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: June 22, 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 April and May and
(b) forecasts of unit cost, revenue performance and fuel prices,
capacity estimates, liquidity expectations and other
income/expense estimates and share count 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: June 22, 2005
AMR EAGLE EYE
June 22, 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 pricing transparency and 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 adversely 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 second quarter
and the full year 2005.
Performance Update
Costs: For the second quarter, AA Mainline unit costs are
expected to average 10.05 cents and consolidated AMR unit costs
are forecast to be 10.53 cents, with a fuel price of $1.65 per
gallon.
Revenue: Second quarter mainline unit revenue is expected to
increase between 6.2% and 7.2% year over year. Consolidated
second quarter unit revenue is expected to increase between 5.3%
and 6.3% year over year.
Liquidity: We expect to end the second quarter with a cash and
short-term investment balance well over $3.5 billion, including
approximately $500 million in restricted cash and short-term
investments. This balance includes the effect of a $75 million
dollar pension payment, made during June.
Kathy Bonanno
Director Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
2Q05: Hedged on 1.8% of consumption at approximately $26/bbl WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Apr May Jun 2Q05 2005
Fuel Price (dollars/gal) 1/ 1.65 1.62 1.68 1.65 1.64
Fuel Consumption (MM gals) 267.0 274.5 277.2 818.7 3,237.8
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
Apr May Jun 2Q05 2005
AMR Cost per ASM 1/ 10.62 10.42 10.56 10.53 10.55
AMR Cost per ASM (ex-fuel) 2/ 7.80 7.68 7.72 7.73 7.77
American Mainline Operations Cost per ASM
Actual Forecast
Apr May Jun 2Q05 2005
AA Cost per ASM 1/ 10.09 9.96 10.09 10.05 10.07
AA Cost per ASM (ex-fuel) 2/ 7.35 7.29 7.32 7.32 7.35
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
Apr May Jun 2Q05 2005
ASMs 14,609 15,113 15,246 44,968 178,296
Domestic 9,558 9,855 9,957 29,370 116,708
International 5,051 5,258 5,289 15,598 61,588
Traffic 11,313 11,813 12,582 35,708 138,634
Regional Affiliate Operations
Actual Forecast
Apr May Jun 2Q05 2005
ASMs 1,032 1,095 1,097 3,224 12,930
Traffic 720 779 828 2,328 8,955
AMR EAGLE EYE
Below the Line Income/Expenses
Total Other Income/(Expense) is estimated at ($175) million
in the first quarter of 2005
Share Count (millions) 3/
Basic Shares 163
Potentially Dilutive Shares
Stock Options 21
Convertible Debt 32
1/ 2005 data is as reported and includes a $55 million special
fuel tax credit received in 1Q05.
2/ The company believes that unit costs excluding fuel is a
useful measure to investors in monitoring the performance of
the company's costs excluding the volatility of fuel.
Reconciliation to GAAP follows:
Actual Forecast
Apr May Jun 2Q05 2005
AMR CASM (cents) 10.62 10.42 10.56 10.53 10.55
Less Fuel CASM (cents) 2.82 2.74 2.84 2.80 2.78
AMR CASM Excluding Fuel (cents) 7.80 7.68 7.72 7.73 7.77
Actual Forecast
Apr May Jun 2Q05 2005
AMR CASM Exluding
Regional Affiliates 10.09 9.96 10.09 10.05 10.07
Less Fuel CASM
(cents) 2.74 2.67 2.77 2.73 2.71
AMR CASM Excluding Regional
Affiliates and Fuel (cents) 7.35 7.29 7.32 7.32 7.36
3/ Stock options are calculated using an assumed average 2Q05 share price of
$11.61. The actual stock may vary from this amount depending on the actual
average share price during 2Q05.