Recognizes team members for
significant contributions to the company.
Winners are selected quarterly (receive $2,500) and
annually (receive $10,000) for their outstanding work.

Spot Award
Leaders recognize team members for significant work made on
a day-to-day basis with points to use on the recognition site.

Real American Hero

Recognizes team members who perform an act in a life-threatening situation.
Winners receive $1,000 and a commemorative Real American Hero cape.

Above & Beyond

A simple thank you to team members for providing great service to customers and colleagues.
These are entered into the quarterly State of the Airline drawing to receive up to $10,000.

eCards
All team members can recognize coworkers’ important dates — birthdays,
service anniversaries, life milestones or to simply say thank you.

Retirement Gifts Length of Service Pins

Retiring team members are honored for their commitment Team members receive service pins to mark milestone anniversaries —
and contribution to the company with a gift. starting with one year of service, at five years and every five years after.

2018 Recognition by the Numbers

team members 1.6 billion points

103,626 registered in the recognition site awarded through the recognition site in 2018

103 Annual and 386 Quarterly 1,718,792

343Real
Chairman’s Award Winners Above & Beyonds awarded American
Chairman's Awards recognize team A&Bs are a simple thank you to Heroes
members for significant contributions team members for providing
to the company. Winners are selected great service to our customers A Real American Hero is a
quarterly (receive $2,500) and and their colleagues. team member who helped
annually (receive $10,000) for their during a life-threating event.
outstanding work.
Breakdown of A&Bs sent
315,112
by customers 1,403,680 153,083
154,891 570,769
by managers
from peer to peer
eCards sent
Spot On awards issued
All team members can
Spot On allows leaders to recognize recognize coworkers'
significant work as it is happening important dates — birth-
with points in the Recognition site, 2,880 days, service anniversaries
which can then be redeemed for team members were awarded and life milestones — or
gift cards and other merchandise. during the State of the Airline simply say thank you.
drawing.

2018 Corporate Responsibility Report 12

 Make Culture a Competitive Advantage

INVESTING IN OUR TEAM MEMBERS

As part of our commitment to our team members, we are always looking for new ways to invest in their
future and well-being, both professionally and personally. Our aim is to ensure our total compensation
and benefits are in line with industry leaders. In 2018, salaries, wages and benefits were our largest
expense and represented almost 30 percent of our total operating costs.

Our benefits site, my.aa.com, allows team members to access helpful information, enroll in benefits, make
edits to their 401(k) plans or find specialized care and support, such as mental health assistance.

In 2018, we continued to invest in team members and improve systems that further support their work.
For example:
•• We helped 15 team members grow their families through adoption, following our announcement
in 2017 of our adoption assistance program for all U.S.-based mainline team members. The
program provides up to $4,000 in expense reimbursements relating to the adoption process. This
year, we expanded the program to all international team members.

•• We set up the Team Member Service Center, a one-stop shop for team members to get support on
everything from benefits to pay to travel. The center is open seven days a week.

•• We launched a new world-class HR system — Employee Central — marking the first time since the
integration that all team member data is available in one place. We also initiated the first phase of
our new payroll system, which we will continue to roll out in 2019.

Looking ahead, American is partnering with a health benefits navigator service to bring team members
personalized help for health care decision-making. Interested team members and their family members
will be assigned a personal health assistant to help them manage their health, navigate the health care
system and make the most of all the benefits programs and resources American offers.

L ABOR REL ATIONS

American respects our team members’ rights to free association and collective bargaining. Labor relations
for the airline industry are governed under the Railway Labor Act, which affords employees the right
to be represented by a union and engage in collective bargaining, or to decline union representation.
Approximately 85 percent of our active workforce are members of a union and covered under CBAs. As
part of our aim to offer competitive total compensation and benefits packages to all our team members,
we strive to work collaboratively with our union partners to negotiate industry-leading contracts. In 2018,
there were no work stoppages or idle days due to strikes, lockouts or labor disputes.

In 2019, our goals are to achieve a joint CBA with the TWU-IAM Association for our more than 31,000
fleet service and maintenance team members and to complete CBAs for our flight attendant and
pilot teams before contract amendable dates. Our contract with the Association of Professional Flight
Attendants, which represents nearly 27,000 flight attendants, becomes amendable in December 2019,
and our contract with Allied Pilots Association, which represents more than 15,000 pilots, becomes
amendable in January 2020. More information on our U.S.-based airline employee groups that are
represented by unions can be found in our Annual Report on Form 10-K for the fiscal year ended Dec. 31,
2018, pages 9 and 10.

2018 Corporate Responsibility Report 13

 Make Culture a Competitive Advantage

TEAM MEMBER SAFETY

At American, we strive to be a world leader in safety and recognize that running
a safe and secure operation is the key to our success. Safety must be the first and WORK-FIT FOR SAFETY
foremost consideration in every decision we make companywide. We believe safety To ensure our team members are
is everyone’s responsibility — from managers to frontline teams. prepared for the everyday physical
demands of their jobs, last year we
We rely on the sound judgment of our experienced team and our Safety introduced Work-Fit in a number
Management System (SMS). Being accountable to each other means reporting of our largest stations. Work-Fit
hazards, safety concerns and incidents immediately, as well as any behavior that is an independent program that
violates our policies, industry standards, regulatory requirements or the laws of works to advance safe physical work
the countries where we operate. Timely reporting of such information through practices. With a focus on reducing
the established nonpunitive safety reporting programs is essential. We have set up injuries, it connects licensed athletic
multiple safety reporting programs that team members can use to report potential trainers with team members to
hazards, including an Aviation Safety Action Program, General Hazard Reporting discuss everything from proper
and our EthicsPoint Helpline. Our Safety Policy outlines our commitment to safety, lifting techniques to healthy diet
as well as our expectations for the SMS. options. For team members who
may put off seeking treatment for
As part of this safety management approach, we maintain a four-part team an injury, a workplace location
member injury reduction plan: gives them easy access to help.
•• Governance and accountability: Executive level oversight; team member Whether the job is lifting bags
safety teams; union partner engagement onto an aircraft or standing for an
•• Data alignment and acquisition: Injury dashboards/reports; consistent extended period to assist customers,
investigations; root cause analyses; injury reporting Work-Fit provides helpful resources
•• Injury prevention training and promotion: Specialized trainings, such as for all workgroups through group
ACS Lifting, Tech Ops/Flight Service, Spring Safety; Awareness, e.g., scenario education, performance coaching
videos; “Safety Snippets”; Quarterly Safety Stand Down meeting and a focus on best practices. For
•• Programs and initiatives: Facilitation of at-risk behavior discussions; injury example, in conjunction with the
review standardization Work-Fit program, we filmed a series
of scenario-based videos for team
A safe workplace for our team is the cornerstone of running a safe operation. members on topics such as how to
American’s Occupational Safety and Health (OSH) program includes an Employee avoid trips and falls that will roll out
Safety and Health Manual that establishes American’s commitment and duty to in 2019.
providing a workplace that is free of recognized hazards, documents policies and
procedures to comply with Occupational Safety and Health Administration (OSHA)-
related regulations, and provides tools and information for employees to use to
work safely and avoid occupational injuries and illnesses. In 2018, OSH department
specialists visited 62 domestic stations to conduct special training on employee
safety and compliance with OSHA regulations for more than 670 station managers
and supervisors.

OSHA’s Voluntary Protection Programs (VPP) recognize employers and workers

who have implemented effective safety and health management systems and
maintain injury and illness rates below national Bureau of Labor Statistics averages
for their industries. VPP is focused on preventing fatalities, injuries and illnesses
through a system that emphasizes hazard prevention and control, worksite analysis
and training. Our Tech Ops — Tulsa Auxiliary Power Unit and Aircraft Wiring Center
(AWC) facility was the first to become VPP-certified in 2016. Our four maintenance
bases in Tulsa, Dallas-Fort Worth, Pittsburgh and Charlotte continued the VPP
certification process in 2018, including undergoing rigorous onsite evaluations by
teams of safety and health professionals.

2018 Corporate Responsibility Report 14

 Make Culture a Competitive Advantage

INCLUSION AND DIVERSITY

American’s commitment to supporting inclusion and diversity across our organization begins at the top.
In 2017, our Chairman and CEO, Doug Parker, joined the CEO Action for Diversity & Inclusion, the largest
CEO-driven business commitment to advance diversity and inclusion within the workplace. American is
one of more than 250 organizations that have taken the pledge and committed to cultivating a workplace
where diverse perspectives and experiences are welcomed and respected, where team members feel
comfortable and encouraged to discuss inclusion and diversity, and where best practices can be shared.

Yet, in 2017, we heard from some customers that we had room to improve in this area. That feedback
inspired us to take some concrete steps toward improvement in 2018:
•• We engaged an industry expert to look more closely at inclusion and diversity at American
to highlight where we can better meet the needs of our team members, customers and the
communities we serve. Throughout this process, we’ve listened to the perspectives and experiences
of more than 2,000 team members across the system and learned more about what other leading
companies do that we might consider. We are also building a strategic action plan for the long
journey – from career development to supplier diversity – to ensure we continue to find and retain
dynamic, talented team members and partners.

•• We implemented companywide implicit bias training to examine ways to recognize and mitigate
implicit bias. The training started with our leadership team and expanded to the rest of the
organization. Nearly 75,000 team members completed computer-based implicit bias training in
2018, and we are on track for all 130,000 to complete this training in 2019. We will begin to roll
out the second phase of that process — a 90-minute in-person course for every team member —
beginning in 2019.

•• We began to overhaul our customer discrimination claims process and create a new customer
resolution team that specializes in managing discrimination complaints to improve response,
visibility and coordination across the company.

•• We are sharpening our focus on team member concerns by increasing awareness of work
environment policies and the process to report concerns. We are also working to continually
improve our internal oversight and resolution of team member discrimination claims.

Since the merger, we’ve received multiple recognitions for our leadership and strengthened our
commitment to inclusion and diversity. In 2018, we again received the highest score in the Human Rights
Campaign (HRC) Corporate Equality Index for the 17th consecutive year — more than any other airline in
the world. We are a member of HRC’s Business Coalition for the Equality Act, a group of more than 100
leading U.S. employers that support the Equality Act, federal legislation that would provide the same basic
protections to LGBTQ people as are provided to other protected groups under federal law.

We received the top score of 100 on the 2018 Disability Equality Index® (DEI), a score we have achieved
since the DEI’s inception in 2015. We were also named among DEI’s elite group of Best Places to Work for
Disability Inclusion for the third consecutive year.

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 Make Culture a Competitive Advantage

DRIVING INCLUSIVITY FORWARD

We want all our team members to feel supported and free to be themselves
at work. One of the most important ways we cultivate support for our team is MIAMI PROUD
through our Employee Business Resource Groups (EBRGs). These groups are The Miami PRIDE EBRG formed in
dedicated to promoting cultural enrichment, supporting business success and 2018 with an initial goal for American
engaging our team members in community service — and their numbers are to participate in the Miami Beach Gay
growing fast. The number of EBRG chapters has more than doubled, from 68 at Pride Parade, which would be a first
the time of the merger to more than 200 worldwide today. In the past two years for the company. In collaboration with
alone, team member participation has increased by 22 percent. Miami’s Regional Council, the group
succeeded in its efforts and American
Highlights in 2018 from our EBRGs include: became the official airline sponsor of the
•• Our Latin Diversity Network (LDN) EBRG celebrated its 20th anniversary. parade. More than 100 team members
The LDN has expanded from five chapters to 17 in the past three years. from all workgroups proudly donned
More than 2,700 team members now participate with this EBRG in the their American Airlines PRIDE T-shirts
communities we serve. and gave away branded items to the
more than 100,000 spectators in the
•• It’s Cool to Fly American helps children on the autism spectrum and their crowd on beachfront Ocean Drive. Flight
families become comfortable with the sensory experience of air travel. attendants came dressed in uniform.
American and our Abilities EBRG launched the program in 2015 and holds
dozens of events systemwide each year.

•• Our African-American Diversity Network EBRG gave 60 Dallas-Fort Worth

students a behind-the-scenes tour of the CR Smith Museum, where they
learned about the airline industry and careers at American.

INTERNATIONAL LEADERSHIP PROGRAM

In September 2018, 11 team members celebrated their graduation from our
International Female Development program for emerging leaders. The inaugural
class hails from nine countries and includes women from Operations, Premium
Services, Flight Service and Reservations. These team members were selected in a
competitive process after being nominated by their managers, who committed to
guide their career growth and development.

Once admitted, team members participated More than 100 American team members from
all workgroups participated in the Miami Beach
in 28 different learning touchpoints,
Gay Pride Parade in 2018.
including executive coaching, leadership
workshops and quarterly visits to American’s
headquarters, where they presented case
studies and interacted with senior leaders.
Each team member was also assigned a
mentor and a business manager from the
People department to guide her on her
journey toward roles in management.

The program has now expanded to include

male participants, with 17 new team
2018 International Female members being inducted into the renamed
Development program graduates
International Development Program.

2018 Corporate Responsibility Report 16

 Make Culture a Competitive Advantage

CELEBRATING INCLUSION AND DIVERSITY

In September 2018, American recognized four team members, nominated by their peers, with the 10th
annual Earl G. Graves Award for Leadership in Diversity and Inclusion. The award is dedicated to team
members who are driving inclusion and diversity forward at work and in their communities:

•• Alessia Giovannotti, Premium Customer Services

Representative at London Heathrow, helped
start the Professional Women in Aviation EBRG
chapter in London, which grew to more than
100 members in only four months.
•• Steve Sherrill, Facilities and Project
Administration Manager in Dallas-Fort Worth,
has been involved with EBRGs since 2002 and
now serves as president of the Dallas-Fort
Worth chapter of our PRIDE EBRG and as a
global lead on our Diversity Advisory Council.
•• Sonia Lopez, Reservations Manager in Lima,
Peru, has led several community projects across
Peru that benefit schools, hospitals and groups
that make prosthetics for disabled children.
•• Syed Masood, IT Senior Project Manager in From left, Sonia Lopez, Syed Masood, Alessia Giovannotti
and Steve Sherrill were recognized for their efforts in
Dallas-Fort Worth, pioneered a joint venture inclusion and diversity.
between the Islamic Circle of North America
(ICNA) Dallas and American, successfully executing an annual recognition program to honor the
contributions of Dallas-area public school teachers.

COMMUNITY IMPACT
American is proud to support the communities where our team members and customers live and work. As the world’s
largest airline, we embrace our responsibility to help create a brighter future for all, and giving back is core to our culture
and our business.

Do Crew, American’s volunteer program, connects current team members, retirees and friends of the airline with
community-based projects that benefit nonprofit organizations around the world. Since 2014, team members have
donated nearly 500,000 hours of their time to nonprofits through Do Crew, earning hundreds of millions of miles for
charities of their choice. In 2018, team members collectively logged 186,768 volunteer hours and American donated
more than 15.5 million miles to local charities on their behalf.

Our Flights for 50 program allows team members to make an even bigger impact in their communities. American team
members who track 50 volunteer hours using the Do Crew website receive a Flights for 50 mileage award (the equivalent
of 25,000 AAdvantage miles) for the nonprofit organization of their choice. Each team member can earn up to two
awards per calendar year.

2018 Corporate Responsibility Report 17

 Make Culture a Competitive Advantage

VOLUNTEERING ON THE SNOWBALL EXPRESS

It takes a village to make Snowball Express, a program of the Gary Sinise Foundation, a success. In December 2018, a
substantial part of that village was made up of the nearly 1,000 American Airlines team members who volunteered
their time to make the experience meaningful for children of fallen military heroes and their surviving parent or
guardian. American team members transported 650 families — 1,722 total Snowball Express participants — from more
than 80 cities worldwide on more than 100 chartered and commercial flights to Orlando, Florida, where they spent
five days of fun and fellowship. During their trip, families visited Disney World and had direct access to complimentary
resources, such as counseling services, mentoring, and a variety of therapeutic activities and entertainment. Learn more
about the impact of Snowball Express in this video.

GIVING FINANCIAL SUPPORT

Since 2013, American has donated more than $110 million
in cash and in-kind donations to charitable causes around the STANDING UP TO CANCER
globe through strategic partnerships, fundraising events and AS SUPERHEROES
cause marketing campaigns. In 2018, we donated more than To help team members in their fights against all
$35 million in cash and travel value to support members of forms of cancer, in 2016 we launched a
the military and veterans, health research, disaster response $10 million collaboration with Stand Up To
and children’s well-being. Cancer (SU2C).

In recent years, American has also donated $3.6 million to In April 2018, we unveiled a very special aircraft
nonprofits in the wake of natural disasters, along with 42,000 as part of this collaboration: an Airbus A321T
hygiene kits, 100,000 meals and 300,000 pounds of donated wrapped with a graphic of esteemed SU2C
goods — all packed by team members. In 2018, American researchers and courageous American team
team members conducted one of the airline’s largest disaster members who have personally fought cancer,
relief efforts by assembling 20,000 American Red Cross featured as superheroes. This first-of-its-kind
hygiene kits at the Phoenix cargo facility for victims of the visual collaboration is part of American’s effort
deadly California wildfires. to bring greater awareness, raise much-needed
funds to further research and save lives in the
American Airlines customers also have a history of giving fight against cancer.
generously to vital causes with the help of American. For
nearly 25 years, American has partnered with UNICEF to
collect more than $15 million from our customers in support
of the Change for Good program, an innovative partnership
that rallies the international airline industry to help improve
the lives of millions of children around the world. Travelers on
select international flights can donate unused U.S. and foreign
currencies to help UNICEF provide lifesaving assistance
to children in more than 190 countries and territories.
Since 2015, participation has been up by 130 percent, and
American flight attendants have raised more than $6 million
to help children in need. Local UNICEF-supported programs
include teaching children about health and nutrition through
interactive play and using midwives to provide prenatal
care to pregnant women. In 2018, six American team
members went to Guatemala to see firsthand how these From left, Dr. Vinod Balachandran, cancer survivor and
LAX Customer Care Manager Shandra Fitzpatrick, and
local programs, and the donations they are supported by, are Dr. Phillip A. Sharp stand in front of the A321T featuring
making a direct impact in children’s lives. the SU2C graphic.

2018 Corporate Responsibility Report 18

 Create a World-Class Customer Experience
To deliver world-class experiences to all our customers — especially premium customers who consistently
choose American — we will continue to drive toward excellence, strengthen our network and grow where
we have a competitive advantage. American is investing billions to significantly improving the customer
experience — both on the ground and in the air. We have made investments in new aircraft at an impressive
rate to bring customers a more modern, comfortable and connected experience, including enhanced
onboard entertainment, dining choices and upgraded lounges.

We are also flying to more destinations than ever before. Since the merger in 2013, we’ve added 228 new routes and 41 new
stations to our network, including to one new state, Montana, and eight new countries: Australia, Bonaire, Croatia, Czech
Republic, Guyana, Iceland, New Zealand, and Saint Vincent and the Grenadines. In the summer of 2018, we flew 1,025 unique
routes and operated almost 6,875 daily flights on a peak day.

OPERATIONAL PERFORMANCE
We know one of the most important qualities our customers expect of us is dependability. In addition to customer safety, our
top priority is getting our customers to their destinations on time and with their baggage. Since the merger, we have made
steady progress on improving our core operating metrics. In 2017, we recorded our best on-time departure performance since
2003 and our best mishandled baggage rate (MBR) since 1994.

In 2018, we fell short of our operational targets, but we implemented several new initiatives focused on improving aircraft
dependability, maintenance and turn performance. These include taking consistent steps to confirm our fleet is ready to go each
morning; properly resourcing our teams to turn aircraft efficiently throughout the day; and adjusting our planning processes
to be ready to deliver smooth service during peak travel periods. We have already seen positive results from these efforts,
including significant improvements in key operational performance metrics during the busy holiday travel period at the end of
2018 — and we carried that momentum forward into 2019.

EXPANDING EFFICIENTLY AT OUR L ARGEST HUB

Dallas Fort Worth International Airport (DFW) is American’s largest hub, with more than
800 daily flights to 30 countries. In 2018, we finalized a lease agreement that will allow us
to expand our footprint at DFW in 2019 by moving some regional flying to 15 new gates
in the satellite building at Terminal E and converting some regional gates at Terminal B to
mainline gates. In July 2018, DFW received a letter of intent for a $180 million federal grant
from the U.S. Department of Transportation and Federal Aviation Administration for two
new end-around taxiways. End-around taxiways enable arriving aircraft to taxi around DFW’s
seven active runways rather than wait to cross them, ensuring less idle time and more efficient
movement of travelers and commercial goods.

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 Create a World-Class Customer Experience

PRECIOUS CARGO
In addition to delivering passengers to their destinations around the world, our industry-leading Operations team provides
more than 100 million pounds of weekly cargo lift to major cities in the United States, Europe, Canada, Mexico, the Caribbean,
Latin America and Asia-Pacific. Since the merger in 2013, we have delivered more than 7 billion pounds of freight and mail.
Over the years, we have pushed the edge of cargo technology to steadily and successfully grow this business. In 2018, cargo
traffic increased by 4.3 percent year over year to 2.9 billion cargo ton miles. Thanks to new routes, strategic capacity planning,
and exceptional teamwork, we broke records in three major categories despite this increased demand, including:
•• Recording our best Flown As Booked performance in company history
•• Moving 2 billion pounds of cargo across the world’s largest network
•• Earning more than $1 billion in revenue, a 13.8 percent increase year over year

MOVING MASTERPIECES
In June 2018, American Airlines Cargo
transported priceless Spanish art from
locations around the world to San
Antonio for the city’s tricentennial
festivities, which celebrate the founding
of the city in 1718 by Spanish Franciscan
missionaries. Cargo was an official
sponsor of the San Antonio Museum
of Art exhibition, Spain: 500 Years of
Spanish Painting from the Museums
of Madrid.

Transporting these unique pieces of art,

many of which had never been shown
in the United States, required a special
level of attention and handling. Our
Cargo team members partnered with
four freight forwarding specialists in four
countries to ensure the paintings were
handled with great care during every
step of the process. La Anunciación, ca.1650 by Bartolomé Esteban Murillo; © Museo Nacional del Prado, Madrid.

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 Create a World-Class Customer Experience

CUSTOMER SATISFACTION
An important part of ensuring that we provide a world-class experience for our customers is by listening carefully to them
and taking appropriate actions in response. We have several ways customers can contact us to provide feedback, with the two
most common being email and social media. We strive to respond to all complaints in a reasonable amount of time, and we
consistently respond to 85 percent of customer contacts within 24 hours.

In addition to responding to communications in a timely manner, our Customer Advocacy team uses insights to drive
strategic changes intended to ultimately improve the overall customer experience. We have many examples of instances
where we were able to identify opportunities to better serve our customers through their feedback. For example:
•• Following complaints about slow and inconsistent Wi-Fi connectivity, we contracted with a new high-speed satellite-
based inflight Wi-Fi provider, ViaSat. As of the end of 2018, high-speed Wi-Fi is now available on more than 570
aircraft. The rest of American’s long-term narrowbody aircraft will receive high-speed Wi-Fi in 2019.

•• After receiving feedback about improving the customer

experience for passengers needing wheelchair assistance,
we launched a Disability Improvement project focused SCORING AN 'A' FROM THE BBB
on increasing accessibility for passengers with disabilities. Customers reach out to American
For example, in Los Angeles, American worked with the in several ways to resolve concerns
airport authority to install an elevator to enhance the travel regarding their travel experience. Others
experience of passengers in wheelchairs that use a shuttle bus make their issues known through third
to transfer between terminals. parties. In July 2017, our Customer
Relations team began working with
•• After learning about the challenges our customers were facing one of those outside organizations —
in getting timely refunds, we made process improvements the Better Business Bureau (BBB) — to
and adjustments to our refund automation system. This has address how to better handle customer
resulted in an improvement in the timeliness of refunds and complaints. We have reviewed and
decreased customer complaints. addressed all feedback on the BBB’s site
and implemented new steps to ensure
In addition to relying on feedback, we are always striving to we are responding appropriately. As a
continuously improve our product and the experience of our result, in May 2018, American’s rating
customers. In 2018, for example, we continued to expand free live on the site was upgraded to an A from
TV offerings — now on more than 270 domestic aircraft — and we the BBB.
continue to be the only U.S. carrier to offer it internationally.

2018 Corporate Responsibility Report 21

 Create a World-Class Customer Experience

ECONOMY FARES
To allow our customers to access American’s
unparalleled network while benefiting from our lowest
fares that are competitive with no-frills carriers, in 2017
we rolled out our popular Basic Economy fare across
the continental United States. In 2018, we expanded
the program and now offer this option across the
entire domestic network as well as most of the Atlantic,
Caribbean, Mexico and Central America. We made
several refinements to the program in 2018, including
eliminating the carry-on bag restriction so passengers
can bring both a personal item and a carry-on bag on
the plane like other Main Cabin fares.
Flagship Lounge at L AX
In 2018, we added Premium Economy to
103 aircraft. This fare option offers enhanced seating LOUNGING AROUND
between business class and Main Cabin and includes American was the first airline to introduce an
benefits such as more legroom and free on-demand airport lounge concept in 1939, and, today, we
entertainment. We offer more Premium Economy seats offer more than 55 lounges worldwide to improve
than any other U.S. airline. the customer experience. With our premium
customers in mind, we introduced the first Flagship
COMPETITIVE AADVANTAGE Lounge and Flagship First Dining at New York’s
We are focused on continuously improving our John F. Kennedy International Airport (JFK) in May
customer loyalty program, AAdvantage, which has been 2017. Since then, we’ve opened additional Flagship
awarded Best Elite Program every year since the merger Lounges at LAX, Miami International Airport (MIA)
at the Freddie Awards, which honors loyalty programs and Chicago’s O’Hare International Airport (ORD)
as determined by frequent travelers. One of the great with Flagship First Dining at LAX and MIA. Our next
longstanding features of the program is the opportunity Flagship Lounge and Flagship First Dining will open
for AAdvantage members to earn miles by donating at DFW in 2019.
cash to select causes, making a difference in the lives of
those in need. We’re also making updates to Admirals Club
lounges at many airports, including Charlotte
In 2018, we introduced several new benefits for Douglas International Airport (CLT), DFW, Boston
program members, including the ability to book award Logan International Airport (BOS) and Pittsburgh
travel on the mobile app. Since the merger, members International Airport (PIT). Team members at
have redeemed more than 50 million awards miles Paris’ Charles de Gaulle Airport (CDG) celebrated
across more than 20 airline partners to more than the 30th anniversary of the Admirals Club lounge
1,000 destinations. We also introduced the digital wallet in July 2018. The lounge offers guests spa-like
and promotions center, giving our members added showers, high-speed Wi-Fi and complimentary
control and flexibility with their rewards and benefits. food provided exclusively for American by the
In 2018, we introduced the new AAdvantage MileUpSM French family-run food supplier IMG.
card, which gives members the ability to earn miles on
everyday purchases with no annual fee.

2018 Corporate Responsibility Report 22

 Create a World-Class Customer Experience

CUSTOMER SAFETY
Our commitment to customer and flight safety cannot be overstated. We are focused on proactively identifying, analyzing,
mitigating and eliminating risks and hazards that may cause accidents or injuries to our customers. An important part of how
we do that is by continually monitoring and reporting safety-related issues. The Aviation Safety Action Program (ASAP) is a
collaborative industry tool that enhances aviation safety through the analysis of voluntarily — and in some cases anonymously
— reported safety events or discrepancies. The purpose of ASAP is to prevent accidents and incidents by encouraging frontline
team members and airlines to report any and all safety information that can be used to identify and mitigate safety risks, rather
than letting it go undocumented. In 2018, American Airlines recorded 10,834 ASAP reports.

In 2019, in cooperation with our union partners and the FAA, we will also be rolling out a Ground Safety Action Program
(GSAP). Based on ASAP principles with a focus on ground operations, the policies and procedures will support team members in
our ramp, cargo, tower and ground support equipment areas. GSAP is expected to launch in early 2019 in four locations — BOS,
Orlando (MCO), Las Vegas (LAS) and LAX — and to every station by summer 2019.

As part of our commitment to ongoing monitoring and transparency, we are a registered participant in the IATA Operational
Safety Audit (IOSA) program, an internationally recognized and accepted evaluation system designed to assess an airline’s
operational management and control systems of an airline. The IOSA audit creates a structured methodology with standardized
checklists comparable on a worldwide basis, enabling and maximizing the joint use of audit reports. Results contribute to the
continuous updating of standards to reflect regulatory revisions and best practices.

RESPONDING TO EMERGENCIES
American’s Customer Assistance Relief Effort (CARE) team members
stand ready to assist our customers in the event of any emergency. More SAFETY THROUGH
than 5,000 volunteer CARE team members across 100 departments are TECHNOLOGY
trained to provide compassionate, professional assistance to our customers In 2018, American became the first
and colleagues in the event they are affected by an aircraft emergency on airline to work with the Transportation
any flight operated by American Airlines or American Eagle. Security Administration to launch a
new state-of-the-art, 3D computed
To ensure we are always prepared, American has quarterly corporate tomography (CT) scanner at the
emergency response drills for American’s mainline operations and annual security checkpoint in Terminal 8 at
emergency drills for each of our regional airline partners. Various scenarios JFK. CT technology more effectively
related to aviation accidents or security incidents are used to help prepare detects threats, enhancing aviation
for any type of event. security for team members and
customers.
Circumstances in the workplace can happen without warning. The ability
to identify and quickly respond to these situations can make a huge American has also launched
difference. To help prepare our team members to better handle these automated screening lanes at ORD,
unforeseen situations, in 2018 American launched a voluntary computer- DFW, LAX and MIA. These new lanes
based training course called Keeping American Secure. This course was incorporate innovative technology
designed to help team members identify common behaviors of dangerous and screening station modifications
people before they harm themselves or others, share resources for that enhance security effectiveness
threatening or potentially violent circumstances, and provide information while decreasing the time travelers
about survival strategies in a variety of emergency situations. spend in line at the checkpoint.

2018 Corporate Responsibility Report 23

 Build American Airlines to Thrive Forever
Since the merger of American Airlines and US Airways more than five years ago, we have made strategic
investments in our team and our product while managing risks in ways that will secure our financial
strength for the long term. We are making historic investments in innovation, breaking ground on new
airport modernization projects and expanding our route network and partnerships around the world.
Looking ahead, we will finalize our integration and continue to responsibly manage our assets like owners.

Our team members’ hard work helped produce pre-tax profit of $1.9 billion, or $2.8 billion excluding net special charges, in
20181. These results brought our profit sharing pool to $175 million, which was distributed to team members in March 2019.

INVESTING IN OUR FACILITIES

We’re making major improvements to the travel experience — both onboard our planes and at our airports. We’re making significant
financial contributions to the more than $50 billion in airport capital improvement projects approved, funded and underway at
our hubs. In addition, our Corporate Real Estate (CRE) and IT teams have systematically analyzed our facilities to identify spaces that
were long overdue for improvement. We have refurbished more than 1,100 team member spaces around the system, including
individual work areas, break rooms and reservations offices. CRE also has more than 500 customer-facing projects underway.

The highlights from 2018 include:

•• DCA: In Arlington, Virginia, the Metropolitan Washington Airports Authority and Ronald Reagan Washington National
Airport (DCA) are undergoing a $1 billion upgrade. When completed in 2021, two new security checkpoints will connect
all the concourses on the secure side, and a new 14-gate regional concourse will replace the ramp and busing operation
at gate 35X. This new facility will provide regional travelers with direct, enclosed access to planes via jet bridges, spacious
gate areas, diverse seating options with integrated power outlets, new concessions and an Admirals Club.

•• DFW: Construction is underway on the Terminal E satellite, where American will open 15 new gates and relocate some
of the Terminal B operation to expand its footprint at DFW when it opens in the second quarter of 2019. Improvements
include refreshing ticket counters and gate areas, refurbishing restrooms and office space, and installing new ramp
lighting and moving walkways. We will also open a Flagship Lounge and Flagship First Dining in Terminal D by mid-2019.

•• LAX: In October 2018, American and Los Angeles World Airports broke ground on a $1.6 billion modernization project
to reimagine LAX Terminals 4 and 5, marking American’s largest individual investment at an airport in its 92-year history.
When completed, the new facility will have open and efficient check-in and security processing areas, more inviting gate
areas with increased seating and access to modern amenities, and greater ability for airline operations to quickly adapt
to and incorporate rapidly evolving new technologies. We will also modernize the workspace of American’s 7,300-plus
team members at LAX with renovated break rooms, multi-use meeting rooms and new team gathering spaces.

•• LGA: We are completely redeveloping our terminal (including team member break rooms and workspaces) at LaGuardia
Airport (LGA) through a $5.1 billion public-private partnership with the Port Authority of New York and New Jersey and
LaGuardia Gateway Partners. In 2018, we unveiled the first new section of Terminal B, where we now occupy three of
11 gates.

•• MIA: A newly renovated Admirals Club and Flagship Lounge, complete with a new Flagship First Dining area, recently
opened at MIA, along with more than $5 million worth of upgrades to team member work spaces.

•• ORD: Major renovations will occur over the next few years, including a new hangar for American with high-tech features
and upgraded team member spaces. The six-bay structure opened in January 2019 and can hold two additional
narrowbody aircraft, which will increase overnight workload capacity, expedite maintenance and return aircraft to the air
faster. It also features two production control rooms, an aircraft parking lot and updated work centers for team members.

1
Please see Annex I for a reconciliation of pre-tax profit excluding special items, a non-GAAP measure.

2018 Corporate Responsibility Report 24

 Build American Airlines to Thrive Forever

INTEGRATING OUR TEAM

We continue to fulfill our integration plan following the merger of American and US Airways. Since 2013, we have
co-located American and US Airways at more than 140 airports around the world, rebranded gates, ticket counters
and signage at 340 airports, and combined more than 650 systems. We combined the two airlines’ reservations
systems into a single computer platform and integrated our pilot groups and fleet of aircraft into one Flight Operating
System in 2015 and 2016, respectively. In October 2018, American accomplished the largest and most complicated
integration project to date, representing another major technological and operational milestone: flight attendant
operational integration (FOI).

Prior to FOI, our flight attendants

were limited to flying only on their
Largest integration 29,000
legacy airline’s aircraft, but now
project to datefor team members
they can fly together on the same
American brought together
aircraft. Along with providing a more
flexible work environment for our
flight attendants (including new pay
processes and training schedules), A massive effort 1.1 million
the change means we can re-crew i
 nvolving more than hours of training
without worrying about which aircraft 6
 .2 million hours delivered
flight attendants can fly. This helps of work
us get back on track faster following
weather events or aircraft swaps, improving the experience for our customers. As of November 2018, flight attendants
were able to transfer to any base within our network, with more than 1,000 flight attendants expected to move to
new bases.

INVESTING IN OUR NET WORK

Over the next 20 years, more than half of the world’s new air travelers are expected to come from the Asia-Pacific
region, and American is stepping up to meet that demand. Our flights to the region are our longest, and they are
critical to attracting and retaining customers. Since 2013, American has doubled the number of routes we serve in
the Asia-Pacific region, and we’re investing heavily to ensure those traveling between Asia-Pacific and the U.S. have the
network and connections they need on the best product American can offer.

In 2018, American launched 28 new flights across its network, including 12 flights to the Caribbean, five flights to
Miami and two new ways get to Sarasota, Florida(SRQ). American also introduced a sixth destination in Cuba with
service to Antonio Maceo International Airport (SCU) in Santiago de Cuba, and new service to Durango International
Airport (DGO) in Mexico. Beginning in the summer of 2019, we will offer 18 new domestic and Canadian routes. These
new routes are in addition to previously announced seasonal service to Europe, including being the only U.S. airline to
travel nonstop to Bologna, Italy (BLQ), and Dubrovnik, Croatia (DBV).

As we continue to introduce new domestic and international routes, we’ll also open new stations. This year, we’ve
opened stations in Reykjavik-Keflavik, Iceland (KEF); Budapest, Hungary (BUD); Prague (PRG); Bonaire (BON); Panama
City, Florida (ECP); and Cheyenne, Wyoming (CYS), to name a few.

2018 Corporate Responsibility Report 25

 Build American Airlines to Thrive Forever

SUPPLY CHAIN
Our commitment to running an efficient and profitable business extends to the responsible management of our supply chain.
We procure high-quality, cost-competitive goods and services from more than
10,000 suppliers across the enterprise. The most significant elements of our supply chain include jet fuel, aircraft and aircraft
parts, inflight food and beverages, technology, and office supplies.

Key criteria for doing business with American includes providing the best value in terms of price and quality, as well as having
a deep understanding of the airline industry, being financially stable and certifying an ethical supply chain. These expectations
are clearly outlined in our Standards of Business Conduct for Suppliers, as well as on an accompanying Supplier Management
Portal. To ensure suppliers meet our standards, we include a risk matrix in our standard requests for proposal, which asks about
their policies and practices around labor, business ethics, the environment, health and safety. We monitor supplier performance
against these criteria and assess potential risks, such as supply chain disruptions.

To further align our corporate responsibility goals and values with our sourcing decisions, we moved forward on several exciting
new supplier partnerships in 2018. For example:
•• Healthier food: Listening to customers asking for lighter tasty food choices on flights, we partnered with Zoës Kitchen
to introduce a new healthy food-for-sale menu in the Main Cabin on most domestic flights longer than three hours. The
new additions include fresh, wholesome selections inspired by the flavors of the Mediterranean, including Zoës signature
hummus and The Grüben sandwich of sliced turkey, crunchy slaw and feta spread.

•• Less waste: We have replaced all plastic straws in our lounges with biodegradable, eco-friendly straws, and we will soon
begin transitioning to all eco-friendly flatware in lounges. In the air, we have eliminated all plastic straws and offer a stir
stick made of sustainable and environmentally friendly bamboo. By making these changes, American will eliminate more
than 71,000 pounds of plastic per year. Next, we are pursuing the sourcing of cost-neutral biodegradable materials
where possible.

Supplier diversity
At American, we champion our
relationships with diverse suppliers,
including small and minority-
owned, women-owned, veteran-
owned, service-disabled veteran-
owned, disability-owned, and
LGBT-owned businesses. In 2018,
we did business with more than
1,500 diverse and small businesses.
We also participated in more than
40 supplier diversity events around
the United States that provided
networking opportunities through
matchmaking sessions, business
fairs and other events.

2018 Corporate Responsibility Report 26

 Build American Airlines to Thrive Forever

Supplier Diversity Awards and Recognition

•• Black EOE Journal 2018 Best of the Best Top Employers and LGBTQ+
Friendly Companies: Recognizing companies that are leaders in promoting
the advancement of African-Americans in all aspects of business and ETHICS POINT HELPLINE
employment to ensure equal opportunity. All our team members have a
•• Business Equality Network 2018 LGBTQ Business Equality Excellence Award: responsibility to themselves, their
Recognizing major employers that have made supply chain diversity and an colleagues, our customers and our
inclusive workplace a matter of both policy and practice. company to conduct business legally
and ethically in accordance with
•• Dallas/Fort Worth Minority Supplier Development Council Buy Those That our values and our Standards of
Buy UsTM Best Practice Award: Recognition for the achievements in the Business Conduct. Team members are
utilization of minority-owned businesses in the supply chain. encouraged to bring any questions or
•• Government Procurement Conference Outstanding Support Award: concerns about potential violations
National conference fostering business partnerships between the federal to their manager or supervisor, the
government, its prime contractors, and small, diverse and women-owned Business Ethics and Compliance Office,
businesses. or our EthicsPoint Helpline, which is
•• Minority Business Network USA 2018 Best of the Decade: Honoring leaders accessible by phone at 877-422-3844
who consistently drive progress and innovation in the supply chain. or online at aa.ethicspoint.com.
•• National Business Inclusion Consortium Best-of-the-Best Corporation for
Inclusion: Honoring corporations for their commitment to America’s diverse Information on the EthicsPoint
employees and business owners, including LGBTQ, people of color, women Helpline is included in the annual
and people with disabilities. web-based compliance training and
certification that all key team members
•• United States Hispanic Chamber of Commerce The Million Dollar Club:
and contractors must complete.
Corporations that have invested a minimum of $25 million to upward of
In addition, posters promoting the
$1 billion or more in contracts with Hispanic-owned companies.
EthicsPoint Helpline are posted
•• U.S. Veterans Magazine Best of the Best Top Veteran-Friendly Companies, systemwide in locations frequented by
Top Supplier Diversity Programs: Recognizing corporations offering team members, such as in break rooms
employment, business and supplier opportunities for veterans, transitioning and common areas.
service members, disabled veterans, spouses and veteran business owners.
•• Women’s Enterprise USA Top Leaders in Corporate Supplier Diversity: The helpline is available toll-free 24
Influential companies that have demonstrated their commitment to supplier hours a day, seven days a week. Calls
diversity and the inclusion of women’s businesses. are answered by trained specialists
from an independent third party and
reports can be made in any language
BUSINESS ETHICS for the locations where we fly. Reports
Our commitment to running a great airline is founded on a value system we all to the helpline can also be made
share, based on integrity, honesty and the absolute dedication that every decision through an independent, third-party
we make is responsible and ethical. American’s Chief Ethics and Compliance Officer web portal. In 2018, we received
(CECO) has overall responsibility for our compliance program. The CECO reports 2,433 reports, approximately 56
to the Executive Vice President of Corporate Affairs, who reports to American’s percent via phone and 44 percent
Chief Executive Officer. American’s Board of Directors exercises oversight of the via web. The company reviews and
Business Ethics and Compliance Program and has delegated to the Board’s Audit investigates all reports and strives to
Committee the lead role in fulfilling this responsibility. The Standards of Business maintain confidentiality. Retaliation
Conduct provide our team members with the information and tools needed to is not tolerated. We investigate all
follow the law, seek advice when needed and report possible misconduct. The allegations of retaliation.
Standards provide guidance about key business issues and offer real-life responses
to situations team members may face.

2018 Corporate Responsibility Report 27

 Build American Airlines to Thrive Forever

MANAGING DATA PRIVACY

American’s business requires the processing and storage of personal data relating to our customers, team
members, business partners and others. We have a comprehensive privacy program dedicated to ensuring
American processes personal data appropriately and responsibly. While the privacy program is run by
the Global Privacy Office, it is a team effort with involvement from senior leaders on the Privacy Council,
Privacy Liaisons who are members of key business units, and all of our team members who are trained
and responsible for adhering to American’s privacy requirements, which we base on applicable laws and
generally accepted privacy principles. Our customer privacy policy can be found at aa.com/privacy.

COMBATING HUMAN TRAFFICKING

American is committed to respecting human rights, including combating illegal human trafficking and
child exploitation. As a prominent part of the worldwide travel industry, we conduct our business in a
manner that protects human rights and the rights of children within our sphere of influence. We have
adopted responsible workplace practices and endeavor to conduct our business operations free from
complicity in human rights abuses.

American’s commitment to human rights is outlined in our Standards of Business Conduct, which require
all of American’s team members and suppliers to uphold the human rights of all persons, including
permanent and temporary team members both domestically and internationally. American’s policies and
other information on human trafficking, including links to educational and training resources, are available
to all team members on our intranet site.

On National Human Trafficking Awareness Day in January 2018, American signed ECPAT-USA’s Tourism
Child-Protection Code of Conduct, a voluntary set of business principles to prevent child sex tourism
and trafficking of children. Signing the code formally recognized our longstanding commitment to
help frontline team members identify and report signs of human trafficking, and we continue to raise
awareness of the issue among our team.

American has provided initial and recurrent human trafficking awareness training to our flight attendants
for several years. American also provides anti-trafficking training to team members with relevant
purchasing responsibilities, including training teams that conduct on-site visits to American’s international
suppliers to learn how to recognize signs of human trafficking and what action they should take if they
suspect human trafficking.

After announcing our intention to sign ECPAT-USA’s Code, we also initiated plans to conduct similar anti-
trafficking training for our pilots and airport customer service team members. As a result, in 2018 we put
mandatory human trafficking awareness training in place for all of our frontline team — approximately
26,000 flight attendants, 15,000 pilots and 18,000 airport agents.

2018 Corporate Responsibility Report 28

Think Forward, Lead Forward
An important part of how we are Building American Airlines to Thrive Forever is by “thinking forward and leading forward.” By that
we mean considering how we can best contribute to a vibrant future for our company, our industry and all our stakeholders. This
includes delivering the right future products, in cooperation with the right partners, through the most connected network. By being
nimble and proactive, we are setting a new standard for delivering value to the market quickly and efficiently.

We also know that today’s team members, customers and investors demand more from top companies like American. Increasingly,
exemplary customer service, great value and a leading business model are not enough to engage and inspire them. They want
to see companies operating responsibly, innovating new solutions and embracing their roles as leading corporate citizens. As the
world’s largest airline, American is committed to doing its part to promote a sustainable future for generations of travelers to come.

INNOVATING FOR
THE FUTURE
American has an ongoing THINKING FORWARD
partnership with the FAA and TO NEW TECHNOLOGIES
NASA to develop the future of We are committed to innovating
airspace and optimize ramp toward solutions that equip our team
and gate management for of 130,000 with the tools they need to
maximum efficiency. make their jobs easier and safer. Since
the merger in 2013, we:
Team members in American’s Hub Control Center at CLT are working •• Became the first airline to equip
with FAA and NASA engineers to reimagine tomorrow’s airspace customer-facing team members
and operations management. This includes the Airspace Technology with mobile tablets to use on
Demonstration 2 program, a five-year project to streamline arrivals and board. The technology makes
departures and improve ground operations to increase safety their jobs easier and providing
and efficiency. better customer service through
iSolve, a tool that empowers
Current systems rely on radar but tracking planes on the airport surface team members to solve
remains a blind spot that can leave planes idling as they wait for an problems and offer on-the-spot
open gate or in line to take off. The new system uses GPS and satellite compensation — in the form of
technology to incorporate real-time data across all systems and allow AAdvantage miles — to customers
coordination among the ramp, air traffic control tower, terminal and for inconveniences at the first
Control Center. This information will give air traffic controllers the tools to point of contact.
make better decisions to reduce congestion in the air and on the ground.
•• Created SAFE, a new tool that
Planners can also use this data to more precisely develop schedules,
helps Tech Ops team members
reducing push, taxi and take-off times.
safely manage parts and
maintenance of more than
Simultaneous advancements are being made on aircraft as well. In May
900 aircraft.
2018, American announced that it will equip its entire Airbus A321 fleet
with ACSS SafeRoute Automatic Dependent Surveillance-Broadcast •• Became the first airline to launch
(ADS-B), a next-generation surveillance technology. ADS-B incorporates electronic flight bags, replacing
both air and ground data to give air traffic controllers a more accurate 40-pound flight manuals with
picture of an aircraft’s position from gate to gate. American’s fleet of Apple iPads, saving $1.2 million in
Airbus A330s is already equipped with ADS-B technology. fuel annually.
•• Built a new, user-friendly Travel
Our goal with these complementary projects is to improve the flow of Planner for team members and
aircraft by taking real-time snapshots of what’s happening on the ground, retirees to list for flights and check
allowing us to provide a better travel experience for our customers and in from a mobile device.
improve fuel efficiency and safety conditions on the tarmac.

2018 Corporate Responsibility Report 29

Think Forward, Lead Forward (continued)

SUSTAINABLE OPERATIONS
At American, we recognize that aviation has an impact on the environment. The demand for air ENVIRONMENTAL POLICY
transportation is expected to nearly double by 2036, according to IATA. As this demand grows, so too AND COMMITMENT
will related environmental risks, costs and externalities. Emissions from aircraft and ground support American and its regional
equipment increase pollution, affect local air quality and impact the climate. We consume materials affiliates operating as American
that reduce natural resources and produce waste. Water withdrawals are needed as part of the Eagle are committed to
maintenance of aircraft, and spills may occur that affect local water quality. And aircraft noise affects safeguarding the earth’s
environment through the
the communities we serve. American is committed to safeguarding the environment, and we are
ongoing development and
doing all we can to proactively minimize these impacts, recognizing that the success of our efforts
implementation of sustainable
will affect future generations. business practices. The Chief
Executive Officer and each
American’s environmental management system (EMS) provides a systematic approach for complying team member are responsible
with environmental regulations and managing a broad range of issues, including air emissions, for ensuring compliance with
hazardous waste disposal, underground tanks and aircraft water quality. The EMS is modeled on the the airline’s Environmental
ISO 14001 standard and aligns closely with our FAA-approved Safety Management System (SMS). Management Manual. Station
The EMS is overseen by the Company Operations Standards Board, which is made up of senior and functional management
executives of the company. We continually review and update our EMS and provide rigorous training at all locations and subsidiaries
on it. shall implement policies and
procedures to comply with this
policy statement. All companies
As part of our audit process, Environmental Coordinators at each location perform periodic self-
associated with or owned by
audit and inspections to ensure compliance with environmental regulations. In addition, American’s American Airlines have an
Environmental Department performs more in-depth audits of our largest locations. In 2018, obligation to operate ethically,
American performed 10 of these audits. responsibly and within the law.
Environmental regulations apply
Lessening the environmental impact of our operations is top of mind at American and has been equally to all personnel of the
for a long time. American’s flight attendants kicked off the airline industry’s first onboard recycling Company without exception.
program in 1989. And when we build a new facility, or upgrade existing facilities, we strive to
use environmentally friendly construction practices, including seeking Leadership in Energy and
Environmental Design (LEED) standard certification.

NEW GOLD STANDARD

IN FORT WORTH
When it’s completed in 2019, American’s new
headquarters in Fort Worth, Texas, at the Robert L.
Crandall Campus, will be among the most modern
corporate centers in the area. Support staff and
leaders will be closer to our frontline colleagues,
sharing the home of American’s Flight Academy,
DFW Reservations, Integrated Operations Center (the 149,000-square-foot facility that serves as
the combined airline’s mission control), the Training & Conference Center and more.

The new buildings are designed to meet the LEED Gold standard. There will be more than
10,000 parking spaces on the perimeter of the broader campus, but the car-free interior campus
is designed to encourage team members to walk and bike between buildings, spend time in the
fresh air outdoors and interact with their colleagues. We have planted 3,500 trees across 300
acres, which include 90 acres of woodlands, 8.3 miles of trails, a small pond and free bicycles for
our team members.

2018 Corporate Responsibility Report 30

Think Forward, Lead Forward (continued)

CLIMATE CHANGE RISKS

In its latest report published in October 2018, the U.N. Intergovernmental Panel on Climate Change (IPCC) called for
“urgent” and “unprecedented” action to reduce carbon dioxide emissions to avoid the worst impacts of climate change.
The aviation industry accounts for an estimated 2 percent of global carbon emissions.

•• American supports the ambitious targets set by the IATA to mitigate CO2 emissions from air transport:
•• An average improvement in fuel efficiency of 1.5 percent per year from 2009 to 2020
•• Carbon-neutral growth through a cap on net aviation CO2 emissions from 2020
•• Reduction in net aviation CO2 emissions of 50 percent by 2050, relative to 2005 levels

FUEL CONSERVATION
We strive to maintain a fuel-saving culture at American through education, teamwork and advocacy. Through our team
member-led Fuel Smart program, we are always looking for ways to reduce fuel burn and increase efficiencies in our machinery,
such as optimizing planned aircraft arrival fuel and reducing aircraft weight by removing unnecessary items. We continue to
focus on improving the quality of data available to measure our fuel savings across our fuel savings categories.

In addition to Fuel Smart, we have implemented a fuel conservation program for our regional carriers that focuses on reducing
auxiliary power unit use, employing single-engine taxiing and optimizing reserve fuel. Wholly owned and contracted regional
carriers represent about 17 percent of American’s total fuel consumption. The program is managed by American’s team that is
responsible for regional oversight. In addition, this team is working with a consultancy to help analyze fuel consumption data
and develop and implement targeted training programs for our regional carriers.

Since the merger in 2013, we have also been leading an unprecedented fleet renewal program that is keeping American’s fleet
the youngest among U.S. network airlines. We have:
•• Taken delivery of more than 500 aircraft and retired virtually the same number, giving American the youngest fleet of
any U.S. network carrier.
•• Inducted three new efficient aircraft types into
American’s fleet to replace retiring models: the Boeing
787-8 and -9 and Boeing 737 MAX 8, which improve
fuel efficiency by up to 20 percent over similarly sized Tonnes of CO2e emissions avoided due to
aircraft. We ordered 47 additional Boeing 787s in 2018. fuel efficiency improvements since 2014
•• Introduced the Airbus A321neo as of 2019, which will
replace retiring Boeing 757s. This versatile aircraft adds 2015
2016
about 400 nautical miles in range thanks to improved
2
fuel burn from its new engines. 2017

2018
4
These efforts, as well as other operational improvements, have
helped us to continue reducing the emissions associated with 6

each passenger and each pound of cargo we carry. Over the

8
past four years, American emitted almost 6.4 million metric
tons of CO2e less than it would have if its fuel efficiency had
remained at the 2014 level. Million metric tonnes of CO2e avoided

2018 Corporate Responsibility Report 31

Think Forward, Lead Forward (continued)

ENERGY USE
Sustainable and commercially viable alternative jet fuels (SAJF) also have the potential to play a significant role in
helping American be more fuel-efficient, further reduce our emissions and meet the rising global demand for air
travel while pursuing carbon neutrality. Along with other key stakeholders, we are participating in industry efforts
to accelerate the adoption of sustainable alternative jet fuels.

We have been using renewable energy in several of our North Texas facilities since 2015. As of October 2017,
100 percent of electricity purchased at our headquarters campus and DFW terminals and facilities is from
renewable sources. At the end of 2018, the Environmental Protection Agency announced that American is
ranked 46th on its list of the largest Fortune 500 company green power users.

Renewable Electricity Purchased (MWh) 2018 2017 2016

- Purchased through utilities (sourced from wind) 53,272 28,136 22,159
- Purchased indirectly (sourced from wind) 154,046 82,979 55,521
Total Direct and Indirect 207,318 111,115 77,680

We are also working to reduce our electricity consumption. For

example, we are in the process of retrofitting hangar facilities with
high-efficiency LED lights that use significantly less energy. We have BREATHE EASY
completed relighting projects at our line maintenance hangars at The air we breathe in an
SFO, DCA, and the Wheel and Brake Center at the Tulsa Maintenance aircraft is a mix of fresh air
Base, and we are in the process of relighting hangars at JFK, LGA and and re-introduced air that
Philadelphia International Airport (PHL). is continuously filtered and
circulated throughout the
CLEANER AIR cabin. All of American’s
Local air quality is an important issue in the communities we serve. aircraft use HEPA filters that
As American procures new ground support equipment (GSE), we seek can trap air particles less than
opportunities to purchase equipment with lower emissions. At the a micron in diameter. Several
end of 2018, 26.1percent of American’s mainline and regional GSE of our long-haul aircraft have
fleet was either electric powered or used lower emission propane. carbon activated filters in
Here are some of our recent fleet efforts around the system: addition to the HEPA filters
•• At BOS, American pledged to replace 115 diesel powered GSE which have the benefit of
with electric over the next several years removing gases that can
•• DCA added five electric pushout tractors and 12 electric belt cause odors. We aim to install
loaders in 2018 to its existing fleet of almost 100 electric these additional filters on our
GSE vehicles remaining fleet.
•• In California, our GSE fleet continues to exceed the annual
emission standards
•• Our regional carriers continue to add to their fleet of electric
GSE. In 2018, almost 50 percent of the new GSE acquired at
regional stations was electric powered

2018 Corporate Responsibility Report 32

Think Forward, Lead Forward (continued)

WASTE AND RECYCLING INNOVATIVE SOLUTIONS

Managing our waste is not only vital for meeting our environmental Four years ago, Tulsa’s Maintenance and
compliance commitments, but also for lowering our overall environmental Engineering Center planted more than 500
impact. We carefully manage hazardous waste to secure proper disposal, hybrid poplar trees as part of a remedation
to comply with all regulatory handling and disposal requirements and to project to treat groundwater. This process,
ensure team member and public safety. called “phytoremediation,” uses the inherent
capacity of natural systems to purify
Stations and maintenance facilities have implemented numerous groundwater without the use of additional
initiatives to recycle materials, including cardboard, plastic shrink-wrap, chemicals or expensive engineering.
scrap metals, aircraft tires, acrylic aircraft windows, used oil, and pallets.
We’ve also implemented a program to reuse the plastic rollers that hold Using a unique ID “barkcode,” American
the paper tickets inside the self-service ticket machines at our airlines. personnel continue to evaluate and monitor
After the ticket stock is used, the eight inch plastic rollers are boxed up the phytoremediation system to document
and returned to our ticket supplier to be used again. In 2018, over 20,000 its success in controlling groundwater
plastic rollers were returned for reuse, avoiding 6.3 tons of waste. constituents and flow. The minimally invasive,
environmentally sensitive strategy has the
Our onboard recycling program generates about 400,000 pounds of added benefit of creating a green space for
aluminum cans annually, along with considerable amounts of plastic and all team members to enjoy.
paper. All proceeds from our inflight recycling program go to The Wings
Foundation, a charitable organization administered by active American
Airlines flight attendants to assist fellow flight attendants in critical need of
financial assistance due to illness, injury, disability or catastrophic event.

MANAGING WATER RESOURCES

American works to protect local waterways by taking precautions to avoid
spilled contaminants and by taking immediate and appropriate steps in the
event that a spill occurs. We also have implemented an extensive water
testing program to ensure the water loaded on every flight meets the strict
drinking standards set by the U.S. Environmental Protection Agency.

Water is used in many of our maintenance processes and we take steps to

reduce its use when possible. For example, American washes each aircraft
engine at least once a year to improve performance and reduce wear and
tear that can occur with the accumulation of dirt and oil. The water used
to clean the engines is recycled in a closed loop process by filtering the
water and mist leaving the engine to remove contaminants, and reusing it
An environmental engineer takes a poplar tree
to clean the engine. In addition to avoiding additional water consumption, core sample to evaluate the biological response to
engine washes can reduce fuel consumption by up to 1percent. phytoremediation.

2018 Corporate Responsibility Report 33

Performance Tables
Financial Performance1 2018 2017 2016
Revenue
Passenger 40,676 39,131 37,045
Cargo 1,013 890 785
Other 2,852 2,601 2,312
Total operating revenue 44,541 42,622 40,142
Total operating expenses 41,885 38,391 35,082
Operating income 2,656 4,231 5,060
Income tax provision 472 2,113 1,623
Net Income 1,412 1,282 2,584
Basic earnings per common share $3.04 $2.62 $4.68
Cash dividends declared per common share $0.40 $0.40 $ 0.40
1
In millions USD, except per-share amounts.
Source: 2018 Form 10-K

Operational Data 2018 2017 2016

Mainline and Regional
Revenue passenger miles (millions) 231,160 226,346 223,477
Available seat miles (millions) 282,054 276,493 273,410
Passenger load factor (percent) 82.0 81.9 81.7
Source: 2018 Form 10-K

Operational Performance 2018 2017 2016

Mainline Regional Mainline Regional Mainline Regional
On-time performance 1
78.4% 76.6% 80.3% 77.9% 79.4% 77.9%
Completion factor2 98.5% 96.3% 98.6% 97.3% 98.8% 97.0%
Mishandled baggage 3
3.83 2.95 3.38

1
Percentage of reported flight operations arriving less than 15 minutes after the scheduled arrival time.
2
Percentage of scheduled flight operations completed.
3
Rate of mishandled baggage reports per 1,000 passengers on domestic operated flights.

2018 Corporate Responsibility Report 34

Performance Tables (continued)

Environmental Performance 2018 2017 2016

Mainline Regional Mainline Regional Mainline Regional
Energy
Total energy consumption1
Jet fuel consumption (millions of gallons) 3,644 428 3,579 371 3,596 339
Electricity consumption (MWhs) 638,424 40,222 658,916 29,777 679,761 24,210
Energy from jet fuel (millions of gigajoules) 518.2 60.8 509.0 52.7 511.3 48.1
Energy from electricity (millions of gigajoules) 2.3 0.1 2.4 0.1 2.4 0.1
Energy intensity (gigajoules per million RTMs) 2
22.2 47.5 22.3 45.8 23.0 45.9
Direct purchase of renewable energy (millions
0.17 0.02 0.09 0.02 0.07 0.01
of gigajoules)
Percent of energy from renewable sources 0.03% 0.04% 0.02% 0.03% 0.01% 0.03%
Emissions
Greenhouse gas emissions (thousands of metric tons of CO2e)1
Scope 1 (direct) 36,037 4,239 35,391 3,671 35,553 3,360
Scope 2 (indirect – location based purchased
306 22 310 16 326 15
electricity)
Scope 3 (indirect – all other)3 15,569 9,212 237 214
1
In 2018, American and owned regional airlines transitioned to using The Climate Registry methodology to estimate GHG emissions. The 2017 and 2016
GHG and energy-related emissions and data were restated to reflect this change.
2
This ratio includes energy from jet fuel and electricity.
3
In 2018, we expanded our measurement of Scope 3 emissions to include additional categories of emissions. As such, 2018 emissions are not comparable
to 2016-2017 figures.

2018 Corporate Responsibility Report 35

Performance Tables (continued)

Environmental Performance 2018 2017 2016

Mainline Mainline Regional Mainline Regional Mainline Regional
Total normalized emissions 1

GHG Intensity (Scope 1 emissions from jet

1.53 3.28 1.54 3.16 1.58 3.17
fuel per 1,000 RTMs)
GHG Intensity (Scope 1 emissions per million
904 916 969
dollars of revenue)
Other air emissions (metric tons)
Nitrous oxide (NOx)2 16,864 2,390 15,718 2,279 16,018 2,283
Hydrocarbon (HC) 2
841 285 896 177 1,031 191
Carbon monoxide (CO)2 8,006 3,140 7,986 2,912 8,334 3,016
Sulfur content of jet fuel 992 116 974 101 979 92
Ozone-Depleting Substances 14.5 7.4 14.6
Hazardous waste (US tons)
Landfill 607 25 609 27 614 25
Recovery (energy from waste) 135 16 128 17 145 17
Water
Water use at major facilities, excluding airports
457 430 467
(millions of gallons)3
Noise
Percent of aircraft certified as or meeting
100% 100% 100% 100% 100% 100%
Chapter 3 noise limits
Percent of aircraft certified as or meeting
97% 100% 95% 100% 94% 100%
Chapter 4 noise limits
Environmental Compliance (Mainline and Regional)
Amount of environmental fines and penalties
$4.8 $4.8 $54.7
(thousands of dollars)
Number of environmental notices of violation 9 7 9
1
In 2018, American and owned regional airlines transitioned to using The Climate Registry methodology to estimate GHG emissions. The 2017 and 2016 GHG and
energy-related emissions and data were restated to reflect this change.
2
From landing/take-off cycles
3
From municipal water supplies

2018 Corporate Responsibility Report 36

Performance Tables (continued)

Safety Performance 2018 2017 2016

Safety data Mainline Regional Mainline Regional Mainline Regional

Injury Rate (Total recordable cases per 200,000

9.21 7.55 8.43 8.13 8.12 9.70
man hours)
Occupational disease rate 1.17 0.30 0.32 0.98 0.30
Lost Day Rate 5.43 3.88 4.89 3.88 4.62 4.77
Work-related fatalities 0 0

Community Impact 2018 2017 2016

Global Giving
Cash1 donations and in-kind (miles) donations
35.0 34.8 23.5
(millions USD$)
Volunteer Support
Total volunteer hours (thousand hours) 186 155 125
1
Cash includes cash contributions and the value of mile donations from American and its customers, as well as proceeds from American’s charity events.

Gender Diversity Total Female Male

Employment Contract 2018 2017 2018 2017 2018 2017
Permanent employees 107,003 106,704 42% 42% 58% 58%
Employment Type
Full-time 94,635 94,096 40% 40% 60% 60%
Part-time 12,367 12,608 54% 54% 46% 46%
Employees by Region
US 101,176 100,898 41% 41% 59% 59%
Canada 297 279 54% 56% 46% 44%
Mexico, Caribbean, Latin
3,967 3,981 60% 61% 40% 39%
America
Europe and Asia 1,562 1,546 53% 54% 47% 46%

2018 Corporate Responsibility Report 37

Performance Tables (continued)

Gender Diversity Total Female Male

Employment Contract 2018 2017 2018 2017 2018 2017
Employee Category
Director and above 504 556 33% 31% 67% 69%
Management and professional 12,461 12,767 43% 43% 57% 57%
Administrative 2,650 2,702 78% 78% 22% 22%
Passenger Service 9,978 10,433 75% 74% 25% 26%
Reservations 4,731 5,180 83% 82% 17% 18%
Maintenance and related 14,617 14,483 5% 5% 95% 95%
Fleet Service 17,157 16,838 13% 12% 87% 88%
Pilots 13,671 13,432 5% 5% 95% 95%
Flight Attendants 25,407 24,507 74% 74% 26% 26%
International 5,826 5,806 58% 59% 42% 41%

2018 Corporate Responsibility Report 38

Performance Tables (continued)

Age Composition of Employees Total Female Male

Employee Categories 2018 2017 2018 2017 2018 2017
Under 30 years old 10,147 9,769 55% 52% 45% 48%
From 30-50 years old 30,471 30,796 41% 41% 59% 59%
Over 50 years old 60,558 60,333 39% 38% 61% 62%

Self-Identified
Ethnic Composition of U.S. Employees1 Self-Identified Minority Not Reported / Identified
Non-Minority
Employee Categories 2018 2017 2018 2017 2018 2017
Director and above 18.7% 17.8% 79.0% 80.6% 2.4% 1.6%
Management and professional 40.4% 39.0% 58.0% 59.8% 1.6% 1.3%
Administrative 47.7% 46.0% 49.8% 52.4% 2.5% 1.6%
Passenger Service 55.6% 54.8% 42.6% 43.7% 1.9% 1.6%
Reservations 56.0% 56.1% 42.9% 42.9% 1.1% 1.0%
Maintenance and related 28.2% 27.1% 70.2% 71.5% 1.6% 1.4%
Fleet Service 57.5% 57.1% 38.1% 38.7% 4.4% 4.2%
Pilots 7.9% 7.3% 85.0% 90.2% 7.1% 2.6%
Flight Attendants 30.6% 30.1% 65.9% 68.7% 3.5% 1.2%

1
Mainline employees only. Diversity data is for U.S. workforce only since diversity tracking is prohibited by law in some other countries.

2018 Corporate Responsibility Report 39

Performance Tables (continued)

New Employee Hires1 2018 2017

Total 6,471 6,783

New Employee Hires by Region
US 5,930 5,913
Canada 48 45
Mexico, Caribbean, Latin America 277 552
Europe and Asia 216 273
New Employee Hires by Gender
Female 2,961 2,871
Male 3,510 3,912
1
Excludes contingent workers and interns

Employee Turnover Employee Turnover1 Turnover Rate2

2018 2017 2018 2017
Voluntary 4,010 3,415 3.7% 3.2%
Involuntary 1,855 1,063 1.7% 1.0%
Total 5,865 4,479 5.5% 4.2%
Turnover by Region
US 5,328 3,744 5.3% 3.7%
Canada 38 36 8.5% 8.8%
Mexico, Caribbean, Latin America 292 248 6.8% 5.7%
Europe and Asia 207 192 13.2% 11.9%
Turnover by Gender
Female 2,632 1,750 5.9% 3.9%
Male 3,233 2,500 5.2% 4.0%
1
Excludes contingent workers and interns
2
Turnover rate = total terminations count/total headcount

2018 Corporate Responsibility Report 40

About this Report
Thank you for your interest in our 2018 Corporate Responsibility Report, which reflects the operations of the American
Airlines Group for the 2018 calendar year ending Dec. 31, 2018. This report has been prepared in accordance with the
GRI Standards: Core option. We also include additional information and data on our business operations that is relevant to
our stakeholders. GRI Standards disclosures can be found in our GRI Content Index on pages 42-47.

EXTERNAL ASSURANCE
SCS Global, a leader in third-party environmental auditing and greenhouse gas management, verified our
Scope 1 and 2 emissions. The external assurance statement for our 2018 emissions can be found on page 48.

Visit our website at aa.com.

For inquiries, contact [email protected].

2018 Corporate Responsibility Report 41

GRI Content Index
GR I 102: GE NER A L D IS CLOS UR ES 2 0 1 6 *
Disclosure Description Cross-Reference or Answer
Organizational Profile
102-1 Name of the organization American Airlines Group Inc.

American Airlines Group (AAG) is a holding company whose primary business activity is the
operation of a major network carrier through its principal wholly-owned mainline operating
102-2 Activities, brands, products and subsidiary, American.
services
About American Airlines, page 2
2018 10-K, pages 5-8
102-3 Location of headquarters Fort Worth, Texas
102-4 Location of operations Where We Fly
American Airlines Group Inc. (AAG), a Delaware corporation, is a holding company and its
principal, wholly-owned subsidiaries are American Airlines, Inc. (American), Envoy Aviation
102-5 Ownership and legal form Group Inc. (Envoy), Piedmont Airlines, Inc. (Piedmont), and PSA Airlines, Inc. (PSA).
2018 10-K, page 5
Together with our wholly-owned regional airline subsidiaries and third-party regional
carriers operating as American Eagle, our airline operates an average of nearly 6,700
flights per day to nearly 350 destinations in more than 50 countries. As of Dec., 2018, we
operated 956 mainline aircraft and are supported by our regional airline subsidiaries and
102-6 Markets served third-party regional carriers, which operated an additional 595 regional aircraft. American
is a founding member of the oneworld alliance, whose members and members-elect serve
nearly 1,000 destinations with 14,250 daily flights to 150 countries. Our cargo division
provides a wide range of freight and mail services, with facilities and interline connections
available across the globe.
102-7 Scale of the organization 2018 10-K, pages 5-14
Information on team members
102-8 Workforce and Diversity performance table, pages 37-39
and other workers
102-9 Supply chain Supply Chain, page 26
Significant changes to the
102-10 organization and its supply Supply Chain, page 26
chain
Precautionary principle American has not adopted the precautionary principle approach but has a comprehensive risk
102-11
or approach management plan in place. See page 27.

American Airlines supports and subscribes to the following externally-developed initiatives: Airlines
102-12 External initiatives for America, CDP, Chief Executives for Corporate Purpose, Commercial Aviation Alternative Fuels
Initiative, FTSE4Good, Human Rights Campaign Equality Index, IATA, Regional Airline Association.

102-13 Membership of associations Association Memberships, page 4

* This report applies the 2016 version of the GRI Standards. “2016” refers to the Standards issue date, not the date of information presented in this report.

2018 Corporate Responsibility Report 42

GRI Content Index (continued)

GR I 102: GE NER A L D IS CLOS UR ES 2 0 1 6 *

Disclosure Description Cross-Reference or Answer
Strategy

Statement from senior

102-14 Message from our CEO, page 3
decision-maker

Ethics and Integrity

102-16 Values, principles, standards Code of Ethics

and norms of behavior Risk Management, page 27
Governance

102-18 Governance structure Corporate Governance

Stakeholder Engagement

102-40 List of stakeholder groups Stakeholder Engagement, pages 5-6

Collective bargaining Approximately 84% of employees are covered by CBAs with various labor unions.
102-41
agreements
2018 10-K, page 8

Identifying and selecting

102-42 Stakeholder Engagement, page 5-6
stakeholders
No engagement was undertaken specifically as part of this report.
Approach to stakeholder
102-43
engagement Stakeholder Engagement, pages 5-6

102-44 Key topics and concerns raised Stakeholder Engagement, pages 5-6

Reporting Practice

A. American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc., and Piedmont
Entities included in the Airlines, Inc.
102-45 consolidated financial
statements B. Regional airlines and operations (including our wholly-owned subsidiary Envoy) are not
covered in this report, unless otherwise noted.

In selecting the content for inclusion in our 2018 report, we have used the Global
Reporting Initiative (GRI) reporting principles of materiality, sustainability context,
Defining report content and
102-46 stakeholder inclusiveness, and completeness.
topic boundaries

Materiality, page 7

* This report applies the 2016 version of the GRI Standards. “2016” refers to the Standards issue date, not the date of information presented in this report.

2018 Corporate Responsibility Report 43

GRI Content Index (continued)

GR I 102: GE NER A L D IS CLOS UR ES 2 0 1 6 *

Disclosure Description Cross-Reference or Answer
Reporting Practice

•• Diversity and Equal Opportunity

•• Non-discrimination
•• Energy
•• Labor/Management Relations
102-47 List of material topics
•• Economic Performance
•• Occupational Health and Safety

Materiality, page 7

American adopted three new accounting standards as of January 1, 2018, which requires
102-48 Restatements of information a restatement of financial data. We have also updated our methodologies for tracking and
measuring environmental metrics and data may differ from prior years.
This is our first report aligned with our material issues and our first report adhering to the
102-49 Changes in reporting
GRI at the “Core in accordance” level.
102-50 Reporting period Calendar year 2018
102-51 Date of most recent report Calendar year 2017
102-52 Reporting cycle Annual
Contact point for questions
102-53 American Airlines Media Relations, [email protected]
regarding the report
Claims of reporting in
102-54 accordance with the GRI This report has been prepared in accordance with the GRI Standards: Core option.
Standards
102-55 GRI Content Index GRI Content Index, pages 42-47
102-56 External assurance About this Report, page 41

* This report applies the 2016 version of the GRI Standards. “2016” refers to the Standards issue date, not the date of information presented in this report.

2018 Corporate Responsibility Report 44

GRI Content Index (continued)

GR I 103: TO PI C S A N D TOP IC BOUN D A R IES 2 0 1 6 *

Material Topic Management Approach Relevant External Entities

Organizational Profile
Build American Airlines to Thrive
GRI 201: Economic Performance 2016 Communities, Customers, Policymakers, Investors, Suppliers
Forever, page 24

GRI 302: Energy 2016 Sustainable Operations, page 30 Communities, Customers, Policymakers, Investors, Suppliers

GRI 402: Labor Management/Relations 2016** Labor Relations, page 13 Communities, Customers, Policymakers, Investors, Suppliers

GRI 403: Occupational Health and Safety 2016** Team Member Safety, page 14 N/A

GRI 405: Diversity and Equal Opportunity 2016** Inclusion and Diversity, page 15 N/A

GRI 406: Non-discrimination 2016** Inclusion and Diversity, page 15 N/A

GR I 200- 400: TO PI C- S P ECIF IC D IS CLOS UR ES 2 0 1 6 *

Topic Disclosure Description Cross-Reference or Answer

Economic

201-1 Direct economic value generated and distributed Financial Performance table, page 34

GRI 201: Economic

2018 10-K, pages 13-14, 28-29
Performance 2016 Financial implications and other risks and
201-2
opportunities due to climate change
Sustainable Operations, page 30

203-1 Infrastructure investments and services supported Investing in Our Facilities, page 24
GRI 203: Indirect Economic
Impacts 2016**
203-2 Significant indirect economic impacts Community Impact table, page 37

GRI 206: Anti-Competitive Legal actions for anti-competitive behavior, anti-

206-1 2018 10-K, page 39
Behavior 2016** trust, and monopoly practices

302-1 Energy consumption within the organization Environmental Performance table, page 35

GRI 302: Energy 2016 302-3 Energy intensity Environmental Performance table, page 35

302-4 Reduction of energy consumption Environmental Performance table, page 35

GRI 303: Water 2016** 303-1 Water withdrawal by source Environmental Performance table, page 35

* This report applies the 2016 version of the GRI Standards. “2016” refers to the Standards issue date, not the date of information presented in this report.
**Additional disclosures not related to material GRI topics.

2018 Corporate Responsibility Report 45

GRI Content Index (continued)

GR I 200- 400: TO PIC- S P ECIF IC D IS CLOS UR ES 2 0 1 6 *

Topic Disclosure Description Cross-Reference or Answer

Economic

305-1 Direct (Scope 1) Emissions GHG emissions Environmental Performance table, page 36

Environmental Performance table,

305-2 Energy indirect (Scope 2) GHG emissions
pages 35-36
Environmental Performance table,
305-3 Other indirect (Scope 3) GHG emissions
pages 35-36

GRI 305: Emissions 2016** Environmental Performance table,

305-4 GHG emissions intensity
pages 35-36

305-5 Reduction of GHG emissions Environmental Performance table, page 36

305-6 Emissions of ozone-depleting substances (ODS) Environmental Performance table, page 36

Nitrogen oxides (NOX), sulfur oxides (SOX),

305-7 Environmental Performance table, page 36
and other significant air emissions

GRI 306: Effluents and

306-2 Waste by type and disposal method Environmental Performance table, page 36
Waste 2016**

GRI 307: Environmental Non-compliance with environmental laws and

307-1 Environmental Performance table, page 36
Compliance 2016** regulations

401-1 New employee hires and employee turnover Workforce Performance table, page 40
GRI 401: Employment 2016**
Benefits provided to full-time employees that are
401-2 Benefits
not provided to temporary or part-time employees
Our employees are regularly informed
GRI 402: Labor/Management Minimum notice periods regarding
402-1 about changes affecting their work and
Relations 2016 operational changes
American's operations.
Types of injury and rates of injury, occupational
GRI 403: Occupational Health
403-2 diseases, lost days, and absenteeism, and number Safety Performance table, page 37
and Safety 2016
of work-related fatalities

GRI 404: Training and Programs for upgrading employee skills and
404-2 Talent Management, pages 9-10
Education 2016 transition assistance programs

GRI 405: Diversity and Equal

405-1 Diversity of governance bodies and employees Workforce and Diversity table, pages 37-39
Opportunity 2016

* This report applies the 2016 version of the GRI Standards. “2016” refers to the Standards issue date, not the date of information presented in this report.
**Additional disclosures not related to material GRI topics.

2018 Corporate Responsibility Report 46

GRI Content Index (continued)

GR I 200- 400: TO PI C- S P ECIF IC D IS CLOS UR ES 2 0 1 6 *

Topic Disclosure Description Cross-Reference or Answer

Economic

American treats this data as confidential

GRI 406: Non-discrimination Incidents of discrimination and corrective actions company information. Examples of how we
406-1
2016 taken are incorporating inclusion and diversity
into our culture can be found on page 15.

GRI 412: Human Rights Employee training on human rights policies or

412-2 Risk Management, page 28
Assessment 2016** procedures

GRI 413: Local Communities Operations with local community engagement,

413-1 Community Impact, page 17
2016** impact assessments, and development programs

GRI 418: Customer Privacy Substantiated complaints concerning breaches of

418-1 Managing Data Privacy, page 28
2016 customer privacy and losses of customer data

* This report applies the 2016 version of the GRI Standards. “2016” refers to the Standards issue date, not the date of information presented in this report.
**Additional disclosures not related to material GRI topics.

2018 Corporate Responsibility Report 47

External Assurance Statement

   
 
  GHG Verification Statement 
 
 
 
Verification Scope 
The SCS Greenhouse Gas Verification Program has conducted a verification of American Airlines Group, Inc. (AAG), EY2018 GHG emissions 
based upon the following scope: 
 Geographic  Boundary:  150  domestic  airports  and  100  international  airports,  20  maintenance  facilities,  15  cargo  facilities,  15 
vehicle shops, 5 reservation offices, AAG main campus headquarters (5 buildings) and about 5 credit union locations 
 Boundary: Operational control of wholly‐owned airlines (includes 3 regional carriers under American Eagle) 
 Emissions Scope: Scope 1 & 2 
 Emissions: CO2, CH4, N2O, HFCs 
 Sources, Sinks, Reservoirs: Scope 1 emissions includes jet fuel from flights, jet fuel from engine tests, diesel/gasoline/LP from ground equipment, natural gas and 
heating oil associated with heating facilities, and GHGs included in our purchased chemicals. Scope 2 emissions includes electricity 
 Level of Assurance: Limited 
 Materiality: +/‐5% quantitative threshold for direct and indirect emissions, qualitative based upon requirements specified within referenced criteria 
 
Verification Objectives 
 Evaluate  the  organization’s  GHG  inventory  based  per  the  level  of  assurance  and  materiality  specified,  including  assessment  of  any  significant  changes  and  the 
organization’s GHG‐related controls 
 Evaluate conformance with specified verification criteria 
Verification Criteria 
 TCR General Reporting Protocol for the Voluntary Reporting Program, Version 2.1, January 2016  
 TCR General Reporting Protocol for the Voluntary Reporting Program, Updates & Clarifications March 2018 
 ISO 14064‐3: 2006 Specification with guidance for the validation and verification of GHG assertions 
 
Verification Opinion 
Based upon the reporting scope, criteria, objectives, and agreed upon level of assurance, SCS has issued the following verification opinion: 
  Positive Verification – Prepared in all material respects with the reporting criteria 
 
 
EMISSIONS SUMMARY (tonnes CO2e) TOTAL
Signature:     (tCO2e)
SCOPE CO2 CH4 N2O HFCs
Lead Verifier: Tavio Benetti   
Approved: May 3, 2019  SCOPE 1 39,887,028.43 360.61 335,252.16 53,812.00 40,276,453.20

  SCOPE 2 (Location) 326,540.00 681.00 1,196.00 - 328,417.00

 
SCOPE 2 (Market) 326,540.00 681.00 1,196.00 - 328,417.00

TOTAL
Signature:    (Location)
40,213,568.43 1,041.61 336,448.16 53,812.00 40,604,870.20
Independent Reviewer: Nicole Muñoz  TOTAL
40,213,568.43 1,041.61 336,448.16 53,812.00 40,604,870.20
Approved: May 9, 2019  (Market)

 
 
 

Version 1‐0 (December 2018) | © SCS Global Services 

2018 Corporate Responsibility Report 48

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended (the Securities
Act), the Securities Exchange Act of 1934, as amended (the Exchange Act), and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be
identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,”
“outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about our plans, objectives,
expectations, intentions, estimates, and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on our current
objectives, beliefs, and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to
differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth in our Annual Report on Form
10-K for the year ended December 2018 (especially in Part I, Item 1A. Risk Factors, and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations), and other risks and uncertainties listed from time to time in our other filings with the Securities and Exchange Commission. There may be other factors of which
we are not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. We do
not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions, or changes in other factors affecting
these forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.

ANNEX I

*We use pretax profit and net profit excluding special items (non-GAAP
financial measures) to evaluate the company’s current operating performance 1
Reconciliation to GAAP Net Income:
and to allow for period-to-period comparisons. We believe these non-GAAP
E. Pretax Income $1.9B
financial measures may also provide useful information to investors and
K. Income Tax Provision (E x 24%) -$454M
others. These non-GAAP measures may not be comparable to similarly titled
J. GAAP Net Income (E + K ) $1.4B
non-GAAP measure 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.

2018 Corporate Responsibility Report 49