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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A No. 1
[]Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Period Ended June 30, 1995.
[ ]Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Transition Period From to
.
Commission file number 1-2691.
American Airlines, Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-1502798
(State or other (I.R.S. Employer
jurisdiction Identification No.)
of incorporation or
organization)
4333 Amon Carter Blvd.
Fort Worth, Texas 76155
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, (817) 963-
including area code 1234
Not Applicable
(Former name, former address and former fiscal year , if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter periods that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No .
Applicable Only to Corporate Issuers
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practical
date.
Common Stock, $1 par value - 1,000 as of May 8, 1995
The registrant meets the conditions set forth in, and is filing
this form with the reduced disclosure format prescribed by,
General Instructions H(1)(a) and H(1)(b) of Form 10-Q.
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INDEX
AMERICAN AIRLINES , INC.
PART I: FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (as amended October 5, 1995)
SIGNATURE
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the Six Months Ended June 30, 1995 and 1994
American recorded net earnings for the first six months of 1995
of $248 million. This compares to a net earnings of $169
million for the same period last year. American's operating
income was $707 million for the first six months of 1995
compared to $477 million for the first six months of 1994.
American's passenger revenues increased by 3.9 percent, $243
million during the first six months of 1995 versus the same
period last year. American's yield (the average amount one
passenger pays to fly one mile) of 13.12 cents decreased by 2.4
percent compared to the same period in 1994. Domestic yields
decreased 4.2 percent from the first six months of 1994.
International yields increased 2.3 percent over the first six
months of 1994, due principally to a 10.1 percent increase in
Europe partially offset by a 4.6 percent decrease in Latin
America.
American's traffic or revenue passenger miles (RPMs) increased
6.5 percent to 49.8 billion miles for the six months ended June
30, 1995. American's capacity or available seat miles (ASMs)
increased 2.0 percent to 76.1 billion miles in the first six
months of 1995, primarily as a result of increases in jet stage
length and aircraft productivity. Jet stage length increased
8.4 percent and aircraft productivity, as measured by miles
flown per aircraft per day, increased 5.5 percent compared with
the first six months of 1994. American's domestic traffic
increased 5.2 percent on capacity decreases of 0.7 percent and
international traffic grew 9.7 percent on capacity increases of
9.1 percent. The change in international traffic was driven by
a 13.6 percent increase in traffic to Latin America on capacity
growth of 12.4 percent, and a 7.1 percent increase in traffic to
Europe on a capacity increase of 6.7 percent.
Other Airline Group revenues increased 16.6 percent, $49
million, primarily due to contract maintenance work performed by
American for other airlines.
Information Services Group revenues increased 10.0 percent, $66
million, primarily due to increased booking fee volume, which
was positively impacted by international expansion in Europe,
Latin America and India, and increased sales of premium priced
products.
On April 29, 1995 a hailstorm at American's Dallas/Fort Worth
hub temporarily disabled approximately ten percent of American's
fleet, forcing American to reduce scheduled service during the
entire month of May. This adversely impacted the carrier's
revenue and cost performance. The impact of the hailstorm
reduced American's second quarter net income by approximately
$17 million.
American's operating expenses increased 2.3 percent, $156
million. Passenger Division cost per ASM increased by 0.5
percent to 8.46 cents. Wages, salaries and benefits rose 3.0
percent, $76 million, due primarily to provisions for profit
sharing and salary adjustments for existing employees ,
partially offset by a 2.0 percent reduction in the average
number of equivalent employees. Aircraft fuel expense decreased
0.7 percent, $5 million, due to a 1.3 percent decrease in
American's average price per gallon partially offset by a 0.7
percent increase in gallons consumed by American. Commissions
to agents decreased 3.3 percent, $21 million, due principally to
a lower percentage of revenue subject to agent commissions
combined with a reduction in average rates paid to agents
attributable primarily to the change in commission structure
implemented in February 1995. Other operating expenses
increased 10.1 percent, $108 million, due to increased traffic
and increases in contract maintenance expenses.
Other Income (Expense) increased 44.8 percent or $90 million.
Interest expense (net of amounts capitalized) increased $111
million due primarily to the effect of rising interest rates on
floating rate debt and interest rate swap agreements and a
change in the terms of the subordinated note agreement with AMR.
Effective September 30, 1994, the subordinated promissory note
bears interest based on the weighted average rate on AMR's long-
term debt and preferred stock. Prior to September 30, 1994,
interest on the subordinated note was based on the London
Interbank Offered Rate (LIBOR). The increase in interest
expense was partially offset by a $10 million increase in
interest income attributable to higher average investment
balances and higher average rates.
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Signatures
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 thereunto duly authorized.
AMERICAN AIRLINES, INC.
Date: October 5, 1995 By: /s/ Charles D. Marlett
Charles D. Marlett
Corporate Secretary
