## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC. 

Pursuant to a capacity purchase agreement between American and AAG’s wholly-owned regional airlines operating as American Eagle, American purchases all of the capacity from these carriers and recognizes passenger revenue from flights operated by American Eagle. In 2018, 2017 and 2016, American recognized expense of approximately $1.8 billion, $1.7 billion and $1.5 billion, respectively, related to wholly-owned regional airline capacity purchase agreements. 

