What changed in this filing

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Item 2. Properties

2022-02-22 compared with 2021-02-17 · 19 added, 32 removed, 53 unchanged (49% of the section changed)

Flight Equipment and Fleet Renewal

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, 2021, American operated a mainline fleet of 865 aircraft.

During 2021, American accepted delivery of 25 mainline aircraft, temporarily parked 14 mainline aircraft and retired one 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, 2021, American Eagle operated 567 regional aircraft.

During 2021, we increased our regional fleet by a net of 23 aircraft, including the addition of 52 regional aircraft, the retirement of 26 regional aircraft and temporarily parking three regional aircraft.

As of December 31, 2021, American’s mainline fleet consisted of the following aircraft:

Average Seating

Capacity Average

7 unchanged sentences

Boeing 737-8 MAX 172 2.4 9 33 42

172 1.7 9 25 34

Boeing 777-200ER 273 21.0 44 3 47

3 unchanged sentences

Total 11.3 408 457 865

(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.

(1) Excluded from the total operating aircraft count above are 36 owned Boeing 737-800 that are being held in temporary storage.

As of December 31, 2021, the fleet of our wholly-owned and third-party regional carriers operating as American Eagle consisted of the following aircraft:

8 unchanged sentences

65 — 6 8 14 Envoy 6

Embraer 140 (1)

44 8 — — 8 Envoy 8

Embraer 175 76 98 — 96 194 Envoy 98

Embraer 145 (1)

2 unchanged sentences

(1) Excluded from the total operating aircraft count above are 10 regional aircraft that are being held in temporary storage as follows:

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

eight owned Embraer 145s and two owned Embraer 170s.

See Note 11 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.

3 unchanged sentences

A320neo Family 26 5 18 22 5 — 76

16 26 5 18 22 5 92

737 MAX Family — 27 21 20 20 — 88

9 10 7 — 20 20 66

787 Family 10 7 8 9 4 5 43

175 3 — — — — — 3

Total 39 39 47 51 29 5 210

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

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 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

” 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.

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

Actual delivery dates are subject to change, which could be material, based on various potential factors including production delays by the manufacturer and regulatory concerns, such as those that have recently prevented The Boeing Company (Boeing) from timely delivering 787 Family aircraft.

(2) On January 31, 2022, we entered into an amended purchase agreement with Boeing pursuant to which we agreed to purchase 23 additional Boeing 737 MAX Family aircraft through the conversion of existing purchase options.

We also intend to exercise purchase options for an additional seven aircraft in 2022, bringing our total incremental firm order of Boeing 737 MAX Family aircraft to 30, with 15 of such aircraft scheduled to be delivered in 2023 and 15 scheduled to be delivered in 2024.

In addition, we entered into an amended purchase agreement with Boeing to defer the delivery of certain Boeing 787 Family aircraft previously scheduled to be delivered beginning in January 2023.

Pursuant to this amendment, deliveries of these aircraft are now scheduled to commence in the fourth quarter of 2023 and will continue into 2027.

The table above and the table in Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations – “ Contractual Obligations ” reflect our purchase commitments after giving effect to these amendments and assumes our exercise of the seven 737 MAX Family aircraft purchase options mentioned above.

We also have agreements for 39 spare engines to be delivered in 2022 and beyond.

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.

We currently have financing commitments in place for all aircraft on order and scheduled to be delivered in 2022 except for five Airbus A320neo Family aircraft and three Embraer 175 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.

We do not have financing commitments in place for any of the aircraft scheduled to be delivered in 2023 and beyond, except for seven Boeing 787 Family aircraft scheduled to be delivered in 2023 and one Boeing 787 Family aircraft scheduled to be delivered in 2024.

See Part I, Item 1A.

12 unchanged sentences

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