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 14, 2020
(Exact name of registrant as specified in its charter)
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
(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)) | |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 7.01. | REGULATION FD DISCLOSURE. |
On March 14, 2020, American Airlines, Inc. (“American”) issued a press release announcing certain adjustments to its schedule in response to decreased consumer demand for air travel due to continued uncertainty surrounding the outbreak of the COVID-19 virus. The press release, reflecting updates made to this information through the end of March 16, 2020, is furnished herewith as Exhibit 99.1 and is incorporated by reference into this Item 7.01.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 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 Company’s plans, objectives, expectations, intentions, estimates and strategies for the future, 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, 2019 (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 other risks and uncertainties listed from time to time in the Company’s other filings with the Securities and Exchange Commission. 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. In particular, the consequences of the coronavirus outbreak to economic conditions and the travel industry in general and the financial position and operating results of our company in particular have been material, are changing rapidly, and cannot be predicted. 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 statement.
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits. | ||
Exhibit No. | Description | |
99.1 | ||
104.1 | Cover page interactive data file (embedded within the Inline XBRL document). | |
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 16, 2020 | 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 16, 2020 | By: | /s/ Derek J. Kerr | |
Derek J. Kerr | |||
Executive Vice President and Chief Financial Officer | |||
Exhibit 99.1
Press Release | ||
AMERICAN AIRLINES ANNOUNCES ADDITIONAL SCHEDULE CHANGES
IN RESPONSE TO CUSTOMER DEMAND RELATED TO COVID-19
FORT WORTH, Texas –– American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is due to decreased customer demand in light of U.S. government travel restrictions related to coronavirus (COVID-19). The airline will:
• | Reduce international capacity by 75% year over year - from March 16 to May 6 |
• | Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT) |
• | Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled |
In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.
International Route Changes
By region, the new schedule changes include the following:
Asia, effective March 16
• | American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT |
Australia, effective March 16
• | Suspending service from LAX to Sydney (SYD) effective March 16 |
Europe, phased suspension
• | American will continue to operate one flight daily from DFW to LHR and MIA to LHR |
• | Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew |
• | LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16 |
• | Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand |
South America, effective March 16
• | Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO) |
• | Suspending service from DFW, JFK, LAX and MIA to São Paulo (GRU) |
• | Suspending service from DFW and MIA to: |
◦ | Chile: Santiago (SCL) |
◦ | Colombia: Bogota (BOG) |
◦ | Ecuador: Guayaquil (GYE) and Quito (UIO) |
◦ | Peru: Lima (LIM) |
• | Suspending service from MIA to: |
◦ | Brazil: Brasilia (BSB) and Manaus (MAO) |
◦ | Colombia: Barranquilla (BAQ), Cartagena (CTG), Cali (CLO), Medellin (MDE) and Pereira (PEI) |
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These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement - otherwise known as requesting a slot waiver - to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.
Taking care of customers
American will continue to take care of customers as this situation develops. The airline has announced its offer to waive change fees for customers who purchased tickets prior to March 11 for travel to Europe, including the United Kingdom, through May 31. Additionally, American’s Reservations team will contact customers whose flights have been canceled directly by email or telephone. Customers who booked through a travel agent will be contacted by their agency directly. If a flight is canceled and a customer chooses not to be rebooked, they may request a full refund by visiting aa.com/refunds.
Updated Asia schedules:
Origin | Destination | Schedule change |
DFW | Tokyo-Haneda (HND) | Delayed inaugural flight; moved to May |
DFW | Hong Kong (HKG) | Suspended March 16 through July 1 |
LAX | Tokyo-Haneda (HND) | Suspended March 16 through May 6 |
LAX | Tokyo-Narita (NRT) | Suspended March 16 through May 6 |
Updated Australia schedules:
American previously announced its LAX-AKL seasonal service would be suspended from March 16; however, this has been further reviewed based on customer demand, and flights will operate through the remainder of the scheduled season which ends on March 28.
Origin | Destination | Schedule change |
LAX | Sydney (SYD) | Final westbound flight will return to LAX on March 18; service suspended through May 6 |
Updated Europe schedules:
Origin | Destination | Schedule change |
BOS | London (LHR) | Delayed inaugural flight; moved to May |
CLT | London (LHR) | Final eastbound flight on March 15; final westbound flight on March 16 |
JFK | London (LHR) | Phased suspension gradually implemented between March 16 and March 23; suspended through May 6 |
LAX | London (LHR) | Phased suspension gradually implemented between March 16 and March 23; suspended through May 6 |
PHL | London (LHR) | Final eastbound flight on March 15; final westbound flight on March 16 |
PHX | London (LHR) | Final eastbound flight on March 15; final westbound flight on March 16 |
ORD | London (LHR) | Phased suspension gradually implemented between March 16 and March 23; suspended through May 6 |
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Updated Latin America and Caribbean schedules:
Origin | Destination | Schedule change |
CLT | Aruba (AUA) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
CLT | Saint Maarten | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
DFW | Aruba (AUA) | Suspended through May 6 |
DFW | Bogota (BOG) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
DFW | São Paulo (GRU) | Will fly all legs as scheduled through end of day on March 16; suspended through June 3 |
DFW | Guatemala City (GUA) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
DFW | Guayaquil (GYE) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
DFW | Salvador (SAL) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
DFW | Santiago (SCL) | Will fly all legs as scheduled through end of day on March 16; suspended through June 3 |
DFW | Quito (UIO) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
DFW | Lima (LIM) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
JFK | Georgetown (GEO) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
JFK | Rio de Janeiro (GIG) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
JFK | São Paulo (GRU) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
LAX | São Paulo (GRU) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
LGA | Aruba (AUA) | Suspended through May 6 |
MIA | Aruba (AUA) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Barranquilla (BAQ) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Bogota (BOG) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Brasilia (BSB) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Cali (CLO) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Cartagena (CTG) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Georgetown (GEO) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Guatemala City (GUA) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
MIA | Guayaquil (GYE) | Will fly all legs as scheduled through end of day on March 16; suspended through May 6 |
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About American Airlines Group
American Airlines offers customers 6,800 daily flights to more than 365 destinations in 61 countries from its hubs in Charlotte, Chicago, Dallas-Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. With a shared purpose of caring for people on life's journey, American's 130,000 global team members serve more than 200 million customers annually. Since 2013, American has invested more than $28 billion in its product and people and now flies the youngest fleet among U.S. network carriers, equipped with industry-leading high-speed Wi-Fi, lie-flat seats, and more inflight entertainment and access to power. American also has enhanced food and beverage options in the air and on the ground in its world-class Admirals Club and Flagship lounges. American was recently named a Five Star Global Airline by the Airline Passenger Experience Association and Airline of the Year by Air Transport World. American is a founding member of oneworld®, whose members serve 1,100 destinations in 180 countries and territories. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company's stock is included in the S&P 500. Learn more about what's happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.
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