Operates in the cyclical, price competitive, and capital-intensive airline industry; Largest U.S. airline, with a comprehensive route network; and Higher labor costs and fuel costs, expected to outpace the moderate improvement in pricing, resulting in pressured margins in 2017; we expect relatively stronger pricing and margins in 2018. Credit metrics are expected to support the rating, despite a slight decline in 2017, with a modest recovery in 2018; Heavy capital spending; and Substantial share buybacks, though somewhat lower than in 2016. S&P Global Ratings expects American Airlines Group Inc.'s (AAG) 2017 earnings and cash flow to be moderately lower than in 2016, as higher fuel and nonfuel (e.g., labor) expenses are not fully offset by improved revenues. The company's credit
