1 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: July 16, 1997 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) 2 Item 5. Other Events AMR Corporation (the "Company") is filing herewith a press release issued today by the Company as Exhibit 99.1 which is incorporated herein by reference. This press release was issued to report second quarter 1997 earnings and to announce that the Company's board of directors has authorized management to repurchase additional shares of its outstanding common stock. Item 7. Financial Statements and Exhibits The following exhibit is included herein: 99.1 Press Release 3 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: July 16, 1997 4 EXHIBIT INDEX Exhibit Description 99.1 Press Release 5 Exhibit 99.1 Contact: Al Comeaux Fort Worth, Texas (CDT) (817) 967-1577 FOR RELEASE: Wednesday, July 16, 1997 AMR REPORTS SECOND QUARTER EARNINGS OF $302 MILLION FORT WORTH, Texas -- AMR Corp., parent company of American Airlines Inc., today reported second quarter net earnings of $302 million, or $3.26 per common share. The 1997 earnings top last year's record earnings for the second quarter, which were $293 million, or $3.20 per fully diluted share. "Although some residual revenue losses resulting from the earlier threat of a pilot strike and the reimposition of the domestic excise tax adversely impacted our results, our year-over- year improvement reflects strong demand for summer air travel, the excellent work our people are doing to provide high-quality customer service, and some welcome and substantive improvement in our operating performance," said AMR Chairman Robert L. Crandall. "These factors, combined with the profitable growth of our technology business, all contributed to our best-ever second quarter." AMR also announced that the company's board of directors authorized management to repurchase up to an additional $500 million of its outstanding common stock over the next 24 months. This represents approximately 5.26 million shares of common stock at yesterday's closing price of $95.06. This new stock repurchase authorization will be added to the repurchase program authorized by the board in April for 5.75 million shares to offset dilution resulting from the issuance of 5.75 million options to American Airlines pilots. As of June 30, approximately 33 percent of these shares had been repurchased, at an average price of $95.16. "During the last few years, we have used our substantial free cash flow to strengthen our balance sheet and have now regained investment grade status," Crandall said. "We are continuing to generate free cash flow in excess of what we need to fund our fleet expansion plans, and thus believe it makes sense to return additional cash to our shareholders." Repurchases, including block repurchases, are expected to be made over the next 24 months in the open market or in private transactions depending on market conditions, and may be discontinued at any time. ### 6 AMR CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In millions, except per share amounts) * Greater Than 100%
Three Months Ended June 30, Percent 1997 1996 Change Revenues Airline Group Passenger - American Airlines $3,641 $3,510 3.7 - AMR Eagle 256 266 (3.8) Cargo 174 173 0.6 Other 221 210 5.2 4,292 4,159 3.2 The SABRE Group 447 410 9.0 Management Services Group 151 151 - Less: Intergroup revenues (180) (170) 5.9 Total operating revenues 4,710 4,550 3.5 Expenses Wages, salaries and benefits 1,556 1,497 3.9 Aircraft fuel 471 470 0.2 Commissions to agents 329 321 2.5 Depreciation and amortization 310 297 4.4 Other rentals and landing fees 227 223 1.8 Maintenance materials and repairs 219 170 28.8 Food service 173 173 - Aircraft rentals 143 162 (11.7) Other operating expenses 694 651 6.6 Total operating expenses 4,122 3,964 4.0 Operating Income 588 586 0.3 Other Income (Expense) Interest income 31 16 93.8 Interest expense (99) (123) (19.5) Minority interest (10) - * Miscellaneous - net (6) 1 * (84) (106) (20.8) Earnings Before Income Taxes 504 480 5.0 Income tax provision 202 187 8.0 Net Earnings $ 302 $ 293 3.1 Earnings Per Common Share Primary $ 3.26 $ 3.35 Fully Diluted $ 3.26 $ 3.20 Number of Shares Used in Computation Primary 92 87 Fully Diluted 92 92 7 AMR CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In millions, except per share amounts) * Greater Than 100%
Six Months Ended June 30, Percent 1997 1996 Change Revenues Airline Group Passenger - American Airlines $7,031 $6,797 3.4 - AMR Eagle 504 533 (5.4) Cargo 338 336 0.6 Other 425 407 4.4 8,298 8,073 2.8 The SABRE Group 887 838 5.8 Management Services Group 312 308 1.3 Less: Intergroup revenues (361) (361) - Total operating revenues 9,136 8,858 3.1 Expenses Wages, salaries and benefits 3,096 2,984 3.8 Aircraft fuel 991 911 8.8 Commissions to agents 643 636 1.1 Depreciation and amortization 622 597 4.2 Other rentals and landing fees 445 439 1.4 Maintenance materials and repairs 414 338 22.5 Food service 334 329 1.5 Aircraft rentals 287 326 (12.0) Other operating expenses 1,367 1,311 4.3 Total operating expenses 8,199 7,871 4.2 Operating Income 937 987 (5.1) Other Income (Expense) Interest income 58 32 81.3 Interest expense (202) (269) (24.9) Minority interest (22) - * Miscellaneous - net (10) (5) 100.0 (176) (242) (27.3) Earnings Before Income Taxes 761 745 2.1 Income tax provision 307 295 4.1 Net Earnings $ 454 $ 450 0.9 Earnings Per Common Share Primary $ 4.92 $ 5.44 Fully Diluted $ 4.92 $ 5.04 Number of Shares Used in Computation Primary 92 83 Fully Diluted 92 92 8 AMR CORPORATION BUSINESS SEGMENT FINANCIAL HIGHLIGHTS (Unaudited) (In millions) * Greater Than 100%
Three Months Ended June 30, Percent 1997 1996 Change Airline Group Revenues Passenger - American Airlines $3,641 $3,510 3.7 - AMR Eagle 256 266 (3.8) Cargo 174 173 0.6 Other 221 210 5.2 4,292 4,159 3.2 Expenses Wages, salaries and benefits 1,345 1,306 3.0 Aircraft fuel 471 470 0.2 Commissions to agents 329 321 2.5 Depreciation and amortization 260 247 5.3 Other operating expenses 1,407 1,331 5.7 Total operating expenses 3,812 3,675 3.7 Operating Income 480 484 (0.8) Other Income (Expense) (77) (105) (26.7) Earnings Before Income Taxes $ 403 $ 379 6.3 Pre-tax Margin 9.4% 9.1% 0.3 pts. The SABRE Group Revenues $ 447 $ 410 9.0 Operating Expenses 354 329 7.6 Operating Income 93 81 14.8 Other Income (Expense) 3 (1) * Earnings Before Income Taxes $ 96 $ 80 20.0 Pre-tax Margin 21.5% 19.5% 2.0 pts. Management Services Group Revenues $ 151 $ 151 - Operating Expenses 136 130 4.6 Operating Income 15 21 (28.6) Other Income (Expense) - - - Earnings Before Income Taxes $ 15 $ 21 (28.6) Pre-tax Margin 9.9% 13.9% (4.0) pts. 9 AMR CORPORATION BUSINESS SEGMENT FINANCIAL HIGHLIGHTS (Unaudited) (In millions) * Greater Than 100%
Six Months Ended June 30, Percent 1997 1996 Change Airline Group Revenues Passenger - American Airlines $7,031 $6,797 3.4 - AMR Eagle 504 533 (5.4) Cargo 338 336 0.6 Other 425 407 4.4 8,298 8,073 2.8 Expenses Wages, salaries and benefits 2,679 2,607 2.8 Aircraft fuel 991 911 8.8 Commissions to agents 643 636 1.1 Depreciation and amortization 522 499 4.6 Other operating expenses 2,759 2,674 3.2 Total operating expenses 7,594 7,327 3.6 Operating Income 704 746 (5.6) Other Income (Expense) (157) (239) (34.3) Earnings Before Income Taxes $ 547 $ 507 7.9 Pre-tax Margin 6.6% 6.3% 0.3 pts. The SABRE Group Revenues $ 887 $ 838 5.8 Operating Expenses 686 641 7.0 Operating Income 201 197 2.0 Other Income (Expense) 4 (2) * Earnings Before Income Taxes $ 205 $ 195 5.1 Pre-tax Margin 23.1% 23.3% (0.2) pts. Management Services Group Revenues $ 312 $ 308 1.3 Operating Expenses 280 264 6.1 Operating Income 32 44 (27.3) Other Income (Expense) (1) (1) - Earnings Before Income Taxes $ 31 $ 43 (27.9) Pre-tax Margin 9.9% 14.0% (4.1) pts. 10 Airline Group Operating Statistics (Unaudited)
Three Months Ended June 30, Percent 1997 1996 Change American Airlines Jet Operations: Revenue passenger miles (millions) 27,318 26,679 2.4 Available seat miles (millions) 38,738 38,440 0.8 Cargo ton miles (millions) 521 520 0.2 Passenger load factor 70.5% 69.4% 1.1 pts. Breakeven load factor 60.0% 58.5% 1.5 pts. Passenger revenue yield per passenger mile (cents) 13.33 13.16 1.3 Passenger revenue per available seat mile (cents) 9.40 9.13 3.0 Cargo revenue yield per ton mile (cents) 32.88 32.74 0.4 Operating expenses per available seat mile (cents) 9.15 8.84 3.5 Fuel consumption (gallons, in millions) 697 687 1.5 Fuel price per gallon (cents) 65.3 66.0 (1.1) Fuel price per gallon, excluding fuel tax (cents) 60.4 61.3 (1.5) Operating aircraft at period-end 644 637 1.1 AMR Eagle, Inc.: Revenue passenger miles (millions) 652 675 (3.4) Available seat miles (millions) 1,047 1,102 (5.0) Passenger load factor 62.3% 61.2% 1.1 pts. Operating aircraft at period-end 203 227 (10.6) AMR Corporation Average Equivalent Number of Employees Airline Group: AA Jet Operations 80,300 77,200 Other 10,200 10,600 Total Airline Group 90,500 87,800 The SABRE Group 8,400 7,900 Management Services Group 15,500 14,800 Total 114,400 110,500 11 Airline Group Operating Statistics (Unaudited)
Six Months Ended June 30, Percent 1997 1996 Change American Airlines Jet Operations: Revenue passenger miles (millions) 52,613 51,311 2.5 Available seat miles (millions) 76,258 75,994 0.3 Cargo ton miles (millions) 1,001 1,018 (1.7) Passenger load factor 69.0% 67.5% 1.5 pts. Breakeven load factor 61.4% 59.2% 2.2 pts. Passenger revenue yield per passenger mile (cents) 13.36 13.25 0.8 Passenger revenue per available seat mile (cents) 9.22 8.94 3.1 Cargo revenue yield per ton mile (cents) 33.31 32.50 2.5 Operating expenses per available seat mile (cents) 9.27 8.91 4.0 Fuel consumption (gallons, in millions) 1,370 1,350 1.5 Fuel price per gallon (cents) 69.9 65.0 7.5 Fuel price per gallon, excluding fuel tax (cents) 65.0 60.2 8.0 Operating aircraft at period-end 644 637 1.1 AMR Eagle, Inc.: Revenue passenger miles (millions) 1,254 1,311 (4.3) Available seat miles (millions) 2,090 2,239 (6.7) Passenger load factor 60.0% 58.6% 1.4 pts. Operating aircraft at period-end 203 227 (10.6)