Disputed Claims Reserve distribution - June 30, 2014

A: We’ve shared before that the majority of U.S.-based legacy American employees are eligible to receive 23.6 percent of the shares of common stock in the new company (AAL) distributed to holders of allowed unsecured claims.

The majority of these shares were distributed to eligible employees throughout a 120-day period that began in December 2013. During that period, we let you know there could be small distributions post Day 120 depending upon the resolution of the disputed claims reserve (reserve).

The resolution of disputed unsecured claims will result in the distribution of additional equity to creditors (the Creditor Body), and there will be additional distributions of shares to employees when distributions are made to the Creditor Body.

A: If the resolution of these disputed claims results in the distribution of additional equity to creditors, then there will be additional distributions of shares to employees. Any such distributions would be made no more than once a quarter.

A: Unfortunately, there is no definitive deadline for the resolution of the disputed claims process

A: We expect the disputed claims reserve distribution to eligible employees to total approximately 400,000 net shares of new common stock, representing a distribution smaller than each of the Days 30, 60, 90 and 120 distributions. The approximately 400,000 net shares of common stock is an estimate as we will not know the final total number of shares until after the shares are distributed to eligible employees. Ultimately, shares will be distributed at the price of AAL stock when the market closes on June 30.

A: Eligible employees will be able to sell or transfer shares beginning July 3, though they may see shares in their accounts under “Employee Grants and Awards” as early as July 1. As a reminder, these shares will be available to eligible employees in their Computershare accounts, which is available by first logging into their retireonline.com account with J.P. Morgan.

A: As was the case with all previous distributions, your shares will be distributed into your Computershare account, which is accessible by first logging into your retireonline.com account with J.P. Morgan.

A: These shares are considered wages for purposes of federal and state income taxes and FICA in the year in which they are distributed to you, and are subject to required withholding of taxes. With that in mind, American will withhold enough shares to cover necessary taxes and distribute the remainder to eligible employees.

Additionally, because these shares will be distributed from the reserve, the company will also pay capital gains taxes on your behalf. As the share price has risen, the reserve will be liable for taxes when it makes distributions much like any other person who purchases shares at one price and sells them at a higher price.

A: You will be able to view this information by the end of day on Monday, July 7.

A: No. The equity distribution applies only to eligible U.S.-based legacy American employees.

A: No. The disputed claims reserve distribution applies only to eligible U.S.-based legacy American employees as the resolution of the disputed claims reserve impacts those with claims, and as a result, legacy American’s employee groups.