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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 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 April 21, 1999 by the Company as Exhibit 99.1
which is included herein. This press release was issued to
report first quarter 1999 earnings and to announce the
acceleration of the retirement of nine DC-10 widebody aircraft
and 16 Boeing 727 narrowbody aircraft.
Item 7. Financial Statements and Exhibits
The following exhibits are 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: April 22, 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, April 21, 1999
AMR REPORTS FIRST QUARTER EARNINGS OF
$56 MILLION BEFORE SPECIAL ITEMS;
BOARD ALSO APPROVES FLEET CHANGES
FORT WORTH, Texas - AMR Corp., parent of American Airlines
Inc., today reported first-quarter net earnings of $56 million,
or $0.34 per common share diluted, before gains on the sales of
certain assets. This was an 81 percent decrease compared with
net earnings of $290 million, or $1.62 per common share diluted
and adjusted for AMR's 1998 stock split, during the same period
in 1998. Including the gains, AMR earned $158 million, or $0.96
per common share diluted.
"We are obviously disappointed that the illegal job action
undertaken by the Allied Pilots Association leadership so
dramatically impacted our first quarter financial results," said
Donald J. Carty, AMR's Chairman and CEO. "At the same time, the
American Airlines team, including the thousands of pilots who
reported to work during the job action, demonstrated their
commitment and professionalism by serving our customers admirably
during adverse circumstances."
AMR also announced that as it prepares for the growth
associated with the delivery of more than 115 new aircraft
between 1999 and 2001, American Airlines has decided to
accelerate the retirement of nine DC-10 widebody aircraft and 16
Boeing 727 narrowbodies. This will eliminate American's entire
DC-10 fleet by the end of 2000. The retirement of the 727 fleet
will advance one year to the end of 2003, instead of 2004 as
originally planned.
The new aircraft deliveries fuel the airline's continued
growth plans, but the earlier retirements keep American's
capacity in line with expected demand, which has slowed primarily
due to weaker growth in international markets. Including the
earlier retirements, American is positioned for average annual
growth of approximately 3 to 3.5 percent through 2003.
-- more --
<PAGE> 6
AMR Reports First Quarter Earnings
April 21, 1999
Page 2
"We will continue to grow the airline and look for new
market opportunities. These accelerated retirements will not
affect our total capacity until 2000 and 2001; they do, however
underscore our commitment to keep capacity growth in line with
global economic growth," said Carty. "This decision also
demonstrates the flexibility of American's fleet planning to
replace older aircraft with more efficient Boeing aircraft that
the company is receiving over the next several years."
Among AMR's first-quarter highlights:
- -AMR Corp. board of directors authorized management to repurchase
up to an additional $500 million of its common stock, bringing
the cumulative total of AMR's repurchase programs since 1997 to
$2.6 billion.
- -American, British Airways, Canadian Airlines, Cathay Pacific and
Qantas implemented the oneworld(TM) alliance.
- -AA successfully booked its first reservation for the year 2000,
validating the airline's extensive planning and investment for
the turn of the century.
- -American Airlines dedicated the new $120 million Terminal "B"
facility at DFW, adding nine gates to its operations.
- -AA celebrated the 40th anniversary of transcontinental jet
service by announcing a new $1 billion terminal at New York
Kennedy. American retraced the first flight from New York-
Kennedy to Los Angeles with a new Boeing 757 painted in 1959
livery.
- -AA received its first new Boeing 777-200IGW and 737-800, each
fitted with the "new-look" interiors for the American fleet. On
March 2, American introduced the two new aircraft types into
passenger service on the same day - an industry first.
- -AA announced it will strengthen its ties with Iberia and Finnair
with their incorporation into the oneworld alliance. AA also
began codesharing with Fiji's Air Pacific, and expanded
codesharing with TAM and Qantas.
- -AMR sold three non-airline subsidiaries - AMR Services, AMR
Combs and TeleService Resources - to increase focus on its core
airline and related technology businesses. The sales resulted in
an after tax gain of $64 million.
- -AMR sold a portion of its Equant holdings, which resulted in an
after tax and minority interest gain of $37 million.
--more--
<PAGE> 7
AMR Reports First Quarter Earnings
April 21, 1999
Page 3
- -AA announced new service between Houston Hobby and Washington's
Reagan National Airports, building on the success of its Houston
Hobby-New York LaGuardia service.
- -AA completed the outfitting of its entire fleet with life-saving
defibrillators and enhanced medical kits - an industry first.
- -American Eagle began new ERJ-145 Regional Jet (RJ) service
between Dallas/Fort Worth and both Knoxville, Tenn., and Jackson,
Miss. The airline announced new RJ service between Chicago
O'Hare and both Pittsburgh and Greenville/Spartanburg, S.C. It
also announced it will in April replace turboprops with RJs
between Chicago and both Madison, Wis. and Grand Rapids, Mich.
- -American Eagle completed the acquisition of Business Express, a
regional airline serving the northeastern United States.
- -Nexos, AA's exclusive new Spanish and Portuguese language in-
flight magazine, debuted on all Latin American flights.
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.
###
Other AMR Corp. news releases can be accessed via the Internet.
The address is
http://www.amrcorp.com/corpcomm.htm
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,320 $3,578 (7.2)
- AMR Eagle 271 256 5.9
Cargo 145 163 (11.0)
Other 255 232 9.9
3,991 4,229 (5.6)
Sabre 638 554 15.2
Other revenues 20 17 17.6
Less: Intersegment revenues (166) (166) -
Total operating revenues 4,483 4,634 (3.3)
Expenses
Wages, salaries and benefits 1,665 1,559 6.8
Aircraft fuel 349 415 (15.9)
Depreciation and amortization 316 318 (0.6)
Commissions to agents 288 301 (4.3)
Maintenance, materials and repairs 257 230 11.7
Other rentals and landing fees 240 213 12.7
Food service 167 164 1.8
Aircraft rentals 160 142 12.7
Other operating expenses 883 744 18.7
Total operating expenses 4,325 4,086 5.8
Operating Income 158 548 (71.2)
Other Income (Expense)
Interest income 25 34 (26.5)
Interest expense (92) (97) (5.2)
Interest capitalized 33 18 83.3
Minority interest (16) (13) 23.1
Miscellaneous - net 65 (13) *
15 (71) *
Income From Continuing Operations
Before Income Taxes 173 477 (63.7)
Income tax provision 79 192 (58.9)
Income From Continuing Operations 94 285 (67.0)
Income From Discontinued
Operations (net of applicable
income taxes) - 5 -
Gain on Sale of Discontinued
Operations (net of applicable
income taxes) 64 - *
Net Earnings $ 158 $ 290 (45.5)
</TABLE>
* Greater Than 100%
Continued on next page
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Before Discontinued Operations $ 0.59 $ 1.65
Discontinued Operations 0.40 0.03
Net Earnings $ 0.99 $ 1.68
Diluted
Before Discontinued Operations $ 0.57 $ 1.59
Discontinued Operations 0.39 0.03
Net Earnings $ 0.96 $ 1.62
Number of Shares Used in
Computation
Basic 159 173
Diluted 164 179
</TABLE>
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AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,320 $3,578 (7.2)
- AMR Eagle 271 256 5.9
Cargo 145 163 (11.0)
Other 255 232 9.9
3,991 4,229 (5.6)
Expenses
Wages, salaries and benefits 1,462 1,384 5.6
Aircraft fuel 349 415 (15.9)
Commissions to agents 288 301 (4.3)
Maintenance, materials and repairs 257 229 12.2
Depreciation and amortization 253 258 (1.9)
Other rentals and landing fees 228 204 11.8
Food service 167 164 1.8
Aircraft rentals 160 142 12.7
Other operating expenses 790 705 12.1
Total operating expenses 3,954 3,802 4.0
Operating Income 37 427 (91.3)
Other Expense (6) (62) (90.3)
Earnings Before Income Taxes $ 31 $ 365 (91.5)
Pre-tax Margin 0.8% 8.6% (7.8) pts.
Sabre
Revenues $ 638 $ 554 15.2
Operating Expenses 526 439 19.8
Operating Income 112 115 (2.6)
Other Income 37 2 *
Earnings Before Income Taxes $ 149 $ 117 27.4
Pre-tax Margin 23.4% 21.1% 2.3 pts.
</TABLE>
* Greater Than 100%
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Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended
March 31, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 25,290 25,388 (0.4)
Available seat miles (millions) 37,703 37,707 -
Cargo ton miles (millions) 431 496 (13.1)
Passenger load factor 67.1% 67.3% (0.2) pts.
Breakeven load factor 66.4% 58.3% 8.1 pts.
Passenger revenue yield per
passenger mile (cents) 13.13 14.09 (6.8)
Passenger revenue per
available seat mile (cents) 8.81 9.49 (7.2)
Cargo revenue yield per
ton mile (cents) 33.18 32.55 1.9
Operating expenses per
available seat mile (cents) 9.63 9.35 3.0
Fuel consumption (gallons,
in millions) 687 681 0.9
Fuel price per gallon (cents) 48.9 58.9 (17.0)
Fuel price per gallon,
excluding fuel taxes (cents) 44.6 53.9 (17.3)
Operating aircraft at period-end 683 639 6.9
AMR Eagle:
Revenue passenger miles (millions) 706 615 14.8
Available seat miles (millions) 1,211 1,071 13.1
Passenger load factor 58.3% 57.4% 0.9 pts.
Operating aircraft at period-end 256 202 26.7
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 82,500 80,800
Other 11,600 10,200
Total Airline Group 94,100 91,000
Sabre 12,200 10,700
Other 1,400 12,900
Total 107,700 114,600
</TABLE>
