<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: January 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)
<PAGE> 2
Item 5. Other Events
AMR Corporation (the "Company") is filing herewith a press
release issued today (January 20, 1999) by the Company as Exhibit
99.1 which is included herein. This press release was issued to
report fourth quarter and full year 1998 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: January 20, 1999
<PAGE> 4
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
<PAGE> 5
Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
AMR REPORTS FOURTH QUARTER EARNINGS OF $182 MILLION
1998 EARNINGS OF $1.3 BILLION AN ALL-TIME RECORD
FOR RELEASE: Wednesday, Jan. 20, 1999
FORT WORTH, Texas -- AMR Corporation, parent company of
American Airlines Inc., today reported fourth quarter net
earnings of $182 million ($1.09 per common share diluted) after a
special item for the fourth quarter, as compared to $208 million
($1.16 per common share diluted, adjusted for last year's 2-for-1
stock split) after special items in the same period in 1997.
Excluding a special item totaling $15 million after taxes,
AMR reported fourth quarter earnings of $167 million ($1.00 per
common share diluted). This compares with net earnings of $195
million ($1.09 per common share diluted and adjusted for the
stock split), excluding certain special items, during the same
period in 1997.
AMR's fourth quarter results brought the company's full-year
1998 net earnings to a record $1.3 billion ($7.52 per common
share diluted), including the special item. This compares with
net earnings including special items of $985 million ($5.39 per
common share diluted and adjusted for the stock split) in 1997.
"As the numbers clearly demonstrate, we had an outstanding
year in 1998, thanks in large part to the hard work of our
employees, management's dedicated focus on the airline and
related technology businesses, and very favorable external
factors such as the strong domestic economy and lower fuel
prices," said Donald J. Carty, AMR's Chairman and CEO. "We've
worked hard to build shareholder value for our investors, and our
great performance last year will mean another record pay-out this
March for American's employee profit sharing plans."
Carty added that although 1998 was an excellent year, AMR's
fourth quarter earnings were down year-over-year, largely due to
decreased yields, especially in international markets.
- more -
<PAGE> 6
AMR Fourth Quarter Earnings
January 20, 1999
Page 2
"We are cautiously optimistic about 1999, as we carefully
monitor the balance of supply and demand in the marketplace and
continue our cost-containment initiatives," Carty said.
"However, there's no question that 1999 will be a very good year
for American's customers as we take delivery of 45 new Boeing
aircraft and 31 regional jets, upgrade airport facilities,
refurbish aircraft interiors, continue network expansion, and
enhance passenger service."
Among AMR's fourth quarter highlights:
o AA announced and completed the tender offer for Reno Air and
American Eagle announced it would buy Business Express to
strengthen the overall network and boost presence in the western
U.S. and New England.
o AA welcomed Finnair to the oneworld alliance.
o AA announced a frequent flyer plan partnership with Alaska
Airlines and Horizon Air.
o AA reduced slightly its 1999 growth plan to reflect changing
global economic conditions, through increased aircraft
retirements and deferred international service. The additional
aircraft retirements should save an estimated $40 million in
associated maintenance costs during the next three years.
Sixteen 727-200, DC-10-10 and MD-11 aircraft will leave the fleet
in 1999.
o AMR announced sales agreements for three non-airline
businesses -- AMR Services, AMR Combs and TeleService Resources
(TSR) -- to better focus on core airline and related technology
businesses.
o AA announced the launch of Nexos, a new Latin inflight
magazine as part of the airline's overall $11.5-million
initiative to improve service for Latin customers. The airline
also observed the 10th anniversary of its Latin Desk, celebrating a
decade of reservations services to Spanish-speaking customers.
o AA introduced voice recognition technology to its automated
flight information system.
o AA launched new DFW-Osaka service and announced new Los
Angles-Paris (Orly) service, starting June 1.
o AMR completed Aerolineas Argentinas and Austral equity
transactions.
o American Eagle began new regional jet service to Abilene,
Texas; Houston (Hobby); Montgomery, Ala.; the new Northwest
Arkansas Regional Airport; and between Columbus, Ohio and Miami.
The regional airline also announced new jet service to Long
Island-Islip (MacArthur), N.Y.; Jackson, Miss.; Memphis, Tenn.;
and Peoria, Ill.
<PAGE> 7
AMR Fourth Quarter Earnings
January 20, 1999
Page 3
Statements in this news release contain various forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, which represent the Company's
expectations or beliefs concerning future events. When used in
this release, the word "expects" and similar expressions are
intended to identify forward-looking statements. All forward-
looking statements in this release are based upon information
available to the Company on the date of this release. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking
statements are subject to a number of factors that could cause
actual results to differ materially from our expectations.
Additional information concerning these and other factors is
contained in the Company's Securities and Exchange Commission
filings, included but not limited to the Form 10-K/A No. 1 for
the year ended Dec. 31, 1997.
###
<PAGE> 8
AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
December 31, Percent
1998 1997 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger- American Airlines $3,457 $3,566 (3.1)
- AMR Eagle 272 251 8.4
Cargo 166 180 (7.8)
Other 257 231 11.3
4,152 4,228 (1.8)
The SABRE Group 571 443 28.9
Management Services Group 33 22 50.0
Less: Intergroup revenues (155) (152) 2.0
Total operating revenues 4,601 4,541 1.3
Expenses
Wages, salaries and benefits 1,690 1,576 7.2
Aircraft fuel 385 466 (17.4)
Depreciation and amortization 321 306 4.9
Commissions to agents 292 303 (3.6)
Maintenance, materials
and repairs 233 230 1.3
Other rentals and landing fees 208 218 (4.6)
Food service 152 167 (9.0)
Aircraft rentals 142 144 (1.4)
Other operating expenses 844 751 12.4
Total operating expenses 4,267 4,161 2.5
Operating Income 334 380 (12.1)
Other Income (Expense)
Interest income 37 40 (7.5)
Interest expense (92) (110) (16.4)
Interest capitalized 33 10 *
Minority interest (3) (4) (25.0)
Miscellaneous - net (3) 24 *
(28) (40) (30.0)
Income From Continuing
Operations
Before Income Taxes 306 340 (10.0)
Income tax provision 124 132 (6.1)
Income From Continuing Operations 182 208 (12.5)
Income From Discontinued
Operations (net of applicable
income taxes) - - -
Net Earnings $ 182 $ 208 (12.5)
Continued on next page
* Greater Than 100%
</TABLE>
<PAGE> 9
AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS (CONTINUED)
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
December 31,
1998 1997
<S> <C> <C>
Earnings Per Common Share
Basic
Before Discontinued Operations $ 1.12 $ 1.20
Discontinued Operations - -
Net Earnings $ 1.12 $ 1.20
Diluted
Before Discontinued Operations $ 1.09 $ 1.16
Discontinued Operations - -
Net Earnings $ 1.09 $ 1.16
Number of Shares Used in Computation
Basic 162 173
Diluted 167 179
</TABLE>
<PAGE> 10
AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Twelve Months
Ended December 31, Percent
1998 1997 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger- American Airlines $14,695 $14,310 2.7
- AMR Eagle 1,121 1,017 10.2
Cargo 656 687 (4.5)
Other 977 889 9.9
17,449 16,903 3.2
The SABRE Group 2,306 1,789 28.9
Management Services Group 119 95 25.3
Less: Intergroup revenues (669) (603) 10.9
Total operating revenues 19,205 18,184 5.6
Expenses
Wages, salaries and benefits 6,507 6,056 7.4
Aircraft fuel 1,604 1,923 (16.6)
Depreciation and amortization 1,287 1,225 5.1
Commissions to agents 1,226 1,278 (4.1)
Maintenance, materials
and repairs 937 863 8.6
Other rentals and landing fees 875 876 (0.1)
Food service 675 677 (0.3)
Aircraft rentals 569 574 (0.9)
Other operating expenses 3,187 2,805 13.6
Total operating expenses 16,867 16,277 3.6
Operating Income 2,338 1,907 22.6
Other Income (Expense)
Interest income 140 140 -
Interest expense (372) (420) (11.4)
Interest capitalized 104 20 *
Minority interest (40) (36) 11.1
Miscellaneous - net (6) 13 *
(174) (283) (38.5)
Income From Continuing Operations
Before Income Taxes 2,164 1,624 33.3
Income tax provision 858 651 31.8
Income From Continuing Operations 1,306 973 34.2
Income From Discontinued
Operations (net of
applicable income taxes) 8 12 (33.3)
Net Earnings $1,314 $ 985 33.4
Continued on next page
* Greater Than 100%
</TABLE>
<PAGE> 11
AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS (CONTINUED)
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Twelve Months
Ended December 31,
1998 1997
<S> <C> <C>
Earnings Per Common Share
Basic
Before Discontinued Operations $ 7.73 $ 5.45
Discontinued Operations 0.05 0.07
Net Earnings $ 7.78 $ 5.52
Diluted
Before Discontinued Operations $ 7.48 $ 5.32
Discontinued Operations 0.04 0.07
Net Earnings $ 7.52 $ 5.39
Number of Shares Used in
Computation
Basic 169 178
Diluted 175 183
</TABLE>
<PAGE> 12
AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Three Months Ended
December 31, Percent
1998 1997 Change
<S> <C> <C> <C>
Airline Group
Revenues
Passenger - American Airlines $3,457 $3,566 (3.1)
- AMR Eagle 272 251 8.4
Cargo 166 180 (7.8)
Other 257 231 11.3
4,152 4,228 (1.8)
Expenses
Wages, salaries and benefits 1,486 1,421 4.6
Aircraft fuel 385 466 (17.4)
Commissions to agents 292 303 (3.6)
Depreciation and amortization 257 257 -
Maintenance, materials
and repairs 232 229 1.3
Other rentals and landing fees 195 207 (5.8)
Food service 152 167 (9.0)
Aircraft rentals 142 144 (1.4)
Other operating expenses 716 678 5.6
Total operating expenses 3,857 3,872 (0.4)
Operating Income 295 356 (17.1)
Other Income (Expense)
Interest income 34 37 (8.1)
Interest expense (93) (110) (15.5)
Interest capitalized 33 10 *
Miscellaneous - net (3) 20 *
(29) (43) (32.6)
Earnings Before Income Taxes $ 266 $ 313 (15.0)
Pre-tax Margin 6.4% 7.4% (1.0) pts.
The SABRE Group
Revenues $ 571 $ 443 28.9
Operating Expenses 543 422 28.7
Operating Income 28 21 33.3
Other Income 3 6 (50.0)
Earnings Before Income Taxes $ 31 $ 27 14.8
Pre-tax Margin 5.4% 6.1% (0.7) pts.
Management Services Group
Revenues $ 172 $ 147 17.0
Less: Revenues From
Discontinued Operations (139) (125) 11.2
Revenues From Continuing Operations 33 22 50.0
Operating Expenses 158 143 10.5
Less: Expenses From
Discontinued Operations (136) (124) 9.7
Operating Expenses From Continuing
Operations 22 19 15.8
Operating Income From Continuing
Operations 11 3 *
Other Income From Continuing
Operations 1 1 -
Earnings From Continuing Operations
Before Income Taxes $ 12 $ 4 *
Pre-tax Margin From Continuing
Operations 36.4% 18.2% 18.2 pts.
</TABLE>
* Greater Than 100%
<PAGE> 13
AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Twelve Months
Ended December 31, Percent
1998 1997 Change
<S> <C> <C> <C>
Airline Group
Revenues
Passenger- American Airlines $14,695 $14,310 2.7
- AMR Eagle 1,121 1,017 10.2
Cargo 656 687 (4.5)
Other 977 889 9.9
17,449 16,903 3.2
Expenses
Wages, salaries and benefits 5,763 5,480 5.2
Aircraft fuel 1,604 1,923 (16.6)
Commissions to agents 1,226 1,278 (4.1)
Depreciation and amortization 1,038 1,038 -
Maintenance, materials
and repairs 934 861 8.5
Other rentals and landing fees 833 836 (0.4)
Food service 675 677 (0.3)
Aircraft rentals 569 574 (0.9)
Other operating expenses 2,856 2,667 7.1
Total operating expenses 15,498 15,334 1.1
Operating Income 1,951 1,569 24.3
Other Income (Expense)
Interest income 131 133 (1.5)
Interest expense (375) (423) (11.3)
Interest capitalized 104 20 *
Miscellaneous - net (20) 4 *
(160) (266) (39.8)
Earnings Before Income Taxes $1,791 $1,303 37.5
Pre-tax Margin 10.3% 7.7% 2.6 pts.
The SABRE Group
Revenues $2,306 $1,789 28.9
Operating Expenses 1,956 1,476 32.5
Operating Income 350 313 11.8
Other Income 21 11 90.9
Earnings Before Income Taxes $ 371 $ 324 14.5
Pre-tax Margin 16.1% 18.1% (2.0) pts.
Management Services Group
Revenues $ 632 $ 610 3.6
Less: Revenues From
Discontinued Operations (513) (515) (0.4)
Revenues From Continuing Operations 119 95 25.3
Operating Expenses 577 561 2.9
Less: Expenses From
Discontinued Operations (495) (491) 0.8
Operating Expenses From
Continuing Operations 82 70 17.1
Operating Income From
Continuing Operations 37 25 48.0
Other Income From
Continuing Operations 5 8 (37.5)
Earnings From Continuing Operations
Before Income Taxes $ 42 $ 33 27.3
Pre-tax Margin From
Continuing Operations 35.3% 34.7% 0.6 pts.
</TABLE>
* Greater Than 100%
<PAGE> 14
AMR CORPORATION
NOTES TO CONSOLIDATED STATEMENT OF OPERATIONS AND
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
1.All share and earnings per share amounts for 1997 have been
restated to give effect to the stock split on June 9, 1998.
The 1997 earnings per share amounts also have been restated as
required to comply with Statement of Financial Accounting
Standards No. 128, "Earnings Per Share."
2.On September 29, 1998, the Company announced its plan to sell
most of the companies that comprise the largest unit of the
Management Services Group - AMR Global Services. The
companies to be disposed of include AMR Services, AMR Combs
and TeleService Resources. Accordingly, the results of
operations for these companies have been reflected in the
consolidated statement of operations as income from
discontinued operations for all periods presented.
3. The minority interest in the earnings of consolidated
subsidiaries has not been allocated to a reporting segment.
4.Certain amounts from 1997 have been reclassified to conform
with 1998 presentation.
<PAGE> 15
Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
December 31, Percent
1998 1997 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 26,512 25,913 2.3
Available seat miles (millions) 38,821 38,281 1.4
Cargo ton miles (millions) 489 525 (6.9)
Passenger load factor 68.3% 67.7% 0.6 pts.
Breakeven load factor 62.1% 60.1% 2.0 pts.
Passenger revenue yield per
passenger mile (cents) 13.04 13.76 (5.2)
Passenger revenue per available
seat mile (cents) 8.91 9.32 (4.4)
Cargo revenue yield per
ton mile (cents) 33.50 34.13 (1.8)
Operating expenses per available
seat mile (cents)* 9.20 9.39 (2.0)
Fuel consumption (gallons, in
millions) 706 691 2.2
Fuel price per gallon (cents) 52.7 65.2 (19.2)
Fuel price per gallon, excluding
fuel taxes (cents) 47.9 60.1 (20.3)
Operating aircraft at period-end 648 641 1.1
AMR Eagle:
Revenue passenger miles (millions) 712 629 13.2
Available seat miles (millions) 1,145 1,058 8.2
Passenger load factor 62.1% 59.5% 2.6 pts.
Operating aircraft at period-end 209 199 5.0
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 81,700 80,000
Other 10,700 10,000
Total Airline Group 92,400 90,000
The SABRE Group 11,800 8,800
Management Services Group 12,700 12,700
Total 116,900 111,500
</TABLE>
* 1998 amount not adjusted for the impact of the special item
<PAGE> 16
Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Twelve Months
Ended December 31, Percent
1998 1997 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 108,955 107,026 1.8
Available seat miles (millions) 155,297 153,917 0.9
Cargo ton miles (millions) 1,974 2,032 (2.9)
Passenger load factor 70.2% 69.5% 0.7 pts.
Breakeven load factor 59.9% 61.0% (1.1)pts.
Passenger revenue yield per
passenger mile (cents) 13.49 13.37 0.9
Passenger revenue per available
seat mile (cents) 9.46 9.30 1.7
Cargo revenue yield per ton
mile (cents) 32.85 33.78 (2.8)
Operating expenses per available
seat mile (cents)* 9.25 9.27 (0.2)
Fuel consumption (gallons,
in millions) 2,826 2,773 1.9
Fuel price per gallon (cents) 54.9 67.1 (18.2)
Fuel price per gallon, excluding
fuel taxes (cents) 50.1 62.1 (19.3)
Operating aircraft at period-end 648 641 1.1
AMR Eagle:
Revenue passenger miles (millions) 2,788 2,553 9.2
Available seat miles (millions) 4,471 4,218 6.0
Passenger load factor 62.4% 60.5% 1.9 pts.
Operating aircraft at period-end 209 199 5.0
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 81,600 80,500
Other 10,400 10,100
Total Airline Group 92,000 90,600
The SABRE Group 11,400 8,500
Management Services Group 12,900 14,800
Total 116,300 113,900
</TABLE>
* 1998 amount not adjusted for the impact of the special item
