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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: October 20, 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 October 20, 1999 by the Company as Exhibit 99.1
which is included herein. This press release was issued to
report third quarter earnings.
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: October 20, 1999
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
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Exhibit 99.1
Contact: John Hotard
Fort Worth, Texas
817-967-1577
FOR RELEASE: Wednesday, Oct. 20,1999
AMR REPORTS THIRD QUARTER EARNINGS OF $279 MILLION
FORT WORTH, Texas - AMR Corp., parent of American Airlines
Inc., today reported third quarter earnings of $279 million, or
$1.76 per common share diluted, a 36 percent decrease compared to
net earnings of $433 million, or $2.49 per common share diluted,
for the same period in 1998.
"It's difficult to compare this quarter with the record
third quarter earnings of last year because American benefited
from strikes at two carriers in 1998," said Donald J. Carty,
American's chairman and CEO. "And despite the disruption in many
parts of our operation caused by Hurricane Floyd, our earnings
per share were our third highest ever for a third quarter period.
"During the third quarter, we were pleased to welcome 1,700
new employees to the American Airlines team as Reno Air was
integrated into American on Aug. 31," Carty said. "This added
180-plus flights to the western part of our route structure.
Also, in the Northeast, the network added 300 daily flights as
American Eagle's Business Express Airlines unit transitioned into
our reservation system."
Carty also pointed out that the airline group's gross sales
from Internet commerce continue to grow each month. In the third
quarter, on American's AA.com Web site alone, gross sales were
$133 million, an increase of 303 percent from the same period in
1998. Weekly gross revenue from AA.com was as much as $14.3
million in the third quarter.
Among AMR's other third-quarter highlights:
- The AADVANTAGE program made major changes, making it much
easier for members to keep miles from expiring.
- more -
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AMR REPORTS THIRD QUARTER EARNINGS
Oct. 20, 1999
Page 2
- American Airlines changed its on-board cell phone policy to
allow calls while still at the gate.
- The National Mediation Board upheld the decision of
American's passenger service and reservation agents to reject
union representation.
- American Eagle put its first 37-seat ERJ-135 regional jet
into service.
- American Airlines was the only airline in the Fortune 100 to
receive the top rating for its Y2K preparedness by Weiss Ratings.
- American Airlines Cargo experienced its best quarter for
freight traffic and implemented new customer friendly automation
systems.
- American Airlines said it would install fully flat sleeper
seats in First Class on its Boeing 767-300 aircraft.
- American Eagle opened a spacious new terminal at Los Angeles
International Airport, offering covered boarding.
- American Airlines began DFW-Osaka service with Boeing 777
aircraft.
- American's Anne McNamara received the first National
Diversity Leadership Award given by the Coalition of Bar
Associations of Color.
- Hispanic magazine honored American as having one of the top
25 minority supplier programs.
- American Airlines welcomed Finnair and Iberia to the
oneworld alliance.
- American Airlines and EVA Airways of Taiwan announced a new
marketing agreement.
- American Airlines moved its Paris operation from Orly
Airport to Roissy-Charles de Gaulle airport.
- AMR was named by FORTUNE Magazine as one of the 50 best
companies for black, Hispanic and Asian employment - the only
passenger airline to make the list.
- Total worldwide travel bookings processed through the Sabre
computer reservations system were 113 million for the quarter, an
increase of 6.2 percent over the same period last year.
EDITORS: AMR's Chief Financial Officer, Gerard J. Arpey, will be
available to answer media inquiries 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
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,900 $3,871 0.7
- AMR Eagle 352 304 15.8
Cargo 160 158 1.3
Other 267 257 3.9
4,679 4,590 1.9
Sabre 617 604 2.2
Other 20 17 17.6
Less: Intersegment revenues (166) (165) 0.6
Total operating revenues 5,150 5,046 2.1
Expenses
Wages, salaries and benefits 1,734 1,632 6.3
Aircraft fuel 456 400 14.0
Depreciation and amortization 317 328 (3.4)
Commissions to agents 314 311 1.0
Maintenance, materials and
repairs 263 251 4.8
Other rentals and landing fees 261 231 13.0
Food service 196 184 6.5
Aircraft rentals 161 142 13.4
Other operating expenses 901 835 7.9
Total operating expenses 4,603 4,314 6.7
Operating Income 547 732 (25.3)
Other Income (Expense)
Interest income 26 37 (29.7)
Interest expense (107) (93) 15.1
Interest capitalized 27 28 (3.6)
Minority interest (13) (12) 8.3
Miscellaneous - net (9) 16 *
(76) (24) *
Income From Continuing Operations
Before Income Taxes 471 708 (33.5)
Income tax provision 192 277 (30.7)
Income From Continuing Operations 279 431 (35.3)
Discontinued Operations
(net of applicable income taxes) - 2 -
Net Earnings $ 279 $ 433 (35.6)
</TABLE>
Continued on next page.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing
Operations $ 1.86 $ 2.56
Discontinued Operations - 0.01
Net Earnings $ 1.86 $ 2.57
Diluted
Income from Continuing
Operations $ 1.76 $ 2.48
Discontinued Operations - 0.01
Net Earnings $ 1.76 $ 2.49
Number of Shares Used in
Computation
Basic 150 169
Diluted 155 174
</TABLE>
* Greater than 100%
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
<PAGE> 9
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $10,971 $11,238 (2.4)
- AMR Eagle 963 849 13.4
Cargo 469 490 (4.3)
Other 795 739 7.6
13,198 13,316 (0.9)
Sabre 1,894 1,735 9.2
Other 60 51 17.6
Less: Intersegment revenues (508) (498) 2.0
Total operating revenues 14,644 14,604 0.3
Expenses
Wages, salaries and benefits 5,164 4,817 7.2
Aircraft fuel 1,219 1,219 -
Depreciation and amortization 984 966 1.9
Commissions to agents 900 934 (3.6)
Maintenance, materials and
repairs 743 704 5.5
Other rentals and landing fees 754 667 13.0
Food service 548 523 4.8
Aircraft rentals 483 427 13.1
Other operating expenses 2,634 2,343 12.4
Total operating expenses 13,429 12,600 6.6
Operating Income 1,215 2,004 (39.4)
Other Income (Expense)
Interest income 72 103 (30.1)
Interest expense (294) (280) 5.0
Interest capitalized 89 71 25.4
Minority interest (40) (37) 8.1
Miscellaneous - net 50 (3) *
(123) (146) (15.8)
Income From Continuing Operations
Before Income Taxes 1,092 1,858 (41.2)
Income tax provision 451 734 (38.6)
Income From Continuing Operations 641 1,124 (43.0)
Discontinued Operations
(net of applicable income taxes) 64 8 *
Net Earnings $ 705 $ 1,132 (37.7)
</TABLE>
Continued on next page.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing
Operations $ 4.17 $ 6.57
Discontinued Operations 0.41 0.05
Net Earnings $ 4.58 $ 6.62
Diluted
Income from Continuing
Operations $ 4.04 $ 6.34
Discontinued Operations 0.40 0.05
Net Earnings $ 4.44 $ 6.39
Number of Shares Used in
Computation
Basic 154 171
Diluted 159 177
</TABLE>
* Greater than 100%
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
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AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(in millions)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,900 $ 3,871 0.7
- AMR Eagle 352 304 15.8
Cargo 160 158 1.3
Other 267 257 3.9
4,679 4,590 1.9
Expenses
Wages, salaries and benefits 1,528 1,449 5.5
Aircraft fuel 456 400 14.0
Commissions to agents 314 311 1.0
Depreciation and amortization 276 265 4.2
Maintenance, materials and
repairs 263 250 5.2
Other rentals and landing fees 248 222 11.7
Food service 196 184 6.5
Aircraft rentals 161 142 13.4
Other operating expenses 815 741 10.0
Total operating expenses 4,257 3,964 7.4
Operating Income 422 626 (32.6)
Other Expense (69) (27) *
Earnings Before Income Taxes $ 353 $ 599 (41.1)
Pre-tax Margin 7.5% 13.1% (5.6) pts.
Sabre
Revenues $ 617 $ 604 2.2
Operating Expenses 496 506 (2.0)
Operating Income 121 98 23.5
Other Income 4 15 (73.3)
Earnings Before Income Taxes $ 125 $ 113 10.6
Pre-tax Margin 20.3% 18.7% 1.6 pts.
</TABLE>
* Greater than 100%
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
<PAGE> 12
AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(in millions)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $10,971 $11,238 (2.4)
- AMR Eagle 963 849 13.4
Cargo 469 490 (4.3)
Other 795 739 7.6
13,198 13,316 (0.9)
Expenses
Wages, salaries and benefits 4,547 4,285 6.1
Aircraft fuel 1,219 1,219 -
Commissions to agents 900 934 (3.6)
Depreciation and amortization 797 781 2.0
Maintenance, materials and
repairs 742 702 5.7
Other rentals and landing fees 717 641 11.9
Food service 548 523 4.8
Aircraft rentals 483 427 13.1
Other operating expenses 2,378 2,143 11.0
Total operating expenses 12,331 11,655 5.8
Operating Income 867 1,661 (47.8)
Other Expense (131) (130) 0.8
Earnings Before Income Taxes $ 736 $ 1,531 (51.9)
Pre-tax Margin 5.6% 11.5% (5.9) pts.
Sabre
Revenues $1,894 $ 1,735 9.2
Operating Expenses 1,565 1,413 10.8
Operating Income 329 322 2.2
Other Income 45 18 *
Earnings Before Income Taxes $ 374 $ 340 10.0
Pre-tax Margin 19.7% 19.6% 0.1 pts.
</TABLE>
* Greater than 100%
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
<PAGE> 13
AIRLINE GROUP
OPERATING STATISTICS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 30,325 29,132 4.1
Available seat miles (millions) 42,245 39,806 6.1
Cargo ton miles (millions) 541 480 12.7
Passenger load factor 71.8% 73.2% (1.4) pts.
Breakeven load factor 63.3% 60.2% 3.1 pts.
Passenger revenue yield per
passenger mile (cents) 12.86 13.29 (3.2)
Passenger revenue per
available seat mile (cents) 9.23 9.73 (5.1)
Cargo revenue yield per ton
mile (cents) 29.22 32.61 (10.4)
Operating expenses per
available seat mile (cents) 9.21 9.22 (0.1)
Fuel consumption (gallons,
in millions) 780 728 7.1
Fuel price per gallon (cents) 55.9 53.1 5.3
Fuel price per gallon, excluding
fuel taxes (cents) 51.0 48.4 5.4
Operating aircraft at period-end 703 645 9.0
AMR Eagle:
Revenue passenger miles (millions) 905 753 20.2
Available seat miles (millions) 1,502 1,156 29.9
Passenger load factor 60.2% 65.1% (4.9) pts.
Operating aircraft at period-end 268 207 29.5
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 87,700 82,300
Other 13,100 10,800
Total Airline Group 100,800 93,100
Sabre 11,700 11,700
Other 1,300 13,100
Total 113,800 117,900
</TABLE>
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AIRLINE GROUP
OPERATING STATISTICS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 84,522 82,443 2.5
Available seat miles (millions) 120,354 116,476 3.3
Cargo ton miles (millions) 1,483 1,485 (0.1)
Passenger load factor 70.2% 70.8% (0.6) pts.
Breakeven load factor 64.3% 59.2% 5.1 pts.
Passenger revenue yield per
passenger mile (cents) 12.98 13.63 (4.8)
Passenger revenue per available
seat mile (cents) 9.12 9.65 (5.5)
Cargo revenue yield per ton
mile (cents) 31.21 32.64 (4.4)
Operating expenses per available
seat mile (cents) 9.38 9.27 1.2
Fuel consumption (gallons, in
millions) 2,212 2,120 4.3
Fuel price per gallon (cents) 52.7 55.6 (5.2)
Fuel price per gallon, excluding
fuel taxes (cents) 48.1 50.8 (5.3)
Operating aircraft at period-end 703 645 9.0
AMR Eagle:
Revenue passenger miles (millions) 2,496 2,076 20.2
Available seat miles (millions) 4,135 3,326 24.3
Passenger load factor 60.4% 62.4% (2.0) pts.
Operating aircraft at period-end 268 207 29.5
</TABLE>
