This is silly. Benefits costs are usually 30-40% of salary. In addition to salaries, AA almost certainly spends more money on fuel than benefits.

AI OverviewFor American Airlines in the 2025 season, the most important costs are
labor, aircraft fuel, maintenance, and fleet financing. The airline is also contending with significant supply chain issues that have increased expenses across several categories.
Top operating costs

• Labor: This is one of American Airlines' largest expenses, accounting for $4.461 billion in the third quarter of 2025 alone. Recent contract ratifications with key labor groups have cemented higher wages for the immediate future.
  • In late 2024, the airline reached an agreement with the Transport Workers Union, which included pay raises for over 34,000 workers through 2026.
  • A separate agreement with flight attendants also included wage increases and took effect in the fourth quarter of 2024.
• Aircraft fuel and related taxes: This is a major expense for any airline and is highly volatile. American Airlines has stated that it does not engage in fuel hedging, leaving it exposed to fluctuations in oil prices.
  • Supply chain disruptions have created an additional layer of fuel cost for the industry, forcing airlines to operate older, less fuel-efficient aircraft for longer periods.
  • The increasing use of more expensive Sustainable Aviation Fuel (SAF) is also adding to the airline industry's overall fuel bill in 2025.
• Maintenance, materials, and repairs: Supply chain disruptions are forcing the airline industry to spend more on aircraft maintenance. This is due to parts and engine delivery delays, which have forced many airlines to increase their spending in this category.
• Other rent and landing fees: This cost covers access to airport facilities and air navigation services. The industry trade group IATA reports that fees charged by airports and Air Navigation Service Providers (ANSPs) are a significant expense for airlines.

Additional important costs

• Supply chain disruptions: Issues in the aerospace supply chain, including manufacturing delays at Boeing and Airbus, have created an estimated $11 billion in additional costs for the airline industry in 2025. These delays have led to:
  • Higher leasing costs: Carriers must lease extra aircraft and engines while waiting for repairs and deliveries, with lease rates having increased significantly.
  • Increased inventory costs: Airlines are holding more spare parts in reserve to protect against unpredictable disruptions.
• Debt service and capital expenditures: American Airlines has been focused on reducing its significant debt load, which topped $29 billion in 2025. However, this is balanced against billions of dollars in annual capital expenditures for fleet modernization, a key factor in future fuel and maintenance costs.
• Interest expenses: The airline faces substantial interest expenses, including $432 million in the third quarter of 2025 alone, due to its significant debt burden.

• American Airlines Reports Third-Quarter 2025 Financial Results
  Oct 22, 2025 — “We've built a strong foundation, with best-in class cost management and a focus on strengthening the balance sheet. L...
  

Not sure what your point is. AA definitely spends more on labor than any other category, but the majority of that is salaries, not benefits. Even your AI excerpt says the problem is high wages.

Don't confuse CAPEX and OPEX....

This isn't news. That figure should include total payroll expenses that would include wage compensation, benefits and employer taxes. Also of note, UA reported 2024 labor expenses to be $16.7B, which more or less equates to $4.2B per quarter. That amount captures the new UA pilot contract already in effect since 2023. Their FA contract is still pending and was rejected recently so that will be a labor expense increase once it is ratified some day.