American Airlines Group Inc., Fort Worth, Texas, expects to contribute $807 million to its pension plans in 2019, the company disclosed Monday in its 10-K filing with the Securities and Exchange Commission.
Of the $807 million, $786 million is required and the remaining $21 million is discretionary. The company contributed $467 million to its pension plans in 2018.
As of Dec. 31, American Airlines had $10.1 billion in total defined benefit assets and $16.4 billion in benefit obligations for a funding ratio of 61.6%, down from 62.4% at the end of 2017. The 10-K did not provide a breakout of U.S. vs. international pension plans.
The discount rate used to calculate benefit obligations was 4.4% as of Dec. 31, up from 3.8% as of Dec. 31, 2017.
Also as of Dec. 31, the pension plans had an allocation of 59.3% equities, 23.7% fixed income, 16.3% alternatives, 0.5% dividend and interest receivable, and the remainder in cash and the net amount due to/from brokers for the sale of securities.