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 earliest event
reported: April 21, 2004
AMR CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-8400 75-1825172
(State of Incorporation) ( Commission File Number) (IRS Employer
Identification No.)
4333 Amon Carter Blvd. Fort Worth, Texas 76155
(Address of principal executive offices) (Zip Code)
(817) 963-1234
(Registrant's telephone number)
Item 12. Disclosure of Results of Operations and Financial Condition
AMR Corporation (the Company) is furnishing herewith a press
release issued on April 21, 2004 by the Company as Exhibit 99.1
which is included herein. This press release was issued to report
the Company's first quarter 2004 results.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
AMR CORPORATION
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: April 22, 2004
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
Exhibit 99.1
CONTACT: Al Becker
Corporate Communications
Fort Worth, Texas
817-967-1577
corp.comm@aa.com
FOR RELEASE: Wednesday, April 21, 2004
Editor's Note: A live Webcast reporting first quarter results will
be broadcast on the Internet on April 21 at 2 p.m. EDT. (Windows
Media Player required for viewing.)
AMR CORPORATION REPORTS SUBSTANTIAL IMPROVEMENT
IN FIRST QUARTER FINANCIAL RESULTS AS
TURNAROUND PLAN PROGRESS CONTINUES
AMR's First Quarter Net Loss of $166 Million Is Dramatically
Better Than Its First Quarter Performance A Year Ago
AMR Posts Its Third Consecutive Quarter of Positive Operating
Income, Excluding Special Items --
Achieves Net Income in March of $30 Million, Despite Rising Fuel
Costs
AMR Ends First Quarter With Total
Cash And Short-Term Investments of $3.7 Billion,
Including Restricted Balance of $501 Million
FORT WORTH, Texas -- AMR Corporation, the parent company of
American Airlines, Inc., today reported a net loss of $166 million
for the first quarter, or $1.03 per share. This is a marked
improvement over last year's first quarter, when AMR had a net loss
of $1.04 billion, or $6.68 per share.
Continuing the financial momentum it established last year,
and once again making tremendous progress in driving down costs,
AMR posted its third straight quarter of positive operating income,
excluding special items. AMR achieved these results despite a very
significant increase in fuel prices, which increased its fuel
expense $55 million from a year ago for the quarter.
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"We are never satisfied to be reporting net losses, but we
are nonetheless pleased with how far we have come over the past 12
months," said Gerard Arpey, AMR's President and CEO. "It is also
worth noting that the first quarter is seasonally a difficult
quarter -- and that difficulty has been compounded this year by
extremely high fuel prices. The fact that despite these challenges
we had operating income in the quarter, generated solid net income
in March and continued to produce positive cash flows is
encouraging."
The company's progress, Arpey said, "is a tribute to our
employees and a testament to the power of the changes we are
making. We're maintaining great momentum under the Turnaround
Plan," he said, "but we recognize we still have a lot of work to do
in order to achieve sustained profitability at acceptable levels."
Year-over-year mainline unit costs in the first quarter
dropped more than 16 percent, Arpey said. This followed two
previous quarters of equally impressive cost results. "Our success
in removing costs from the operation has paved the way for our
improved results and has given us the ability to stand and fight
rather than retreat and shrink," he said. "Without the negative
impact of rising fuel prices, our progress would have been even
more dramatic, with a year-over-year decline in mainline unit costs
(holding fuel prices at first quarter 2003 levels) of more than 17
percent."
Arpey noted that during the first quarter, AMR continued to
make significant progress under its four-point Turnaround Plan.
These were among the more notable achievements:
o In January, American held "Customer Strategy" sessions with
employees to develop ways of better serving the airline's
customers. Work teams, which also include front-line employees,
are reviewing, analyzing and implementing ideas from these
sessions.
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o AMR was able once again to access the capital markets with
two financing deals during the quarter, raising $499 million.
o American completed the addition of seats to its 757 and
A300 fleets, allowing it to make more seats available in leisure
markets where customer demand is particularly high.
o Service also was enhanced by the shift of capacity to
international markets, including the start of Los Angeles-Tokyo
service, American's fifth route to Japan.
o Expanding on the efficiencies created by the restructuring
of the DFW, Chicago and St. Louis hubs, American solidified plans
during the quarter for the depeaking of the Miami hub on May 1.
o At London Gatwick, American is consolidating its operations
with British Airways, thus reducing costs and also letting American
provide better connecting opportunities and an overall better
travel experience for its customers.
o Year to date, American has contributed $319 million to its
defined pension plans, including using its strengthened cash
position to make an early contribution of $147 million.
o American, based on improvements in customer service
performance as measured by Survey America, is making the first
payout to the airline's employees under the company's new Annual
Incentive Plan -- the third piece of a success-sharing package for
employees that also includes a Broad Based Employee Stock Plan and
Profit Sharing.
Editor's Note: AMR's president and chief executive officer, Gerard
Arpey, and its chief financial officer, James Beer, will make a
presentation to analysts during a teleconference on Wednesday,
April 21, from 2 p.m. to 2:45 p.m. EDT. Following the analyst
call, they will hold a question-and-answer conference call for
media from 3 p.m. to 3:45 p.m. EDT. Reporters interested in
listening to the presentation or participating in the media Q&A
should call 817-967-1577 for details.
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Statements in this news release contain various forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, which represent the Company's expectations or
beliefs concerning future events. When used in this news release,
the words "expects," "plans," "anticipates," "believes," and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements include, without limitation,
the Company's expectations concerning operations and financial
conditions, including changes in capacity, revenues, and costs,
future financing needs, overall economic conditions, plans and
objectives for future operations, and the impact on the Company of
its results of operations for the past three years and the
sufficiency of its financial resources to absorb that impact. Other
forward-looking statements include statements which do not relate
solely to historical facts, such as, without limitation, statements
which discuss the possible future effects of current known trends
or uncertainties, or which indicate that the future effects of
known trends or uncertainties cannot be predicted, guaranteed or
assured. All forward-looking statements in this release are based
upon information available to the Company on the date of this
release. The Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise. Forward-looking
statements are subject to a number of risk factors that could cause
actual results to differ materially from our expectations. The
following factors, in addition to other possible factors not
listed, could cause the Company's actual results to differ
materially from those expressed in forward-looking statements:
changes in economic, business and financial conditions; the
Company's substantial indebtedness; high fuel prices and the
availability of fuel; the residual effects of the war in Iraq;
conflicts in the Middle East or elsewhere; the highly competitive
business environment faced by the Company, with increasing
competition from low cost carriers and historically low fare
levels; the ability of the Company to implement its restructuring
program and the effect of the program on operational performance
and service levels; uncertainties with respect to the Company's
international operations; changes in the Company's business
strategy; actions by U.S. or foreign government agencies; the
possible occurrence of additional terrorist attacks; another
outbreak of a disease (such as SARS) that affects travel behavior;
uncertainties with respect to the Company's relationships with
unionized and other employee work groups; the inability of the
Company to satisfy existing financial or other covenants in certain
of its credit agreements; the availability of future financing; and
increased insurance costs and potential reductions of available
insurance coverage. Additional information concerning these and
other factors is contained in the Company's Securities and Exchange
Commission filings, including but not limited to the Form 10-K for
the year ended Dec. 31, 2003.
Detailed financial information follows:
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended March 31, Percent
2004 2003 Change
Revenues
Passenger - American Airlines $3,678 $3,394 8.4
- Regional Affiliates 420 326 28.8
Cargo 148 134 10.4
Other revenues 266 266 -
Total operating revenues 4,512 4,120 9.5
Expenses
Wages, salaries and benefits 1,640 2,098 (21.8)
Aircraft fuel 808 729 10.8
Depreciation and amortization 326 338 (3.6)
Other rentals and landing fees 305 291 4.8
Commissions, booking fees
and credit card expense 288 255 12.9
Maintenance, materials
and repairs 231 231 -
Aircraft rentals 153 190 (19.5)
Food service 137 149 (8.1)
Other operating expenses 582 683 (14.8)
Special charges - 25 *
Total operating expenses 4,470 4,989 (10.4)
Operating Income (Loss) 42 (869) *
Other Income (Expense)
Interest income 14 13 7.7
Interest expense (212) (192) 10.4
Interest capitalized 18 19 (5.3)
Miscellaneous - net (28) (14) *
(208) (174) 19.5
Loss Before Income Taxes (166) (1,043) (84.1)
Income tax - - -
Net Loss $(166) $(1,043) (84.1)
Basic and Diluted Loss Per Share $(1.03) $ (6.68)
Number of Shares Used in
Computation
Basic and Diluted 160 156
* Greater than 100%
Note: Certain amounts have been reclassified to conform with the 2004
presentation.
AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended
March 31, Percent
2004 2003 Change
American Airlines, Inc. Mainline Jet
Operations
Revenue passenger miles (millions) 30,290 27,838 8.8
Available seat miles (millions) 42,597 40,274 5.8
Cargo ton miles (millions) 521 490 6.3
Passenger load factor 71.1% 69.1% 2.0 pts.
Passenger revenue yield per
passenger mile (cents) 12.14 12.19 (0.4)
Passenger revenue per available
seat mile (cents) 8.64 8.43 2.5
Cargo revenue yield per ton
mile (cents) 28.47 27.38 4.0
Operating expenses per available seat
mile, excluding Regional
Affiliates (cents) (1) 9.49 11.39 (16.7)
Fuel consumption (gallons,
in millions) 741 725 2.2
Fuel price per gallon (cents) 101.0 94.0 7.4
Regional Affiliates
Revenue passenger miles (millions) 1,539 1,165 32.1
Available seat miles (millions) 2,453 1,987 23.5
Passenger load factor 62.7% 58.6% 4.1 pts.
AMR Corporation
Average Equivalent Number of Employees
American Airlines 79,900 92,200
Other 12,100 11,800
Total 92,000 104,000
(1) Excludes $487 million and $423 million of expense incurred
related to Regional Affiliates in 2004 and 2003, respectively.
AMR CORPORATION
OPERATING STATISTICS (CONTINUED)
(Unaudited)
American Airlines, Inc. Mainline
Jet Operations Three Months Ended March 31,
(in millions, except as noted) 2004 2003
Total operating expenses as reported $4,528 $5,011
Less: Operating expenses incurred
related to Regional Affiliates 487 423
Operating expenses excluding expenses
incurred related to Regional Affiliates $4,041 $4,588
American mainline jet operations
available seat miles 42,597 40,274
Operating expenses per available seat
mile, excluding Regional Affiliates (cents) 9.49 11.39
Operating expenses excluding expenses
incurred related to Regional Affiliates $4,041 $4,588
Less: Aircraft fuel price variance * 52 -
Operating expenses, excluding
aircraft fuel price variance and
expenses incurred related to Regional Affiliates $3,989 $4,588
American mainline jet operations
available seat miles 42,597 40,274
Operating expenses per available seat
mile, excluding aircraft fuel price
variance and Regional Affiliates (cents) 9.36 11.39
Percent change 17.8
* Change in price times current year consumption (7.0 cents x 741 million gallons)
Note: The company believes that operating expenses per available
seat mile, excluding fuel price variance, assists investors
in understanding the impact of changes in fuel prices on the
company's operations.
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Current AMR Corp news releases can be accessed via the Internet.
The address is http://www.amrcorp.com