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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: April 15, 1998
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
AMR Corporation (the "Company") is filing herewith two press
releases issued today (April 15, 1998) by the Company (Exhibits
99.1 and 99.2). The press releases are incorporated by reference
hereto. The first press release (Exhibit 99.1) was issued to
report first quarter 1998 earnings and to announce a proposed two-
for-one stock split in the form of a stock dividend. The second
press release (Exhibit 99.2) was issued to announce that Robert
L. Crandall, Chairman, President and CEO of the Company and
Chairman and CEO of American Airlines, Inc. ("American"), the
principal subsidiary of the Company, will retire from his
affiliations with the Company and American after the AMR annual
meeting on May 20, 1998. Donald J. Carty, currently an Executive
Vice President of the Company and President of American, has been
chosen by the Board of Directors to succeed Mr. Crandall.
Item 7. Financial Statements and Exhibits
The following exhibits are included herein:
99.1 Press Release
99.2 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.
AMR CORPORATION
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: April 15, 1998
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
99.2 Press Release
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Exhibit 99.1
Contact: Tim Kincaid
Fort Worth, Texas
817-967-1577
FOR RELEASE: Wednesday, April 15, 1998
AMR REPORTS FIRST QUARTER EARNINGS OF $290 MILLION;
2-FOR-1 STOCK SPLIT PROPOSED
FORT WORTH, Texas -- AMR Corp., parent company of American
Airlines Inc., today reported first quarter net earnings of $290
million, or $3.24 per common share diluted, a 91 percent
improvement over net earnings of $152 million, or $1.65 per
common share diluted, during the same period in 1997.
"We had a very gratifying first quarter, during which strong
demand, sensible pricing, modest industry capacity growth and
favorable fuel prices created good business conditions for our
company," said Robert L. Crandall, AMR's chairman and chief
executive officer. "In addition, much of the credit for our
success goes to our employees around the world -- whose
dedication and teamwork contributed to better on-time performance
and who gave our customers the good service for which American is
noted."
AMR also announced that it plans a 2-for-1 stock split in
the form of a stock dividend. The split is subject to
stockholder approval of an amendment to the company's Certificate
of Incorporation at AMR's annual meeting, scheduled for May 20 in
Fort Worth. If approved, the stock split will be effective for
shareholders of AMR's common stock of record on May 26, 1998 and
stock certificates for the new shares will be distributed on or
about June 9, 1998.
"We have done very well during the past several years in
meeting our obligation to deliver value to our stockholders,"
Crandall said. "The price of a share of AMR common stock has
more than doubled in the last three years, making AMR the highest-
priced airline stock in the U.S., and one of the highest-priced
stocks traded on the New York Stock Exchange. We believe this
stock split will make it easier for small investors to buy AMR
stock, thereby broadening AMR's shareholder base and improving
trading liquidity."
###
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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
1998 1997 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,578 $3,390 5.5
- AMR Eagle 256 248 3.2
Cargo 163 164 (0.6)
Other 226 204 10.8
4,223 4,006 5.4
The SABRE Group 554 440 25.9
Management Services Group 160 161 (0.6)
Less: Intergroup revenues (200) (181) 10.5
Total operating revenues 4,737 4,426 7.0
Expenses
Wages, salaries and benefits 1,624 1,540 5.5
Aircraft fuel 415 520 (20.2)
Commissions to agents 301 314 (4.1)
Depreciation and amortization 323 312 3.5
Maintenance materials and 232 195 19.0
Other rentals and landing fees 218 218 -
Food service 164 161 1.9
Aircraft rentals 142 144 (1.4)
Other operating expenses 761 673 13.1
Total operating expenses 4,180 4,077 2.5
Operating Income 557 349 59.6
Other Income (Expense)
Interest income 34 27 25.9
Interest expense (78) (103) (24.3)
Minority interest (13) (12) 8.3
Miscellaneous - net (15) (4) *
(72) (92) (21.7)
Earnings Before Income Taxes 485 257 88.7
Income tax provision 195 105 85.7
Net Earnings $ 290 $ 152 90.8
Earnings Per Common Share (**)
Basic $ 3.35 $ 1.67
Diluted $ 3.24 $ 1.65
Number of Shares Used in
Computation
Basic 86 91
Diluted 89 92
</TABLE>
* Greater Than 100%
** The 1997 earnings per share amounts have been restated as
required to comply with Statement of Financial Accounting
Standards No. 128, "Earnings Per Share."
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AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1998 1997 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,578 $3,390 5.5
- AMR Eagle 256 248 3.2
Cargo 163 164 (0.6)
Other 226 204 10.8
4,223 4,006 5.4
Expenses
Wages, salaries and benefits 1,382 1,334 3.6
Aircraft fuel 415 520 (20.2)
Commissions to agents 301 314 (4.1)
Depreciation and amortization 258 262 (1.5)
Maintenance materials and 229 193 18.7
Other operating expenses 1,213 1,159 4.7
Total operating expenses 3,798 3,782 0.4
Operating Income 425 224 89.7
Other Expense (62) (80) (22.5)
Earnings Before Income Taxes $ 363 $ 144 *
Pre-tax Margin 8.6% 3.6% 5.0 pts.
The SABRE Group
Revenues $ 554 $ 440 25.9
Operating Expenses 439 332 32.2
Operating Income 115 108 6.5
Other Income 2 1 *
Earnings Before Income Taxes $ 117 $ 109 7.3
Pre-tax Margin 21.1% 24.8% (3.7) pts.
Management Services Group
Revenues $ 160 $ 161 (0.6)
Operating Expenses 143 144 (0.7)
Operating Income 17 17 -
Other Income (Expense) 1 (1) *
Earnings Before Income Taxes $ 18 $ 16 12.5
Pre-tax Margin 11.3% 9.9% 1.4 pts.
</TABLE>
* Greater Than 100%
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Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1998 1997 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles 25,388 25,295 0.4
(millions)
Available seat miles 37,707 37,520 0.5
(millions)
Cargo ton miles (millions) 496 480 3.3
Passenger load factor 67.3% 67.4% (0.1) pts.
Breakeven load factor 58.3% 62.7% (4.4) pts.
Passenger revenue yield per
passenger mile (cents) 14.09 13.40 5.1
Passenger revenue per
available seat mile (cents) 9.49 9.04 5.0
Cargo revenue yield per ton mile 32.55 33.77 (3.6)
(cents)
Operating expenses per available
seat mile (cents) 9.35 9.40 (0.5)
Fuel consumption (gallons,
in millions) 681 673 1.2
Fuel price per gallon (cents) 58.9 74.7 (21.1)
Fuel price per gallon,
excluding fuel tax (cents) 53.9 69.7 (22.7)
Operating aircraft at period-end 639 643 (0.6)
AMR Eagle:
Revenue passenger miles 615 602 2.2
(millions)
Availabl seat miles 1,071 1,043 2.7
(millions)
Passenger load factor 57.4% 57.7% (0.3) pts.
Operating aircraft at period-end 202 205 (1.5)
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 80,800 80,000
Other 10,200 10,000
Total Airline Group 91,000 90,000
The SABRE Group 10,700 8,200
Management Services Group 12,900 15,400
Total 114,600 113,600
</TABLE>
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Exhibit 99.2
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
FOR RELEASE: Wednesday, April 15, 1998
CRANDALL ANNOUNCES RETIREMENT ON MAY 20
FORT WORTH, Texas -- AMR Corporation announced today that
its long-time Chairman and Chief Executive Officer, Robert L.
Crandall, who is 62, has decided to retire on May 20, 1998,
following the Company's Annual Meeting. Mr. Crandall announced
his decision to the Board of Directors at its regular April
meeting, which was held today at AMR's headquarters.
Charles T. Fisher III, the Board's longest serving member,
said on behalf of the Board, "Bob Crandall has been a great
industry innovator and leaves AMR strong and well positioned for
the future. He is an outstanding individual and an
extraordinarily capable executive; the Board is very sorry he has
chosen to retire. However, he has been discussing this
possibility with us for some time and his decision is thus not
entirely unexpected. While we will miss Bob's leadership, we all
understand his desire for more time to devote to his family and
his many other interests."
"Moreover, we share his enthusiasm for the capabilities of
Don Carty and the AMR management team and we are confident the
transition ahead will be a smooth one," Fisher said.
The Board has elected Donald J. Carty to succeed Mr.
Crandall as Chairman, President and Chief Executive Officer of
AMR and as Chairman and Chief Executive Officer of American
Airlines. Mr. Carty will retain the title of President of
American Airlines.
Crandall joined American Airlines in 1973 as Senior Vice
President-Finance, became Senior Vice President-Marketing in 1974
and President in 1980. In 1985, following the retirement of
Albert V. Casey, he became Chairman, President and Chief
Executive Officer of both AMR Corporation and American Airlines,
continuing in all those roles until 1995, when Donald J. Carty
was named President of American Airlines.
Donald J. Carty served as Senior Vice President and
Controller of American Airlines before leaving in 1985 to become
President and Chief Executive Officer of CP Air in Canada. He
returned to American in March of 1987 as Senior Vice President-
Airline Planning. Carty became Executive Vice President-Finance
and Planning in 1989 and President of American and AMR's Airline
Group in 1995.
It is anticipated that Carty will also succeed Crandall as
Chairman of The Sabre Group, an independent company in which AMR
has an 82% equity interest, and of several other AMR
subsidiaries.
##
