UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 9, 2017
AMERICAN AIRLINES GROUP INC.
AMERICAN AIRLINES, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-8400 | 75-1825172 | ||
| Delaware |
1-2691 |
13-1502798 | ||
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 4333 Amon Carter Blvd., Fort Worth, Texas | 76155 | |
| 4333 Amon Carter Blvd., Fort Worth, Texas |
76155 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(817) 963-1234
(817) 963-1234
N/A
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01. | REGULATION FD DISCLOSURE. |
On March 9, 2017, American Airlines Group Inc. (“American”) announced via press release certain traffic statistics for February 2017. A copy of American’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press Release, dated March 9, 2017. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, American Airlines Group Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN AIRLINES GROUP INC. | ||||||
| Date: March 9, 2017 | By: | /s/ Derek J. Kerr | ||||
| Derek J. Kerr | ||||||
| Executive Vice President and | ||||||
| Chief Financial Officer | ||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, American Airlines, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN AIRLINES, INC. | ||||||
| Date: March 9, 2017 | By: | /s/ Derek J. Kerr | ||||
| Derek J. Kerr | ||||||
| Executive Vice President and Chief Financial Officer | ||||||
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release, dated March 9, 2017. | |
Exhibit 99.1
|
Corporate Communications | |||
| 817-967-1577 | ||||
| mediarelations@aa.com | ||||
| Investor Relations | ||||
| 817-931-3423 investor.relations@aa.com | ||||
FOR RELEASE: Thursday, March 9, 2017
AMERICAN AIRLINES GROUP REPORTS FEBRUARY TRAFFIC
AND RECORD OPERATIONAL PERFORMANCE
FORT WORTH, Texas – American Airlines Group (NASDAQ: AAL) today reported February and year-to-date 2017 traffic results.
American Airlines Group’s total revenue passenger miles (RPMs) were 15.2 billion, down 3.3 percent versus February 2016. Total capacity was 19.6 billion available seat miles (ASMs), down 3.7 percent versus February 2016. Total passenger load factor was 77.3 percent, up 0.3 percentage points versus February 2016.
In February, the Company’s 120,000 team members set several operational records, including a systemwide mainline on-time departure rate of 74.8 percent, which was the best for any month since the Company’s 2013 merger. In addition, the Company also set February records for on-time arrivals of 85.2 percent and completion factor of 98.8 percent as preliminarily reported to the Department of Transportation.
The Company expects its first quarter 2017 total revenue per available seat mile (TRASM) to be up approximately 1.5 percent to 3.5 percent year-over-year vs. its previous guidance of up 2.5 percent to 4.5 percent. This decrease is due primarily to the Company’s year-to-date systemwide mainline completion factor of 98.9 percent vs. 97.7 percent in the same period last year. The higher completion factor is positive for customer service and profitability, but the additional ASMs generally reduce TRASM results. The Company continues to expect its first quarter pre-tax margin excluding special items1 to be between 3 percent and 5 percent.
The following summarizes American Airlines Group traffic results for the month ended February 28, 2017, and February 29, 2016, consisting of mainline-operated flights, wholly owned regional subsidiaries and operating results from capacity purchase agreements.
| 1 | American is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of special items cannot be determined at this time |
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AMERICAN AIRLINES GROUP REPORTS FEBRUARY TRAFFIC
March 9, 2017
Page 2
American Airlines Group Traffic Results
| February | Year to Date | |||||||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||
| Revenue Passenger Miles (000) |
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| Domestic |
8,873,835 | 9,356,535 | (5.2 | )% | 18,534,483 | 19,181,819 | (3.4 | )% | ||||||||||||||||
| Atlantic |
1,154,126 | 1,219,709 | (5.4 | )% | 2,704,814 | 2,844,197 | (4.9 | )% | ||||||||||||||||
| Latin America |
2,254,265 | 2,453,589 | (8.1 | )% | 4,915,774 | 5,349,268 | (8.1 | )% | ||||||||||||||||
| Pacific |
1,099,018 | 923,700 | 19.0 | % | 2,383,433 | 1,910,441 | 24.8 | % | ||||||||||||||||
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| International |
4,507,409 | 4,596,998 | (1.9 | )% | 10,004,021 | 10,103,906 | (1.0 | )% | ||||||||||||||||
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| Mainline |
13,381,244 | 13,953,533 | (4.1 | )% | 28,538,504 | 29,285,725 | (2.6 | )% | ||||||||||||||||
| Regional |
1,778,491 | 1,725,496 | 3.1 | % | 3,657,628 | 3,475,354 | 5.2 | % | ||||||||||||||||
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| Total Revenue Passenger Miles |
15,159,735 | 15,679,029 | (3.3 | )% | 32,196,132 | 32,761,079 | (1.7 | )% | ||||||||||||||||
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| Available Seat Miles (000) |
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| Domestic |
10,927,299 | 11,502,210 | (5.0 | )% | 22,966,832 | 23,444,128 | (2.0 | )% | ||||||||||||||||
| Atlantic |
1,840,119 | 2,050,648 | (10.3 | )% | 3,960,386 | 4,257,329 | (7.0 | )% | ||||||||||||||||
| Latin America |
3,002,073 | 3,314,491 | (9.4 | )% | 6,347,434 | 6,965,148 | (8.9 | )% | ||||||||||||||||
| Pacific |
1,420,951 | 1,157,524 | 22.8 | % | 2,965,542 | 2,353,687 | 26.0 | % | ||||||||||||||||
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| International |
6,263,143 | 6,522,663 | (4.0 | )% | 13,273,362 | 13,576,164 | (2.2 | )% | ||||||||||||||||
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| Mainline |
17,190,442 | 18,024,873 | (4.6 | )% | 36,240,194 | 37,020,292 | (2.1 | )% | ||||||||||||||||
| Regional |
2,422,513 | 2,350,197 | 3.1 | % | 5,053,720 | 4,782,491 | 5.7 | % | ||||||||||||||||
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| Total Available Seat Miles |
19,612,955 | 20,375,070 | (3.7 | )% | 41,293,914 | 41,802,783 | (1.2 | )% | ||||||||||||||||
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| Load Factor (%) |
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| Domestic |
81.2 | 81.3 | (0.1 | )pts | 80.7 | 81.8 | (1.1 | )pts | ||||||||||||||||
| Atlantic |
62.7 | 59.5 | 3.2 | pts | 68.3 | 66.8 | 1.5 | pts | ||||||||||||||||
| Latin America |
75.1 | 74.0 | 1.1 | pts | 77.4 | 76.8 | 0.6 | pts | ||||||||||||||||
| Pacific |
77.3 | 79.8 | (2.5 | )pts | 80.4 | 81.2 | (0.8 | )pts | ||||||||||||||||
| International |
72.0 | 70.5 | 1.5 | pts | 75.4 | 74.4 | 1.0 | pts | ||||||||||||||||
| Mainline |
77.8 | 77.4 | 0.4 | pts | 78.7 | 79.1 | (0.4 | )pts | ||||||||||||||||
| Regional |
73.4 | 73.4 | — | pts | 72.4 | 72.7 | (0.3 | )pts | ||||||||||||||||
| Total Load Factor |
77.3 | 77.0 | 0.3 | pts | 78.0 | 78.4 | (0.4 | )pts | ||||||||||||||||
| Enplanements |
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| Mainline |
10,167,980 | 10,582,081 | (3.9 | )% | 21,221,471 | 21,889,604 | (3.1 | )% | ||||||||||||||||
| Regional |
3,903,115 | 3,856,992 | 1.2 | % | 7,978,794 | 7,781,571 | 2.5 | % | ||||||||||||||||
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| Total Enplanements |
14,071,095 | 14,439,073 | (2.5 | )% | 29,200,265 | 29,671,175 | (1.6 | )% | ||||||||||||||||
| System Cargo Ton Miles (000) |
191,367 | 174,418 | 9.7 | % | 381,961 | 340,018 | 12.3 | % | ||||||||||||||||
Notes:
| 1) | Canada, Puerto Rico and U.S. Virgin Islands are included in the domestic results. |
| 2) | Latin America numbers include the Caribbean. |
| 3) | Regional includes wholly owned subsidiaries and operating results from capacity purchase carriers. |
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AMERICAN AIRLINES GROUP REPORTS FEBRUARY TRAFFIC
March 9, 2017
Page 3
About American Airlines Group
American Airlines and American Eagle offer an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. American has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. American is a founding member of the oneworld® alliance, whose members serve more than 1,000 destinations with about 14,250 daily flights to over 150 countries. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL. In 2015, its stock joined the S&P 500 index. Connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.
Cautionary Statement Regarding Forward-Looking Statements and Information
This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about the expected first quarter pre-tax margin, the expected change in total revenue per available seat mile, the Company’s plans, objectives, estimates, expectations and intentions, and other statements that are not historical facts. These forward-looking statements are based on the Company’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (especially in Part I, Item 1A. Risk Factors, and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations) and in the Company’s other filings with the Securities and Exchange Commission (the SEC), and other risks and uncertainties listed from time to time in the Company’s other filings with the SEC. There may be other factors of which the Company is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The Company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.
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