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: December 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 unit cost, fuel
price, capacity and traffic information for October and November
and (b) forecasts of unit cost, revenue performance, fuel prices
and fuel hedging, 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: December 22, 2005
AMR EAGLE EYE
December 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 and fuel hedging, 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, characterized by 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; changes in the price of the
Company's common stock; 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 fourth quarter
and the full year 2005.
Performance Update
Costs: Unit cost forecasts are attached.
Revenue: Fourth quarter mainline unit revenue is expected to
increase between 12.5% and 13.5% year over year. Consolidated unit
revenue is expected to increase between 12.8% and 13.8% year over
year.
Liquidity: We expect to end the fourth quarter with a cash and
short-term investment balance over $4.0 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:
4Q05: Hedged on 8.3% of consumption at approximately $48/bbl WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Oct Nov Dec 4Q05 2005
Fuel Price (dollars/gal) 1/ 2.32 2.00 1.78 2.03 1.73
Fuel Consumption (MM gals) 259.3 254.8 265.1 779.2 3,236.8
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
Oct Nov Dec 4Q05 2005
AMR Cost per ASM 2/ 12.07 11.65 11.02 11.58 10.89
AMR Cost per ASM (ex-special
items) 3/ 12.07 11.65 11.26 11.66 10.91
AMR Cost per ASM (ex-fuel and
special items) 3/ 8.11 8.27 8.25 8.21 7.91
American Mainline Cost per ASM
Actual Forecast
Oct Nov Dec 4Q05 2005
AA Cost per ASM 2/ 11.49 11.11 10.56 11.05 10.37
AA Cost per ASM (ex-special
items) 3/ 11.49 11.11 10.82 11.13 10.39
AA Cost per ASM (ex-fuel and
special items) 3/ 7.67 7.80 7.88 7.79 7.48
Note: The increase in ex-fuel CASM versus prior guidance is attributable
to a rise in the company's stock price since the third quarter, an
end-of-year true-up to group insurance expense and write-offs related
to certain ground assets. Under the 1998 Long Term Incentive Plan,
and other compensation plans, as outlined in the Form 10-Q for the
quarterly period ended June 30, 2005 and other SEC filings, and in
accordance with Financial Accounting Standards No. 123, some
stock/equity based compensation expense is recognized each period
based on the company's current stock price. As such, this expense
will vary with the rise or fall of the company's stock price.
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
Oct Nov Dec 4Q05 2005
ASMs 14,109 13,964 14,570 42,643 176,128
Domestic 9,145 9,196 9,458 27,799 115,118
International 4,964 4,768 5,112 14,844 61,010
Traffic 10,885 10,844 11,478 33,207 138,355
Regional Affiliate Operations
Actual Forecast
Oct Nov Dec 4Q05 2005
ASMs 1,098 1,065 1,108 3,271 12,722
Traffic 796 774 783 2,353 8,941
AMR EAGLE EYE
Below the Line
Income/Expenses
Total Other Income/(Expense) is estimated at ($230) million in
the fourth quarter of 2005
Share Count
Basic Shares: 173 million
1/ 2005 amounts include a $55 million special fuel tax credit
received in 1Q05.
2/ Data is as reported and includes an expected $37 million gain in
December related to the 2003 retirement of certain Fokker 100
debt, as disclosed in footnote 3 of the Form 10-Q for the
quarterly period ended September 30, 2005. 2005 amounts
include a $55 million special fuel tax credit received in 1Q05
and a net charge of $58 million in 3Q05, reflecting a contract
termination and the reversal of an insurance reserve following
a favorable legal decision. In addition, the Company expects
to recognize some additional special items in the fourth quarter
related to restructuring and other initiatives designed to
generate additional revenues and reduce costs. The amount and
scope of these special items are not known at the present time.
3/ The company believes that unit costs excluding fuel and
special items are useful to investors in monitoring the
performance of the company's costs excluding the volatility of
fuel and one-time items. Reconciliation to GAAP follows:
Actual (cents) Forecast (cents)
Oct Nov Dec 4Q05 2005
AMR CASM 12.07 11.65 11.02 11.58 10.89
Special Items CASM - - 0.24 0.08 0.02
AMR CASM Excluding Special Items 12.07 11.65 11.26 11.66 10.91
Less Fuel CASM 3.96 3.38 3.01 3.45 3.00
AMR CASM Excluding Special Items
and Fuel 8.11 8.27 8.25 8.21 7.91
Actual (cents) Forecast (cents)
Oct Nov Dec 4Q05 2005
AA CASM 11.49 11.11 10.56 11.05 10.37
Special Items CASM - - 0.26 0.08 0.02
AA CASM Excluding Special Items 11.49 11.11 10.82 11.13 10.39
Less Fuel CASM 3.82 3.31 2.94 3.34 2.91
AA CASM Excluding Special Items
and Fuel 7.67 7.80 7.88 7.79 7.48