UNITED
STATES
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 15, 2009
|
American
Airlines, Inc.
|
|
(Exact
name of registrant as specified in its
charter)
|
|
Delaware
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1-2691
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13-1502798
|
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(State
of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
|
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4333
Amon Carter Blvd.
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Fort
Worth, Texas
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76155
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||
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(Address
of principal executive offices)
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(Zip
code)
|
|||
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(817)
963-1234
|
||
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(Registrant's
telephone number)
|
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
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Results of Operations and Financial
Condition
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American
Airlines, Inc. is furnishing herewith a press release issued on April 15, 2009
by its parent company, AMR Corporation (AMR), as Exhibit 99.1, which is included
herein. This press release was issued to report AMR’s first quarter
2009 results.
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Item 9.01
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Financial Statements and
Exhibits
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|||
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(c)
Exhibits
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||||
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Exhibit
99.1
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Press
Release of AMR dated April 15, 2009
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|||
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.
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American
Airlines, Inc.
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/s/ Kenneth W. Wimberly
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|
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Kenneth
W. Wimberly
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|
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Corporate
Secretary
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Dated: April
15, 2009
EXHIBIT
INDEX
|
Exhibit
|
Description
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|
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99.1
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Press
Release
|
CONTACT: Andy
Backover
Corporate
Communications
Fort
Worth, Texas
817-967-1577
corp.comm@aa.com
FOR
RELEASE: Wednesday, April 15, 2009
Editor's
Note: A live Webcast reporting first quarter results will be
broadcast on the Internet on April 15 at 2 p.m. EDT (Windows Media Player
required for viewing)
AMR
CORPORATION REPORTS A FIRST QUARTER 2009 NET LOSS OF $375 MILLION AS WEAK
ECONOMY HURTS REVENUE
DESPITE
CHALLENGES, AIRLINE CONTINUES ITS FOCUS ON IMPROVEMENTS IN AREAS WITHIN ITS
CONTROL:
|
·
|
Adds
nearly $100 million in liquidity through owned-aircraft
financing
|
|
·
|
Plans
2009 non-aircraft capital expenditure cut of approximately $100
million
|
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·
|
Unit
cost results for first quarter 2009 and full-year outlook both better than
Jan. 21 forecast
|
|
·
|
Customer
dependability metrics continue to
improve
|
|
·
|
American
Airlines takes delivery of two 737-800s for MD-80 replacement and receives
additional financing commitment for two of its scheduled 737
deliveries
|
FORT
WORTH, Texas – AMR Corporation, the parent company of American Airlines, Inc.,
today reported a net loss of $375 million for the first quarter of 2009, or
$1.35 per share. The results include the impact of a $13 million charge, or
$0.05 per share, to reflect the net present value of future lease payments
related to A300 aircraft retirements during the quarter.
The
current quarter results compare to a net loss of $341 million for the first
quarter of 2008, or $1.37 per share.
“While
lower fuel prices have provided a significant buffer against falling demand in
2009, the struggling economy and capital markets remain significant challenges
for American and the rest of the industry,” said AMR Chairman and CEO Gerard
Arpey. “Even as we feel the impact of declining revenues, fares and traffic, we
continue to make progress in areas within our control.”
Among
accomplishments so far in 2009, Arpey noted that the Company was able to obtain
nearly $100 million from a loan secured by aircraft, reduce planned 2009 capital
expenditures by about $100 million, and identify ways to help control unit
costs. It also received an additional financing commitment for two of its Boeing
737-800 deliveries and put into service two new 737s to begin the process of
replacing its MD-80 fleet.
Arpey
added, “Thanks in large part to the efforts of our employees, we also continued
to improve our customer dependability. Our 2009 outlook remains challenging, but
the hard work we have done in recent years to bolster liquidity, reduce debt and
operate with capacity discipline has better prepared us to face these
difficulties.”
Progress
Continues in 2009
In the
first quarter, American took delivery of two new Boeing 737-800 aircraft as it
begins to replace its narrowbody fleet with more fuel-efficient aircraft.
Including these aircraft, which are American’s first deliveries of 737 aircraft
since late 2001, the Company expects delivery of 29 737s in 2009, 39 737s in
2010, and eight 737s in early 2011. The new 737s are about 35 percent more fuel
efficient per available seat mile than the MD-80s they will
replace.
AMR today
announced that it has received a new financing commitment covering two 737s
included in its expected deliveries. With this new financing, along with a
backstop financing commitment, as well as a sale-leaseback transaction covering
20 737s, subject to certain terms and conditions, AMR has obtained financing
commitments covering its new 737 deliveries well into the fourth quarter of
2010.
In
addition, AMR continued efforts to improve its cash position through an
aircraft-secured debt transaction that raised nearly $100 million. At the end of
the first quarter, AMR estimated it had at least $3.6 billion in unencumbered
assets and other sources of liquidity, which includes assets that could be sold
or financed, such as aircraft, AAdvantage miles, route authorities and slots. As
it works to preserve capital, AMR also plans to reduce its 2009 non-aircraft
capital expenditures by approximately $100 million compared to previous
guidance.
Arpey also
noted the Company’s continued efforts to contain unit costs. Excluding the cost
of fuel and the impact of special items, American’s mainline and consolidated
cost per available seat mile in the first quarter were each approximately three
and a half percentage points lower than the Company’s forecast in guidance
provided on Jan. 21. While this was due in part to reduced passenger and cargo
variable expenses related to less traffic and foreign exchange effects, it was
also due to improved cost discipline on information technology expenses as well
as materials and repair costs. (See guidance section below for details of the
improvement in the Company’s 2009 unit cost outlook compared to its Jan. 21
guidance.)
The
Company’s investments aimed at improving dependability and the customer
experience also continued to bear fruit in the first quarter. American’s “A+14”
on-time performance, as measured by the U.S. Department of Transportation (DOT),
was 78.1 percent during the first quarter of 2009, an improvement of nearly 15
percentage points compared to the same period in 2008. In addition,
based on the Company’s “Direct D-0” performance measuring on-time departures and
its Customer Satisfaction Survey (CSS) results to date for the first quarter,
approximately 74,000 employees worldwide will receive at least $11.4 million
through the Annual Incentive Plan, with the total potentially exceeding $15
million pending CSS results for March.
Arpey
reiterated expectations that American and four of its fellow oneworld members – British
Airways, Iberia, Royal Jordanian and Finnair – will receive approval of their
application for global antitrust immunity during the second half of 2009. The
airlines’ application is pending with the DOT. With immunity, American, British
Airways and Iberia plan to launch a joint business relationship that will
improve travel options and customer benefits on flights between North America
and Europe.
Financial
and Operational Performance (Excluding impact of special items)
AMR
reported first quarter consolidated revenues of approximately $4.8 billion, a
decrease of 15 percent year over year, largely driven by reduced capacity
and economic factors, including less passenger traffic and lower fares, as
well as lower cargo demand.
Other
revenues, including sales from such sources as confirmed flight changes,
purchased upgrades, Buy-on-Board food services, and bag fees, increased 6.9
percent year over year to $558 million in the first quarter, compared to the
first quarter of 2008.
American’s
mainline passenger revenue per available seat mile (unit revenue) declined by
8.7 percent in the first quarter compared to the year-ago quarter.
Mainline
capacity, or total available seat miles, in the first quarter decreased by 8.0
percent compared to the same period in 2008, as the Company continued to
exercise capacity discipline given the difficult demand
environment.
American's
mainline load factor – or the percentage of total seats filled – was 75.7
percent during the first quarter, compared to 79.1 percent in the first quarter
of 2008. American’s first-quarter yield, which represents average fares paid,
decreased by 4.5 percent compared to the first quarter of 2008, its first
year-over-year yield decrease following 15 consecutive quarters of
year-over-year yield increases. The decrease in yield was largely due to more
aggressive pricing industrywide and reduced traffic in the premium
cabins.
American's
mainline cost per available seat mile (unit cost) in the first quarter decreased
by 6.8 percent year over year. The largest contributor to this year-over-year
decrease was fuel. Taking into account the impact of fuel hedging, AMR paid
$1.91 per gallon for jet fuel in the first quarter versus $2.74 a gallon in the
first quarter of 2008, a 30 percent decrease. As a result, the Company paid $561
million less for fuel in the first quarter of 2009 than it would have paid at
prevailing prices from the prior-year period.
Excluding
fuel, mainline unit costs in the first quarter of 2009 increased by 6.8 percent
year over year. Factors driving the first quarter increase in unit costs,
excluding the impact of fuel, include unit cost pressure associated with 2009
capacity reductions, including increased facility and landing fees;
dependability initiatives; increased defined benefit pension expenses and
employee and retiree medical expenses; and increased materials and repair costs.
These unit cost pressures were somewhat offset by reduced passenger and cargo
variable expenses and foreign exchange effects, and further mitigated by
improved cost discipline on information technology and materials and repair
expenses.
Balance
Sheet Update
Including
the new financing of nearly $100 million, AMR ended the first quarter with $3.3
billion in cash and short-term investments, including a restricted balance of
$462 million. That compares to a balance of $4.9 billion in cash and short-term
investments, including a restricted balance of $426 million and $274 million in
fuel hedge collateral held by the Company, at the end of the first quarter of
2008. The Company’s cash balance at the end of the first quarter of 2009
includes the impact of $343 million in collateral it had posted with fuel
hedging counterparties, as well as approximately $750 million in principal
payments on long-term debt and capital lease payments that it made during the
first quarter.
AMR’s
Total Debt, which it defines as the aggregate of its long-term debt, capital
lease obligations, the principal amount of airport facility tax-exempt bonds,
and the present value of aircraft operating lease obligations, was $14.4 billion
at the end of the first quarter of 2009, compared to $15.2 billion at the end of
the first quarter of 2008. AMR’s Net Debt, which it defines as Total Debt less
unrestricted cash and short-term investments, was $11.5 billion at the end of
the first quarter of 2009, compared to $10.7 billion at the end of the first
quarter of 2008.
In
addition to its estimated $3.6 billion in unencumbered assets and sources of
liquidity at the end of the first quarter (as described above), as a result of
its scheduled principal payments during the remainder of 2009, the Company
expects that approximately $1 billion in other assets will become unencumbered
this year.
First
Quarter Highlights
|
·
|
American
said it is taking its Wi-Fi internet service out of the trial stage and
has decided to install Gogo® Inflight Internet on more than 300 domestic
aircraft over the next two years. The expansion will help American,
which last August became the first U.S. airline to launch the Gogo
service, further enhance its customers’ travel experience and meet their
evolving travel needs.
|
|
·
|
American
announced that it has begun extensive renovations to its Admirals Club and
Flagship Lounge at London Heathrow Airport. American also completed
extensive renovations to its largest Admirals Club lounge at Chicago
O’Hare International Airport and began extensive renovations to its
Admirals Club at Logan International Airport in Boston. American also
opened a new Admirals Club at Washington Dulles International
Airport.
|
|
·
|
American
announced its participation in the Climate Leaders program of the
Environmental Protection Agency (EPA) as part of its continued commitment
to environmentally-responsible business practices. American is the first
major passenger airline to join the program. Climate Leaders is a
collaboration of business and the EPA to develop comprehensive climate
change strategies.
|
|
·
|
American
made it more convenient for customers who call to get information about
their upcoming trips – such as departure gate and flight times – thanks to
its enhanced “Remember Me” speech recognition technology. With “Remember
Me,” customers can get relevant information four times faster than those
who are not registered for this service. The system recognizes the
customer's phone number, instantaneously pulls up their reservation, and
even greets the customer by name.
|
|
·
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American
was selected as one of the nation’s “Top 50 Employers” by readers of Equal Opportunity
magazine in the publication’s 16th annual survey. American was the only
airline to make the prestigious group. Readers of Equal Opportunity voted
for companies they would most prefer to work for or that they believe are
progressive in hiring members of minority
groups.
|
|
·
|
American
and NBC Universal reached an agreement for inflight broadcast content that
started March 1. NBC Universal will produce four exclusive 90-minute
programs each month for American, featuring content from numerous NBC
entities for viewing on the airline’s overhead main-screens and, where
available, personal entertainment
devices.
|
Guidance
Mainline and Consolidated
Capacity
AMR
expects its full-year mainline capacity to decrease by approximately 6.5 percent
in 2009 compared to 2008, with a reduction of domestic capacity of approximately
9 percent and a reduction of international capacity of approximately 2.5 percent
compared to 2008 levels. On a consolidated basis, AMR expects
full-year capacity to decrease by more than 6.5 percent in 2009 compared to
2008.
AMR
expects mainline capacity in the second quarter of 2009 to decrease by more than
7.5 percent compared to the second quarter of 2008, with domestic capacity
expected to decline by approximately 11 percent and international capacity
expected to decline by more than 2 percent compared to second quarter 2008
levels. AMR expects consolidated capacity in the second quarter of 2009 to
decrease by approximately 8 percent compared to the second quarter of
2008.
AMR
expects regional affiliate capacity to decline by approximately 11 percent in
the second quarter of 2009 compared to the prior-year period and expects
full-year regional affiliate capacity to decline by approximately 8 percent in
2009 compared to 2008 levels.
Fuel Expense and
Hedging
While the
cost of jet fuel remains very volatile, AMR is planning for an average system
price of $1.89 per gallon in the second quarter of 2009 and $1.89 per gallon for
all of 2009. AMR has 37 percent of its
anticipated second quarter 2009 fuel consumption hedged at an average cap of
$2.59 per gallon of jet fuel equivalent ($101 per barrel crude equivalent), with
33 percent subject to an average floor of $1.99 per gallon of jet fuel
equivalent ($76 per barrel crude equivalent). AMR has 35 percent of its
anticipated full-year consumption hedged at an average cap of $2.54 per gallon
of jet fuel equivalent ($97 per barrel crude equivalent), with 32 percent
subject to an average floor of $1.89 per gallon of jet fuel equivalent ($70 per
barrel crude equivalent). As of April 1, the average 2009 market forward price
of crude oil was $53 per barrel. Consolidated consumption for the second quarter
is expected to be 699 million gallons of jet fuel.
Mainline and Consolidated
Unit Costs (Excluding impact of special items)
For the
second quarter of 2009, mainline unit costs are expected to decrease by 11.5
percent compared to the second quarter of 2008, while second quarter
consolidated unit costs are expected to decrease by 12.0 percent compared to the
second quarter of 2008.
In the
second quarter of 2009, mainline unit costs excluding fuel are expected to
increase 7.7 percent year over year while consolidated unit costs excluding fuel
are expected to increase 6.1 percent compared to the second quarter of
2008.
Full-year
mainline unit costs are expected to decrease 10.4 percent in 2009 compared to
2008, while full-year consolidated unit costs are expected to decrease 10.7
percent in 2009 compared to 2008. (This compares to the forecast provided on
Jan. 21 for full-year mainline unit costs to decrease 6.6 percent in 2009
compared to 2008, and for full-year consolidated unit costs to decrease 7.1
percent in 2009 compared to 2008.)
AMR
expects mainline unit costs excluding fuel to be 6.6 percent higher in 2009
versus 2008, while 2009 consolidated unit costs excluding fuel are expected to
increase 5.3 percent year over year. (This compares to the forecast provided on
Jan. 21 for mainline unit costs excluding fuel to be 9.2 percent higher in 2009
versus 2008, and for 2009 consolidated unit costs excluding fuel to be 7.6
percent higher year over year.)
In
addition to the impact of reduced variable expenses from less passenger and
cargo traffic, 2009 unit costs are expected to improve versus prior guidance due
to lower costs on items such as information technology spending and consulting
fees and the implementation of a hiring and pay freeze for all non-contract
employees.
Editor’s
Note: AMR’s Chairman and Chief Executive Officer, Gerard Arpey, and
its Executive Vice President and Chief Financial Officer, Thomas Horton, will
make a presentation to analysts during a teleconference on Wednesday, April 15,
at 2 p.m. EDT. Following the analyst call, they will hold a
question-and-answer conference call for media. Reporters interested
in listening to the presentation or participating in the media Q&A should
call 817-967-1577.
Statements
in this release 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
release, the words "expects," "plans,"
"anticipates,"
“indicates,” “believes,” “forecast,” “guidance,” “outlook,” "may," "will,"
"should," “seeks,” “targets” and similar expressions are intended to identify
forward-looking statements. Similarly, statements that describe the
Company's objectives, plans or goals are forward-looking
statements. Forward-looking statements include, without limitation,
the Company’s expectations concerning operations and financial conditions,
including changes in capacity, revenues and costs; future financing plans and
needs; the amounts of its unencumbered assets and other sources of liquidity;
fleet plans; overall economic and industry conditions; plans and objectives for
future operations; regulatory approvals and actions, including the Company’s
application for antitrust immunity with other oneworld alliance members; and the
impact on the Company of its results of operations in recent years and the
sufficiency of its financial resources to absorb that impact. 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 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
statement, whether as a result of new information, future events, or otherwise.
Guidance given in this release regarding capacity, fuel consumption, fuel
prices, fuel hedging, and unit costs, and statements regarding expectations of
regulatory approval of the Company’s application for antitrust immunity with
other oneworld members, are forward-looking statements.
Forward-looking
statements are subject to a number of factors that could cause the Company’s
actual results to differ materially from the Company’s
expectations. The following factors, in addition to other possible
factors not listed, could cause the Company’s actual results to differ
materially from those expressed in forward-looking statements: the
materially weakened financial condition of the Company, resulting from its
significant losses in recent years; weaker demand for air travel and lower
investment asset returns resulting from the severe global economic downturn; the
Company’s need to raise substantial additional funds and its ability to do so on
acceptable terms; the ability of the Company to generate additional revenues and
reduce its costs; continued high and volatile fuel prices and further increases
in the price of fuel, and the availability of fuel; the Company’s substantial
indebtedness and other obligations; the ability of the Company to satisfy
existing financial or other covenants in certain of its credit agreements;
changes in economic and other conditions beyond the Company’s control, and the
volatile results of the Company’s operations; the fiercely and increasingly
competitive business environment faced by the Company; potential industry
consolidation and alliance changes; competition with reorganized carriers; low
fare levels by historical standards and the Company’s reduced pricing power;
changes in the Company’s corporate or business strategy; government regulation
of the Company’s business; conflicts overseas or terrorist attacks;
uncertainties with respect to the Company’s international operations; outbreaks
of a disease (such as SARS or avian flu) that affects travel behavior; labor
costs that are higher than those of the Company’s competitors; uncertainties
with respect to the Company’s relationships with unionized and other employee
work groups; increased insurance costs and potential reductions of available
insurance coverage; the Company’s ability to retain key management personnel;
potential failures or disruptions of the Company’s computer, communications or
other technology systems; losses and adverse publicity resulting from any
accident involving our aircraft; changes in the price of the Company’s common
stock; and the ability of the Company to reach acceptable agreements with third
parties. Additional information concerning these and other factors is contained
in the Company’s Securities and Exchange Commission filings, including but not
limited to the Company’s Annual Report on Form 10-K for the year ended December
31, 2008.
Detailed
financial information follows:
AMR
CORPORATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
(as
reclassified)
(in
millions, except per share amounts)
(Unaudited)
|
Three
Months Ended March 31,
|
Percent
|
|||||||||||
|
2009
|
2008
|
Change
|
||||||||||
|
Revenues
|
||||||||||||
|
Passenger
- American Airlines
|
$ | 3,680 | $ | 4,379 | (16.0 | ) | ||||||
|
-
Regional Affiliates
|
457 | 581 | (21.4 | ) | ||||||||
|
Cargo
|
144 | 215 | (32.9 | ) | ||||||||
|
Other
revenues
|
558 | 522 | 6.9 | |||||||||
|
Total
operating revenues
|
4,839 | 5,697 | (15.1 | ) | ||||||||
|
Expenses
|
||||||||||||
|
Wages,
salaries and benefits
|
1,688 | 1,644 | 2.6 | |||||||||
|
Aircraft
fuel
|
1,298 | 2,050 | (36.7 | ) | ||||||||
|
Other
rentals and landing fees
|
324 | 323 | 0.2 | |||||||||
|
Maintenance,
materials and repairs
|
305 | 315 | (3.5 | ) | ||||||||
|
Depreciation
and amortization
|
272 | 309 | (11.8 | ) | ||||||||
|
Commissions,
booking fees and credit card expense
|
217 | 257 | (15.6 | ) | ||||||||
|
Aircraft
rentals
|
124 | 125 | (0.7 | ) | ||||||||
|
Food
service
|
114 | 127 | (10.0 | ) | ||||||||
|
Special
charges
|
13 | - | * | |||||||||
|
Other
operating expenses
|
678 | 734 | (7.8 | ) | ||||||||
|
Total
operating expenses
|
5,033 | 5,884 | (14.5 | ) | ||||||||
|
Operating
Income
|
(194 | ) | (187 | ) | 3.4 | |||||||
|
Other
Income (Expense)
|
||||||||||||
|
Interest
income
|
11 | 53 | (79.2 | ) | ||||||||
|
Interest
expense
|
(186 | ) | (206 | ) | 9.7 | |||||||
|
Interest
capitalized
|
10 | 5 | 91.8 | |||||||||
|
Miscellaneous
– net
|
(16 | ) | (5 | ) | * | |||||||
| (181 | ) | (153 | ) | 18.3 | ||||||||
|
Income/(Loss)
Before Income Taxes
|
(375 | ) | (341 | ) | 10.1 | |||||||
|
Income
tax
|
- | - | - | |||||||||
|
Net
Income
|
$ | (375 | ) | $ | (341 | ) | 10.1 | |||||
|
Earnings/(Loss)
Per Share
|
||||||||
|
Basic
|
$ | (1.35 | ) | $ | (1.37 | ) | ||
|
Diluted
|
$ | (1.35 | ) | $ | (1.37 | ) | ||
|
Number
of Shares Used in Computation
|
||||||||
|
Basic
|
279 | 249 | ||||||
|
Diluted
|
279 | 249 | ||||||
* Greater
than 100%
AMR
CORPORATION
OPERATING
STATISTICS
(as
reclassified)
(Unaudited)
|
Three
Months Ended
March
31,
|
Percent
|
|||||||||||
|
2009
|
2008
|
Change
|
||||||||||
|
American
Airlines, Inc. Mainline Jet Operations
|
||||||||||||
|
Revenue
passenger miles (millions)
|
28,593 | 32,488 | (12.0 | ) | ||||||||
|
Available
seat miles (millions)
|
37,783 | 41,052 | (8.0 | ) | ||||||||
|
Cargo
ton miles (millions)
|
371 | 505 | (26.6 | ) | ||||||||
|
Passenger
load factor
|
75.7 | % | 79.1 | % |
(3.5) pts
|
|||||||
|
Passenger
revenue yield per passenger mile (cents)
|
12.87 | 13.48 | (4.5 | ) | ||||||||
|
Passenger
revenue per available seat mile (cents)
|
9.74 | 10.67 | (8.7 | ) | ||||||||
|
Cargo
revenue yield per ton mile (cents)
|
38.90 | 42.55 | (8.6 | ) | ||||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates (cents)
(1)
|
11.82 | 12.63 | (6.5 | ) | ||||||||
|
Fuel
consumption (gallons, in millions)
|
617 | 680 | (9.3 | ) | ||||||||
|
Fuel
price per gallon (cents)
|
191.1 | 273.2 | (30.0 | ) | ||||||||
|
Regional
Affiliates
|
||||||||||||
|
Revenue
passenger miles (millions)
|
1,861 | 2,142 | (13.1 | ) | ||||||||
|
Available
seat miles (millions)
|
2,818 | 3,106 | (9.3 | ) | ||||||||
|
Passenger
load factor
|
66.0 | % | 69.0 | % |
(2.9) pts
|
|||||||
|
AMR
Corporation
|
||||||||||||
|
Average
Equivalent Number of Employees
|
||||||||||||
|
American
Airlines
|
67,000 | 71,800 | ||||||||||
|
Other
|
12,500 | 13,700 | ||||||||||
|
Total
|
79,500 | 85,500 | ||||||||||
|
(1)
|
Excludes
$596 million and $721 million of expense incurred related to Regional
Affiliates in 2009 and 2008,
respectively.
|
AMR
CORPORATION
OPERATING
STATISTICS
(Unaudited)
OPERATING
STATISTICS BY REGIONAL ENTITY
|
American
Airlines, Inc.
|
Three
Months Ended March 31, 2009
|
|||||||||||||||
|
Entity
Results
|
RASM1
(cents)
|
Y-O-Y
Change
|
ASMs2
(billions)
|
Y-O-Y
Change
|
||||||||||||
|
DOT
Domestic
|
9.68 | (7.2 | )% | 23.1 | (10.7 | )% | ||||||||||
|
International
|
9.83 | (11.1 | ) | 14.7 | (3.3 | ) | ||||||||||
|
DOT
Latin America
|
11.23 | (8.0 | ) | 7.7 | (4.5 | ) | ||||||||||
|
DOT
Atlantic
|
7.96 | (17.6 | ) | 5.3 | (3.7 | ) | ||||||||||
|
DOT
Pacific
|
9.28 | (7.3 | ) | 1.7 | 4.2 | |||||||||||
|
American
Airlines, Inc.
|
Three
Months Ended March 31, 2009
|
|||||||||||||||
|
Entity
Results
|
Load
Factor
(pts)
|
Y-O-Y
Change
(pts)
|
Yield
(cents)
|
Y-O-Y
Change
|
||||||||||||
|
DOT
Domestic
|
78.4 | (1.8 | ) | 12.36 | (5.2 | )% | ||||||||||
|
International
|
71.5 | (6.0 | ) | 13.75 | (3.6 | ) | ||||||||||
|
DOT
Latin America
|
73.1 | (6.1 | ) | 15.37 | (0.3 | ) | ||||||||||
|
DOT
Atlantic
|
67.6 | (6.1 | ) | 11.76 | (10.3 | ) | ||||||||||
|
DOT
Pacific
|
76.2 | (5.7 | ) | 12.18 | (0.4 | ) | ||||||||||
1 Revenue
per Available Seat Mile
2
Available Seat Miles
AMR
CORPORATION
NON-GAAP
AND OTHER RECONCILIATIONS
(Unaudited)
|
American
Airlines, Inc. Mainline Jet Operations
|
Three
Months Ended March 31,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Total
operating expenses
|
$ | 5,061 | $ | 5,907 | ||||
|
Less:
Operating expenses incurred related to Regional Affiliates
|
596 | 721 | ||||||
|
Operating
expenses excluding expenses incurred related to Regional
Affiliates
|
$ | 4,464 | $ | 5,186 | ||||
|
American
mainline jet operations available seat miles
|
37,783 | 41,052 | ||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.82 | 12.63 | ||||||
|
Percent
change
|
(6.5 | )% | ||||||
|
American
Airlines, Inc. Mainline Jet Operations
|
Three
Months Ended March 31,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Total
operating expenses
|
$ | 5,061 | $ | 5,907 | ||||
|
Less:
Operating expenses incurred related to Regional Affiliates
|
596 | 721 | ||||||
|
Operating
expenses excluding expenses incurred related to Regional
Affiliates
|
$ | 4,464 | $ | 5,186 | ||||
|
American
mainline jet operations available seat miles
|
37,783 | 41,052 | ||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.82 | 12.63 | ||||||
|
Less:
Impact of special items (cents)
|
.04 | - | ||||||
|
Operating
expenses per available seat mile, excluding impact
|
||||||||
|
of
special items (cents)
|
11.78 | 12.63 | ||||||
|
Percent
change
|
(6.8 | )% | ||||||
|
Less:
Fuel cost per available seat mile (cents)
|
3.12 | 4.52 | ||||||
|
Operating
expenses per available seat mile, excluding impact of special items and
the cost of fuel (cents)
|
8.66 | 8.11 | ||||||
|
Percent
change
|
6.8 | % | ||||||
Note: The
Company believes that operating expenses per available seat mile, excluding the
cost of fuel assists investors in understanding the impact of fuel prices on the
Company’s operations.
AMR
CORPORATION
NON-GAAP
AND OTHER RECONCILIATIONS
(Unaudited)
|
AMR
Corporation
|
Three
Months Ended March 31,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Total
operating expenses
|
$ | 5,033 | $ | 5,884 | ||||
|
Available
seat miles
|
40,600 | 44,158 | ||||||
|
Operating
expenses per available seat mile (cents)
|
12.40 | 13.32 | ||||||
|
Less:
Impact of special items (cents)
|
.04 | - | ||||||
|
Operating
expenses per available seat mile, excluding impact
|
||||||||
|
of
special items (cents)
|
12.36 | 13.32 | ||||||
|
Percent
change
|
(7.2 | )% | ||||||
|
Less:
Fuel cost per available seat mile (cents)
|
3.19 | 4.64 | ||||||
|
Operating
expenses per available seat mile, excluding impact of special items and
the cost of fuel (cents)
|
9.17 | 8.68 | ||||||
|
Percent
change
|
5.6 | % | ||||||
|
AMR
Corporation
Calculation
of Net Debt
|
As
of March 31
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Current
and long-term debt
|
9,685 | $ | 10,157 | |||||
|
Current
and long-term capital lease obligations
|
626 | 776 | ||||||
|
Principal
amount of certain airport facility tax-exempt bonds and the present value
of aircraft operating lease obligations
|
4,068 | 4,239 | ||||||
| 14,379 | 15,172 | |||||||
|
Less: Unrestricted
cash and short-term investments
|
2,864 | 4,519 | ||||||
|
Net
Debt
|
11,515 | $ | 10,653 | |||||
Note: The
Company believes the net debt metric assists investors in understanding changes
in the Company’s liquidity and the results of its efforts to build a financial
foundation under the Company’s Turnaround Plan.
AMR
CORPORATION
NON-GAAP
AND OTHER RECONCILIATIONS
(Unaudited)
|
American
Airlines, Inc. Mainline Jet Operations
|
Estimate
for
Three
Months Ended June 30,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.84 | 15.80 | ||||||
|
Less:
Impact of special item (cents)
|
0.08 | 2.52 | ||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates and impact
of special item (cents)
|
11.76 | 13.28 | ||||||
|
Percent
change
|
(11.5 | )% | ||||||
|
Less:
Fuel expense per available seat mile (cents)
|
3.09 | 5.23 | ||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates, impact of
special item and fuel expense (cents)
|
8.67 | 8.05 | ||||||
|
Percent
change
|
7.7 | % | ||||||
|
American
Airlines, Inc. Mainline Jet Operations
|
Estimate
for
Year
Ended December 31,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.83 | 13.87 | ||||||
|
Less:
Impact of special item (cents)
|
0.06 | 0.73 | ||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates and impact
of special item (cents)
|
11.77 | 13.14 | ||||||
|
Percent
change
|
(10.4 | )% | ||||||
|
Less:
Fuel expense per available seat mile (cents)
|
3.08 | 4.99 | ||||||
|
Operating
expenses per available seat mile, excluding Regional Affiliates, impact of
special item and fuel expense (cents)
|
8.69 | 8.15 | ||||||
|
Percent
change
|
6.6 | % | ||||||
|
AMR
Corporation
|
Estimate
for
Three
Months Ended June 30,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Operating
expenses per available seat mile (cents)
|
12.41 | 16.60 | ||||||
|
Less:
Impact of special item (cents)
|
0.08 | 2.59 | ||||||
|
Operating
expenses per available seat mile, excluding impact of special item
(cents)
|
12.33 | 14.01 | ||||||
|
Percent
change
|
(12.0 | )% | ||||||
|
Less:
Fuel expense per available seat mile (cents)
|
3.18 | 5.38 | ||||||
|
Operating
expenses per available seat mile, excluding impact of special item and
fuel expense (cents)
|
9.15 | 8.63 | ||||||
|
Percent
change
|
6.1 | % | ||||||
AMR
CORPORATION
NON-GAAP
AND OTHER RECONCILIATIONS
(Unaudited)
|
AMR
Corporation
|
Estimate
for
Year
Ended December 31,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Operating
expenses per available seat mile (cents)
|
12.39 | 14.56 | ||||||
|
Less:
Impact of special item (cents)
|
0.05 | 0.74 | ||||||
|
Operating
expenses per available seat mile, excluding impact of special item
(cents)
|
12.34 | 13.82 | ||||||
|
Percent
change
|
(10.7 | )% | ||||||
|
Less:
Fuel expense per available seat mile (cents)
|
3.18 | 5.12 | ||||||
|
Operating
expenses per available seat mile, excluding impact of special item and
fuel expense (cents)
|
9.16 | 8.70 | ||||||
|
Percent
change
|
5.3 | % | ||||||
|
AMR
Corporation
|
Three
Months Ended March 31,
|
|||||||
|
(in
millions, except as noted)
|
2009
|
2008
|
||||||
|
Net
Income/(Loss)
|
(375 | ) | (341 | ) | ||||
|
Less:
Impact of special items
|
(13 | ) | - | |||||
|
Net
Income/(Loss), excluding impact of special items
|
(362 | ) | (341 | ) | ||||
|
Earnings/(Loss)
Per Share
|
||||||||
|
Basic
|
(1.30 | ) | (1.37 | ) | ||||
|
Diluted
|
(1.30 | ) | (1.37 | ) | ||||
Current
AMR Corp. news releases can be accessed on the Internet.
The
address is: http://www.aa.com
###