<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: July 21, 1999
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 a press
release issued on July 21, 1999 by the Company as Exhibit
99.1 which is included herein. This press release was issued to
report second quarter earnings.
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: July 21, 1999
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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, July 21, 1999
AMR REPORTS SECOND-QUARTER EARNINGS OF $268 MILLION
FORT WORTH, Texas - AMR Corp., parent of American Airlines
Inc., today reported second-quarter net earnings of $268 million,
or $1.70 per common share diluted, a 34.5 percent decrease
compared to net earnings of $409 million, or $2.30 per common
share diluted, during the same period of 1998.
"We made very real progress in recovering from our difficult
first quarter," said Donald J. Carty, AMR's Chairman and CEO.
"We posted our second strongest earnings per share for any second
quarter in the company's history, in spite of operations that
were hampered by air traffic control and weather disruptions.
"We're also encouraged by our cost control efforts during
the quarter, holding our year-over-year unit cost increase to
only 0.6 percent," Carty added.
Among AMR's second-quarter highlights:
- -USA TODAY named AADVANTAGE the top frequent flyer program.
- -FORTUNE magazine named AMR as one of "The 50 Best Companies for
Asians, Blacks and Hispanics." No other airline made the list.
- -Hispanic Magazine recognized American Airlines for having one of
the top 25 minority supplier programs. No other airline made the
list.
- -AA and Canadian became the first in the industry to implement
electronic ticket interline capability.
- -AMR has repurchased 39.4 million shares of stock since 1997.
- -Sabre's travel distribution revenues rose 15 percent, driven by
travel growth, market share gains, and the rapid growth of
Travelocity.com, the company's leading travel web site.
-- more --
<PAGE> 6
AMR Reports Second Quarter Earnings
July 21, 1999
Page 2
- -AA reached agreement with the Association of Professional Flight
Attendants (APFA) and the Transport Workers Union (TWU) on the
Reno Air integration process.
- -Aug. 31 was set as the date when Reno Air will be fully
integrated into American.
- -AA added Los Angeles-Paris service and announced a $245 million
renovation of LAX Terminal 4.
- -Alaska Airlines, Horizon Air and Air Pacific joined the
AADVANTAGE program.
- -AA and LanChile received U.S. DOT tentative approval for
codesharing. LanChile is admitted to the oneworld alliance.
- -AA and El Al announced a reciprocal frequent flyer agreement.
- -AA launched new Buffalo-DFW, Hartford-Los Angeles, Boston-
Seattle, Anchorage-DFW, and Houston Hobby-Washington D.C. Reagan
service.
- -AA ordered three more new Boeing 737-800s, for a total of 103 of
the jets ordered. The new aircraft were ordered to replace three
Reno Air jets being returned to lessors.
- -AA Cargo set new records throughout the network, thanks to the
introduction of Boeing 777s to London and Tokyo.
- -AA applied for China routes, including Chicago-Beijing and
Chicago-Shanghai.
- -AA and American Eagle announced additional service at the San
Juan hub.
- -American Eagle began new ERJ-145 Regional Jet (RJ) service
between Dallas/Fort Worth and Baton Rouge, La., and added one
flight between DFW and Montgomery, Ala. New RJ service began
between Chicago O'Hare and both Baltimore/Washington and
Pittsburgh. Turboprops were replaced with RJs between Chicago
and both Madison, Wis., and Grand Rapids, Mich.
EDITORS: AMR's Chief Financial Officer, Gerard J. Arpey,
will be available to answer questions during a telephone news
conference today, from 2 p.m. to 2:45 p.m., CDT.
Those interested in joining the conference should call 817-
967-1577 for details.
Detailed Financial Information Follows
<PAGE> 7
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
June 30, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,751 $ 3,789 (1.0)
- AMR Eagle 340 289 17.6
Cargo 164 169 (3.0)
Other 273 250 9.2
4,528 4,497 0.7
Sabre 639 577 10.7
Other 20 17 17.6
Less: Intersegment revenues (176) (167) 5.4
Total operating revenues 5,011 4,924 1.8
Expenses
Wages, salaries and benefits 1,765 1,627 8.5
Aircraft fuel 414 404 2.5
Depreciation and amortization 351 320 9.7
Commissions to agents 298 322 (7.5)
Other rentals and landing fees 253 223 13.5
Maintenance, materials and
repairs 223 223 -
Food service 185 175 5.7
Aircraft rentals 162 143 13.3
Other operating expenses 850 763 11.4
Total operating expenses 4,501 4,200 7.2
Operating Income 510 724 (29.6)
Other Income (Expense)
Interest income 21 33 (36.4)
Interest expense (95) (92) 3.3
Interest capitalized 29 25 16.0
Minority interest (11) (12) (8.3)
Miscellaneous - net (6) (5) 20.0
(62) (51) 21.6
Income From Continuing
Operations Before Income Taxes 448 673 (33.4)
Income tax provision 180 265 (32.1)
Income From Continuing
Operations 268 408 (34.3)
Income From Discontinued
Operations (net of applicable
income taxes) - 1 -
Gain on Sale of Discontinued
Operations (net of applicable
income taxes) - - -
Net Earnings $ 268 $ 409 (34.5)
Continued on next page
</TABLE>
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
June 30,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing
Operations $ 1.76 $ 2.37
Discontinued Operations - 0.01
Net Earnings $ 1.76 $ 2.38
Diluted
Income from Continuing
Operations $ 1.70 $ 2.29
Discontinued Operations - 0.01
Net Earnings $ 1.70 $ 2.30
Number of Shares Used in
Computation
Basic 153 172
Diluted 158 178
</TABLE>
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Six Months Ended
June 30, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $7,071 $7,367 (4.0)
- AMR Eagle 611 545 12.1
Cargo 309 332 (6.9)
Other 528 482 9.5
8,519 8,726 (2.4)
Sabre 1,277 1,131 12.9
Other 40 34 17.6
Less: Intersegment revenues (342) (333) 2.7
Total operating revenues 9,494 9,558 (0.7)
Expenses
Wages, salaries and benefits 3,430 3,186 7.7
Aircraft fuel 763 819 (6.8)
Depreciation and amortization 667 638 4.5
Commissions to agents 586 623 (5.9)
Other rentals and landing fees 493 436 13.1
Maintenance, materials and
repairs 480 453 6.0
Food service 352 339 3.8
Aircraft rentals 322 285 13.0
Other operating expenses 1,733 1,507 15.0
Total operating expenses 8,826 8,286 6.5
Operating Income 668 1,272 (47.5)
Other Income (Expense)
Interest income 46 67 (31.3)
Interest expense (187) (189) (1.1)
Interest capitalized 62 43 44.2
Minority interest (27) (25) 8.0
Miscellaneous - net 59 (18) *
(47) (122) (61.5)
Income From Continuing Operations
Before Income Taxes 621 1,150 (46.0)
Income tax provision 259 457 (43.3)
Income From Continuing Operations 362 693 (47.8)
Income From Discontinued
Operations (net of applicable
income taxes) - 6 -
Gain on Sale of Discontinued
Operations (net of applicable
income taxes) 64 - *
Net Earnings $ 426 $ 699 (39.1)
Continued on next page
* Greater Than 100%
</TABLE>
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing
Operations $ 2.32 $ 4.02
Discontinued Operations 0.41 0.04
Net Earnings $ 2.73 $ 4.06
Diluted
Income from Continuing
Operations $ 2.25 $ 3.88
Discontinued Operations 0.40 0.03
Net Earnings $ 2.65 $ 3.91
Number of Shares Used in
Computation
Basic 156 172
Diluted 161 179
</TABLE>
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AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Three Months Ended
June 30, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,751 $3,789 (1.0)
- AMR Eagle 340 289 17.6
Cargo 164 169 (3.0)
Other 273 250 9.2
4,528 4,497 0.7
Expenses
Wages, salaries and benefits 1,557 1,452 7.2
Aircraft fuel 414 404 2.5
Commissions to agents 298 322 (7.5)
Depreciation and amortization 268 258 3.9
Other rentals and landing fees 241 215 12.1
Maintenance, materials and 222 223 (0.4)
repairs
Food service 185 175 5.7
Aircraft rentals 162 143 13.3
Other operating expenses 773 697 10.9
Total operating expenses 4,120 3,889 5.9
Operating Income 408 608 (32.9)
Other Expense (56) (41) 36.6
Earnings Before Income Taxes $ 352 $ 567 (37.9)
Pre-tax Margin 7.8% 12.6% (4.8) pts.
Sabre
Revenues $ 639 $ 577 10.7
Operating Expenses 543 468 16.0
Operating Income 96 109 (11.9)
Other Income 4 1 *
Earnings Before Income Taxes $ 100 $ 110 (9.1)
Pre-tax Margin 15.6% 19.1% (3.5) pts.
</TABLE>
* Greater Than 100%
<PAGE> 12AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Six Months Ended
June 30, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $7,071 $7,367 (4.0)
- AMR Eagle 611 545 12.1
Cargo 309 332 (6.9)
Other 528 482 9.5
8,519 8,726 (2.4)
Expenses
Wages, salaries and benefits 3,019 2,836 6.5
Aircraft fuel 763 819 (6.8)
Commissions to agents 586 623 (5.9)
Depreciation and amortization 521 516 1.0
Other rentals and landing fees 469 419 11.9
Maintenance, materials and repairs 479 452 6.0
Food service 352 339 3.8
Aircraft rentals 322 285 13.0
Other operating expenses 1,563 1,402 11.5
Total operating expenses 8,074 7,691 5.0
Operating Income 445 1,035 (57.0)
Other Expense (62) (103) (39.8)
Earnings Before Income Taxes $ 383 $ 932 (58.9)
Pre-tax Margin 4.5% 10.7% (6.2) pts.
Sabre
Revenues $1,277 $1,131 12.9
Operating Expenses 1,069 907 17.9
Operating Income 208 224 (7.1)
Other Income 41 3 *
Earnings Before Income Taxes $ 249 $ 227 9.7
Pre-tax Margin 19.5% 20.1% (0.6) pts.
</TABLE>
* Greater Than 100%
<PAGE> 13
Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 28,908 27,923 3.5
Available seat miles (millions) 40,406 38,963 3.7
Cargo ton miles (millions) 511 509 0.4
Passenger load factor 71.5% 71.7% (0.2) pts.
Breakeven load factor 63.2% 58.9% 4.3 pts.
Passenger revenue yield per
passenger mile (cents) 12.97 13.57 (4.4)
Passenger revenue per available
seat mile (cents) 9.28 9.72 (4.5)
Cargo revenue yield per ton
mile (cents) 31.67 32.75 (3.3)
Operating expenses per available
seat mile (cents) 9.31 9.25 0.6
Fuel consumption (gallons,
in millions) 745 711 4.8
Fuel price per gallon (cents) 53.0 55.0 (3.6)
Fuel price per gallon, excluding
fuel taxes (cents) 48.4 50.3 (3.8)
Operating aircraft at period-end 697 641 8.7
AMR Eagle:
Revenue passenger miles (millions) 885 708 25.0
Available seat miles (millions) 1,422 1,099 29.4
Passenger load factor 62.2% 64.5% (2.3) pts.
Operating aircraft at period-end 260 206 26.2
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 85,600 81,400
Other 12,800 10,100
Total Airline Group 98,400 91,500
Sabre 12,000 11,300
Other 1,400 13,000
Total 111,800 115,800
</TABLE>
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Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 54,198 53,311 1.7
Available seat miles (millions) 78,109 76,670 1.9
Cargo ton miles (millions) 942 1,005 (6.3)
Passenger load factor 69.4% 69.5% (0.1) pts.
Breakeven load factor 64.9% 58.6% 6.3 pts.
Passenger revenue yield per
passenger mile (cents) 13.05 13.82 (5.6)
Passenger revenue per available
seat mile (cents) 9.05 9.61 (5.8)
Cargo revenue yield per ton
mile (cents) 32.36 32.65 (0.9)
Operating expenses per available
seat mile (cents) 9.46 9.30 1.7
Fuel consumption (gallons, in
millions) 1,432 1,392 2.9
Fuel price per gallon (cents) 51.0 56.9 (10.4)
Fuel price per gallon, excluding
fuel taxes (cents) 46.6 52.0 (10.4)
Operating aircraft at period-end 697 641 8.7
AMR Eagle:
Revenue passenger miles (millions) 1,591 1,323 20.3
Available seat miles (millions) 2,633 2,170 21.3
Passenger load factor 60.4% 61.0% (0.6) pts.
Operating aircraft at period-end 260 206 26.2
</TABLE>
