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 17, 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 July 17, 2002 by the Company as Exhibit 99.1 which is included herein. This press release was issued to report the Company's second quarter 2002 earnings. 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: July 17, 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, July 17, 2002 Editor's Note: A Live Webcast reporting second quarter results will be broadcast on the Internet on July 17 at 2 p.m. EDT (Windows Media Player required for viewing). AMR REPORTS SECOND QUARTER LOSS OF $465 MILLION BEFORE A SPECIAL ITEM FORT WORTH, Texas - AMR Corporation, the parent company of American Airlines, Inc., today reported a second quarter net loss of $465 million before a special item, or $3.00 per share. This compares with a net loss of $105 million before special items, or $0.68 per share, in the second quarter of 2001. "We continued to see a very weak revenue environment in the second quarter," said Don Carty, AMR's chairman and chief executive officer, "and although traffic has rebounded nicely since last fall, average fares are at 15-year lows, sharply depressing yields." In response, the Company has taken a number of steps, including trimming capacity, sharply reducing capital spending and lowering its operating costs. These actions resulted in AMR's unit cost rising less than one percent year over year, despite 10.4 percent less capacity. "We've made good progress on the cost side," Carty said, "and we're not done. The Company is in the midst of an exhaustive, top- to-bottom review of its business, and despite our financial challenges, our employees are doing an outstanding job of focusing on our customers and providing great service." - more - 6 One result of all this effort, Carty said, is that during the second quarter, American completed more than 99 percent of its scheduled flights, and more than 82 percent of American's flights arrived on time, as reported to the Department of Transportation. AMR's second quarter results include a $30 million after-tax special charge ($0.19 per share) that stems from a provision of Congress' economic stimulus package that changes the period for carrybacks of net operating losses ("NOLs"). This change allows companies to carry back 2001 and 2002 NOLs for five years, rather than two under the previous law, allowing AMR to more quickly recover its NOLs and thereby achieve a significant cash benefit. The extended NOL carryback does, however, result in the displacement of foreign tax credits taken in prior years which are now expected to expire before they can be used. As a result, the Company recorded a charge to reflect the anticipated forfeiture of the foreign tax credits. Including this special item, AMR reported a second quarter net loss of $495 million, or $3.19 per share. - more -
Second Quarter Results (in millions, except 2002 2001 per share amounts) Amount Loss Amount Loss (net of per (net of per tax) share tax) share Net loss before special items ($465) ($3.00) ($105) ($0.68) Anticipated forfeiture of foreign tax credits (30) (0.19) -- -- Legal settlement -- -- 29 0.19 Aircraft charge -- -- (430) (2.79) Net loss ($495) ($3.19) ($507) ($3.29) 7 Looking forward, if the revenue environment remains depressed, the Company expects to post a sizeable operating loss in the third quarter. In addition, the Company has determined that its goodwill is likely impaired as defined by the Financial Accounting Standard Board's recent Statement of Financial Accounting Standards No. 142 on accounting for "Goodwill and Other Intangible Assets." If so, AMR will record an impairment charge in the third or fourth quarter. The amount of this non-cash charge has not yet been determined, but could be up to $1.4 billion pre-tax, the full amount of AMR's goodwill. Editor's Note: AMR's Chief Financial Officer, Jeff Campbell, will make a presentation to analysts during a teleconference on Wednesday, July 17, 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. EDT. Reporters interested in listening to Mr. Campbell's presentation or participating in the media Q&A conference call should call 817-967-1577 for details. Statements in this report contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. When used in this document and in documents incorporated herein by reference, the words "expects," "plans," "anticipates," "believes," and similar expressions are intended to identify forward-looking statements. Other forward- looking statements include statements which do not relate solely to historical facts, such as, without limitation, statements which discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, 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 December 31, 2001. Detailed financial information follows: ### Current AMR Corp. News Releases can be accessed via the Internet: Our address is http://www.amrcorp.com 8 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) * Greater than 100% Note 1: 2002 results include TWA whereas the 2001 amounts include TWA for the period April 10 through June 30, 2001.
Three Months Ended June 30, Percent 2002 2001 Change Revenues Passenger - American Airlines $3,747 $ 4,645 (19.3) - AMR Eagle 344 409 (15.9) Cargo 142 190 (25.3) Other revenues 246 339 (27.4) Total operating revenues 4,479 5,583 (19.8) Expenses Wages, salaries and benefits 2,126 2,126 - Aircraft fuel 656 842 (22.1) Depreciation and amortization 338 352 (4.0) Other rentals and landing fees 306 320 (4.4) Maintenance, materials and repairs 285 298 (4.4) Aircraft rentals 214 226 (5.3) Food service 180 218 (17.4) Commissions to agents 155 260 (40.4) Special charges - 685 - Other operating expenses 820 1,016 (19.3) Total operating expenses 5,080 6,343 (19.9) Operating Loss (601) (760) (20.9) Other Income (Expense) Interest income 18 24 (25.0) Interest expense (164) (132) 24.2 Interest capitalized 22 38 (42.1) Miscellaneous - net 5 37 (86.5) (119) (33) * Loss Before Income Taxes (720) (793) (9.2) Income tax benefit (225) (286) (21.3) Net Loss $(495) $ (507) (2.4) Loss Per Share Basic and Diluted $ (3.19) $ (3.29) Number of Shares Used in Computation Basic and Diluted 155 154 9 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) * Greater than 100% Note 1: 2002 results include TWA whereas the 2001 amounts include TWA for the period April 10 through June 30, 2001.
Six Months Ended June 30, Percent 2002 2001 Change Revenues Passenger - American Airlines $7,231 $8,580 (15.7) - AMR Eagle 649 763 (14.9) Cargo 276 366 (24.6) Other revenues 459 634 (27.6) Total operating revenues 8,615 10,343 (16.7) Expenses Wages, salaries and benefits 4,206 3,872 8.6 Aircraft fuel 1,183 1,549 (23.6) Depreciation and amortization 679 665 2.1 Other rentals and landing fees 595 577 3.1 Maintenance, materials and repairs 551 578 (4.7) Aircraft rentals 440 374 17.6 Food service 350 402 (12.9) Commissions to agents 316 484 (34.7) Special charges - 685 - Other operating expenses 1,625 1,921 (15.4) Total operating expenses 9,945 11,107 (10.5) Operating Loss (1,330) (764) 74.1 Other Income (Expense) Interest income 36 64 (43.8) Interest expense (330) (251) 31.5 Interest capitalized 44 79 (44.3) Miscellaneous - net (3) 22 * (253) (86) * Loss Before Income Taxes (1,583) (850) 86.2 Income tax benefit (513) (300) 71.0 Net Loss $(1,070) $ (550) 94.5 Loss Per Share Basic and Diluted $ (6.90) $ (3.58) Number of Shares Used in Computation Basic and Diluted 155 154 10 AMR CORPORATION OPERATING STATISTICS (Unaudited) (*)2002 results include TWA whereas the 2001 amounts include TWA for the period April 10 through June 30, 2001. (**) Excludes the impact of the second quarter 2001 asset impairment charge.
Three Months Ended June 30, Percent 2002 2001 Change American Airlines (*) Revenue passenger miles (millions) 31,379 35,188 (10.8) Available seat miles (millions) 43,958 49,044 (10.4) Cargo ton miles (millions) 518 610 (15.1) Passenger load factor 71.4% 71.7% (0.3)pts. Breakeven load factor (**) 86.4% 74.0% 12.4 pts. Passenger revenue yield per passenger mile (cents) 11.94 13.20 (9.5) Passenger revenue per available seat mile (cents) 8.52 9.47 (10.0) Cargo revenue yield per ton mile (cents) 27.21 30.89 (11.9) Operating expenses per available seat mile (cents) (**) 10.78 10.73 0.5 Fuel consumption (gallons, in millions) 808 922 (12.4) Fuel price per gallon (cents) 75.5 83.3 (9.4) Fuel price per gallon, excluding fuel taxes (cents) 70.0 78.0 (10.3) Operating aircraft at period-end 828 904 (8.4) AMR Eagle Revenue passenger miles (millions) 1,059 1,030 2.8 Available seat miles (millions) 1,596 1,680 (5.0) Passenger load factor 66.4% 61.3% 5.1 pts. Operating aircraft at period-end 281 271 3.7 AMR Corporation Average Equivalent Number of Employees American Airlines 100,100 115,200 Other 11,800 13,100 Total 111,900 128,300 11 AMR CORPORATION OPERATING STATISTICS (Unaudited) (*) 2002 results include TWA whereas the 2001 amounts include TWA for the period April 10 through June 30, 2001. (**) Excludes the impact of the second quarter 2001 asset impairment charge.
Six Months Ended June 30, Percent 2002 2001 Change American Airlines (*) Revenue passenger miles (millions) 59,197 61,640 (4.0) Available seat miles (millions) 84,047 88,021 (4.5) Cargo ton miles (millions) 981 1,159 (15.4) Passenger load factor 70.4% 70.0% 0.4 pts. Breakeven load factor (**) 86.9% 71.3% 15.6 pts. Passenger revenue yield per passenger mile (cents) 12.22 13.92 (12.2) Passenger revenue per available seat mile (cents) 8.60 9.75 (11.8) Cargo revenue yield per ton mile (cents) 27.93 31.27 (10.7) Operating expenses per available seat mile (cents) (**) 11.03 10.97 0.5 Fuel consumption (gallons, in millions) 1,553 1,664 (6.7) Fuel price per gallon (cents) 71.5 85.2 (16.1) Fuel price per gallon, excluding fuel taxes (cents) 66.0 79.8 (17.3) Operating aircraft at period-end 828 904 (8.4) AMR Eagle Revenue passenger miles (millions) 1,978 1,890 4.7 Available seat miles (millions) 3,163 3,268 (3.2) Passenger load factor 62.5% 57.8% 4.7 pts. Operating aircraft at period-end 281 271 3.7