What changed in this filing

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Item 2. Properties

2021-02-17 compared with 2020-02-19 · 55 added, 38 removed, 30 unchanged (76% of the section changed)

Flight Equipment and Fleet Renewal

As of December 31, 2019 , American operated a mainline fleet of 942 aircraft.

In 2019 , we continued our extensive fleet renewal program, which has provided us with the youngest fleet of the major U.S.

network carriers.

During 2019 , American took delivery of 24 mainline aircraft and retired 38 mainline aircraft.

We are supported by our wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle.

As of December 31, 2019 , American Eagle operated 605 regional aircraft.

During 2019 , we increased our regional fleet by a net of ten aircraft, including the addition of 46 regional aircraft and retirement of 36 regional aircraft.

As of December 31, 2020, American operated a mainline fleet of 855 aircraft and American Eagle operated 544 regional aircraft.

During 2020, American accepted delivery of 30 and 17 mainline and regional aircraft, respectively, and retired 95 and 63 mainline and regional aircraft, respectively.

Additionally, during 2020, American temporarily parked 22 and 15 mainline and regional aircraft, respectively.

To better align our network with lower passenger demand due to the impact of the COVID-19 pandemic on our business, during 2020, we accelerated the retirement of Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain regional aircraft, including certain Embraer 140 and Bombardier CRJ200 aircraft.

These retirements remove complexity from our operation and bring forward cost savings and efficiencies associated with operating fewer aircraft types.

See Note 1(g) to each of AAG’s and American’s Consolidated Financial Statements in Part II, Items 8A and 8B, respectively, for further information on the accounting for our fleet retirements.

As of December 31, 2020, American’s mainline fleet consisted of the following aircraft:

Average Seating

Airbus A321neo

Capacity Average

(Years) Owned Leased Total

Airbus A319 128 16.7 21 112 133

Airbus A320 150 19.7 10 38 48

Airbus A321 179 8.4 164 54 218

Airbus A321neo 196 0.8 9 19 28

Boeing 737-800 (1)

168 10.3 111 171 282

Boeing 737-8 MAX (2)

Boeing 757-200

Boeing 767-300ER

172 1.7 9 25 34

Boeing 777-200ER 273 20.0 44 3 47

Boeing 777-300ER 304 6.8 18 2 20

On March 13, 2019, a directive from the FAA grounded all U.S.-registered Boeing 737 MAX aircraft.

We have removed all Boeing 737 MAX flying from our flight schedule through August 17, 2020 and will continue to assess this timeline.

Boeing 787-8 234 4.5 20 3 23

Boeing 787-9 285 3.2 17 5 22

Total 10.8 423 432 855

(1) Excluded from the total operating aircraft count above are 21 owned and one leased Boeing 737-800 that are being held in temporary storage.

(2) On November 18, 2020, a directive from the FAA cleared the U.S.-registered Boeing 737 MAX Family aircraft to return to service following its grounding in March 2019.

We resumed scheduled service on December 29, 2020 and gradually phased more Boeing 737 MAX Family aircraft into service throughout January 2021 and beyond.

As of December 31, 2020, the fleet of our wholly-owned and third-party regional carriers operating as American Eagle consisted of the following aircraft:

Average Seating

Owned or Leased

Capacity Owned Leased Owned or Leased

by Third Party

Regional Carrier

Operating Regional

Bombardier CRJ 200

Bombardier CRJ 700

Bombardier CRJ 900

Embraer ERJ 140 (1)

Embraer ERJ 145

Excluded from the total operating aircraft count above are 12 owned Embraer ERJ 140s that are being held in temporary storage.

Regional Carrier Total Operating Regional

Carrier Number of

Bombardier CRJ 700 65 54 7 65 126 SkyWest 65

Bombardier CRJ 900 77 69 — 54 123 PSA 69

Embraer 175 (1)

76 91 — 82 173 Envoy 91

Embraer 140 (1)

44 8 — — 8 Envoy 8

Embraer 145 (1)

50 114 — — 114 Piedmont 57

Total 336 7 201 544 544

(1) Excluded from the total operating aircraft count above are 27 regional aircraft that are being held in temporary storage as follows:

18 owned Embraer 140s, seven owned Embraer 175s and two owned Embraer 145s.

See Note 12 to AAG’s Consolidated Financial Statements in Part II, Item 8A and Note 10 to American’s Consolidated Financial Statements in Part II, Item 8B for additional information on our capacity purchase agreements with third-party regional carriers.

Aircraft and Engine Purchase Commitments

As of December 31, 2019 , we had definitive purchase agreements with Airbus, Boeing, Embraer and Bombardier for the acquisition of the following mainline and regional aircraft (1) :

2025 and Thereafter

As of December 31, 2020, we had definitive purchase agreements for the acquisition of the following aircraft (1) :

2021 2022 2023 2024 2025 2026 and Thereafter Total

A320neo Family (2)

16 26 5 18 22 5 92

737 MAX Family (3)

9 10 7 — 20 20 66

787 Family 19 — 6 6 8 5 44

Total 44 36 18 24 50 30 202

(1) Delivery schedule represents our best estimate as of the date of this report.

Actual delivery dates are subject to change based on many potential factors including production delays by the manufacturer.

Actual delivery dates are subject to change based on various potential factors including production delays by the manufacturer and, where applicable, our decision to exercise rights to defer certain deliveries.

(2) In October 2019, the Office of the U.S.

Trade Representative announced a 10% tariff on new Airbus aircraft imported from Europe.

Effective March 18, 2020, this tariff rate will increase to 15%.

We are evaluating the impact of this tariff on our future Airbus deliveries.

Effective March 18, 2020, this tariff rate increased to 15%, and effective January 12, 2021, the scope of the 15% tariff was expanded to include certain imported aircraft parts in addition to aircraft.

We continue to endeavor to mitigate the effect of these tariffs on our Airbus deliveries.

See Part I, Item 1A.

Risk Factors - “ We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control.

On March 13, 2019, a directive from the FAA grounded all U.S.-registered Boeing 737 MAX aircraft.

We currently have 76 Boeing 737 MAX Family aircraft on order and we have not taken delivery of any Boeing 737 MAX Family aircraft since the grounding.

The extent of the delay to the scheduled deliveries of the Boeing 737 MAX aircraft included in the table above is expected to be impacted by the length of time the FAA order remains in place, Boeing's production rate and the pace at which Boeing can deliver aircraft following the lifting of the FAA order, among other factors.

The above table reflects our estimate of future Boeing 737 MAX aircraft deliveries based on information currently available to us;

however, the actual delivery schedule may differ from the table above, potentially materially.

” Additionally, as of February 16, 2021, we had accepted delivery of one of the 16 Airbus A320neo Family aircraft presently scheduled for delivery in 2021.

(3) On March 13, 2019, a directive from the FAA grounded all U.S.-registered Boeing 737 MAX Family aircraft and, as a result, all deliveries of Boeing 737 MAX Family aircraft were suspended.

Since the time of the FAA recertification of the Boeing 737 MAX Family aircraft on November 18, 2020, deliveries have resumed and we had accepted delivery of 10 Boeing 737 MAX Family aircraft during the period between the date of recertification and December 31, 2020.

Additionally, as of February 16, 2021, we had accepted delivery of six of the nine Boeing 737 MAX Family aircraft presently scheduled for delivery in 2021.

We also have agreements for 29 spare engines to be delivered in 2021 and beyond.

We currently have financing commitments in place for all aircraft on order and scheduled to be delivered through May 2020 .

Our ability to draw on the financing commitments we have in place is subject to the satisfaction of various terms and conditions, including in some cases, on our acquisition of the aircraft by a certain date.

We do not have financing commitments in place for four aircraft scheduled to be delivered in 2020 :

two Airbus A320neo Family aircraft and two Boeing 737 MAX Family aircraft.

We also do not have financing commitments in place for any of the aircraft scheduled to be delivered beyond 2020, except for 10 Boeing 787 Family aircraft scheduled to be delivered in 2021.

We currently have financing commitments in place for 43 aircraft scheduled to be delivered in 2021:

19 Boeing 787 Family aircraft, 16 Airbus A320neo Family aircraft and eight Boeing 737 MAX Family aircraft.

Our ability to draw on the financing commitments we have in place is subject to (1) the satisfaction of various terms and conditions, including in some cases, on our acquisition of the aircraft by a certain date and (2) the performance by the counterparty providing such financing commitments of its obligations thereunder.

We do not have financing commitments in place for one of the Boeing 737 MAX Family aircraft scheduled to be delivered in 2021, however, we do have rights to defer this Boeing 737 MAX Family aircraft from 2021 to 2023.

In addition, we also have rights to defer to 2023-2024 the 10 Boeing 737 MAX Family aircraft currently scheduled to be delivered in 2022.

See Part I, Item 1A.

7 unchanged sentences

We lease or have built on leased property our headquarters and training facilities in Fort Worth, Texas, our principal overhaul and maintenance base in Tulsa, Oklahoma, our regional reservation offices, and administrative offices throughout the U.S.

Construction was completed in 2019 on our new headquarters on the corporate campus in Fort Worth, Texas.

LEGAL PROCEEDINGS

See Note 12 to AAG’s Consolidated Financial Statements in Part II, Item 8A and Note 10 to American’s Consolidated Financial Statements in Part II, Item 8B for information on legal proceedings.

MINE SAFETY DISCLOSURES

Not Applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties