UNITED STATES
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: March 29, 2005
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)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events
AMR Corporation is filing herewith its Eagle Eye communication to
investors. This document includes (a) actual fuel price, unit
cost and capacity and traffic information for January and
February and (b) forecasts of unit cost, revenue performance and
fuel prices, capacity and traffic estimates, liquidity expectations
and other income/expense estimates.
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: March 29, 2005
AMR EAGLE EYE
March 29, 2005
Statements in this report 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 document the words "expects", "plans," "anticipates,"
"indicates," "believes," "forecast," "guidance," "outlook" and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements include, without
limitation, the Company's expectations concerning operations and
financial conditions, including changes in capacity, revenues,
and costs, future financing plans and needs, overall economic
conditions, plans and objectives for future operations, and the
impact on the Company of its results of operations in recent
years and the sufficiency of its financial resources to absorb
that impact. Other forward-looking statements include statements
which do not relate solely to historical facts, such as, without
limitation, statements which discuss the possible future effects
of current known trends or uncertainties, or which indicate that
the future effects of known trends or uncertainties cannot be
predicted, guaranteed or assured. All forward-looking statements
in this report are based on information available to the Company
on the date of this report. The Company undertakes no obligation
to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise. This document includes forecasts of unit cost and
revenue performance, fuel prices, capacity and traffic estimates,
other income/expense estimates, and statements regarding the
Company's liquidity, each of which is a forward-looking
statement. Forward-looking statements are subject to a number of
factors that could cause the Company's actual results to differ
materially from the Company's expectations. The following
factors, in addition to other possible factors not listed, could
cause the Company's actual results to differ materially from
those expressed in forward-looking statements: changes in
economic, business and financial conditions; the Company's
substantial indebtedness; continued high fuel prices and the
availability of fuel; further increases in the price of fuel; the
impact of events in Iraq; conflicts in the Middle East or
elsewhere; the highly competitive business environment faced by
the Company, with increasing competition from low cost carriers
and financially distressed carriers; historically low fare levels
and fare simplification initiatives (both of which could result
in a further deterioration of the revenue environment); the
ability of the Company to reduce its costs further without
affecting operational performance and service levels;
uncertainties with respect to the Company's international
operations; changes in the Company's business strategy; actions
by U.S. or foreign government agencies; the possible occurrence
of additional terrorist attacks; another outbreak of a disease
(such as SARS) that affects travel behavior; uncertainties with
respect to the Company's relationships with unionized and other
employee work groups; the inability of the Company to satisfy
existing financial or other covenants in certain of its credit
agreements; the availability and terms of future financing; the
ability of the Company to reach acceptable agreements with third
parties; and increased insurance costs and potential reductions
of available insurance coverage. Additional information
concerning these and other factors is contained in the Company's
Securities and Exchange Commission filings, including but not
limited to the Company's Annual Report on Form 10-K for the year
ended December 31, 2004.
This Eagle Eye provides updated guidance for the first quarter
and the full year 2005.
Performance Update
Costs: For the first quarter, AA Mainline and consolidated AMR
unit cost guidance is in-line with prior guidance at 10.0 cents
and 10.5 cents respectively.
Revenue: First quarter mainline unit revenue is expected to
increase between 3.5% to 4.5% year over year. Consolidated first
quarter unit revenue is expected to increase between 2.9% to 3.9%
year over year.
Liquidity: We expect to end the first quarter with a cash and
short-term investment balance well over $3 billion, including
approximately $500 million in restricted cash and short-term
investments.
Kathy Bonanno
Director Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
1Q05: Hedged on 15% of consumption at approximately $40/bbl
WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Jan Feb Mar 1Q05 2005
Fuel Price (dollars/gal) 1.36 1.42 1.57 1.45 1.62
Fuel Consumption (MM gals) 268.9 249.0 274.2 792.1 3,251.1
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
Jan Feb Mar 1Q05 2005
AMR Cost per ASM 10.31 10.73 10.40 10.47 10.55
American Mainline Operations Cost per ASM
Actual Forecast
Jan Feb Mar 1Q05 2005
AA Cost per ASM 9.81 10.19 9.91 9.96 10.06
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
Jan Feb Mar 1Q05 2005
ASMs 14,449 13,330 15,021 42,801 178,440
Domestic 9,497 8,804 9,921 28,222 116,379
International 4,952 4,526 5,100 14,579 62,061
Traffic 10,599 9,628 12,088 32,314 136,211
Regional Affiliate Operations
Actual Forecast
Jan Feb Mar 1Q05 2005
ASMs 959 920 1,033 2,912 12,606
Traffic 581 584 725 1,890 8,646
Below the Line Income/Expenses
Total Other Income/(Expense) is estimated at ($200) million
in the first quarter of 2005