<PAGE> 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: April 16, 1997
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)
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Item 5. Other Events
American's collective bargaining agreement with the Allied Pilots
Association (APA) became amendable on August 31, 1994. On
September 2, 1996, American and the APA reached a tentative
agreement on a new labor contract. The tentative agreement was
approved by the APA Board of Directors and sent out for
membership ratification, but subsequently rejected by the APA
membership. On January 10, 1997, the National Mediation Board
(NMB) proffered binding arbitration to the APA and American.
American agreed to arbitration but because the APA did not also
agree, the proffer was rejected and on January 15, 1997, the APA
and American were notified (i) that the NMB was terminating its
services and (ii) that beginning February 15, 1997, either party
could resort to self-help remedies, including a strike by the
members of the APA. On February 15, 1997, the APA did initiate a
strike against American but immediately thereafter President
Clinton intervened and appointed a Presidential Emergency Board
(PEB), pursuant to his authority under the Railway Labor Act.
The effect of President Clinton's actions was to stop the strike
and begin a process during which the PEB reviewed the positions
advocated by both parties. On March 19, 1997, before the PEB
issued its recommendations, American and the APA reached a second
tentative agreement on a new contract. The APA Board approved
the second tentative agreement on April 4, 1997, and the
agreement has been submitted to the APA membership for
ratification. It is anticipated that the membership's decision
will be known in early May 1997. If the tentative agreement is
rejected by the APA, and unless the Congress takes additional
action, either party will be permitted to resort to self-help
remedies, which include, but are not limited to, a strike by the
members of the APA. The Company and the APA have agreed to a
timetable under which neither party will resort to self-help
remedies for a period of 30 days following the failure of the APA
membership to ratify the tentative agreement. Any work stoppage
by the APA members would have a material adverse impact on the
Company.
AMR Corporation (the "Company") is filing herewith a press
release issued today by the Company to report first quarter 1997
earnings as Exhibit 99.1 which is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits
The following exhibit is included herein:
99.1 Press Release
<PAGE> 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: April 16, 1997
<PAGE> 3
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
<PAGE> 5
Exhibit 99.1
Contact: Al Comeaux
Fort Worth, Texas (CDT)
(817) 967-1577
AMR REPORTS FIRST QUARTER EARNINGS OF $152 MILLION
FOR RELEASE: Wednesday, April 16, 1997
FORT WORTH, Texas -- AMR Corp., parent company of American
Airlines Inc., today reported first quarter net earnings of $152
million, or $1.65 per common share. The 1997 earnings compare to
first quarter 1996 earnings of $157 million, or $1.84 per fully
diluted share.
"Despite the effects of a threatened pilot strike, strong
levels of demand, combined with relatively limited capacity
additions, produced good results for us," said AMR Chairman
Robert L. Crandall. "While our results are testimony to the
continuing strength of demand, they would have been dramatically
better absent the labor dispute."
"We are thus very pleased that earlier this month, the
Allied Pilots Association's Board of Directors recommended the
second tentative agreement to its membership," he said. "We hope
the agreement will be ratified by the pilots in early May, so we
can look forward to greater success in the remaining months of
1997."
In a related matter, AMR recorded a $20 million pre-tax
charge in the first quarter of 1997, which, together with
previously accrued amounts, reflected the 5.75 million stock
options being offered to the pilots at $10 below market value.
This $20 million charge resulted in lower earnings per share of
$0.14 after taxes.
AMR also confirmed its earlier announcement that it intends
to repurchase from time to time up to 5.75 million shares of its
common stock in the open market to offset potential dilution from
the pilot stock options. This repurchase is contingent on
ratification of the tentative agreement, and the timing and
amount of shares actually repurchased will depend on market
conditions and other corporate considerations.
###
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AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent t
1997 1996 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,390 $3,287 3.1
- AMR Eagle 248 267 (7.1)
Cargo 164 163 0.6
Other 204 197 3.6
4,006 3,914 2.4
The SABRE Group 440 428 2.8
Management Services Group 161 157 2.5
Less: Intergroup revenues (181) (191) (5.2)
Total operating revenues 4,426 4,308 2.7
Expenses
Wages, salaries and benefits 1,540 1,487 3.6
Aircraft fuel 520 441 17.9
Commissions to agents 314 315 (0.3)
Depreciation and amortization 312 300 4.0
Other rentals and landing fees 218 216 0.9
Maintenance materials and repairs 195 168 16.1
Food service 161 156 3.2
Aircraft rentals 144 164 (12.2)
Other operating expenses 673 660 2.0
Total operating expenses 4,077 3,907 (4.4)
Operating Income 349 401 (13.0)
Other Income (Expense)
Interest income 27 16 68.8
Interest expense (103) (146) (29.5)
Minority interest (12) - *
Miscellaneous - net (4) (6) (33.3)
(92) (136) (32.4
Earnings Before Income Taxes 257 265 (3.0)
Income tax provision 105 108 (2.8)
Net Earnings $ 152 $ 157 (3.2)
Earnings Per Common Share
Primary $ 1.65 $ 2.02
Fully Diluted $ 1.65 $ 1.84
Number of Shares Used in Computation
Primary 92 78
Fully Diluted 92 92
</TABLE>
* Greater Than 100%
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AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1997 1996 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,390 $3,287 3.1
- AMR Eagle 248 267 (7.1)
Cargo 164 163 0.6
Other 204 197 3.6
4,006 3,914 2.4
Expenses
Wages, salaries and benefits 1,334 1,301 2.5
Aircraft fuel 520 441 17.9
Commissions to agents 314 315 (0.3)
Depreciation and amortization 262 252 4.0
Other operating expenses 1,352 1,343 0.7
Total operating expenses 3,782 3,652 3.6
Operating Income 224 262 (14.5)
Other Income (Expense) (80) (134) (40.3)
Earnings Before Income Taxes $ 144 $ 128 12.5
Pre-tax Margin 3.6% 3.3% 0.3 pts.
The SABRE Group
Revenues $ 440 $ 428 2.8
Operating Expenses 332 312 6.4
Operating Income 108 116 (6.9)
Other Income (Expense) 1 (1) *
Earnings Before Income Taxes $ 109 $ 115 (5.2)
Pre-tax Margin 24.8% 26.9% (2.1) pts.
Management Services Group
Revenues $ 161 $ 157 2.5
Operating Expenses 144 134 7.5
Operating Income 17 23 (26.1)
Other Income (Expense) (1) (1) -
Earnings Before Income Taxes $ 16 $ 22 (27.3)
Pre-tax Margin 9.9% 14.0% (4.1) pts.
</TABLE>
* Greater Than 100%
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Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1997 1996 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 25,295 24,632 2.7
Available seat miles (millions) 37,520 37,554 (0.1)
Cargo ton miles (millions) 480 498 (3.6)
Passenger load factor 67.4% 65.6% 1.8 pts.
Breakeven load factor 62.7% 59.8% 2.9 pts.
Passenger revenue yield per
passenger mile (cents) 13.40 13.34 0.4
Passenger revenue per
available seat mile (cents) 9.04 8.75 3.3
Cargo revenue yield per ton
mile (cents) 33.77 32.26 4.7
Operating expenses per available
seat mile (cents) 9.40 8.97 4.8
Fuel consumption (gallons, in millions) 673 663 1.5
Fuel price per gallon (cents) 74.7 63.9 16.9
Fuel price per gallon, excluding
fuel tax (cents) 69.7 59.0 18.1
Operating aircraft at period-end 643 632 1.7
AMR Eagle, Inc.:
Revenue passenger miles (millions) 602 636 (5.3)
Available seat miles (millions) 1,043 1,137 (8.3)
Passenger load factor 57.7% 56.0% 1.7 pts.
Operating aircraft at period-end 205 255 (19.6)
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 80,000 79,100
Other 10,000 10,800
Total Airline Group 90,000 89,900
The SABRE Group 8,200 7,900
Management Services Group 15,400 13,500
Total 113,600 111,300
</TABLE>
