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: April 23, 2003
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)
2
Item 5. Other Events
AMR Corporation (the Company) is filing herewith a press release
issued on April 23, 2003 by the Company as Exhibit 99.1 which is
included herein. This press release was issued to report the
Company's first quarter 2003 results. The press release also notes
that the planned conference between AMR's Senior Vice President and
Chief Financial Officer Jeff Campbell and members of the financial
community and the media will not occur today as previously
scheduled.
Item 7. Financial Statements and Exhibits
The following exhibits are included herein:
99.1 Press Release
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: April 23, 2003
4
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
5
Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
corp.comm@aa.com
FOR RELEASE: Wednesday, April 23, 2003
AMR REPORTS FIRST-QUARTER LOSS OF $1.04 BILLION
FORT WORTH, Texas - AMR Corporation, the parent company of
American Airlines, Inc., today reported a first quarter net loss of
$1.04 billion, or $6.68 per share. This compares with a net loss
of $1.56 billion, or $10.09 per share, in the first quarter of
2002, which included a cumulative effect of accounting change of
$988 million, or $6.38 per share.
"Our first quarter results were truly dreadful." noted AMR's
Chairman and Chief Executive Officer Don Carty. "The results we
reported today clearly demonstrate the negative effects from high
fuel prices leading up to the Iraq war, and passenger concern about
traveling before and after fighting commenced," Carty said.
"The fact remains that we are confronting a brutally difficult
financial and business environment," he said. "We are beset on all
sides by a struggling economy, the continued uncertainties
regarding hostilities in the Middle East, concerns regarding the
SARS outbreak, fuel prices that are significantly higher than they
were a year ago, and fare levels that are at 30-year lows. All
told, it's a perilous climate and our success is far from assured,"
Carty said.
In keeping with the provisions of SFAS 109, AMR's first
quarter 2003 results do not reflect a benefit for federal and state
income taxes. Conversely, AMR's first quarter 2002 results did
reflect a tax benefit.
- more -
6
Comparison of First Quarter Results
(in millions)
2003 2002
Loss Before Income Taxes and
Cumulative Effect of
Accounting Change $(1,043) $ (863)
Income tax benefit - (288)
Loss Before Cumulative
Effect of Accounting Change (1,043) (575)
Cumulative Effect of
Accounting Change, Net of
Tax Benefit - (988)
Net Loss $(1,043) $(1,563)
Additionally, given the fluidity of AMR's current situation,
the planned conference between AMR's Senior Vice President and
Chief Financial Officer Jeff Campbell and members of the financial
community and the media will not occur today as previously
scheduled.
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 news 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, including the uncertain financial and
business environment for the Company even with the ratification of
the labor agreements. These uncertainties include, but are not
limited to, the struggling economy, high fuel prices, conflicts in
the Middle East, the SARS outbreak and historically low fare
levels. 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, 2002.
Detailed financial information follows:
7
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31, Percent
2003 2002 Change
Revenues
Passenger - American Airlines $3,394 $ 3,484 (2.6)
- Regional Affiliates 326 326 -
Cargo 134 134 -
Other revenues 266 219 21.5
Total operating revenues 4,120 4,163 (1.0)
Expenses
Wages, salaries and benefits 2,123 2,080 2.1
Aircraft fuel 729 527 38.3
Depreciation and amortization 338 341 (0.9)
Other rentals and landing fees 291 289 0.7
Commissions, booking fees
and credit card expense 255 320 (20.3)
Maintenance, materials and repairs 231 266 (13.2)
Aircraft rentals 190 226 (15.9)
Food service 149 170 (12.4)
Other operating expenses 683 673 1.5
Total operating expenses 4,989 4,892 2.0
Operating Loss (869) (729) 19.2
Other Income (Expense)
Interest income 13 18 (27.8)
Interest expense (192) (166) 15.7
Interest capitalized 19 22 (13.6)
Miscellaneous - net (14) (8) 75.0
(174) (134) 29.9
Loss Before Income Taxes and
Cumulative Effect of
Accounting Change (1,043) (863) 20.9
Income tax benefit - (288) *
Loss Before Cumulative
Effect of Accounting Change (1,043) (575) 81.4
Cumulative Effect of
Accounting Change, Net of
Tax Benefit - (988) *
Net Loss $(1,043) $ (1,563) (33.3)
Continued on next page
* Greater than 100%
Note 1: Certain amounts have been reclassified to conform with
2003 presentation.
Note 2: Regional Affiliates include American Eagle Airlines,
Inc., Executive Airlines, Inc., Trans States Airlines, Inc.
and Chautauqua Airlines, Inc.
8
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2003 2002
Basic and Diluted Loss Per Share
Before Cumulative Effect of
Accounting Change $ (6.68) $ (3.71)
Cumulative Effect of Accounting
Change - (6.38)
Net Loss $ (6.68) $(10.09)
Number of Shares Used in
Computation
Basic and Diluted 156 155
9
AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended
March 31, Percent
2003 2002 Change
American Airlines, Inc. Mainline Jet
Operations (except as noted)
Revenue passenger miles (millions) 27,838 27,817 0.1
Available seat miles (millions) 40,274 40,089 0.5
Cargo ton miles (millions) 490 463 5.8
Passenger load factor 69.1% 69.4% (0.3)pts.
Passenger revenue yield per
passenger mile (cents) 12.19 12.52 (2.6)
Passenger revenue per available seat
mile (cents) 8.43 8.69 (3.0)
Cargo revenue yield per ton
mile (cents) 27.38 28.74 (4.7)
Operating expenses per available
seat mile (cents) (*) 11.39 11.30 0.8
Operating expenses per available seat
mile (cents) (**) 12.44 11.37 9.4
Fuel consumption (gallons,in
millions) 725 745 (2.7)
Fuel price per gallon (cents) 94.0 67.2 39.9
Operating aircraft at period-end 812 852 (4.7)
Regional Affiliates
Revenue passenger miles (millions) 1,165 1,022 14.0
Available seat miles (millions) 1,987 1,728 15.0
Passenger load factor 58.6% 59.1% (0.5) pts.
AMR Corporation
Average Equivalent Number of Employees
American Airlines 92,200 97,800
Other 11,800 11,700
Total 104,000 109,500
* Excludes $423 million and $27 million of expenses incurred
related to Regional Affiliates in 2003 and 2002,
respectively.
** Includes $423 million and $27 million of expenses incurred
related to Regional Affiliates in 2003 and 2002,
respectively.
Note 1: Certain amounts have been reclassified to conform with
2003 presentation.
Note 2: American Airlines, Inc. 2003 operating expenses include
expenses incurred related to fixed fee per block hour
agreements with Regional Affiliates - American Eagle
Airlines, Inc., Executive Airlines, Inc., Trans States
Airlines, Inc. and Chautauqua Airlines, Inc. whereas 2002
operating expenses include expenses incurred related to
fixed fee per block hour agreements with Regional Affiliates
- Trans States Airlines, Inc. and Chautauqua Airlines, Inc.
Note 3: Regional Affiliates include American Eagle Airlines,
Inc., Executive Airlines, Inc., Trans States Airlines, Inc.
and Chautauqua Airlines, Inc.