●  American Airlines Group Inc. · FY 2025 

Controls & Procedures

The financial control environment at American Airlines Group Inc. and its subsidiary has been externally validated as stable during the reporting period. Independent auditors issued an unqualified opinion confirming that both entities maintained effective internal controls over financial reporting. This assessment confirms there were no identified material weaknesses or significant deficiencies in their governance framework.

AAL L1 Synthesis
●  SYMBOLOGY.ONLINE l1 SYNTHESIS 

American Airlines Group Inc Controls & Procedures Synthesis

Internal Controls and Procedures Assessment Report

This report synthesizes the key components of American Airlines Group Inc.'s (AAG) and American Airlines, Inc.'s (American) disclosure controls and internal controls over financial reporting (ICFR), based solely on the provided SEC filing excerpts.

Management's Conclusions on Control Effectiveness

Management has concluded that both AAG and American maintained effective controls during the reporting period. This conclusion is supported by external validation:

  • Disclosure Controls: Management concluded that disclosure controls and procedures were effective as of December 31, 2025, at the reasonable assurance level.
  • Internal Control over Financial Reporting (ICFR): Management assessed and concluded that both AAG and American maintained effective internal control over financial reporting as of December 31, 2025, utilizing the COSO Internal Control - Integrated Framework (2013).
  • External Attestation: The independent registered public accounting firm (KPMG LLP) issued an unqualified opinion on the effectiveness of ICFR for both entities as of December 31, 2025.

Identified Deficiencies and Changes

The filing indicates a high degree of stability in the control environment during the reporting period:

  • Material Weaknesses/Significant Deficiencies: The document does not identify any material weaknesses or significant deficiencies in AAG's or American's internal controls over financial reporting.
  • Changes to Controls (Noteworthy): There were no changes in AAG's or American's internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the ICFR during the quarter ended December 31, 2025.
  • Remediation Efforts: As no material weaknesses were identified, there are no reported remediation efforts.

Strengths and Weaknesses Assessment

Strengths (Evidence of Robust Controls)

The company demonstrates strong control governance through comprehensive design and external validation:

  • Effectiveness Confirmation: Both management's assessment and the independent auditor’s unqualified opinion confirm that controls were effective in all material respects.
  • Scope of Control: ICFR includes policies designed to provide reasonable assurance regarding three critical areas: (1) accurate maintenance of records reflecting asset transactions; (2) ensuring transactions are recorded according to GAAP and authorized by management/directors; and (3) preventing or timely detecting unauthorized acquisition, use, or disposition of assets.
Weaknesses and Inherent Limitations (Standard Disclosures)

The filing includes standard disclosures regarding the inherent limitations of any control system:

  • Reasonable Assurance Only: The company acknowledges that controls are designed to provide only reasonable assurance, not absolute assurance, that objectives will be met or that all instances of fraud have been detected.
  • Risk of Deterioration: Projections of future effectiveness are subject to the risk that controls may become inadequate due to changes in conditions or a deterioration in compliance with established policies and procedures.

Noteworthy New Controls or Procedures

The provided text does not detail any new controls or specific procedural enhancements introduced during the reporting period; rather, it describes the existing framework of internal control over financial reporting.