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: January 16, 2002 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 January 16, 2002 by the Company as Exhibit 99.1 which is included herein. This press release was issued to report the Company's fourth quarter and full year 2001 earnings and an agreement with Boeing for the retirement of the Company's 717 fleet. Item 7. Financial Statements and Exhibits The following exhibits are 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: January 16, 2002 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, Jan. 16, 2002 Editor's Note: A live Webcast reporting fourth-quarter results will be broadcast on the Internet on Jan. 16 at 2 p.m. EST (Windows Media Player required for viewing.) AMR REPORTS FOURTH-QUARTER LOSS OF $734 MILLION BEFORE SPECIAL ITEMS AMERICAN ALSO ANNOUNCES AGREEMENT WITH BOEING FOR THE RETIREMENT OF ITS 717 FLEET FORT WORTH, Texas - AMR Corporation, the parent company of American Airlines, Inc., today reported a fourth-quarter net loss of $734 million before special items, or a loss of $4.75 per share. This compares with net earnings of $56 million, or $0.34 per share diluted, before special items in the fourth quarter of 2000. "Influenced by the lingering effects of last September's attacks, the final three months of 2001 were incredibly difficult," said Don Carty, AMR"s chairman and chief executive officer. "Traffic, particularly business travel, was down significantly in the quarter, which -- when combined with lower average fares -- resulted in a record quarterly loss." While disappointed with the results, the Company has taken many positive steps to bolster its financial position. "We strengthened our cash reserves, despite the huge losses," Carty said, "and further improved our position by cutting capacity, reducing capital spending, cutting operating costs, and further simplifying the fleet." - more - 6 AMR Fourth Quarter Results Jan. 16, 2002 Page 2 In addition, Carty noted that "the commitment of our people to making American an industry leader was evident in December, when American registered an industry-leading completion factor of 99.7 percent and posted outstanding on-time performance." After accounting for the special items noted below, AMR reported a net loss of $798 million, or $5.17 per share, for the fourth quarter of 2001. This compares to net earnings of $47 million, or $0.29 per share diluted, for the fourth quarter of 2000. AMR's fourth-quarter results brought the Company's full-year 2001 net loss to $1.4 billion, or $9.13 per share, before special items. This compares with 2000 net earnings of $752 million, or $4.65 per share diluted, before special items and an extraordinary loss. Including the special items noted above and prior quarters' - more -
Impact of Special Items (in millions, except per share amounts) Fourth Quarter Amount Earnings (net of per tax) share share Net loss before special items ($734) ($4.75) Special charges: Aircraft charges (35) Facility exit costs (34) Employee charges (10) Other (14) Total special charges (93) (0.61) Special credit: U.S. Govn't grant 29 0.19 Net loss after special items ($798) ($5.17) 7 AMR Fourth Quarter Results Jan. 16, 2002 Page 3 special items, AMR's full-year 2001 net loss was $1.8 billion, or a loss of $11.43 per share, as compared to 2000 net earnings of $770 million, or $4.76 per share diluted. Looking to the future, Carty said AMR still has a long way to go to return to profitability, but is encouraged by a number of signs. "Traffic is improving, and we're in much better shape than we might have been otherwise, thanks to a strong product, great people and strategies like fleet flexibility and simplification," Carty said. "Our intent is to move forward aggressively in 2002 with marketing strategies to attract and retain customers, operating strategies that emphasize safety, security and on-time performance, and financing strategies that keep this Company's financial foundations strong." Retirement of Aircraft In connection with its strategy of reducing costs by simplifying its fleet, AMR announced today that it has reached an agreement with Boeing that, among other things, will result in the retirement of its 717 fleet by June of this year. The 717 is a short-haul, 100-seat airplane similar in size to the Fokker F100s already in American's fleet. American does not need two airplanes of this fleet size and had always intended to retire the 717s. The agreement with Boeing allows American to do this earlier than planned. "The 717 is a fine aircraft," Carty said, "but we are committed to simplifying the fleet, and it just doesn't make sense to hold on to the 717s when we already have a fleet of 74 F100s in the 100-seat category. All we're doing now is accelerating a retirement that had been in our fleet plan from the beginning of our TWA acquisition." - more - 8 AMR Fourth Quarter Results Jan. 16, 2002 Page 4 The 717 retirement is part of a broad fleet-simplification strategy that will see American reduce its total number of basic fleet types from 14 two years ago to seven types by the end of 2002. In 2001, American retired five fleet types " the MD11, MD90, DC10, MD87 and DC9. This year, it will take two more types out of the fleet " the 717 and the 727. As the numbers of fleet types shrink, the overall fleet becomes more reliable and easier and less costly to maintain. Editor's note: AMR's Chief Financial Officer, Thomas W. Horton, will be available to answer questions during a telephone news conference on Wednesday, Jan. 16, from 3 p.m. to 3:45 p.m. EST. 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 words "expects," "anticipates," 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: ### Current AMR Corp. news releases can be accessed via the Internet. The address is http://www.amrcorp.com 9 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Continued on next page.
Three Months Ended December 31, Percent 2001 2000 Change Revenues Passenger - American Airlines $2,755 $ 4,039 (31.8) - TWA LLC 414 - - - AMR Eagle 277 356 (22.2) Cargo 138 191 (27.7) Other revenues 220 273 (19.4) Total operating revenues 3,804 4,859 (21.7) Expenses Wages, salaries and benefits 2,027 1,771 14.5 Aircraft fuel 563 727 (22.6) Depreciation and amortization 371 313 18.5 Other rentals and landing fees 297 256 16.0 Maintenance, materials and repairs 255 274 (6.9) Commissions to agents 144 241 (40.2) Aircraft rentals 225 152 48.0 Food service 167 190 (12.1) Other operating expenses 801 855 (6.3) Special charges, net 102 - - Total operating expenses 4,952 4,779 3.6 Operating Income (Loss) (1,148) 80 * Other Income (Expense) Interest income 30 46 (34.8) Interest expense (165) (114) 44.7 Interest capitalized 28 41 (31.7) Miscellaneous - net (15) 30 * (122) 3 * Income (Loss) Before Income Taxes (1,270) 83 * Income tax provision (benefit) (472) 36 * Net Earnings (Loss) $(798) $ 47 * 10 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited) * Greater than 100% Note: Certain amounts have been reclassified to conform with 2001 presentation.
Three Months Ended December 31, 2001 2000 Earnings (Loss) Per Share Basic Net Earnings (Loss) $ (5.17) $ 0.31 Diluted Net Earnings (Loss) $ (5.17) $ 0.29 Number of Shares Used in Computation Basic 154 151 Diluted 154 165 11 AMR CORPORATION OPERATING STATISTICS (Unaudited) (*) Excludes special charges, net
Three Months Ended December 31, Percent 2001 2000 Change American Airlines Revenue passenger miles (millions) 22,109 27,539 (19.7) Available seat miles (millions) 34,115 39,497 (13.6) Cargo ton miles (millions) 434 587 (26.1) Passenger load factor 64.8% 69.7% (4.9) pts. Breakeven load factor (*) 86.2% 67.1% 19.1 pts. Passenger revenue yield per passenger mile (cents) 12.46 14.67 (15.1) Passenger revenue per available seat mile (cents) 8.07 10.23 (21.1) Cargo revenue yield per ton mile (cents) 30.34 32.21 (5.8) Operating expenses per available seat mile (cents) (*) 11.10 11.02 0.7 Fuel consumption (gallons, in millions) 633 760 (16.7) Fuel price per gallon (cents) 70.4 90.8 (22.5) Fuel price per gallon, excluding fuel taxes (cents) 65.3 84.8 (23.0) Operating aircraft at period-end 712 717 (0.7) TWA LLC Revenue passenger miles (millions) 3,314 - Available seat miles (millions) 5,642 - Passenger load factor 58.7% - Passenger revenue yield per passenger mile (cents) 12.50 - Passenger revenue per available seat mile (cents) 7.34 - Operating expenses per available seat mile (cents) (*) 12.81 - Operating aircraft at period-end 169 - AMR Eagle Revenue passenger miles (millions) 873 909 (4.0) Available seat miles (millions) 1,539 1,565 (1.7) Passenger load factor 56.7% 58.1% (1.4) pts. Operating aircraft at period-end 290 261 11.1 AMR Corporation Average Equivalent Number of Employees American Airlines 83,800 94,400 TWA LLC 14,100 - Other 11,400 13,000 Total 109,300 107,400 12 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Continued on next page.
Year Ended December 31, Percent 2001 2000 Change Revenues Passenger - American Airlines $14,104 $16,394 (14.0) - TWA LLC 1,676 - - - AMR Eagle 1,378 1,452 (5.1) Cargo 662 721 (8.2) Other revenues 1,143 1,136 0.6 Total operating revenues 18,963 19,703 (3.8) Expenses Wages, salaries and benefits 8,032 6,783 18.4 Aircraft fuel 2,888 2,495 15.8 Depreciation and amortization 1,404 1,202 16.8 Other rentals and landing fees 1,197 999 19.8 Maintenance, materials and repairs 1,165 1,095 6.4 Commissions to agents 835 1,037 (19.5) Aircraft rentals 829 607 36.6 Food service 778 777 0.1 Other operating expenses 3,695 3,327 11.1 Special charges, net 610 - - Total operating expenses 21,433 18,322 17.0 Operating Income (Loss) (2,470) 1,381 * Other Income (Expense) Interest income 110 154 (28.6) Interest expense (538) (467) 15.2 Interest capitalized 144 151 (4.6) Miscellaneous - net (2) 68 * (286) (94) * Income (Loss) From Continuing Operations Before Income Taxes and Extraordinary Loss (2,756) 1,287 * Income tax provision (benefit) (994) 508 * Income (Loss) From Continuing Operations Before Extraordinary Loss (1,762) 779 * Income From Discontinued Operations (net of applicable income taxes and minority interest) - 43 - Income (Loss) Before Extraordinary Loss (1,762) 822 * Extraordinary Loss (net of applicable income taxes) - (9) - Net Earnings (Loss) $(1,762) $ 813 * 13 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited) * Greater than 100% Note: Certain amounts have been reclassified to conform with 2001 presentation.
Year Ended December 31, 2001 2000 Earnings (Loss) Per Share Basic Income (Loss) from Continuing Operations $(11.43) $ 5.20 Discontinued Operations - 0.30 Extraordinary Loss - (0.07) Net Earnings (Loss) $(11.43) $ 5.43 Diluted Income (Loss) from Continuing Operations $(11.43) $ 4.81 Discontinued Operations - 0.27 Extraordinary Loss - (0.05) Net Earnings (Loss) $(11.43) $ 5.03 Number of Shares Used in Computation Basic 154 150 Diluted 154 162 14 AMR CORPORATION OPERATING STATISTICS (Unaudited) (*) Excludes special charges, net (**) For the period April 10, 2001 through December 31, 2001.
Year Ended December 31, Percent 2001 2000 Change American Airlines Revenue passenger miles (millions) 106,224 116,594 (8.9) Available seat miles (millions) 153,035 161,030 (5.0) Cargo ton miles (millions) 2,058 2,280 (9.7) Passenger load factor 69.4% 72.4% (3.0) pts. Breakeven load factor (*) 78.1% 65.3% 12.8 pts. Passenger revenue yield per passenger mile (cents) 13.28 14.06 (5.5) Passenger revenue per available seat mile (cents) 9.22 10.18 (9.4) Cargo revenue yield per ton mile (cents) 30.24 31.31 (3.4) Operating expenses per available seat mile (cents) (*) 11.14 10.45 6.6 Fuel consumption (gallons, in millions) 2,913 3,045 (4.3) Fuel price per gallon (cents) 80.9 77.9 3.9 Fuel price per gallon, excluding fuel taxes (cents) 75.4 72.3 4.3 Operating aircraft at period-end 712 717 (0.7) TWA LLC (**) Revenue passenger miles (millions) 14,381 - Available seat miles (millions) 21,653 - Passenger load factor 66.4% - Passenger revenue yield per passenger mile (cents) 11.66 - Passenger revenue per available seat mile (cents) 7.74 - Operating expenses per available seat mile (cents) (*) 10.58 - Operating aircraft at period-end 169 - AMR Eagle Revenue passenger miles (millions) 3,725 3,731 (0.2) Available seat miles (millions) 6,471 6,256 3.4 Passenger load factor 57.6% 59.6% (2.0) pts. Operating aircraft at period-end 290 261 11.1 AMR Corporation Average Equivalent Number of Employees American Airlines 92,900 93,400 TWA LLC 12,900 - Other 12,600 13,000 Total 118,400 106,400