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: October 18, 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 October 18, 2000 by the Company as Exhibit 99.1 which is included herein. This press release was issued to report the Company's third quarter 2000 earnings. In other matters, on October 24, 2000, American will host its biennial Analyst & Investor Conference. This conference will be accessible by the general public via a live webcast. To access this webcast, go to the Investor Information section of AMR's web site, www.amrcorp.com and click on the webcast icon (please note that the live webcast will occur between 8:30 AM, Central Daylight Time, and 3:00 PM, Central Daylight Time, on October 24, 2000). Materials related to the Analyst & Investor Conference will be posted on the Investor Information section of AMR's web site for several days following the Conference. On the third Wednesday of January, April, July and October, AMR issues its earnings report for the preceding quarter. On that date, AMR's Chief Financial Officer conducts a telephone news conference with analysts and investors to discuss this earnings report. The conference call is accessible by the general public via a live webcast. To access this webcast, go to the Investor Information section of AMR's web site, www.amrcorp.com and click on the webcast icon (please note that the live webcast will occur at 1:00 PM, Central Time, on the dates referenced above, and will generally last one hour). 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: October 18, 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, Oct. 18, 2000 Editor's Note: A Live Webcast reporting third quarter earnings will Be broadcast on the Internet at 1 p.m. (CDT) 10/18/00. (Windows Media Player required for viewing.) AMR CORPORATION REPORTS THIRD QUARTER EARNINGS FORT WORTH, Texas - AMR Corporation, parent company of American Airlines, Inc., today reported third-quarter earnings of $322 million or $1.96 per common share diluted, before an extraordinary loss. This compares to net earnings of $213 million, or $1.38 per common share diluted, in the same period in 1999. After accounting for the extraordinary loss, a $9 million after-tax loss on the repurchase of $167 million of unsecured debt, AMR reported net earnings of $313 million, or $1.91 per common share diluted. "We're very pleased with our third-quarter performance - the second-best third quarter in our company's history and our third- best quarter ever, " said Donald J. Carty, American's chairman and CEO. "The underlying fundamentals of our business - both traffic and pricing - remained solid and combined to generate double-digit revenue growth, which more than offset the effect of the sharp increases in fuel prices." Carty said American has finished reconfiguring the full coach cabins on its entire domestic fleet as part of its "More Room Throughout Coach" program. "While difficult to yet quantify, from the reaction we're getting, it's been a big hit with customers." Carty also said American benefited, perhaps disproportionately, from the difficulties of a major competitor this summer. Carty applauded the hard work of AA's employees, who during the quarter handled record numbers of passengers in the face of ongoing air traffic control problems and weather delays. --more--
6 AMR CORPORATION REPORTS THIRD QUARTER EARNINGS Oct. 18, 2000 Page 2 He said the continuing strong economy helped generate AA's top 10 busiest traffic days ever during the quarter, with a July load factor of 80.3 percent, August at 78.4 percent -- up almost six points from August 1999 -- and September, when traffic traditionally declines, at almost 70 percent. "Our people worked under difficult conditions - and we're proud of the many caring and creative ways they served our customers," Carty said. Carty said the strong economy also benefited AMR's cargo operations, which had third-quarter revenue results of $183 million, the best quarterly results in the company's history. This figure represents a year-over-year growth of 14.4 percent. On the cost side, Carty said American has continued to be aggressive in its fuel hedging program, which reduced the airline's costs by more than $150 million and provided a cushion against sharp price increases during the quarter. He also noted that American's continuing online sales success has reduced distribution costs and will do so further as the popularity of AA.com and other Internet-based travel sites grows. American's international traffic was up about 5 percent during the quarter, a reflection of the continuing strength of oneworld and the particular success of AA's immunized bilateral agreements with Swissair and Sabena over the Atlantic, as well as its alliances with Cathay Pacific, Japan Air Lines and EVA over the Pacific. "Our newly announced San Jose-Taipei and San Jose-Paris service will enhance our international route network and further solidify our position on the West Coast, which has improved markedly over even a year ago," Carty said. "We think linking Silicon Valley with the very important technology industries of Taiwan and opening a new European gateway for the Bay Area both represent smart strategic moves." --more--
7 AMR CORPORATION REPORTS THIRD QUARTER EARNINGS Oct. 18 2000 Page 3 On the domestic front, American expanded its network by adding service to focus business travel cities like Boston, New York, the Los Angeles basin, San Jose and Austin - all locations where AA already has a strong presence. The company also announced realignments of its major hubs in Dallas/Fort Worth and Chicago aimed at improving dependability and customer service. American's regional partner, American Eagle, has been aggressively deploying regional jets throughout its network to strengthen American's hubs and will have an all-jet operation in Chicago O'Hare by November. "We clearly have strengthened both our domestic and international networks more than any other U.S. carrier this year, improving our competitive position and offering our customers broader and better choices," Carty said. # # # Editor's Note: AMR's Chief Financial Officer, Tom Horton, will be available to answer questions during a telephone news conference on Wednesday, Oct. 18, 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. Detailed financial information follows.
8 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Three Months Ended September 30, Percent 2000 1999 Change Revenues Passenger - American Airlines $4,385 $ 3,900 12.4 - AMR Eagle 390 352 10.8 Cargo 183 160 14.4 Other revenues 298 283 5.3 Total operating revenues 5,256 4,695 11.9 Expenses Wages, salaries and benefits 1,721 1,533 12.3 Aircraft fuel 648 456 42.1 Depreciation and amortization 307 276 11.2 Maintenance, materials and repairs 278 263 5.7 Commissions to agents 266 314 (15.3) Other rentals and landing fees 250 248 0.8 Food service 204 196 4.1 Aircraft rentals 151 161 (6.2) Other operating expenses 859 822 4.5 Total operating expenses 4,684 4,269 9.7 Operating Income 572 426 34.3 Other Income (Expense) Interest income 42 21 * Interest expense (119) (108) 10.2 Interest capitalized 36 27 33.3 Miscellaneous - net (6) (9) (33.3) (47) (69) (31.9) Income From Continuing Operations Before Income Taxes and Extraordinary Loss 525 357 47.1 Income tax provision 203 144 41.0 Income From Continuing Operations Before Extraordinary Loss 322 213 51.2 Income From Discontinued Operations (net of applicable income taxes and minority interest) - 66 - Income Before Extraordinary Loss 322 279 15.4 Extraordinary Loss (net of applicable income taxes) (9) - - Net Earnings $ 313 $ 279 12.2 Continued on next page.
9 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited) Three Months Ended September 30, 2000 1999 Earnings Per Common Share Basic Income from Continuing Operations $ 2.14 $ 1.42 Discontinued Operations - 0.44 Extraordinary Loss (0.06) - Net Earnings $ 2.08 $ 1.86 Diluted Income from Continuing Operations $ 1.96 $ 1.38 Discontinued Operations - 0.38 Extraordinary Loss (0.05) - Net Earnings $ 1.91 $ 1.76 Number of Shares Used in Computation Basic 150 150 Diluted 164 155 * Greater than 100%
10 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Nine Months Ended September 30, Percent 2000 1999 Change Revenues Passenger - American Airlines $12,341 $10,971 12.5 - AMR Eagle 1,096 963 13.8 Cargo 530 469 13.0 Other revenues 877 840 4.4 Total operating revenues 14,844 13,243 12.1 Expenses Wages, salaries and benefits 5,012 4,561 9.9 Aircraft fuel 1,768 1,219 45.0 Depreciation and amortization 889 797 11.5 Maintenance, materials and repairs 821 743 10.5 Commissions to agents 796 900 (11.6) Other rentals and landing fees 743 718 3.5 Food service 587 548 7.1 Aircraft rentals 455 483 (5.8) Other operating expenses 2,472 2,388 3.5 Total operating expenses 13,543 12,357 9.6 Operating Income 1,301 886 46.8 Other Income (Expense) Interest income 108 62 74.2 Interest expense (353) (295) 19.7 Interest capitalized 110 89 23.6 Miscellaneous - net 38 15 * (97) (129) (24.8) Income From Continuing Operations Before Income Taxes and Extraordinary Loss 1,204 757 59.0 Income tax provision 472 311 51.8 Income From Continuing Operations Before Extraordinary Loss 732 446 64.1 Income From Discontinued Operations (net of applicable income taxes and minority interest) 43 195 (77.9) Gain on Sale of Discontinued Operations (net of applicable income taxes) - 64 - Income Before Extraordinary Loss 775 705 9.9 Extraordinary Loss (net of applicable income taxes) (9) - - Net Earnings $ 766 $ 705 8.7 Continued on next page.
11 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited) Nine Months Ended September 30, 2000 1999 Earnings Per Common Share Basic Income from Continuing Operations $ 4.89 $ 2.90 Discontinued Operations 0.30 1.68 Extraordinary Loss (0.06) - Net Earnings $ 5.13 $ 4.58 Diluted Income from Continuing Operations $ 4.55 $ 2.81 Discontinued Operations 0.27 1.63 Extraordinary Loss (0.05) - Net Earnings $ 4.77 $ 4.44 Number of Shares Used in Computation Basic 149 154 Diluted 161 159 * Greater than 100%
12 AMR CORPORATION OPERATING STATISTICS (Unaudited) Three Months Ended September 30, Percent 2000 1999 Change American Airlines Revenue passenger miles (millions) 31,584 30,325 4.2 Available seat miles (millions) 41,418 42,245 (2.0) Cargo ton miles (millions) 576 541 6.5 Passenger load factor 76.3% 71.8% 4.5 pts. Breakeven load factor 65.4% 63.3% 2.1 pts. Passenger revenue yield per passenger mile (cents) 13.88 12.86 7.9 Passenger revenue per available seat mile (cents) 10.59 9.23 14.7 Cargo revenue yield per ton mile (cents) 31.60 29.22 8.1 Operating expenses per available seat mile (cents) 10.31 9.21 11.9 Fuel consumption (gallons, in millions) 796 780 2.1 Fuel price per gallon (cents) 77.3 55.9 38.3 Fuel price per gallon, excluding fuel taxes (cents) 71.7 51.0 40.6 Operating aircraft at period-end 720 701 2.7 AMR Eagle Revenue passenger miles (millions) 998 905 10.3 Available seat miles (millions) 1,631 1,502 8.6 Passenger load factor 61.2% 60.2% 1.0 pts. Operating aircraft at period-end 270 268 0.7 AMR Corporation Average Equivalent Number of Employees AA Jet Operations 92,700 89,100 Other 14,800 14,800 Total 107,500 103,900
13 AMR CORPORATION OPERATING STATISTICS (Unaudited) Nine Months Ended September 30, Percent 2000 1999 Change American Airlines Revenue passenger miles (millions) 89,055 84,522 5.4 Available seat miles (millions) 121,533 120,354 1.0 Cargo ton miles (millions) 1,693 1,483 14.2 Passenger load factor 73.3% 70.2% 3.1 pts. Breakeven load factor 64.9% 64.3% 0.6 pts. Passenger revenue yield per passenger mile (cents) 13.86 12.98 6.8 Passenger revenue per available seat mile (cents) 10.15 9.12 11.3 Cargo revenue yield per ton mile (cents) 31.00 31.21 (0.7) Operating expenses per available seat mile (cents) 10.17 9.38 8.4 Fuel consumption (gallons, in millions) 2,285 2,212 3.3 Fuel price per gallon (cents) 73.6 52.7 39.7 Fuel price per gallon, excluding fuel taxes (cents) 68.2 48.1 41.7 Operating aircraft at period-end 720 701 2.7 AMR Eagle Revenue passenger miles (millions) 2,822 2,496 13.1 Available seat miles (millions) 4,691 4,135 13.4 Passenger load factor 60.1% 60.4% (0.3) pts. Operating aircraft at period-end 270 268 0.7