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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: June 18, 2001
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 is filing herewith a press release issued by
American Airlines, Inc. ("American", a wholly owned subsidiary of
AMR Corporation) on June 18, 2001 as Exhibit 99.1 which is
included herein. This press release was issued to announce a
reduction in American's capacity resulting from the sluggish U.S.
economy and that AMR expects its second quarter loss to exceed
$100 million.
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: June 18, 2001
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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: Monday, June 18, 2001
AMR TRIMS CAPACITY AS SLUGGISH U.S. ECONOMY AND HIGH
FUEL PRICES COMBINE TO PRODUCE SECOND QUARTER LOSS
FORT WORTH, Texas - AMR Corp., the parent company of
American Airlines, Inc. and TWA Airlines, LLC, said today that it
expects a second quarter loss in excess of $100 million as it
continues to feel the effects of a sluggish U.S. economy and high
fuel prices. The company also said if current conditions persist
it anticipates a loss for the full year 2001.
"The softening U.S. economy has driven a sharp reduction in
demand for business travel," said Tom Horton, AMR's senior vice
president and chief financial officer. "At the same time, fuel
prices remain persistently high. We don't foresee a near-term
recovery in demand so we expect the balance of the year to be
very challenging."
In response to industry conditions, AMR will retire 22
aircraft, including TWA LLC's entire fleet of 19 DC-9s. These
aircraft, originally scheduled to leave the fleet over the course
of the next three years, will now be retired by the first quarter
of 2002.
Horton noted this action will begin to affect the second
half of 2001 and will decrease full year 2002 capacity by
approximately one percent, better matching supply with demand.
In addition, by retiring the TWA LLC DC-9 fleet, AMR will avoid
the capital costs associated with making the aircraft compatible
with the rest of American's fleet and the cost inefficiencies of
operating a small fleet.
Although TWA LLC operates the DC-9s on routes to and from
its St. Louis hub, the capacity reduction driven by the
retirement of these aircraft will be rationalized across AMR's
entire network. Total departures at St. Louis will, in fact,
grow modestly year-over-year in 2002.
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AMR Trims Capacity
June18, 2001
Page 2
"The St. Louis hub was one of the key assets we acquired
from TWA and a strong St. Louis hub continues to be one of the
cornerstones of our network strategy," Horton said.
This capacity action is in addition to American's other
recent schedule adjustments, which included the announcement of
suspension of service in the Los Angeles-Paris and Chicago-Rome
markets.
American, which is the world's largest airline and one of
the financially strongest, said it expects that these steps will
fortify the airline for the future. "In this environment,
capacity restraint combined with rigorous cost and capital
spending controls are the right steps to take to preserve our
financial strength," said Horton.
In a separate development, AMR will take an after-tax charge
of approximately $425 million in the second quarter to write down
American's fleet of Fokker 100 aircraft and American Eagle's
fleets of ATR-42 and Saab 340B turboprop aircraft, in accordance
with SFAS 121, "Accounting for the Impairment of Long-Lived
Assets".
American Airlines operates a fleet of 724 aircraft and
American Eagle, its regional affiliate, operates 272 turboprop
and regional jet aircraft. TWA LLC operates 179 aircraft. The
three airlines serve nearly 250 cities.
Statements in this news release contain forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Act of
1934, as amended, which represent the Company's expectations or
beliefs concerning future events. When used in this release, the
words "expects," "anticipates," 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. These
factors include: general economic conditions, commodity prices,
and the ability to successfully integrate TWA Airlines LLC's
operations into American Airlines. 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, 2000.
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Current AMR Corp. news releases can be accessed via the Internet.
The address is http://www.amrcorp.com/corpcomm.htm