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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: March 17, 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 March 17, 1999 by the Company as Exhibit 99.1
which is included herein. This press release was issued to
announce that the Company's board of directors has authorized
management to repurchase up to an additional $500 million of its
outstanding common stock and to report the estimated pre-tax
earnings impact of the Allied Pilots Association illegal job
action during the first quarter of 1999.
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.
AMR CORPORATION
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: March 18, 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, March 17, 1999
AMR TO INCREASE SHARE REPURCHASE PROGRAM TO $2.6 BILLION;
ESTIMATES IMPACT OF PILOT JOB ACTION
FORT WORTH, Texas -- AMR Corp., parent company of American
Airlines Inc., today announced that the company's board of
directors has authorized management to repurchase up to an
additional $500 million of its common stock. The latest
authorization brings the cumulative total of AMR's repurchase
programs since 1997 to $2.6 billion. In addition, the company
announced that it anticipates completion of the $500 million
repurchase program initiated in October 1998 by the end of the
first quarter 1999.
"We remain confident in our business prospects for 1999 and
beyond," said Donald J. Carty, AMR's chairman and CEO. "The
latest repurchase authorization reinforces our commitment to
return to shareholders capital in excess of that required for
prudent growth of our core businesses. While our first quarter
financial results will be adversely impacted by the recent Allied
Pilots Association job action, we believe the company is well
positioned for long-term success."
AMR estimates that the illegal APA job action resulted in a
pre-tax earnings impact of approximately $200 to $225 million
during the first quarter 1999.
"Our February financial results showed a greater loss of
higher yield traffic than we had anticipated," said Gerard J.
Arpey, AMR's senior vice president of planning and chief
financial officer. "In addition to the losses associated with
the canceled flights, customers were reluctant to book American
for a period of time after the job action." In testimony before
the U. S. District Court on Feb. 17, AMR stated that losses due
to the job action could easily exceed $150 million.
- more -
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AMR TO INCREASE SHARE REPURCHASE PROGRAM TO
$2.6 BILLION; ESTIMATES IMPACT OF PILOT JOB ACTION
March 17, 1999
Page 2
As a result of the job action, AMR expects to report first
quarter 1999 diluted earnings per share below the current First
Call consensus of $0.65 per share. The company believes that
first quarter 1999 earnings will likely fall between $0.30 and
$0.35 per share, excluding special items. "Unfortunately, a
quarter that looked like it would come in generally in line with
analyst expectations has been dramatically impacted by the job
action," said Arpey.
Separately, AMR indicated that it expects first quarter 1999
results for The SABRE Group to be consistent with the current
First Call consensus.
The discussion above includes certain forecasts that
constitute forward-looking statements. These matters that deal
with expectations about the future are subject to a number of
factors that could cause actual results to differ materially from
our expectations, including further analysis of revenue and cost
data, general economic conditions, competitive factors within the
airline industry that could affect the demand for air travel,
changes in the Company's business strategy, and changes in
commodity prices. Share repurchases, including block
repurchases, are expected to be made in the open market or in
private transactions, from time to time, depending on market
conditions, and may be discontinued at any time.
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Current AMR Corp. news releases can be accessed via the Internet.
The address is http://www.amrcorp.com/corpcomm.htm
