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: April 19, 2006
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 2.02 Results of Operations and Financial Condition
AMR Corporation (the Company) is furnishing herewith a press
release issued on April 19, 2006 by the Company as Exhibit
99.1 which is included herein. This press release was
issued to report the Company's first quarter 2006 results.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press Release of AMR dated April 19, 2006
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 19, 2006
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
Exhibit 99.1
CONTACT: Al Becker
Corporate Communications
Fort Worth, Texas
817-967-1577
corp.comm@aa.com
FOR RELEASE: Wednesday, April 19, 2006
Editor's Note: A live Webcast reporting first quarter
results will be broadcast on the Internet on April 19 at 2
p.m. EDT. (Windows Media Player required for viewing.)
AMR CORPORATION REPORTS A FIRST QUARTER LOSS
OF $92 MILLION, A $70 MILLION IMPROVEMENT OVER LAST YEAR'S
FIRST QUARTER LOSS OF $162 MILLION
AMR Achieves The Improvement Despite The Impact Of High Fuel
Costs
First Quarter Results Also Are Marked By An Operating Profit
And Positive Operating Cash Flow Performance
FORT WORTH, Texas - AMR Corporation, parent company of
American Airlines, Inc., today reported a net loss of $92
million in the first quarter of 2006, or $.49 per share, as
compared to a net loss of $162 million, or $1.00 per share,
in the first quarter of 2005. First quarter 2005 results
included a benefit of $69 million, or $.43 per share,
related to certain excise tax refunds.
"A loss of any size is never satisfactory," said AMR
Chairman and CEO Gerard Arpey, "but it is somewhat
gratifying to have improved our first quarter results by
$139 million year over year excluding last year's excise tax
refunds, despite the Company paying $349 million more for
fuel because of higher fuel prices during the first quarter
of 2006 versus the same period last year." Arpey also
pointed out that the Company achieved a first quarter
operating profit of $115 million, and had positive operating
cash flow for the period.
For the quarter, American's passenger revenue per
available seat mile was up 10.8 percent year over year.
American's load factor - or percentage of seats filled - for
the first quarter was 77.2 percent, up 1.8 points over the
first quarter of 2005, while yield, representing average
fares, was up 8.2 percent. Overall, AMR's revenue from all
sources - passenger, cargo and other categories - grew in
the first quarter by $594 million, or 12.5 percent, year
over year.
"Thanks to the hard work of our people and the changes
we have made, we are creating new streams of revenue and are
bringing additional customers into the network. These
efforts are driving unit revenues to near 2000 levels,"
Arpey said. "Unfortunately, the price of fuel has increased
by more than 143 percent since then, adding $3.6 billion to
our annual cost structure. Even with strong demand for air
travel, we have been able to pass only a very small portion
of that increase on to our customers." On a year over year
basis, American's mainline cost per available seat mile was
up by 10.3 percent. Excluding fuel, mainline unit costs
increased 2.9 percent versus the first quarter of last year.
Under the tenets of its Turnaround Plan and working
collaboratively with its employees and unions, American
continues to focus sharply on numerous cost savings
initiatives as it works to achieve sustained profitability.
One such step is a flattening of the summer peak schedule
that allows the airline to reduce the extra resources that
it carries year-round to support the summer peak. As a
result, American is placing 27 of its MD80 aircraft into
temporary storage in phases by July 1, 2006, to improve the
overall efficiency of its operations.
In an initiative to reduce distribution costs, American
at the end of March successfully renegotiated its agreement
with Worldspan, a global distribution system (GDS) that
enables an airline to display its products over an extensive
network of travel agencies. The new arrangement provides
American with substantially lower costs and greater
flexibility in continuing to adopt new cost-effective
technologies as they become available. American is in
discussions with some of the other GDSs as well.
Despite the continuing challenges of a very difficult
industry, Arpey said he is pleased with the airline's
progress to date, and expects a very robust summer. "It
looks like another very busy summer for our industry," he
said. "Our planes should be full, which among other things
means we have a golden opportunity - if we stay focused on
running a good airline, controlling costs, and giving our
customers what they truly value - to build on the momentum
reflected in the financial results we are reporting today."
Arpey pointed out that as of April 14, AMR had
contributed $120 million to its various defined benefit
plans this year.
AMR ended the quarter with $4.8 billion in cash and
short-term investments, including a restricted balance of
$510 million.
Editor's Note: AMR's Chairman, President and Chief Executive
Officer, Gerard Arpey, and its Executive Vice President and
Chief Financial Officer, Thomas Horton, will make a
presentation to analysts during a teleconference on
Wednesday, April 19, from 2 p.m. to 2:45 p.m. EDT.
Following the analyst call, they will hold a question-and-
answer conference call for media from 3 p.m. to 3:45 p.m.
EDT. Reporters interested in listening to the presentation
or participating in the media Q&A should call 817-967-1577.
Statements in this release 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 release, the words "expects,"
"plans," "anticipates," "indicates," "believes," "forecast,"
"guidance," "outlook," "may," "will," "should," 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 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 statement, whether as a result of
new information, future events, or otherwise.
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: the materially weakened financial condition of
the Company, resulting from its significant losses in recent
years; the ability of the Company to generate additional
revenues and significantly reduce its costs; changes in
economic and other conditions beyond the Company's control,
and the volatile results of the Company's operations; the
Company's substantial indebtedness and other obligations;
the ability of the Company to satisfy existing financial or
other covenants in certain of its credit agreements;
continued high fuel prices and further increases in the
price of fuel, and the availability of fuel; the fiercely
competitive business environment faced by the Company, and
historically low fare levels; competition with reorganized
and reorganizing carriers; the Company's reduced pricing
power; the Company's need to raise additional funds and its
ability to do so on acceptable terms; changes in the
Company's business strategy; government regulation of the
Company's business; conflicts overseas or terrorist attacks;
uncertainties with respect to the Company's international
operations; outbreaks of a disease (such as SARS or avian
flu) that affects travel behavior; uncertainties with
respect to the Company's relationships with unionized and
other employee work groups; increased insurance costs and
potential reductions of available insurance coverage; the
Company's ability to retain key management personnel;
potential failures or disruptions of the Company's computer,
communications or other technology systems; changes in the
price of the Company's common stock; and the ability of the
Company to reach acceptable agreements with third parties.
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, 2005.
Detailed financial information follows:
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended March 31, Percent
2006 2005 Change
Revenues
Passenger - American Airlines $ 4,244 $ 3,841 10.5
- Regional Affiliates 569 451 26.2
Cargo 186 183 1.6
Other revenues 345 275 25.5
Total operating revenues 5,344 4,750 12.5
Expenses
Wages, salaries and benefits 1,729 1,644 5.2
Aircraft fuel 1,473 1,097 34.3
Other rentals and landing fees 316 300 5.3
Depreciation and amortization 287 290 (1.0)
Commissions, booking
fees and credit card expense 269 271 (0.7)
Maintenance,
materials and repairs 236 235 0.4
Aircraft rentals 146 148 (1.4)
Food service 124 125 (0.8)
Other operating expense 649 617 5.2
Total operating expense 5,229 4,727 10.6
Operating Income 115 23 *
Other Income (Expense)
Interest income 53 36 47.2
Interest expense (261) (235) 11.1
Interest capitalized 7 23 (69.6)
Miscellaneous - net (6) (9) (33.3)
(207) (185) (11.9)
Loss Before Income Taxes (92) (162) (43.2)
Income tax - - -
Net Loss $ (92) $ (162) (43.2)
Basic and Diluted Loss Per Share $ (0.49) $ (1.00)
Number of Shares Used in
Computation
Basic and Diluted 186 161
* Greater than 100%
AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended March 31, Percent
2006 2005 Change
American Airlines, Inc. Mainline Jet
Operations
Revenue passenger miles (millions) 33,015 32,327 2.1
Available seat miles (millions) 42,752 42,854 (0.2)
Cargo ton miles (millions) 521 539 (3.3)
Passenger load factor 77.2% 75.4% 1.8 pts.
Passenger revenue yield per
passenger mile (cents) 12.85 11.88 8.2
Passenger revenue per available
seat mile (cents) 9.93 8.96 10.8
Cargo revenue yield per ton
mile (cents) 35.65 33.95 5.0
Operating expenses per available
seat mile, excluding Regional
Affiliates (cents) (1) 10.81 9.80 10.3
Fuel consumption (gallons, in
millions) 705 729 (3.3)
Fuel price per gallon (cents)(2) 189.0 136.6 38.4
Regional Affiliates
Revenue passenger miles (millions) 2,277 1,885 20.8
Available seat miles (millions) 3,257 2,916 11.7
Passenger load factor 69.9% 64.7% 5.2 pts.
AMR Corporation
Average Equivalent Number of Employees
American Airlines 73,200 75,100
Other 13,400 13,400
Total 86,600 88,500
(1) Excludes $654 million and $583 million of expense incurred related to
Regional Affiliates in 2006 and 2005, respectively.
(2) Includes the impact of a $55 million fuel excise tax refund in 2005.
AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
American Airlines, Inc. Mainline Jet Operations Three Months Ended March 31,
(in millions, except as noted) 2006 2005
Total operating expenses as reported $ 5,275 $ 4,781
Less: Operating expenses incurred
related to Regional Affiliates 654 583
Operating expenses, excluding
expenses incurred related to
Regional Affiliates $ 4,621 $ 4,197
American mainline jet operations
available seat miles 42,752 42,854
Operating expenses per available seat
mile, excluding Regional
Affiliates (cents) 10.81 9.80
Percent change 10.3%
Operating expenses, excluding
expenses incurred related to
Regional Affiliates $ 4,621 $ 4,197
Less: Fuel expense 1,332 996
Operating expenses, excluding expenses
incurred related to Regional
Affiliates and fuel expense $ 3,289 $ 3,201
American mainline jet operations
available seat miles 42,752 42,854
Operating expenses per available seat
mile, excluding Regional
Affiliates and fuel expense (cents) 7.69 7.47
Percent change 2.9%
Note: The company believes that operating expenses per
available seat mile, excluding the cost of fuel, assists
investors in understanding the impact of fuel prices on the
Company's operations.
AMR Corporation
Fuel Price vs. 1st Quarter 2005
Average fuel price per gallon (cents)
Three months ended March 31, 2006 189.7
Three months ended March 31, 2005 137.9
Add: Impact of fuel credit 6.9
144.8
Change in price (cents) 44.9
2006 consumption (gallons, in millions) x 776
Impact of fuel price variance (in millions) $ 349
AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
AMR Corporation
Impact of Special Items Three Months Ended
(in millions) March 31,
2006 2005
Net loss $ (92) $ (162)
Add: Impact of special items - (69)
Net loss excluding special items $ (92) $ (231)
Difference $ (139)
Note: The Company believes that results of operations
excluding the impact of special items assists investors in
understanding the impact of special items on the Company's
operations.
###
Current AMR Corp news releases can be accessed via the
Internet.
The address is http://www.aa.com