ITEM 2.05. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES.
On August 25, 2020, American Airlines, Inc. ("American"), a wholly owned
subsidiary of American Airlines Group Inc. (the "Company"), informed its
employees of the need to furlough approximately 17,500 U.S.-based employees
effective Oct. 1. These notices are related to but not in addition to notices
sent on July 15, 2020, in which American informed its employees of the
possibility of a workforce reduction impacting 25,000 U.S.-based employees of
American. These notices are part of American's response to the impacts of the
COVID-19 pandemic on its business. As of the date hereof and based on current
facts, American expects that these actions will take effect on or after October
1, 2020.
At this time, the Company is unable to make a good faith determination of an
estimate or range of estimates required by paragraphs (b), (c) and (d) of Item
2.05 of Form 8-K with respect to workforce reduction actions in the remainder of
2020. The Company will file an amendment to this report after it makes a
determination of such estimate or range of estimates, if any.
ITEM 7.01. REGULATION FD DISCLOSURE.
As discussed above, on August 25, 2020, American distributed a letter to
employees regarding the possibility of a workforce reduction at their work
location. This internal communication is furnished herewith as Exhibit 99.1 and
is incorporated by reference into this Item 7.01.
The information in 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 (the "Exchange Act"), 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 (the "Securities Act"), 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 Letter to Employees, dated August 25, 2020.
104.1 Cover page interactive data file (embedded within the Inline
XBRL document).
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, 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 Quarterly Report on Form 10-Q for the six months
ended June 30, 2020 (especially in Part I, Item 2. Management's Discussion and
Analysis of Financial Condition and Results of Operations and Part II, Item 1A.
Risk Factors), 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 the
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.
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