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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: October 18, 2000
American Airlines, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-2691 13-1502798
(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)
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Item 5. Other Events
American Airlines, Inc. is filing herewith a press release issued
on October 18, 2000 by its parent company, AMR Corporation, as
Exhibit 99.1 which is included herein. This press release was
issued to report AMR's third quarter 2000 earnings.
In other matters, on October 24, 2000, American will host its
biennial Analyst & Investor Conference. This conference will be
accessible by the general public via a live webcast. To access
this webcast, go to the Investor Information section of AMR's web
site, www.amrcorp.com and click on the webcast icon (please note
that the live webcast will occur between 8:30 AM, Central
Daylight Time, and 3:00 PM, Central Daylight Time, on October 24,
2000). Materials related to the Analyst & Investor Conference
will be posted on the Investor Information section of AMR's web
site for several days following the Conference.
On the third Wednesday of January, April, July and October, AMR
issues its earnings report for the preceding quarter. On that
date, AMR's Chief Financial Officer conducts a telephone news
conference with analysts and investors to discuss this earnings
report. The conference call is accessible by the general public
via a live webcast. To access this webcast, go to the Investor
Information section of AMR's web site, www.amrcorp.com and click
on the webcast icon (please note that the live webcast will occur
at 1:00 PM, Central Time, on the dates referenced above, and will
generally last one hour).
Item 7. Financial Statements and Exhibits
The following exhibit is included herein:
99.1 Press Release
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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.
American Airlines, Inc.
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: October 18, 2000
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
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Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
FOR RELEASE: Wednesday, Oct. 18, 2000
Editor's Note: A Live Webcast reporting third quarter earnings
will
Be broadcast on the Internet at 1 p.m. (CDT) 10/18/00.
(Windows Media Player required for viewing.)
AMR CORPORATION REPORTS THIRD QUARTER EARNINGS
FORT WORTH, Texas - AMR Corporation, parent company of
American Airlines, Inc., today reported third-quarter earnings of
$322 million or $1.96 per common share diluted, before an
extraordinary loss. This compares to net earnings of $213
million, or $1.38 per common share diluted, in the same period in
1999. After accounting for the extraordinary loss, a $9 million
after-tax loss on the repurchase of $167 million of unsecured
debt, AMR reported net earnings of $313 million, or $1.91 per
common share diluted.
"We're very pleased with our third-quarter performance - the
second-best third quarter in our company's history and our third-
best quarter ever, " said Donald J. Carty, American's chairman
and CEO. "The underlying fundamentals of our business - both
traffic and pricing - remained solid and combined to generate
double-digit revenue growth, which more than offset the effect of
the sharp increases in fuel prices."
Carty said American has finished reconfiguring the full
coach cabins on its entire domestic fleet as part of its "More
Room Throughout Coach" program.
"While difficult to yet quantify, from the reaction we're
getting, it's been a big hit with customers."
Carty also said American benefited, perhaps
disproportionately, from the difficulties of a major competitor
this summer.
Carty applauded the hard work of AA's employees, who during
the quarter handled record numbers of passengers in the face of
ongoing air traffic control problems and weather delays.
--more--
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AMR CORPORATION REPORTS THIRD QUARTER EARNINGS
Oct. 18, 2000
Page 2
He said the continuing strong economy helped generate AA's
top 10 busiest traffic days ever during the quarter, with a July
load factor of 80.3 percent, August at 78.4 percent -- up almost
six points from August 1999 -- and September, when traffic
traditionally declines, at almost 70 percent.
"Our people worked under difficult conditions - and we're
proud of the many caring and creative ways they served our
customers," Carty said.
Carty said the strong economy also benefited AMR's cargo
operations, which had third-quarter revenue results of $183
million, the best quarterly results in the company's history.
This figure represents a year-over-year growth of 14.4 percent.
On the cost side, Carty said American has continued to be
aggressive in its fuel hedging program, which reduced the
airline's costs by more than $150 million and provided a cushion
against sharp price increases during the quarter. He also noted
that American's continuing online sales success has reduced
distribution costs and will do so further as the popularity of
AA.com and other Internet-based travel sites grows.
American's international traffic was up about 5 percent
during the quarter, a reflection of the continuing strength of
oneworld and the particular success of AA's immunized bilateral
agreements with Swissair and Sabena over the Atlantic, as well as
its alliances with Cathay Pacific, Japan Air Lines and EVA over
the Pacific.
"Our newly announced San Jose-Taipei and San Jose-Paris
service will enhance our international route network and further
solidify our position on the West Coast, which has improved
markedly over even a year ago," Carty said. "We think linking
Silicon Valley with the very important technology industries of
Taiwan and opening a new European gateway for the Bay Area both
represent smart strategic moves."
--more--
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AMR CORPORATION REPORTS THIRD QUARTER EARNINGS
Oct. 18 2000
Page 3
On the domestic front, American expanded its network by
adding service to focus business travel cities like Boston, New
York, the Los Angeles basin, San Jose and Austin - all locations
where AA already has a strong presence. The company also
announced realignments of its major hubs in Dallas/Fort Worth and
Chicago aimed at improving dependability and customer service.
American's regional partner, American Eagle, has been
aggressively deploying regional jets throughout its network to
strengthen American's hubs and will have an all-jet operation in
Chicago O'Hare by November.
"We clearly have strengthened both our domestic and
international networks more than any other U.S. carrier this
year, improving our competitive position and offering our
customers broader and better choices," Carty said.
# # #
Editor's Note: AMR's Chief Financial Officer, Tom Horton, will be
available to answer questions during a telephone news conference
on Wednesday, Oct. 18, from 3 p.m. to 3:45 p.m. EDT. 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
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, 1999.
Detailed financial information follows.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30, Percent
2000 1999 Change
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $4,385 $ 3,900 12.4
- AMR Eagle 390 352 10.8
Cargo 183 160 14.4
Other revenues 298 283 5.3
Total operating revenues 5,256 4,695 11.9
Expenses
Wages, salaries and benefits 1,721 1,533 12.3
Aircraft fuel 648 456 42.1
Depreciation and amortization 307 276 11.2
Maintenance, materials and repairs 278 263 5.7
Commissions to agents 266 314 (15.3)
Other rentals and landing fees 250 248 0.8
Food service 204 196 4.1
Aircraft rentals 151 161 (6.2)
Other operating expenses 859 822 4.5
Total operating expenses 4,684 4,269 9.7
Operating Income 572 426 34.3
Other Income (Expense)
Interest income 42 21 *
Interest expense (119) (108) 10.2
Interest capitalized 36 27 33.3
Miscellaneous - net (6) (9) (33.3)
(47) (69) (31.9)
Income From Continuing Operations
Before Income Taxes and
Extraordinary Loss 525 357 47.1
Income tax provision 203 144 41.0
Income From Continuing Operations
Before Extraordinary Loss 322 213 51.2
Income From Discontinued Operations
(net of applicable income taxes
and minority interest) - 66 -
Income Before Extraordinary Loss 322 279 15.4
Extraordinary Loss (net of
applicable income taxes) (9) - -
Net Earnings $ 313 $ 279 12.2
</TABLE>
Continued on next page.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30,
2000 1999
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing Operations $ 2.14 $ 1.42
Discontinued Operations - 0.44
Extraordinary Loss (0.06) -
Net Earnings $ 2.08 $ 1.86
Diluted
Income from Continuing Operations $ 1.96 $ 1.38
Discontinued Operations - 0.38
Extraordinary Loss (0.05) -
Net Earnings $ 1.91 $ 1.76
Number of Shares Used in
Computation
Basic 150 150
Diluted 164 155
</TABLE>
* Greater than 100%
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30, Percent
2000 1999 Change
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $12,341 $10,971 12.5
- AMR Eagle 1,096 963 13.8
Cargo 530 469 13.0
Other revenues 877 840 4.4
Total operating revenues 14,844 13,243 12.1
Expenses
Wages, salaries and benefits 5,012 4,561 9.9
Aircraft fuel 1,768 1,219 45.0
Depreciation and amortization 889 797 11.5
Maintenance, materials and repairs 821 743 10.5
Commissions to agents 796 900 (11.6)
Other rentals and landing fees 743 718 3.5
Food service 587 548 7.1
Aircraft rentals 455 483 (5.8)
Other operating expenses 2,472 2,388 3.5
Total operating expenses 13,543 12,357 9.6
Operating Income 1,301 886 46.8
Other Income (Expense)
Interest income 108 62 74.2
Interest expense (353) (295) 19.7
Interest capitalized 110 89 23.6
Miscellaneous - net 38 15 *
(97) (129) (24.8)
Income From Continuing Operations
Before Income Taxes and
Extraordinary Loss 1,204 757 59.0
Income tax provision 472 311 51.8
Income From Continuing Operations
Before Extraordinary Loss 732 446 64.1
Income From Discontinued Operations
(net of applicable income taxes
and minority interest) 43 195 (77.9)
Gain on Sale of Discontinued
Operations (net of applicable
income taxes) - 64 -
Income Before Extraordinary Loss 775 705 9.9
Extraordinary Loss (net of
applicable income taxes) (9) - -
Net Earnings $ 766 $ 705 8.7
</TABLE>
Continued on next page.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
2000 1999
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing Operations $ 4.89 $ 2.90
Discontinued Operations 0.30 1.68
Extraordinary Loss (0.06) -
Net Earnings $ 5.13 $ 4.58
Diluted
Income from Continuing operations $ 4.55 $ 2.81
Discontinued Operations 0.27 1.63
Extraordinary Loss (0.05) -
Net Earnings $ 4.77 $ 4.44
Number of Shares Used in
Computation
Basic 149 154
Diluted 161 159
</TABLE>
* Greater than 100%
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AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30, Percent
2000 1999 Change
<S> <C> <C> <C>
American Airlines
Revenue passenger miles (millions) 31,584 30,325 4.2
Available seat miles (millions) 41,418 42,245 (2.0)
Cargo ton miles (millions) 576 541 6.5
Passenger load factor 76.3% 71.8% 4.5 pts.
Breakeven load factor 65.4% 63.3% 2.1 pts.
Passenger revenue yield per
passenger mile (cents) 13.88 12.86 7.9
Passenger revenue per available
seat mile (cents) 10.59 9.23 14.7
Cargo revenue yield per ton
mile (cents) 31.60 29.22 8.1
Operating expenses per available
seat mile (cents) 10.31 9.21 11.9
Fuel consumption (gallons,
in millions) 796 780 2.1
Fuel price per gallon (cents) 77.3 55.9 38.3
Fuel price per gallon, excluding
fuel taxes (cents) 71.7 51.0 40.6
Operating aircraft at period-end 720 701 2.7
AMR Eagle
Revenue passenger miles (millions) 998 905 10.3
Available seat miles (millions) 1,631 1,502 8.6
Passenger load factor 61.2% 60.2% 1.0 pts.
Operating aircraft at period-end 270 268 0.7
AMR Corporation
Average Equivalent Number of
Employees
AA Jet Operations 92,700 89,100
Other 14,800 14,800
Total 107,500 103,900
</TABLE>
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AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Percent
2000 1999 Change
<S> <C> <C> <C>
American Airlines
Revenue passenger miles (millions) 89,055 84,522 5.4
Available seat miles (millions) 121,533 120,354 1.0
Cargo ton miles (millions) 1,693 1,483 14.2
Passenger load factor 73.3% 70.2% 3.1 pts.
Breakeven load factor 64.9% 64.3% 0.6 pts.
Passenger revenue yield per
passenger mile (cents) 13.86 12.98 6.8
Passenger revenue per available
seat mile (cents) 10.15 9.12 11.3
Cargo revenue yield per ton
mile (cents) 31.00 31.21 (0.7)
Operating expenses per available
seat mile (cents) 10.17 9.38 8.4
Fuel consumption (gallons,
in millions) 2,285 2,212 3.3
Fuel price per gallon (cents) 73.6 52.7 39.7
Fuel price per gallon, excluding
fuel taxes (cents) 68.2 48.1 41.7
Operating aircraft at period-end 720 701 2.7
AMR Eagle
Revenue passenger miles (millions) 2,822 2,496 13.1
Available seat miles (millions) 4,691 4,135 13.4
Passenger load factor 60.1% 60.4% (0.3) pts.
Operating aircraft at period-end 270 268 0.7
</TABLE>
