W-9 Withholding Q&A

A: That actual number of shares that will be distributed will not be known until after American emerges from restructuring because it is based on a formula tied to, among other things, the trading price of the stock. The first portion of shares will be distributed in connection with the merger closing, and the remainder will be distributed in accordance with the terms of the Plan of Reorganization.

A: The company will establish individual employee accounts with Computershare into which your shares will be deposited. More information about exactly how this process works will be shared in the coming weeks.

To Certify:

To Verify You Have Certified:

A: These shares constitute wages for purposes of federal and state income taxes and FICA, and are subject to required withholding of taxes. In order to avoid paying backup withholding taxes with respect to any proceeds received in respect of these shares, each employee needs to complete an online version of the W-9 form with Computershare.

A: Your shares will be accessible through your Computershare account which is accessible through JP Morgan’s website, www.retireonline.com. More information on how to access your shares will be provided closer to the actual distribution.

A: The W-9 form is a requirement of the Internal Revenue Service (IRS) for any person that must file an informational return using their Taxpayer Identification Number. If the person does not file the W-9 form or does not provide the necessary certification, that person is required by law to withhold tax at the rate of 28 percent with respect to any proceeds received in respect of their shares. This tax is commonly referred to as backup withholding.

A: Backup withholding is a type of withholding for federal income taxes on certain types of income. Backup withholding may be mandatory in certain circumstances. Most taxpayers, however, are exempt from backup withholding, which is why a Taxpayer Identification Number, which for most individuals is their social security number, is required as part of the W-9 form.

A: Without the W-9, you will be subject to tax withholding at the rate of 28 percent, also known as backup withholding, with respect to any proceeds received in respect of your shares. The amounts withheld will be remitted to the IRS. You will need to contact your tax professional to obtain advice regarding your ability to claim a refund of any excess tax withholdings.

A: All individuals eligible to receive shares as part of this equity distribution are required to fill out a W-9 form.

A: Form W-9 requests that you certify that you are not subject to backup withholding because you fall under one of the following categories: (a) you have not been notified by the Internal Revenue Service (IRS) that you are subject to backup withholding as a result of a failure to report all interest or dividends, or (b) the IRS has notified you that you are no longer subject to backup withholding.

If you fall under any of these categories, you can certify that you are not subject to backup withholding.

A: No. The electronic W-9 form does not expire. Your W-9 information remains in Computershare even if you filled out the form with Mellon Investor Services or The Bank of New York Mellon. However, it's important that you log in to your account to ensure all information is still accurate.

A: Flight Attendants who were on the APFA/AA Seniority List as of August 19, 2012, with W-2 earnings as an American Airlines Flight Attendant between January 1, 2009, and August 31, 2012, will receive an allocation of the equity provided to APFA in settlement of its bankruptcy claim.

A: No. These shares were distributed in order to create your account for W-9 purposes, and are not available for distribution. Once your actual shares are available, this one share will be removed from the recordkeeping system.

A: The news that the DOJ is opposing our merger with US Airways means there will be a delay in our ability to close the merger with U.S. Airways, which is the basis for our Plan of Reorganization and our emergence from restructuring. This also means a delay in the related distribution of equity to eligible individuals.

However, since W-9 forms do not expire, we still urge eligible individuals to complete their W-9 by Aug. 23, so that we can wrap up this step in the process.

A: Existing shares of both AMR and US Airways stock will be cancelled when the merger closes. If our Plan of Reorganization, as filed, is confirmed by the Bankruptcy Court and consummated, holders of existing AMR equity interests will be entitled to receive one or more distributions on account of such equity interests in the form of common stock of the merged company.

A: The shares you receive may not be deferred at your option into your 401(k) account. However, you have the alternative option to defer more of your regular wages into your 401(k) account in order to take advantage of the tax benefits.

A: The vast majority of active American Airlines employees based in the U.S. will be eligible to share in the equity allocation. American’s unions established the allocation methodology for those employee groups they represent. For the Agent, Rep, Planner and Management/Support Staff groups, the company established an allocation methodology limited to persons employed at the time of restructuring changes in 2012, in recognition of the sacrifices they made; as a result, employees hired into these groups since August 1, 2012 are not eligible.

A: Yes. But there may be fees associated with the transfer. More information on this will be made available as the merger approaches.

A: The equity interests you are entitled to constitute wages. We recommend individuals contact their tax professional for advice regarding the tax treatment of their equity distribution.

A: The Merger Agreement and the Plan of Reorganization provide that the existing AMR common stock will be cancelled when the merger occurs and the Plan of Reorganization is consummated. If our Plan of Reorganization, as filed, is confirmed by the Bankruptcy Court and consummated, holders of existing AMR equity interests will be entitled to receive one or more distributions on account of such equity interests in the form of common stock of the merged company.

For more information about AMR’s current stock value, please visit the Investor Relations FAQ.

A: Any options that were still outstanding irrevocably expired on April 17, 2013, and are not exercisable after that date. That means the 2003 Broad Based Stock Options do not have any remaining value, and the Plan of Reorganization does not provide for any payment in respect of such options. The difference between those options and the shares that most employees will receive upon American’s emergence from Chapter 11 is that these new shares will not expire and are yours to hold or sell as you wish.

A: To update your J.P. Morgan user information or address, you can make those changes on Jetnet.

A: It is too early to discuss the mechanics of the distribution. As we get closer to the merger, we will share additional information.

A: No. Eligible individuals with a PO Box as a mailing address should download the W-9 form from your J.P. Morgan/Computershare account, and mail it to Computershare Tax Operations, P.O. Box 43078, Providence, RI 02940-3078, USA, with a postmark of no later than August 23.

A: If you prefer to receive proceeds sent to you as a check via U.S. Mail to the permanent address you have on file with American Airlines, no further action is necessary.

You may instead elect to have cash proceeds from the sale of stock deposited directly into your bank account or transferred by bank wire using an online form on the JPMorgan site.

To allow sufficient time to verify your information and ensure funds are delivered to the correct account, you should submit your bank and account information at least 15 calendar days prior to selling your shares.

To Receive Your Cash Proceeds Electronically:

A: Not seeing either type of stock may mean that you are not eligible. If you are a unionized employee, we recommend checking with your union to confirm your eligibility. If you are in the Agent, Rep, Planner or Management/Support Staff employee groups, we recommend referring back the letter you received from Denise Lynn. For the letter and corresponding fact sheet, please visit the Equity Hub on new Jetnet. If, after reviewing this information, you believe you are eligible and should have a Computershare account, please contact your union or, for non-represented employees, send a message to equity.hub@aa.com.

A: As an individual, you can check the box that reads “individual/sole proprietor,” as this is the federal tax classification that applies to individuals for purposes of the form.