American Airlines Group Inc., Fort Worth, Texas, expects to contribute $196 million to its pension plans in 2020, the company disclosed Wednesday in a 10-K filing with the Securities and Exchange Commission.
The amount includes a $193 million minimum required contribution for its corporate pension plan and a $3 million minimum required contribution for the pension plan of its wholly owned regional subsidiaries.
The company added $1.2 billion to its pension plans in 2019, which included a $780 million minimum required contribution.
As of Dec. 31, American Airlines had $12.9 billion in total defined benefit assets and $18.2 billion in benefit obligations for a funding ratio of 70.5%, up from 61.6% at the end of 2018. The regulatory filing did not provide a breakout of U.S. vs. international pension plans.
The discount rate used to calculate benefit obligations was 3.4% as of Dec. 31, down from 4.4% as of Dec. 31, 2018.
Also as of Dec. 31, the pension plans had an asset allocation of 44.6% equities, 29.5% fixed income, 25.4% alternatives, 0.4% dividend and interest receivable, and the remainder in cash.
