AMERICAN AIRLINES, INC. 401(K) PLAN

Agenda

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Ø General 401(k) Information

Ø Enrollment and Ongoing

Ø Investment Fund Line-up

Ø Loans and Withdrawals While Active

Ø Plan Options Once Separated

Ø Not Meeting the Match

Ø Communication Campaigns

Ø Contact Information

GENERAL 401(K) INFORMATION

Important Items as an Active Team Member

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Ø Team Member Election – This is the percentage of your salary that is contributed from your pay to your 401(k) plan account

Ø Investment Election – This is how you choose your investments for your current balance and future contributions

Ø Asset Allocation – This describes how your investments are divided between stocks, bonds, and other investments

Ø Beneficiary Designation – This is where you choose to leave your account when you’ve passed away

Contribution Limits for 2019

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2019

Limits U.S. Based Team Members

Team Member Regular Contributions $19,000

Catch-up Contributions (age 50+) $6,000

Total Contributions Total Contributions with Catch-up (age 50+)

$56,000$62,000

Maximum Compensation $280,000

All contributions made through both regular payroll checks and special payroll checks are aggregated for purposes of limit monitoring in the payroll system.

Contribution Percentages – Team Member

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Team Member Contribution Elections

Regular Elections

Pre-tax 1 – 100%

Roth 1 – 100%

After-tax 1 – 100%

Catch-up Elections

Pre-tax catch-up 1 – 100%

Roth catch-up 1 – 100%Combined Regular and Catch-up elections cannot exceed 100%.Catch-up Elections are deducted concurrently with Regular Elections.

Contribution Percentages – Special Election

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Team Member Contribution Special Elections

Special Regular Elections

Pre-tax 1 – 100%

Roth 1 – 100%

After-tax 1 – 100%

Special Catch-up Elections

Pre-tax catch-up 1 – 100%

Roth catch-up 1 – 100%Combined Special Regular and Special Catch-up elections cannot exceed 100%.Special Catch-up Elections are deducted concurrently with Special Regular Elections.

Contribution Comparison

Pre-tax Roth After-tax

Based on gross plan eligible compensation

Contributions Before income taxes are taken from pay

After income taxes are taken from pay

After income taxes are taken from pay

Annual Maximum Subject to $19,000 annual maximum (aggregate with Roth contributions)

Subject to $19,000 annual maximum (aggregate with Pre-tax contributions)

Subject to $56,000 annual maximum (aggregate with all other team member and employer contributions)

Match Eligible Contributions are match eligible

Contributions are match eligible

Contributions are not match eligible

Earnings Will be taxed upon distribution

Generally grow tax free Will be taxed upon distribution

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Contribution Comparison Example

Pre-tax Contributions

Roth Contributions

After-tax Contributions

Gross Plan Eligible Compensation $50,000 $50,000 $50,000

10% Contributions - $5,000 - $5,000 - $5,000

Taxable Income $45,000 $50,000 $50,000

20% Income Taxes - $9,000 - $10,000 - $10,000

After-tax Income $36,000 $40,000 $40,000

Take Home Pay $36,000 $35,000 $35,000

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ENROLLMENT AND ONGOING

How to Enroll

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All newly hired Management/Support Staff team members are automatically enrolled with a 6% pre-tax deferral election

Ø The team member has a 30 day period to change the deferral election.

Ø The team member has a 90 day period to de-enroll and request a refund of any contributions deducted based on the auto enroll election

Ø The team member will be enrolled in the default investment, a Target Date Fund based on his/her age.

How to Enroll

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Auto Enrollment Program

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All newly hired TWU-represented team members are Auto Enrolled with a 3% Pre-tax contribution election

Ø New team members have a 30-day period to change the contribution election

Ø Also, new team members have a 90-day period to de-enroll and request a refund of any contributions deducted based on the auto enroll election

Ø New team members will be invested in an age appropriate Target Date Fund

• A Target Date Fund is a pre-mixed portfolio of stocks and bonds that automatically rebalances and reallocates over time

• Generally, you can change your investment elections at any time

Employer Contributions

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Ø After one year of service, the Company will match up to 5.5% of a TWU represented team member’s eligible compensation contributed to the Plan

Ø After two years of service, team members are 100% vested in the company match portion of their accounts

Ø Team members who transfer to American from one of the wholly owned subsidiaries will have their prior service at the subsidiary credited towards company match eligibility and vesting

Ø Team members are always 100% vested in their own contributions

Prior Plan Rollovers

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Generally other retirement plan accounts and previous employer plan balances can be rolled into the American Airlines, Inc. 401(k) Plan

Ø To rollover funds to your 401(k) account you will need:

• An Incoming Rollover Contribution Application,

• The check, and

• A distribution statement or letter of determination from your prior plan

Ø You can obtain more information by contacting the American Airlines 401(k) Service Center at Fidelity or by logging on to their account

• By phone (800) 354-3412Representatives are available weekdays, 8:30 a.m. – midnight (ET)

• Online www.netbenefits.com/AA

INVESTMENT FUND LINE-UP

Investment Options

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Investment Options

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Investment Options

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Investment Options

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1. A self-direct brokerage account within your 401(k)

2. Access to thousands of investment options beyond those offered in Tiers 1, 2 and 3

3. Additional fees may apply

4. Invest up to 95% of your vested account balance in your brokerage account

BrokerageLink®

Plus: Professional Management option from Financial Engines

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4• Can elect to have Financial Engines provide ongoing

401(k) account management

þ• Will choose investments based on your situation, goals

and risk tolerance

¸• Will monitor and rebalance your account as needed and

as your situation changes

$• Fees apply(1)

(1) Fees are charged in the frequency and manner detailed in the Terms & Conditions. Online Advice is available for no additional cost. It is a do-it-yourself service that allows you to access advice and implement it yourself.

Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory services provided by Financial Engines Advisors L.L.C., a federally registered investment advisor. Results are not guaranteed.

Financial Engines is not affiliated with Fidelity Investments or its affiliates.

LOANS AND WITHDRAWALS WHILE ACTIVE

Loans

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Active Team Members (including those on LOA)

Up to two (2) loans outstanding

Paid back with interest using After-tax dollars

Can borrow up to the lesser of:• $50,000 ( - ) minus the highest outstanding loan balance during the

last 12 months• 50% of vested account balance

Pay back period— Up to 60 months for general purpose— Up to 30 years for primary residence

Payroll deduction or direct pay (direct pay only available on LOA)

Repayment suspension – if on an LOA – for up to 12 months

30-day waiting period for a new loan following any loan payoff

In-Service Withdrawals

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Available to active team members, including those on LOA

Ø After-tax withdrawal: May withdraw money from after-tax contribution account at any time

― A 20% mandatory Federal withholding will apply to the earnings on after-tax contributions. An additional 10% penalty tax will apply to the earnings if the team member has not reached age 59 ½

Ø Rollover withdrawal: May withdraw money from rollover account at any time

― A 20% mandatory Federal withholding will apply to the taxable amount. An additional 10% penalty tax will generally apply if the team member has not reached age 59 ½

Ø Age 59 ½ withdrawal: May withdraw any or all of the vested account balance after the team member has reached age 59 ½

Ø Hardship withdrawal: If a financial need arises as defined by the IRS, a team member may be eligible for a hardship withdrawal

There are tax implications with any in-service withdrawal. We recommend team members consult with a qualified tax advisor

PLAN OPTIONS ONCE SEPARATED

Loans at Retirement/Separation

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Loans Upon Leaving the Company

Team members may continue to pay on outstanding loans as long as a 401(k) account balance remains(1)

Team members can have monthly loan repayments deducted from a bank account automatically

(1) A full distribution of your 401(k) account balance upon retirement/separation will cause the loan to be classified as a deemed distribution. Team members should speak to a customer service representative to understand the tax consequences.

Your 401(k) Account Upon Retirement/Separation

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Vested Account Balance

Option Notification Period

$5,000 and greater Account can remain invested in the 401(k) plan

No notification if the vested account balance remains at $5,000 or greater

At least $1,000, but less than $5,000

Roll to a Fidelity Rollover IRA

60-day period to take action before rolling to a Fidelity Rollover IRA

Under $1,000 Cash distribution which is subject to taxes and penalty tax, if applicable

60-day period to take action before cash distribution

Your 401(k) Account Upon Retirement/Separation

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For vested account balances remaining in the 401(k) plan, you can take a distribution(s) in the form of:

Ø Full account lump sum distributions

Ø Systematic withdrawals (installment withdrawals) – you choose the amount and the frequency§ Monthly frequency§ Quarterly frequency§ Semiannual frequency§ Annual frequency

Ø Periodic withdrawals (partial withdrawals) requested at any time

Ø Roll over your 401(k) account to another qualified plan or IRA

Distributions may be requested after 30 days from the retirement or separation date

Distribution Comparison

Lump SumSystematic

Withdrawals (Installment)

Periodic Withdrawals

(Partial)

Amount Full account balance Specific recurring dollar amount

Specific dollar amount

Frequency One-time distribution MonthlyQuarterlySemiannuallyAnnually

Upon request

Taxation Cash distributions are subject to taxes and penalty tax, if applicable

Direct rollover distributions are not subject to taxes at the time of roll over

Cash distributions are subject to taxes and penalty tax, if applicable

Direct rollover distributions are not subject to taxes at the time of roll over

Cash distributions are subject to taxes and penalty tax, if applicable

Direct rollover distributions are not subject to taxes at the time of roll over

Speak to your financial advisor about all options available to you if considering a plan distribution

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Distributions Upon Retirement/Separation

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Required Minimum DistributionsØ Distributions can be deferred until age 70 ½

Ø Upon separating and reaching age 70 ½, if sufficient distributions are not set up, the vested account balance will be distributed under the IRS’s required minimum distribution rules

Ø Team members receiving required minimum distributions can still direct their investments and choose from the options available within the plan

Distribution upon DeathØ Upon a team member’s death, the vested account balance will be paid to the

beneficiary(ies) as soon as administratively feasible

Ø If the beneficiary is the team member’s spouse, the spouse may defer payment until the end of the year in which the team member would have reached age 70 ½

Ø If the beneficiary is not a spouse, the account must be paid no later than Dec. 31 of the fifth year following the team member’s death

Considerations for Separating/Retiring Team Members

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Ø The 401(k) plan allows for systematic withdrawals or installment payments. This means that you can set a specific dollar amount to be distributed to you on a monthly basis or other frequency.

Ø If a team member has money invested that have different taxation rules upon distribution, source specific distributions can be set-up.

Ø Before rolling funds out of the 401(k) plan, compare 401(k) plan account fees and fund expense ratios with those for other retirement account(s) being considered.

Ø If applicable, understand the “Age 55 Retirement” rule as it relates to your 401(k) plan account and plan distributions.

Ø Retirement funds protections(1) vary based on the type of retirement vehicle (IRA vs. 401(k)) and the applicable state laws.

Ø For Roth source funds, assess the Required Minimum Distribution rules for 401(k) plans and Roth IRAs.

(1) Speak with your qualified financial advisor or legal representative.

NOT MEETING THE MATCH

Not Meeting the Match

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Contributing Under 5.5%

Pre-Tax and/or Roth total election Count

0% 837

1 – 2.9% 427

3% 2,043

3.1 – 5.4% 1,039

Total Contributing Under 5.5% 4,346

Of the 20,654 match eligible TWU-represented team members, 4,346 are contributing less than 5.5% in Pre-Tax and/or Roth contributions.

Not Meeting the Match

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Contributing Under 5.5%

Pre-Tax and/or Roth with Catch-up elections Count

0% 806

1 – 2.9% 422

3% 2,040

3.1 – 5.4% 1,025

5.5 – 100% 53

Total Contributing Under 5.5% 4,346

Of the 4,346 team members contributing less than 5.5% in Pre-Tax and/or Roth contributions, 53 team members’ match eligible elections plus catch-up elections are above the match rate.

Contribution Limits for 2019

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Contributing Under 5.5%

All Contribution Elections Count

0% 744

1 – 2.9% 395

3% 2,038

3.1 – 5.4% 985

5.5 – 100% 184

Total Contributing Under 5.5% 4,346

Of the 4,346 team members contributing less than 5.5% in Pre-Tax and/or Roth contributions, 184 team members are contributing above the match rate when totaling all 401(k) contribution elections.

Not Meeting the Match by hub location

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Contributing Under 5.5%

Location As of 09/04/2017

As of 09/06/2018

As of 09/06/2019

BOS 76 77 73

DFW 1,442 1,304 1,180

JFK/LGA 383 362 334

LAX 388 383 342

MIA 813 777 742

ORD 553 512 426

SFO 99 89 67

TUL 803 734 761

In the major hubs, as of 09/06/2019, the TWU-represented population still contributing less than 5.5% in Pre-Tax and/or Roth contributions is:

COMMUNICATION CAMPAIGNS

Fidelity Campaigns – Quarterly Check-in

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“Quarterly Check-in”

Email Distribution Q3 – 09/10/2019 – 09/20/2019Q4 – 12/10/2019 – 12/20/2019

Message

Provide participants with a consistent assessment of their retirement savings progress and next steps – along with tips and tools on broader financial topics to help them take control of everyday money matters, so they can better focus on the future.

Action Needed Varies depending on individual need

Fidelity Campaigns – Quarterly Check-in

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Fidelity Campaigns – Signature Webcast Events

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Registration for upcoming events and replays of prior webcast events available at

www.Fidelity.com/webcasts

Next Event…“Medicare: A Four Part Series”

Email Invites Invite Delivery beginning week of 10/8/2019

Action Needed Must register for webcastor webcast replay

Webcast Dates Wednesday, 10/30/2019Thursday, 10/31/2019

American Airlines-wide Webcast by Fidelity

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“Invest Confidently for Your Future”

Webcast Date Wednesday, 10/30/2019

Webcast Times

8 AM (ET)12 PM (ET)4 PM (ET)8 PM (ET)

Invite Distribution Email only

Invite Distribution Date10/16/201910/23/201910/28/2019

Action Needed Must register for webcast

CONTACT INFORMATION

Contact Information – 401(k) Plan

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Ø American Airlines 401(k) Service Center at Fidelity: (800) 354-3412

Representatives are available Monday through Friday from 8:30 a.m. to midnight (ET)

Ø Online account access at www.netbenefits.com/AA

Ø Download the NetBenefits® app to a smart phone or tablet

Ø Free individual consultations with a Fidelity representative

For details or an appointment by phone call (800) 603-4015

For in-person consultations at a local Fidelity Investor Center branch locations can be found at www.fidelity.com/customer-service/branches/overview

Ø Financial Engines advisors are available by calling Fidelity Investments at (877) 401-5762 and asking for a Financial Engines advisor representative

Advisors are available Monday through Friday from 8:30 a.m. to 8:30 p.m. (ET)

Ø American Airlines 401(k) & Savings Programs team: my401k@aa.com