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)
|
Item
2.02
|
Results
of
Operations and Financial Condition
|
Item
9.01
|
Financial
Statements and Exhibits
|
|||||
(c)
Exhibits
|
||||||
Exhibit
99.1
|
Press
Release
of AMR dated October 17, 2007
|
AMR
CORPORATION
|
|
/s/
Kenneth
W. Wimberly
|
|
Kenneth
W.
Wimberly
|
|
Corporate
Secretary
|
Exhibit
|
Description
|
||
99.1
|
Press
Release
|
|
|
Exhibit
99.1
|
|
CONTACT:
|
Andy
Backover
|
|
|
Corporate
Communications
|
|
|
Fort
Worth,
Texas
|
|
|
817-967-1577
|
|
|
corp.comm@aa.com
|
·
|
In
September,
as part of its fleet renewal strategy and efforts to improve fleet
fuel
efficiency by more than 20 percent by 2020, American accelerated
three
Boeing 737s for delivery in the second half of 2009. Those three
737s are
part of American’s announced plan to accelerate the deliveries of 47
previously ordered
|
·
|
American
announced it will begin nonstop service from Chicago O’Hare International
Airport to Moscow’s Domodedovo International Airport on Monday, June 2,
2008. From Chicago, American is – or soon will be – providing
links to the world’s key developing economies in Russia, China, and India
as well as the established markets of Japan, Europe and Latin
America.
|
·
|
American
introduced DealFinder, a downloadable, computer desktop tool that
offers
customers exclusive, targeted, discounted fares to locations throughout
American’s network. The tool, available at
www.aa.com/dealfinder, searches for the lowest fares, allowing
customers to spend less time planning
travel.
|
·
|
American
Airlines Vacations launched its redesigned Web site that enhances the
customer’s shopping and booking experience on AAVacations.com. The
enhancements provide customers with convenient and flexible options
when
customizing vacation plans.
|
·
|
American
continued to grow and enhance its New York service into Europe,
announcing
that it will begin two new routes early next year to Milan, Italy,
and
Barcelona, Spain, from John F. Kennedy International Airport (JFK),
as
well as a second daily roundtrip between JFK and London’s
Stansted Airport. American also unveiled its state-of-the-art, $1.3
billion terminal at JFK as part of its continuing commitment to
become the
airline of choice in the New York
market.
|
·
|
AMR’s
wholly-owned subsidiary, American Eagle Airlines, Inc., made a $32
million
aircraft debt prepayment that brought AMR’s prepayment of debt on its
Canadair regional jets to $159 million this year. The final payment
released 10 CRJ-700 aircraft that were used to secure the debt.
Additionally, on Oct. 1 AMR said that American intends to prepay
$545
million in aircraft debt in the fourth quarter of 2007. The
prepayment is expected to initially eliminate approximately $25
million of
annual net interest expense and release 16 aircraft used to secure
the
loan.
|
·
|
American,
American Eagle, and Texas Aero Engine Services Limited (TAESL),
an
affiliated engine repair facility, received the coveted Federal
Aviation
Administration’s Diamond Award for excellence in training their Aviation
Maintenance Technicians (AMT).
|
Three
Months
Ended September 30,
|
Percent
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
Revenues
|
||||||||||||
Passenger
- American Airlines
|
$ |
4,750
|
$ |
4,657
|
2.0
|
|||||||
-
Regional Affiliates
|
648
|
644
|
0.6
|
|||||||||
Cargo
|
196
|
213
|
(8.0 | ) | ||||||||
Other
revenues
|
352
|
333
|
5.7
|
|||||||||
Total
operating revenues
|
5,946
|
5,847
|
1.7
|
|||||||||
Expenses
|
||||||||||||
Wages,
salaries and benefits
|
1,721
|
1,694
|
1.6
|
|||||||||
Aircraft
fuel
|
1,743
|
1,771
|
(1.6 | ) | ||||||||
Other
rentals and landing fees
|
328
|
317
|
3.5
|
|||||||||
Depreciation
and amortization
|
307
|
290
|
5.9
|
|||||||||
Maintenance,
materials and repairs
|
274
|
252
|
8.7
|
|||||||||
Commissions,
booking fees and credit card expense
|
270
|
284
|
(4.9 | ) | ||||||||
Aircraft
rentals
|
148
|
154
|
(3.9 | ) | ||||||||
Food
service
|
139
|
133
|
4.5
|
|||||||||
Other
operating expenses
|
697
|
668
|
4.3
|
|||||||||
Total
operating expenses
|
5,627
|
5,563
|
1.2
|
|||||||||
Operating
Income
|
319
|
284
|
12.3
|
|||||||||
Other
Income (Expense)
|
||||||||||||
Interest
income
|
90
|
80
|
12.5
|
|||||||||
Interest
expense
|
(227 | ) | (259 | ) | (12.4 | ) | ||||||
Interest
capitalized
|
3
|
7
|
(57.1 | ) | ||||||||
Miscellaneous
– net
|
(10 | ) | (97 | ) | (89.7 | ) | ||||||
(144 | ) | (269 | ) | (46.5 | ) | |||||||
Income
Before Income Taxes
|
175
|
15
|
*
|
|||||||||
Income
tax
|
-
|
-
|
-
|
|||||||||
Net
Income
|
$ |
175
|
$ |
15
|
*
|
Earnings
Per Share
|
||||||||
Basic
|
$ |
0.70
|
$ |
0.07
|
||||
Diluted
|
$ |
0.61
|
$ |
0.06
|
||||
Number
of Shares Used in Computation
|
||||||||
Basic
|
249
|
213
|
||||||
Diluted
|
300
|
237
|
Three
Months
Ended
September
30,
|
Percent
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
American
Airlines, Inc. Mainline Jet Operations
|
||||||||||||
Revenue
passenger miles (millions)
|
36,290
|
36,382
|
(0.3 | ) | ||||||||
Available
seat miles (millions)
|
43,271
|
44,532
|
(2.8 | ) | ||||||||
Cargo
ton miles (millions)
|
514
|
557
|
(7.7 | ) | ||||||||
Passenger
load factor
|
83.9 | % | 81.7 | % |
2.2
pts.
|
|||||||
Passenger
revenue yield per passenger mile (cents)
|
13.09
|
12.80
|
2.3
|
|||||||||
Passenger
revenue per available seat mile (cents)
|
10.98
|
10.46
|
5.0
|
|||||||||
Cargo
revenue yield per ton mile (cents)
|
38.14
|
38.32
|
(0.5 | ) | ||||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
(1)
|
11.45
|
11.02
|
3.9
|
|||||||||
Fuel
consumption (gallons, in millions)
|
725
|
741
|
(2.2 | ) | ||||||||
Fuel
price per gallon (cents)
|
216.5
|
215.8
|
0.3
|
|||||||||
Regional
Affiliates
|
||||||||||||
Revenue
passenger miles (millions)
|
2,611
|
2,578
|
1.3
|
|||||||||
Available
seat miles (millions)
|
3,442
|
3,475
|
(0.9 | ) | ||||||||
Passenger
load factor
|
75.9 | % | 74.2 | % |
1.7
pts.
|
|||||||
AMR
Corporation
|
||||||||||||
Average
Equivalent Number of Employees
|
||||||||||||
American
Airlines
|
72,000
|
73,000
|
||||||||||
Other
|
13,800
|
13,400
|
||||||||||
Total
|
85,800
|
86,400
|
(1)
|
Excludes
$701
million and $702 million of expense incurred related to Regional
Affiliates in 2007 and 2006,
respectively.
|
American
Airlines, Inc.
|
Three
Months
Ended September 30, 2007
|
|||||||||||||||
Entity
Results
|
RASM1
(cents)
|
Y-O-Y
Change
|
ASMs2
(billions)
|
Y-O-Y
Change
|
||||||||||||
DOT
Domestic
|
10.7
|
4.8 | % |
27.4
|
(2.5 | )% | ||||||||||
International
|
11.5
|
5.3
|
15.8
|
(3.3 | ) | |||||||||||
DOT
Latin America
|
11.6
|
3.5
|
7.3
|
0.1
|
||||||||||||
DOT
Atlantic
|
11.7
|
2.7
|
6.8
|
(0.2 | ) | |||||||||||
DOT
Pacific
|
10.9
|
21.0
|
1.7
|
(24.2 | ) |
American
Airlines, Inc.
|
Three
Months
Ended September 30, 2007
|
|||||||||||||||
Entity
Results
|
Load
Factor
(pts)
|
Y-O-Y
Change
(pts)
|
Yield
(cents)
|
Y-O-Y
Change
|
||||||||||||
DOT
Domestic
|
84.8
|
2.4
|
12.57
|
1.8 | % | |||||||||||
International
|
82.3
|
1.7
|
14.01
|
3.1
|
||||||||||||
DOT
Latin America
|
80.6
|
2.8
|
14.33
|
(0.1 | ) | |||||||||||
DOT
Atlantic
|
83.4
|
(0.4 | ) |
13.99
|
3.3
|
|||||||||||
DOT
Pacific
|
84.6
|
5.3
|
12.83
|
13.4
|
American
Airlines, Inc. Mainline Jet Operations
|
Three
Months
Ended September 30,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Total
operating expenses
|
$ |
5,657
|
$ |
5,610
|
||||
Less:
Operating expenses incurred related to Regional Affiliates
|
701
|
702
|
||||||
Operating
expenses excluding expenses incurred related to Regional
Affiliates
|
$ |
4,956
|
$ |
4,908
|
||||
American
mainline jet operations available seat miles
|
43,271
|
44,532
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.45
|
11.02
|
||||||
Less:
Impact
of special items (cents)
|
0.09
|
-
|
||||||
Operating
expenses per available seat mile, excluding impact of special items
(cents)
|
11.36
|
11.02
|
||||||
Percent
change
|
3.1 | % |
American
Airlines, Inc. Mainline Jet Operations
|
Three
Months
Ended September 30,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Total
operating expenses
|
$ |
5,657
|
$ |
5,610
|
||||
Less:
Operating expenses incurred related to Regional Affiliates
|
701
|
702
|
||||||
Operating
expenses excluding expenses incurred related to Regional
Affiliates
|
$ |
4,956
|
$ |
4,908
|
||||
American
mainline jet operations available seat miles
|
43,271
|
44,532
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.45
|
11.02
|
||||||
Less:
Impact
of special items (cents)
|
0.09
|
-
|
||||||
Less:
Fuel
cost per available seat mile (cents)
|
3.63
|
3.59
|
||||||
Operating
expenses per available seat mile, excluding impact of special items
and
the cost of fuel (cents)
|
7.73
|
7.43
|
||||||
Percent
change
|
4.0 | % |
|
--
more
--
|
AMR
Corporation
Calculation
of Net Debt
|
As
of
September 30,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Current
and
long-term debt
|
$ |
11,155
|
$ |
12,971
|
||||
Current
and
long-term capital lease obligations
|
837
|
942
|
||||||
Principal
amount of certain airport facility tax-exempt bonds and the present
value
of aircraft operating lease obligations
|
4,585
|
5,112
|
||||||
16,577
|
19,025
|
|||||||
Less: Unrestricted
cash and short-term investments
|
5,390
|
5,054
|
||||||
Net
Debt
|
$ |
11,187
|
$ |
13,971
|
American
Airlines, Inc. Mainline Jet Operations
|
Estimate
for
Year
Ended
December 31,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.23
|
10.90
|
||||||
Less:
Fuel
expense per available seat mile
|
3.47
|
3.32
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
and fuel
expense (cents)
|
7.76
|
7.58
|
||||||
Percent
change
|
2.4 | % |
American
Airlines, Inc. Mainline Jet Operations
|
Estimate
for
Three
Months
Ended December 31,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.41
|
10.91
|
||||||
Less:
Fuel
expense per available seat mile
|
3.73
|
3.10
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
and fuel
expense (cents)
|
7.68
|
7.81
|
||||||
Percent
change
|
(1.7 | )% | ||||||
American
Airlines, Inc. Mainline Jet Operations
|
Estimate
for
Year
Ended
December 31,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
|
11.23
|
10.90
|
||||||
Less:
Impact
of special item
|
0.02
|
-
|
||||||
Less:
Fuel
expense per available seat mile
|
3.47
|
3.32
|
||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
and fuel
expense (cents)
|
7.74
|
7.58
|
||||||
Percent
change
|
2.1 | % |
AMR
Corporation
|
Estimate
for
Year
Ended
December 31,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Operating
expenses per available seat mile (cents)
|
11.84
|
11.46
|
||||||
Less:
Fuel
expense per available seat mile
|
3.57
|
3.41
|
||||||
Operating
expenses per available seat mile, excluding fuel expense
(cents)
|
8.27
|
8.05
|
||||||
Percent
change
|
2.7 | % |
AMR
Corporation
|
Estimate
for
Three
Months
Ended December 31,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Operating
expenses per available seat mile (cents)
|
12.04
|
11.45
|
||||||
Less:
Fuel
expense per available seat mile
|
3.84
|
3.18
|
||||||
Operating
expenses per available seat mile, excluding fuel expense
(cents)
|
8.20
|
8.27
|
||||||
Percent
change
|
(0.8 | )% |
AMR
Corporation
|
Estimate
for
Year Ended
December 31,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Operating
expenses per available seat mile (cents)
|
11.84
|
11.46
|
||||||
Less:
Impact
of special item
|
0.02
|
-
|
||||||
Less:
Fuel
expense per available seat mile
|
3.57
|
3.41
|
||||||
Operating
expenses per available seat mile, excluding fuel expense
(cents)
|
8.25
|
8.05
|
||||||
Percent
change
|
2.5 | % |
AMR
Corporation
Impact
of Special Items
(in
millions,
except per share amounts)
|
Three
Months
Ended
September
30,
2007
|
|||||||
Amount
|
EPS
|
|||||||
Net
income
|
$ |
175
|
$ |
0.61
|
||||
Impact
of
special items
|
40
|
0.13
|
||||||
Income
excluding special items
|
$ |
215
|
$ |
0.74
|
||||
AMR
Corporation
Impact
of Special Items
(in
millions,
except per share amounts)
|
Three
Months
Ended
September
30,
2006
|
|||||||
Amount
|
EPS
|
|||||||
Net
income
|
$ |
15
|
$ |
0.06
|
||||
Impact
of
special items
|
99
|
0.39
|
||||||
Income
excluding special items
|
$ |
114
|
$ |
0.45
|
--
more
--
|
AMR
CORPORATION
|
Nine
Months
Ended September 30,
|
Percent
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
Revenues
|
||||||||||||
Passenger
- American Airlines
|
$ |
13,749
|
$ |
13,621
|
0.9
|
|||||||
-
Regional Affiliates
|
1,864
|
1,915
|
(2.7 | ) | ||||||||
Cargo
|
597
|
605
|
(1.3 | ) | ||||||||
Other
revenues
|
1,042
|
1,025
|
1.7
|
|||||||||
Total
operating revenues
|
17,252
|
17,166
|
0.5
|
|||||||||
Expenses
|
||||||||||||
Wages,
salaries and benefits
|
5,047
|
5,103
|
(1.1 | ) | ||||||||
Aircraft
fuel
|
4,797
|
4,952
|
(3.1 | ) | ||||||||
Other
rentals and landing fees
|
970
|
967
|
0.3
|
|||||||||
Depreciation
and amortization
|
892
|
868
|
2.8
|
|||||||||
Maintenance,
materials and repairs
|
790
|
726
|
8.8
|
|||||||||
Commissions,
booking fees and credit card expense
|
787
|
839
|
(6.2 | ) | ||||||||
Aircraft
rentals
|
451
|
449
|
0.4
|
|||||||||
Food
service
|
399
|
386
|
3.4
|
|||||||||
Other
operating expenses
|
2,085
|
2,001
|
4.2
|
|||||||||
Total
operating expenses
|
16,218
|
16,291
|
(0.4 | ) | ||||||||
Operating
Income
|
1,034
|
875
|
18.2
|
|||||||||
Other
Income (Expense)
|
||||||||||||
Interest
income
|
257
|
201
|
27.9
|
|||||||||
Interest
expense
|
(703 | ) | (780 | ) | (9.9 | ) | ||||||
Interest
capitalized
|
17
|
21
|
(19.0 | ) | ||||||||
Miscellaneous
– net
|
(32 | ) | (103 | ) | (68.9 | ) | ||||||
(461 | ) | (661 | ) | (30.3 | ) | |||||||
Income
Before Income Taxes
|
573
|
214
|
*
|
|||||||||
Income
tax
|
-
|
-
|
-
|
|||||||||
Net
Income
|
$ |
573
|
$ |
214
|
*
|
Earnings
Per Share
|
||||||||
Basic
|
$ |
2.35
|
$ |
1.07
|
||||
Diluted
|
$ |
1.98
|
$ |
0.91
|
||||
Number
of Shares Used in Computation
|
||||||||
Basic
|
244
|
201
|
||||||
Diluted
|
300
|
259
|
Nine
Months
Ended
September
30,
|
Percent
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
American
Airlines, Inc. Mainline Jet Operations
|
||||||||||||
Revenue
passenger miles (millions)
|
104,534
|
106,253
|
(1.6 | ) | ||||||||
Available
seat miles (millions)
|
127,609
|
131,883
|
(3.2 | ) | ||||||||
Cargo
ton miles (millions)
|
1,574
|
1,640
|
(4.0 | ) | ||||||||
Passenger
load factor
|
81.9 | % | 80.6 | % |
1.3
pts.
|
|||||||
Passenger
revenue yield per passenger mile (cents)
|
13.15
|
12.82
|
2.6
|
|||||||||
Passenger
revenue per available seat mile (cents)
|
10.77
|
10.33
|
4.3
|
|||||||||
Cargo
revenue yield per ton mile (cents)
|
37.91
|
36.88
|
2.8
|
|||||||||
Operating
expenses per available seat mile, excluding Regional Affiliates
(cents)
(1)
|
11.17
|
10.90
|
2.5
|
|||||||||
Fuel
consumption (gallons, in millions)
|
2,129
|
2,183
|
(2.5 | ) | ||||||||
Fuel
price per gallon (cents)
|
203.0
|
205.0
|
(1.0 | ) | ||||||||
Regional
Affiliates
|
||||||||||||
Revenue
passenger miles (millions)
|
7,468
|
7,522
|
(0.7 | ) | ||||||||
Available
seat miles (millions)
|
10,096
|
10,168
|
(0.7 | ) | ||||||||
Passenger
load factor
|
74.0 | % | 74.0 | % |
-
|
|||||||
(1)
|
Excludes
$2.1
billion and $2.0 billion of expense incurred related to Regional
Affiliates in 2007 and 2006,
respectively.
|
American
Airlines, Inc.
|
Nine
Months
Ended September 30, 2007
|
|||||||||||||||
Entity
Results
|
RASM1
(cents)
|
Y-O-Y
Change
|
ASMs2
(billions)
|
Y-O-Y
Change
|
||||||||||||
DOT
Domestic
|
10.6
|
2.6 | % |
81.4
|
(3.4 | )% | ||||||||||
International
|
11.1
|
7.3
|
46.3
|
(2.9 | ) | |||||||||||
DOT
Latin America
|
11.3
|
5.8
|
22.3
|
0.4
|
||||||||||||
DOT
Atlantic
|
11.1
|
4.8
|
18.9
|
(1.2 | ) | |||||||||||
DOT
Pacific
|
10.2
|
21.9
|
5.1
|
(19.8 | ) |
American
Airlines, Inc.
|
Nine
Months
Ended September 30, 2007
|
|||||||||||||||
Entity
Results
|
Load
Factor
(pts)
|
Y-O-Y
Change
(pts)
|
Yield
(cents)
|
Y-O-Y
Change
|
||||||||||||
DOT
Domestic
|
83.5
|
1.4
|
12.68
|
0.8 | % | |||||||||||
International
|
79.1
|
1.2
|
14.02
|
5.7
|
||||||||||||
DOT
Latin America
|
77.4
|
2.1
|
14.65
|
2.9
|
||||||||||||
DOT
Atlantic
|
80.0
|
(1.0 | ) |
13.81
|
6.1
|
|||||||||||
DOT
Pacific
|
83.5
|
5.8
|
12.21
|
13.4
|
American
Airlines, Inc. Mainline Jet Operations
|
Nine
Months
Ended September 30,
|
|||||||
(in
millions,
except as noted)
|
2007
|
2006
|
||||||
Total
operating expenses
|
$ |
16,335
|
$ |
16,424
|
||||
Less:
Operating expenses incurred related to Regional Affiliates
|
2,078
|
2,045
|
||||||
Operating
expenses excluding expenses incurred related to Regional
Affiliates
|
$ |
14,257
|
$ |
14,379
|
||||
American
mainline jet operations available seat miles
|
127,609
|
131,883
|
||||||
Operating
expenses per available seat mile, excluding expenses incurred related
to
Regional Affiliates (cents)
|
11.17
|
10.90
|
||||||