<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 19, 2000
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 on January 19, 2000 by the Company as Exhibit 99.1
which is included herein. This press release was issued to
report fourth quarter and full year 1999 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, 2000
<PAGE> 4
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
<PAGE> 5
Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
FOR RELEASE: Wednesday, Jan. 19, 2000
AMR REPORTS FOURTH QUARTER EARNINGS OF
$105 MILLION BEFORE SPECIAL ITEMS
FORT WORTH, Texas -- AMR Corporation, parent company of
American Airlines, Inc., today reported fourth quarter net
earnings of $105 million, or $0.69 per common share diluted,
before special items. This compares to net earnings of $167
million, or $1.00 per common share diluted, before a special item
in the same period in 1998.
"The fourth quarter was a milestone for us with the
announced spin-off of Sabre to our shareholders," said Donald J.
Carty, American's chairman and chief executive officer. "This was
the last of the non-airline businesses under the AMR corporate
umbrella and we can now focus all of our attention to maintaining
our airline industry leadership.
"Financially, we had a decent quarter, although higher fuel
costs and lower bookings due to the millennium celebration and
the Y2K issue did impact it."
Profit sharing will also be paid for the sixth consecutive
year, Carty said. Employees will divide $204 million, the fourth
highest payout since profit sharing began.
After accounting for four special items noted below, AMR
reported net earnings of $280 million ($1.84 per common share
diluted) for the quarter, as compared to net earnings of $182
million ($1.09 per common share diluted) in 1998.
- more -
<PAGE> 6
AMR Fourth Quarter Earnings
Jan. 19, 2000
Page 2
The special items include:
- Gain of $92 million ($0.60 per common share diluted) on sale
of preferred stock of Canadian International Airlines Limited
(Canadian) and recognition of the tax benefit resulting from the
tax loss on the investment.
- Gain of $80 million ($0.53 per common share diluted) on the
sale of a portion of Equant N.V., net of minority interest.
- Increase of $28 million ($0.19 per common share diluted) in
passenger revenue resulting from a change in estimate.
- Provision of $25 million ($0.17 per common share diluted)
for certain litigation items.
<TABLE>
<CAPTION>
1999 Fourth Quarter Results
(in millions, except per share Diluted
amounts) Amount earnings
(net of per
tax) share
<S> <C> <C>
Net earnings before special items $105 $0.69
Gain on sale of preferred stock of
Canadian and recognition of the
tax benefit resulting from the
tax loss on the investment 92 0.60
Gain on sale of a portion of
Equant N.V., net of minority
interest 80 0.53
Increase in passenger revenue
resulting from a change in
estimate 28 0.19
Provision for certain litigation
items (25) (0.17)
Net earnings as reported $280 $1.84
</TABLE>
AMR's fourth quarter results brought the company's full-year
1999 net earnings to $737 million, or $4.68 per common share
diluted, before special items. This compares with net earnings
of $1.3 billion, or $7.52 per common share diluted, in 1998.
Including special items, AMR's full-year 1999 earnings were $985
million, or $6.26 per common share diluted.
- more -
<PAGE> 7
AMR Fourth Quarter Earnings
Jan. 19, 2000
Page 3
"We are quite excited about 2000," Carty said. "American
Airlines added 45 new Boeing aircraft to its fleet last year and
will take delivery on 41 more this year. American Eagle accepted
34 regional jets - including its first ERJ135 - in 1999 and will
add another 29 RJs this year. Our American family grew by about
2,000 employees as we successfully integrated Reno Air, and
American Eagle began integrating Business Express Airline into
its operation.
"While we continue to be concerned about the price of fuel,
we are encouraged by the strength of the U.S. economy and more
favorable recent trends in industry capacity," Carty said.
"In addition, the modernization of our fleet, our many
service and product enhancements, and our success in e-commerce
marketing during 1999 all position American well for the year
2000," he added.
----
Editor's note: AMR's Chief Financial Officer, Gerard J. Arpey,
will be available to answer questions during a telephone news
conference on Wednesday, Jan. 19, from
3 p.m. to 3:45 p.m. EST. Reporters interested in joining the
conference should call 817-967-1577 for details.
----
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 represents 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 on 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, including but not limited to the Form 10-K for the year
ended Dec. 31, 1998.
Detailed financial information follows.
<PAGE> 8
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
December 31, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,736 $3,457 8.1
- AMR Eagle 331 272 21.7
Cargo 174 166 4.8
Other 236 264 (10.6)
4,477 4,159 7.6
Other 11 20 (45.0)
Less: Intersegment revenues (1) (12) (91.7)
Total operating revenues 4,487 4,167 7.7
Expenses
Wages, salaries and benefits 1,559 1,493 4.4
Aircraft fuel 477 385 23.9
Commissions to agents 262 292 (10.3)
Depreciation and amortization 295 258 14.3
Maintenance, materials and
repairs 260 232 12.1
Other rentals and landing fees 224 197 13.7
Food service 192 152 26.3
Aircraft rentals 147 142 3.5
Other operating expenses 801 710 12.8
Total operating expenses 4,217 3,861 9.2
Operating Income 270 306 (11.8)
Other Income (Expense)
Interest income 33 30 10.0
Interest expense (98) (92) 6.5
Interest capitalized 29 33 (12.1)
Miscellaneous - net 14 - -
(22) (29) (24.1)
Income From Continuing
Operations Before Income Taxes 248 277 (10.5)
Income tax provision 39 113 (65.5)
Income From Continuing Operations 209 164 27.4
Discontinued Operations (net of
applicable income taxes and
minority interest 71 18 *
Net Earnings $ 280 $ 182 53.8
</TABLE>
Continued on next page.
<PAGE> 9
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS - (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
December 31,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing
Operations $ 1.42 $ 1.01
Discontinued Operations 0.47 0.11
Net Earnings $ 1.89 $ 1.12
Diluted
Income from Continuing
Operations $ 1.37 $ 0.98
Discontinued Operations 0.47 0.11
Net Earnings $ 1.84 $ 1.09
Number of Shares Used in
Computation
Basic 148 162
Diluted 153 167
* Greater than 100%
</TABLE>
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
<PAGE> 10
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Year Ended
December 31, Percent
1999 1998 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $14,707 $14,695 0.1
- AMR Eagle 1,294 1,121 15.4
Cargo 643 656 (2.0)
Other 1,031 1,003 2.8
17,675 17,475 1.1
Other 71 72 (1.4)
Less: Intersegment revenues (16) (31) (48.4)
Total operating revenues 17,730 17,516 1.2
Expenses
Wages, salaries and benefits 6,120 5,793 5.6
Aircraft fuel 1,696 1,604 5.7
Commissions to agents 1,162 1,226 (5.2)
Depreciation and amortization 1,092 1,040 5.0
Maintenance, materials and
repairs 1,003 935 7.3
Other rentals and landing fees 942 839 12.3
Food service 740 675 9.6
Aircraft rentals 630 569 10.7
Other operating expenses 3,189 2,847 12.0
Total operating expenses 16,574 15,528 6.7
Operating Income 1,156 1,988 (41.9)
Other Income (Expense)
Interest income 89 114 (21.9)
Interest expense (393) (372) 5.6
Interest capitalized 118 104 13.5
Miscellaneous - net 36 (1) *
(150) (155) (3.2)
Income From Continuing Operations
Before Income Taxes 1,006 1,833 (45.1)
Income tax provision 350 719 (51.3)
Income From Continuing Operations 656 1,114 (41.1)
Income From Discontinued Operations
(net of applicable income
taxes and minority interest) 265 200 32.5
Gain on Sale of Discontinued
Operations (net of applicable
income taxes) 64 - *
Net Earnings $ 985 $ 1,314 (25.0)
</TABLE>
Continued on next page.
<PAGE> 11
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Year Ended
December 31,
1999 1998
<S> <C> <C>
Earnings Per Common Share
Basic
Income from Continuing
Operations $ 4.30 $ 6.60
Discontinued Operations 2.16 1.18
Net Earnings $ 6.46 $ 7.78
Diluted
Income from Continuing
Operations $ 4.17 $ 6.38
Discontinued Operations 2.09 1.14
Net Earnings $ 6.26 $ 7.52
Number of Shares Used in
Computation
Basic 152 169
Diluted 157 175
* Greater than 100%
</TABLE>
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>
Three Months Ended
December 31, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,736 $3,457 8.1
- AMR Eagle 331 272 21.7
Cargo 174 166 4.8
Other 236 264 (10.6)
4,477 4,159 7.6
Expenses
Wages, salaries and benefits 1,554 1,489 4.4
Aircraft fuel 477 385 23.9
Commissions to agents 262 292 (10.3)
Depreciation and amortization 294 258 14.0
Maintenance, materials and
repairs 260 232 12.1
Other rentals and landing fees 224 196 14.3
Food service 192 152 26.3
Aircraft rentals 147 142 3.5
Other operating expenses 796 716 11.2
Total operating expenses 4,206 3,862 8.9
Operating Income 271 297 (8.8)
Other Income (Expense)
Interest income 32 34 (5.9)
Interest expense (98) (92) 6.5
Interest capitalized 29 33 (12.1)
Miscellaneous - net (6) (4) 50.0
(43) (29) 48.3
Earnings Before Income Taxes $ 228 $ 268 (14.9)
Pre-tax Margin 5.1% 6.4% (1.3) pts.
Sabre
Revenues $ 541 $ 571 (5.3)
Operating Expenses 497 543 (8.5)
Operating Income 44 28 57.1
Other Income 110 3 *
Earnings Before Income Taxes $ 154 $ 31 *
Pre-tax Margin 28.5% 5.4% 23.1 pts.
* Greater than 100%
</TABLE>
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
<PAGE> 13
AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(in millions)
(Unaudited)
<TABLE>
<CAPTION>
Year Ended
December 31, Percent
1999 1998 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $14,707 $14,695 0.1
- AMR Eagle 1,294 1,121 15.4
Cargo 643 656 (2.0)
Other 1,031 1,003 2.8
17,675 17,475 1.1
Expenses
Wages, salaries and benefits 6,101 5,774 5.7
Aircraft fuel 1,696 1,604 5.7
Commissions to agents 1,162 1,226 (5.2)
Depreciation and amortization 1,091 1,039 5.0
Maintenance, materials and
repairs 1,002 934 7.3
Other rentals and landing fees 941 837 12.4
Food service 740 675 9.6
Aircraft rentals 630 569 10.7
Other operating expenses 3,174 2,859 11.0
Total operating expenses 16,537 15,517 6.6
Operating Income 1,138 1,958 (41.9)
Other Income (Expense)
Interest income 97 131 (26.0)
Interest expense (398) (374) 6.4
Interest capitalized 118 104 13.5
Miscellaneous - net 9 (21) *
(174) (160) 8.8
Earnings Before Income Taxes $ 964 $ 1,798 (46.4)
Pre-tax Margin 5.5% 10.3% (4.8) pts.
Sabre
Revenues $2,435 $ 2,306 5.6
Operating Expenses 2,062 1,956 5.4
Operating Income 373 350 6.6
Other Income 155 21 *
Earnings Before Income Taxes $ 528 $ 371 42.3
Pre-tax Margin 21.7% 16.1% 5.6 pts.
</TABLE>
* Greater than 100%
Note: Certain amounts from 1998 have been reclassified to
conform with 1999 presentation.
<PAGE> 14
AIRLINE GROUP
OPERATING STATISTICS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
December 31, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 27,545 26,512 3.9
Available seat miles (millions) 40,857 38,821 5.2
Cargo ton miles (millions) 585 489 19.6
Passenger load factor 67.4% 68.3% (0.9) pts.
Breakeven load factor 62.3% 62.1% 0.2 pts.
Passenger revenue yield per
passenger mile (cents) 13.56 13.04 4.0
Passenger revenue per
available seat mile (cents) 9.14 8.91 2.6
Cargo revenue yield per ton
mile (cents) 29.38 33.50 (12.3)
Operating expenses per
available seat mile (cents) 9.44 9.20 2.6
Fuel consumption (gallons,
in millions) 745 706 5.5
Fuel price per gallon (cents) 61.1 52.7 15.9
Fuel price per gallon,
excluding fuel taxes (cents) 55.9 47.9 16.7
Operating aircraft at period-end 697 648 7.6
AMR Eagle:
Revenue passenger miles (millions) 876 712 23.0
Available seat miles (millions) 1,504 1,145 31.4
(millions)
Passenger load factor 58.3% 62.1% (3.8) pts.
Operating aircraft at period-end 268 209 28.2
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 88,500 81,700
Other 12,800 10,700
Total Airline Group 101,300 92,400
Sabre 10,400 11,800
Other 1,300 12,700
Total 113,000 116,900
</TABLE>
<PAGE> 15
AIRLINE GROUP
OPERATING STATISTICS
(Unaudited)
<TABLE>
<CAPTION>
Year Ended
December 31, Percent
1999 1998 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 112,067 108,955 2.9
Available seat miles (millions) 161,211 155,297 3.8
Cargo ton miles (millions) 2,068 1,974 4.8
Passenger load factor 69.5% 70.2% (0.7) pts.
Breakeven load factor 63.8% 59.9% 3.9 pts.
Passenger revenue yield per
passenger mile (cents) 13.12 13.49 (2.7)
Passenger revenue per available
seat mile (cents) 9.12 9.46 (3.6)
Cargo revenue yield per ton
mile (cents) 30.70 32.85 (6.5)
Operating expenses per available
seat mile (cents) 9.39 9.25 1.5
Fuel consumption (gallons,
in millions) 2,957 2,826 4.6
Fuel price per gallon (cents) 54.8 54.9 (0.2)
Fuel price per gallon, excluding
fuel taxes (cents) 50.1 50.1 -
Operating aircraft at period-end 697 648 7.6
AMR Eagle:
Revenue passenger miles (millions) 3,371 2,788 20.9
Available seat miles (millions) 5,640 4,471 26.1
Passenger load factor 59.8% 62.4% (2.6) pts.
Operating aircraft at period-end 268 209 28.2
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 86,100 81,600
Other 12,600 10,400
Total Airline Group 98,700 92,000
Sabre 11,600 11,400
Other 1,350 12,900
Total 111,650 116,300
</TABLE>
###
