Interest expense on 6.50% convertible senior notes

[Table of Contents](#ifc95dfb467034e09b883187cd2105291_7)NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.(Unaudited)3. Earnings (Loss) Per Common ShareThe following table sets forth the computation of basic and diluted earnings (loss) per common share (EPS) (in millions, except share and per share amounts):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Three Months Ended June 30, |  | Six Months Ended June 30, |
|   | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Basic EPS: |  |  |  |  |  |  |  |
| Net income (loss) | $ | 476  |  |  | $ | 19  |  |  | $ | (1,159) |  |  | $ | (1,231) |  |
| Weighted average common shares outstanding (in thousands) | 650,346  |  |  | 644,123  |  |  | 649,925  |  |  | 639,366  |  |
| Basic EPS | $ | 0.73  |  |  | $ | 0.03  |  |  | $ | (1.78) |  |  | $ | (1.92) |  |
|  |  |  |  |  |  |  |  |
| Diluted EPS: |  |  |  |  |  |  |  |
| Net income (loss) | $ | 476  |  |  | $ | 19  |  |  | $ | (1,159) |  |  | $ | (1,231) |  |
| Interest expense on 6.50% convertible senior notes | 11  |  |  | —  |  |  | —  |  |  | —  |  |
| Net income (loss) for purposes of computing diluted EPS | $ | 487  |  |  | $ | 19  |  |  | $ | (1,159) |  |  | $ | (1,231) |  |
| Share computation for diluted EPS (in thousands): |  |  |  |  |  |  |  |
| Basic weighted average common shares outstanding | 650,346  |  |  | 644,123  |  |  | 649,925  |  |  | 639,366  |  |
| Dilutive effect of stock awards | 1,477  |  |  | 1,944  |  |  | —  |  |  | —  |  |
| Dilutive effect of warrants | 4,981  |  |  | 10,305  |  |  | —  |  |  | —  |  |
| Assumed conversion of 6.50% convertible senior notes | 61,728  |  |  | —  |  |  | —  |  |  | —  |  |
| Diluted weighted average common shares outstanding | 718,532  |  |  | 656,372  |  |  | 649,925  |  |  | 639,366  |  |
| Diluted EPS | $ | 0.68  |  |  | $ | 0.03  |  |  | $ | (1.78) |  |  | $ | (1.92) |  |

Securities which were excluded from the calculation of diluted EPS because inclusion of such shares would be antidilutive, are as follows (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended June 30, |  | Six Months Ended June 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| 6.50% convertible senior notes | —  |  |  | 61,728  |  |  | 61,728  |  |  | 61,728  |  |
| Restricted stock unit awards | 4,521  |  |  | 1,182  |  |  | 4,965  |  |  | 3,191  |  |
| PSP1 Warrants (1) | —  |  |  | —  |  |  | 3,610  |  |  | 5,632  |  |
| Treasury Loan Warrants (2) | —  |  |  | —  |  |  | 1,127  |  |  | 1,755  |  |
| PSP2 Warrants (3) | —  |  |  | —  |  |  | 456  |  |  | 1,242  |  |
| PSP3 Warrants (4) | —  |  |  | —  |  |  | —  |  |  | 34  |  |



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(1)Pursuant to the payroll support program established under the CARES Act (PSP1), AAG issued to Treasury warrants (PSP1 Warrants) to purchase up to an aggregate of approximately 14.0 million shares of AAG common stock for an exercise price of $12.51 per share, subject to adjustment.(2)Pursuant to the Loan and Guarantee Agreement with Treasury (the Treasury Loan Agreement), AAG issued to Treasury warrants (Treasury Loan Warrants) to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock for an exercise price of $12.51 per share, subject to adjustment.(3)Pursuant to PSP2, AAG issued to Treasury warrants (PSP2 Warrants) to purchase up to an aggregate of approximately 6.6 million shares of AAG common stock for an exercise price of $15.66 per share, subject to adjustment.(4)Pursuant to PSP3, AAG issued to Treasury warrants (PSP3 Warrants) to purchase up to an aggregate of approximately 4.4 million shares of AAG common stock for an exercise price of $21.75 per share, subject to adjustment. 19
