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 18, 2001 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 18, 2001 by the Company as Exhibit 99.1 which is included herein. This press release was issued to report the Company's first quarter 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 19, 2001
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 18, 2001 Editor's Note: A live Webcast reporting first quarter earnings will be broadcast on the Internet today at 2 p.m. EDT. (Windows Media Player required for viewing.) AMR POSTS $43 MILLION FIRST QUARTER LOSS AS ECONOMY WEAKENS FORT WORTH, Texas - Feeling the effects of a slowing U.S. economy, AMR Corp., the parent company of American Airlines, Inc., today reported a first quarter net loss of $43 million, or a $0.28 loss per share. This compares with net earnings of $89 million, or $0.57 per share diluted, from continuing operations recorded in the first quarter of 2000. "Without a doubt, the weakening U.S. economy caused a reduction in business travel that affected our performance in the first quarter," said Don Carty, AMR's chairman and chief executive officer. "Bad weather also played a role, forcing the cancellation of hundreds of flights, which diminished both capacity and traffic. Fuel prices also remained stubbornly high, however, we continued to offset some of those costs through our fuel hedging program." Carty noted that the company's international system produced stronger first quarter revenue results than its domestic system. "While our domestic revenue performance reflects a sluggish U.S. economy, in the first quarter we did not see a similar weakening in our international revenue performance," Carty said. Carty also noted that the first quarter is typically the weakest for airlines. "Historically, first quarter earnings tend to be relatively modest due to lower demand," Carty said. "But there are many factors that will work in our favor as the year unfolds, the main one being our recent acquisition of TWA. That transaction positions us as the leading U.S. carrier with a stronger route network and a fleet that is second to none." With the TWA acquisition accomplished, the company is now looking carefully at every opportunity to drive revenue and cost synergies. "We have a golden opportunity to scrutinize -- more --
6 AMR First Quarter Earnings April 18, 2001 Page 2 every aspect of how we do business, from scheduling and selling to staffing and cost control, and ensure that we are spending wisely," Carty said. AMR posted first quarter operating revenues of $4.8 billion, including $176 million from its cargo division and $354 million from American Eagle, its regional affiliate. American Eagle now operates 90 regional jets - one third of the regional carrier's fleet - with more RJs being delivered every month. In recent weeks, American continued to strengthen its international network by adding new service between San Jose, Calif., and both Taipei and Paris, and it is now converting its three-class international fleet to the customer-friendly "More Room Throughout Coach" seating configuration - something that no other airline offers. During the first quarter, American also extended the "More Room" concept from seats to overhead bins and is now installing larger bins on its narrowbody fleet, a project that will be complete later this year. American announced a number of initiatives during the first quarter that demonstrate the airline's continued industry leadership, including the SKYCAARE program, which provides skilled medical companions for travelers who are stable enough to travel but may need limited in-flight medical care or assistance. During the first quarter, American also became the first airline in North America to introduce connecting gate information displays on cabin video monitors during flight. --- Editor's Note: AMR's Chief Financial Officer, Tom Horton, will make a presentation to analysts during a teleconference on Wednesday, April 18, from 2 p.m. to 2:45 p.m. EDT. Following the analyst call, he will hold a question and answer conference call for media from 3 p.m. to 3:45 p.m. Reporters interested in listening to Mr. Horton's presentation or participating in the media Q & A conference call 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, 2000. Detailed financial information follows.
7 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Three Months Ended March 31, Percent 2001 2000 Change Revenues Passenger - American Airlines $3,935 $ 3,774 4.3 - AMR Eagle 354 338 4.7 Cargo 176 167 5.4 Other revenues 295 298 (1.0) Total operating revenues 4,760 4,577 4.0 Expenses Wages, salaries and benefits 1,746 1,617 8.0 Aircraft fuel 686 553 24.1 Depreciation and amortization 313 288 8.7 Maintenance, materials and repairs 280 271 3.3 Other rentals and landing fees 257 237 8.4 Commissions to agents 224 257 (12.8) Food service 184 185 (0.5) Aircraft rentals 148 153 (3.3) Other operating expenses 905 804 12.6 Total operating expenses 4,743 4,365 8.7 Operating Income 17 212 (92.0) Other Income (Expense) Interest income 40 32 25.0 Interest expense (119) (119) - Interest capitalized 41 38 7.9 SFAS 133 adjustments (21) - - Miscellaneous - net (15) (6) * (74) (55) 34.5 Income (Loss) From Continuing Operations Before Income Taxes (57) 157 * Income tax provision (benefit) (14) 68 * Income (Loss) From Continuing Operations (43) 89 * Income From Discontinued Operations (net of applicable income taxes and minority interest - 43 - Net Earnings (Loss) $ (43) $ 132 * Continued on next page.
8 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited) Three Months Ended March 31, 2001 2000 Earnings Per Share Basic Income (Loss) from Continuing Operations $ (0.28) $ 0.60 Discontinued Operations - 0.29 Net Earnings (Loss) $ (0.28) $ 0.89 Diluted Income (Loss) from Continuing Operations $ (0.28) $ 0.57 Discontinued Operations - 0.29 Net Earnings (Loss) $ (0.28) $ 0.86 Number of Shares Used in Computation Basic 154 149 Diluted 154 154 * Greater than 100% Note: Certain amounts from 2000 have been reclassified to conform with 2001 presentation.
9 AMR CORPORATION OPERATING STATISTICS (Unaudited) Three Months Ended March 31, Percent 2001 2000 Change American Airlines Revenue passenger miles (millions) 26,452 27,022 (2.1) Available seat miles (millions) 38,977 40,020 (2.6) Cargo ton miles (millions) 549 546 0.5 Passenger load factor 67.9% 67.5% 0.4 pts. Breakeven load factor 67.7% 63.7% 4.0 pts. Passenger revenue yield per passenger mile (cents) 14.88 13.95 6.7 Passenger revenue per available seat mile (cents) 10.10 9.42 7.2 Cargo revenue yield per ton mile (cents) 31.68 30.32 4.5 Operating expenses per available seat mile (cents) 11.21 10.04 11.7 Fuel consumption (gallons, in millions) 743 730 1.8 Fuel price per gallon (cents) 87.6 72.1 21.5 Fuel price per gallon, excluding fuel taxes (cents) 82.0 66.6 23.1 Operating aircraft at period-end 719 703 2.3 AMR Eagle Revenue passenger miles (millions) 860 861 (0.1) Available seat miles (millions) 1,588 1,514 4.9 Passenger load factor 54.2% 56.9% (2.7) pts. Operating aircraft at period-end 267 271 (1.5) AMR Corporation Average Equivalent Number of Employees American Airlines 95,900 91,500 Other 13,000 13,000 Total 108,900 104,500 Note: Certain amounts from 2000 have been reclassified to conform with 2001 presentation. ###