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: April 19, 2000 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 on April 19, 2000 by the Company as Exhibit 99.1 which is included herein. This press release was issued to report the Company's first quarter 2000 earnings. 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: April 20, 2000
4 EXHIBIT INDEX Exhibit Description 99.1 Press Release
5 Exhibit 99.1 Contact: Corporate Communications Fort Worth, Texas 817-967-1577 FOR RELEASE: Wednesday, April 19, 2000 AMR EARNS $89 MILLION IN FIRST QUARTER FORT WORTH, Texas - Riding a wave of positive developments, AMR Corporation, parent company of American Airlines, Inc., today reported first quarter net earnings from continuing operations of $89 million, or $0.57 per common share diluted. This compares with a loss of $2 million, or $0.01 per common share diluted, excluding discontinued operations and a special gain recorded in the first quarter of 1999. "We established some very positive momentum in the first quarter, posting solid results despite significantly higher fuel prices and soft traffic early in the quarter surrounding the Millennium change," said Donald J. Carty, AMR's chairman and chief executive officer. "Although year-over-year comparisons are somewhat distorted by last year's schedule disruption, we saw encouraging traffic and yield trends both domestically and in the key international markets we serve," Carty said. "And although fuel costs were up sharply from last year, the increase was dampened to a large degree by our ongoing fuel hedging program. "With strong advance bookings, and fuel prices receding somewhat, our outlook for the year is improving. We are particularly excited about our 'More Room Throughout Coach' initiative, which is progressing ahead of schedule and is getting an enthusiastic reception in the marketplace," Carty said. During the quarter, a number of positive developments came together for AMR shareholders, customers and employees. The most dramatic achievement was the successful spin-off of Sabre, Inc., to AMR shareholders which enables AMR to focus its full attention on the airline business, Carty said. Carty said the recently announced AOL AADVANTAGE rewards program, a partnership between American and America Online, will create additional sales of AADVANTAGE miles, as well as a whole new range of redemption opportunities for millions of customers to obtain consumer products, AOL service, air travel and more. --more--
6 AMR First Quarter Earnings April 19, 2000 Page 2 Carty recently returned from Beijing, and said American is very hopeful of getting new routes to China. "We will dramatically improve air service between China and the United States, if DOT awards us the routes," he said. "Opening the market to new competition will benefit passengers, shippers and communities in both countries." American's West Coast schedule changes announced last week will strengthen American's route network in the region and improve the network's financial performance. The airline will add seven new nonstop routes to its West Coast network, focused on its major connecting centers at Los Angeles and San Jose. On the opposite coast, American unveiled plans for a $270 million renovation of its facilities at Boston's Logan Airport that will provide more room, conveniences and more modern accommodations for passengers leaving or arriving on American and American Eagle. American Eagle announced plans earlier this month to build a satellite terminal at Dallas/Fort Worth International Airport as part of its plan to expand regional jet service at its largest hub. The 13-gate facility will feature covered boarding at all gates and the latest customer service technology. Also in the first quarter, American announced it will provide its employees with company subsidized Dell computers and Internet service for three years for the low payment of approximately $12 a month. --- Editor's Note: AMR's Chief Financial Officer, Tom Horton, will be available to answer questions during a telephone news conference on Wednesday, April 19, from 3 p.m. to 3:45 p.m. EDT. Reporters interested in joining the conference should call 817-967-1577 for details. --- Statements in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. When used in this release, the word "expects" and similar expressions are intended to identify forward-looking statements. 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 statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to a number of factors that could cause actual results to differ materially from our expectations. 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, 1999.
7 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Three Months Ended March 31, Percent 2000 1999 Change Revenues Passenger - American Airlines $3,770 $3,320 13.6 - AMR Eagle 338 271 24.7 Cargo 167 145 15.2 Other revenues 302 271 11.4 Total operating revenues 4,577 4,007 14.2 Expenses Wages, salaries and benefits 1,617 1,467 10.2 Aircraft fuel 553 349 58.5 Depreciation and amortization 288 253 13.8 Maintenance, materials and repairs 271 257 5.4 Commissions to agents 257 288 (10.8) Other rentals and landing fees 237 229 3.5 Food service 185 167 10.8 Aircraft rentals 153 160 (4.4) Other operating expenses 804 791 1.6 Total operating expenses 4,365 3,961 10.2 Operating Income 212 46 * Other Income (Expense) Interest income 32 24 33.3 Interest expense (119) (93) 28.0 Interest capitalized 38 33 15.2 Miscellaneous - net (6) 30 - (55) (6) * Income From Continuing Operations Before Income Taxes 157 40 * Income tax provision 68 23 * Income From Continuing Operations 89 17 * Income From Discontinued Operations (net of applicable income taxes and minority interest) 43 77 (44.2) Gain on Sale of Discontinued Operations (net of applicable income taxes) - 64 - Net Earnings $ 132 $ 158 (16.5) Continued on next page.
8 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited) Three Months Ended March 31, 2000 1999 Earnings Per Common Share Basic Income from Continuing Operations $ 0.60 $ 0.11 Discontinued Operations 0.29 0.88 Net Earnings $ 0.89 $ 0.99 Diluted Income from Continuing Operations $ 0.57 $ 0.11 Discontinued Operations 0.29 0.85 Net Earnings $ 0.86 $ 0.96 Number of Shares Used in Computation Basic 149 159 Diluted 154 164 * Greater than 100%
9 AMR CORPORATION OPERATING STATISTICS (Unaudited) Three Months Ended March 31, Percent 2000 1999 Change American Airlines Revenue passenger miles (millions) 27,022 25,290 6.8 Available seat miles (millions) 40,020 37,703 6.1 Cargo ton miles (millions) 546 431 26.7 Passenger load factor 67.5% 67.1% 0.4 pts. Breakeven load factor 63.7% 66.4% (2.7) pts. Passenger revenue yield per passenger mile (cents) 13.95 13.13 6.2 Passenger revenue per available seat mile (cents) 9.42 8.81 6.9 Cargo revenue yield per ton mile (cents) 30.32 33.18 (8.6) Operating expenses per available seat mille (cents) 9.96 9.63 3.4 Fuel consumption (gallons,in millions) 730 687 6.3 Fuel price per gallon (cents) 72.1 48.9 47.4 Fuel price per gallon, excluding fuel taxes (cents) 66.6 44.6 49.3 Operating aircraft at period-end 703 683 2.9 AMR Eagle Revenue passenger miles (millions) 861 706 22.0 Available seat miles (millions) 1,514 1,211 25.0 Passenger load factor 56.9% 58.3% (1.4) pts. Operating aircraft at period-end 271 256 5.9 AMR Corporation Average Equivalent Number of Employees (*) AA Jet Operations 89,800 85,100 Other 14,700 13,200 Total 104,500 98,300 (*) Excludes Sabre, Inc. employees