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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 earliest event
reported: April 20, 2005
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)
(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))
Item 2.02 Results of Operations and Financial Condition
AMR Corporation (the Company) is furnishing herewith a press release
issued on April 20, 2005 by the Company as Exhibit 99.1 which is
included herein. This press release was issued to report the
Company's first quarter 2005 results.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press Release of AMR dated April 20, 2005
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 20, 2005
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 20, 2005
Editor's Note: A live Webcast reporting first quarter results
will be broadcast on the Internet on April 20 at 2 p.m. EDT.
(Windows Media Player required for viewing.)
AMR CORPORATION REPORTS A FIRST QUARTER LOSS
OF $162 MILLION ON THE IMPACT OF HIGH FUEL COSTS
American Performing Well In Several Important Areas; Continues
Intense Focus Under The Turnaround Plan To Cut Costs And Increase
Revenues
FORT WORTH, Texas -- AMR Corporation, the parent company of
American Airlines, Inc., today reported a net loss of $162
million for the first quarter, or $1.00 per share, which included
a benefit of $69 million related to certain excise tax refunds.
Without this tax credit, AMR would have recorded a net loss of
$230 million, or $1.43 per share. This compares to a loss of
$166 million, or $1.03 per share, in the first quarter last year.
"In many ways, the story for the first quarter is very
similar to what we have seen the past several quarters," said AMR
Chairman and CEO Gerard Arpey. "The combination of
extraordinarily high fuel prices and low fares continues to take
a heavy financial toll." Arpey pointed out that because of
higher fuel prices, excluding the tax credit received this
quarter, the company paid $346 million more for fuel during the
first quarter of 2005 than it did during the same period the year
before.
"On the other hand," Arpey said, "while the financial
environment remains very difficult, we are nonetheless performing
well in many other important areas. Our
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AMR Corporation First Quarter Financial Results
April 20, 2005
Page 2
employee and aircraft productivity are at historically high
levels, more customers are choosing American, and our on-time
performance has improved significantly."
American's passenger revenue per available seat mile
increased 3.7 percent year over year, to 8.96 cents, driven by
strong load factors and a series of network adjustments the
airline has implemented in recent months. "We made a number of
changes to our network last year," Arpey said, "reducing our
overall domestic capacity, strengthening our hubs and adding new
international routes, to name a few. And we are starting to see
those changes bear fruit in our revenue performance.
Regrettably, that silver lining does not come close to offsetting
the impact of oil at 50-plus dollars per barrel."
Although American's mainline cost per available seat mile
increased 3.3 percent, including the tax credit, and 4.6 percent,
excluding the tax credit, Arpey noted that American's success in
reigning in costs was illustrated by the 3.2 percent drop in the
airline's fuel-neutral unit costs, excluding the tax credit.
"Our people continue to do a great job in finding ways to reduce
costs," he said. "Their efforts are even more impressive, and
more important, when you consider that in addition to much higher
fuel costs, we are facing significant upward pressure in airport
rents, landing fees, health care -- for both active and retired
employees -- and a variety of other areas."
Even in the face of the current fuel and revenue
environment, AMR was able to contribute more than $138 million to
its various defined benefit pension plans. AMR also was able,
during the quarter, to further build on its cash balance, ending
the period with a balance in cash and short-term investments of
$3.5 billion, including a restricted balance of $483 million.
"American clearly still has a lot of work to do to reach its
goal of sustained profitability," Arpey said. "Despite fuel, and
despite fares, however, we are making progress. The key to our
progress has been -- and will continue to be -- working together
to identify the changes necessary to ensure our future."
Arpey pointed to the recently announced initiative to
transform American's Maintenance and Engineering Center in Tulsa,
Okla., into a future profit center as evidence of what can happen
when management, employees and their representatives
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AMR Corporation First Quarter Financial Results
April 20, 2005
Page 3
work together to find creative solutions to the company's
challenges. Arpey also noted the joint position taken by the
company, on behalf of its employees, and with its labor unions on
pension legislative reform as another example of how the company
and its unions are addressing key issues as business partners.
"We need to be realistic about the headwinds we are up
against," Arpey said. "But even more importantly, we need to
remember that by working collaboratively and imaginatively, we
will control our own destiny and complete the turnaround we have
begun."
Editor's Note: AMR's Chairman, 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 20, 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.
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,"
"indicates," "believes," "forecast," "guidance," "outlook" 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 plans and needs, overall economic
conditions, plans and objectives for future operations, and the
impact on the Company of its results of operations in recent
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; continued
high fuel prices and the availability of fuel; further increases
in the price of fuel; the impact of events in Iraq; conflicts in
the Middle East or elsewhere; the highly competitive business
environment faced by the Company, with increasing pricing
transparency and competition from low cost carriers and
financially distressed carriers; historically low fare levels and
fare simplification initiatives (both of which could result in a
further
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AMR Corporation First Quarter Financial Results
April 20, 2005
Page 4
deterioration of the revenue environment); the ability of the
Company to reduce its costs further without adversely affecting
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 ability of the Company to satisfy existing financial
or other covenants in certain of its credit agreements; the
availability and terms of future financing; the ability of the
Company to reach acceptable agreements with third parties; 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, 2004.
Detailed financial information follows:
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AMR Corporation First Quarter Financial Results
April 20, 2005
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended March 31, Percent
2005 2004 Change
Revenues
Passenger - American Airlines $ 3,841 $ 3,678 4.4
- Regional Affiliates 451 420 7.4
Cargo 151 148 2.0
Other revenues 307 266 15.4
Total operating revenues 4,750 4,512 5.3
Expenses
Wages, salaries and benefits 1,644 1,640 0.2
Aircraft fuel 1,097 808 35.8
Other rentals and landing fees 300 305 (1.6)
Depreciation and amortization 290 326 (11.0)
Commissions, booking fees
and credit card expense 271 288 (5.9)
Maintenance, materials and repairs 235 231 1.7
Aircraft rentals 148 153 (3.3)
Food service 125 137 (8.8)
Other operating expenses 617 582 6.0
Total operating expenses 4,727 4,470 5.7
Operating Income 23 42 (45.2)
Other Income (Expense)
Interest income 36 14 *
Interest expense (235) (212) 10.8
Interest capitalized 23 18 27.8
Miscellaneous - net (9) (28) (67.9)
(185) (208) (11.1)
Loss Before Income Taxes (162) (166) (2.4)
Income tax - - -
Net Loss $ (162) $ (166) (2.4)
Basic and Diluted Loss Per Share $ (1.00) $(1.03)
Number of Shares Used in Computation
Basic and Diluted 161 160
* Greater than 100%
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AMR Corporation First Quarter Financial Results
April 20, 2005
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AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended
March 31, Percent
2005 2004 Change
American Airlines, Inc. Mainline
Jet Operations
Revenue passenger miles (millions) 32,327 30,290 6.7
Available seat miles (millions) 42,854 42,597 0.6
Cargo ton miles (millions) 539 521 3.5
Passenger load factor 75.4% 71.1% 4.3 pts.
Passenger revenue yield per
passenger mile (cents) 11.88 12.14 (2.1)
Passenger revenue per available seat
mile (cents) 8.96 8.64 3.7
Cargo revenue yield per ton mile (cents) 27.95 28.47 (1.8)
Operating expenses per available
seat mile, excluding Regional
Affiliates (cents) (1) 9.80 9.49 3.3
Fuel consumption (gallons, in millions) 729 741 (1.6)
Fuel price per gallon (cents) (2) 136.6 101.0 35.2
Regional Affiliates
Revenue passenger miles (millions) 1,885 1,539 22.5
Available seat miles (millions) 2,916 2,453 18.9
Passenger load factor 64.7% 62.7% 2.0 pts.
AMR Corporation
Average Equivalent Number of Employees
American Airlines 75,100 79,900
Other 13,400 12,100
Total 88,500 92,000
(1) Excludes $583 million and $487 million of expense incurred
related to Regional Affiliates in 2005 and 2004, respectively.
(2) Includes the 7.5 cents per gallon impact of a $55 million
fuel excise tax refund in 2005.
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April 20, 2005
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AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
AMR Corporation Three Months Ended
Impact of Tax Credit (in millions, March 31, 2005
except per share amounts) Amount EPS
Net loss as reported $ (162) $(1.00)
Tax credit (69) (0.43)
Loss before tax credit $ (230) $(1.43)
Note: The company believes that loss before tax credit is useful
to investors as the tax credit relates to prior periods.
AMR Corporation
Impact of Fuel Price Variance
Average fuel price per gallon(cents)
Three months ended March 31, 2005 137.9
Three months ended March 31, 2004 101.3
Change in price (cents) 36.6
2005 consumption (gallons, in millions) x 796
Impact of fuel price variance (in millions) $ 291
Fuel excise tax refund (in millions) 55
Impact of fuel price variance, excluding
fuel excise tax refund (in millions) $ 346
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AMR Corporation First Quarter Financial Results
April 20, 2005
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AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS (CONTINUED)
(Unaudited)
American Airlines, Inc. Mainline
Jet Operations Three Months Ended March 31,
(in millions, except as noted) 2005 2004
Total operating expenses as reported $ 4,781 $ 4,528
Less: Operating expenses incurred
related to Regional Affiliates 583 487
Less: tax credit 55 -
Operating expenses, excluding
expenses incurred related to
Regional Affiliates and tax credit $ 4,253 $ 4,041
American mainline jet operations
available seat miles 42,854 42,597
Operating expenses per available seat
mile, excluding Regional Affiliates
and tax credit (cents) 9.92 9.49
Percent change 4.6
Operating expenses, excluding expenses
incurred related to Regional
Affiliates and tax credit $ 4,253 $ 4,041
Less: Impact of fuel price increase (*) 314 -
Operating expenses, excluding expenses
incurred related to Regional
Affiliates, tax credit and fuel
price increase $ 3,939 $ 4,041
American mainline jet operations
available seat miles 42,854 42,597
Operating expenses per available seat
mile, excluding Regional
Affiliates, tax credit and fuel
price increase (cents) 9.19 9.49
Percent change (3.2)
(*) 729 million gallons consumed * 43.1 cents price increase
(35.6 cents plus 7.5 cents tax credit impact)
Note: The company believes that operating expenses per
available seat mile, excluding the tax credit and aircraft
fuel price increase, assists investors in understanding
the impact of fuel prices on the company's operations.
###
Current AMR Corp news releases can be accessed via the Internet.
The address is http://www.aa.com