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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: January 16, 2002
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)
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Item 5. Other Events
AMR Corporation (the Company) is filing herewith a press release
issued on January 16, 2002 by the Company as Exhibit 99.1 which is
included herein. This press release was issued to report the
Company's fourth quarter and full year 2001 earnings and an
agreement with Boeing for the retirement of the Company's 717
fleet.
Item 7. Financial Statements and Exhibits
The following exhibits are included herein:
99.1 Press Release
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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: January 16, 2002
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
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Exhibit 99.1
CONTACT: Corporate Communications
Fort Worth, Texas
817-967-1577
FOR RELEASE: Wednesday, Jan. 16, 2002
Editor's Note: A live Webcast reporting fourth-quarter results
will be broadcast on the Internet on Jan. 16 at 2 p.m. EST
(Windows Media Player required for viewing.)
AMR REPORTS FOURTH-QUARTER LOSS OF $734 MILLION BEFORE SPECIAL
ITEMS
AMERICAN ALSO ANNOUNCES AGREEMENT WITH BOEING FOR
THE RETIREMENT OF ITS 717 FLEET
FORT WORTH, Texas - AMR Corporation, the parent company of
American Airlines, Inc., today reported a fourth-quarter net loss
of $734 million before special items, or a loss of $4.75 per share.
This compares with net earnings of $56 million, or $0.34 per share
diluted, before special items in the fourth quarter of 2000.
"Influenced by the lingering effects of last September's
attacks, the final three months of 2001 were incredibly difficult,"
said Don Carty, AMR"s chairman and chief executive officer.
"Traffic, particularly business travel, was down significantly in
the quarter, which -- when combined with lower average fares --
resulted in a record quarterly loss."
While disappointed with the results, the Company has taken
many positive steps to bolster its financial position. "We
strengthened our cash reserves, despite the huge losses," Carty
said, "and further improved our position by cutting capacity,
reducing capital spending, cutting operating costs, and further
simplifying the fleet."
- more -
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AMR Fourth Quarter Results
Jan. 16, 2002
Page 2
In addition, Carty noted that "the commitment of our people to
making American an industry leader was evident in December, when
American registered an industry-leading completion factor of 99.7
percent and posted outstanding on-time performance."
After accounting for the special items noted below, AMR
reported a net loss of $798 million, or $5.17 per share, for the
fourth quarter of 2001. This compares to net earnings of $47
million, or $0.29 per share diluted, for the fourth quarter of
2000.
Impact of Special Items
(in millions, except per
share amounts) Fourth Quarter
Amount Earnings
(net of per
tax) share share
Net loss before special items ($734) ($4.75)
Special charges:
Aircraft charges (35)
Facility exit costs (34)
Employee charges (10)
Other (14)
Total special charges (93) (0.61)
Special credit: U.S. Govn't grant 29 0.19
Net loss after special items ($798) ($5.17)
AMR's fourth-quarter results brought the Company's full-year
2001 net loss to $1.4 billion, or $9.13 per share, before special
items. This compares with 2000 net earnings of $752 million, or
$4.65 per share diluted, before special items and an extraordinary
loss. Including the special items noted above and prior quarters'
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AMR Fourth Quarter Results
Jan. 16, 2002
Page 3
special items, AMR's full-year 2001 net loss was $1.8 billion, or a
loss of $11.43 per share, as compared to 2000 net earnings of $770
million, or $4.76 per share diluted.
Looking to the future, Carty said AMR still has a long way to
go to return to profitability, but is encouraged by a number of
signs.
"Traffic is improving, and we're in much better shape than we
might have been otherwise, thanks to a strong product, great people
and strategies like fleet flexibility and simplification," Carty
said. "Our intent is to move forward aggressively in 2002 with
marketing strategies to attract and retain customers, operating
strategies that emphasize safety, security and on-time performance,
and financing strategies that keep this Company's financial
foundations strong."
Retirement of Aircraft
In connection with its strategy of reducing costs by
simplifying its fleet, AMR announced today that it has reached an
agreement with Boeing that, among other things, will result in the
retirement of its 717 fleet by June of this year. The 717 is a
short-haul, 100-seat airplane similar in size to the Fokker F100s
already in American's fleet. American does not need two airplanes
of this fleet size and had always intended to retire the 717s. The
agreement with Boeing allows American to do this earlier than
planned.
"The 717 is a fine aircraft," Carty said, "but we are
committed to simplifying the fleet, and it just doesn't make sense
to hold on to the 717s when we already have a fleet of 74 F100s in
the 100-seat category. All we're doing now is accelerating a
retirement that had been in our fleet plan from the beginning of
our TWA acquisition."
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8
AMR Fourth Quarter Results
Jan. 16, 2002
Page 4
The 717 retirement is part of a broad fleet-simplification
strategy that will see American reduce its total number of basic
fleet types from 14 two years ago to seven types by the end of
2002. In 2001, American retired five fleet types " the MD11, MD90,
DC10, MD87 and DC9. This year, it will take two more types out of
the fleet " the 717 and the 727. As the numbers of fleet types
shrink, the overall fleet becomes more reliable and easier and less
costly to maintain.
Editor's note: AMR's Chief Financial Officer, Thomas W. Horton,
will be available to answer questions during a telephone news
conference on Wednesday, Jan. 16, from
3 p.m. to 3:45 p.m. EST. Reporters interested in joining the
conference should call
817-967-1577 for details.
Statements in this news release contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Act of 1934, as amended,
which represent the Company's expectations or beliefs concerning
future events. When used in this release, the words "expects,"
"anticipates," and similar expressions are intended to identify
forward-looking statements. 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 statements, whether
as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of factors that
could cause actual results to differ materially from our
expectations. Additional information concerning these and other
factors is contained in the Company's Securities and Exchange
Commission filings, including but not limited to the Form 10-K for
the year ended Dec. 31, 2000.
Detailed financial information follows:
###
Current AMR Corp. news releases can be accessed via the Internet.
The address is http://www.amrcorp.com
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended December 31, Percent
2001 2000 Change
Revenues
Passenger - American Airlines $2,755 $ 4,039 (31.8)
- TWA LLC 414 - -
- AMR Eagle 277 356 (22.2)
Cargo 138 191 (27.7)
Other revenues 220 273 (19.4)
Total operating revenues 3,804 4,859 (21.7)
Expenses
Wages, salaries and benefits 2,027 1,771 14.5
Aircraft fuel 563 727 (22.6)
Depreciation and amortization 371 313 18.5
Other rentals and landing fees 297 256 16.0
Maintenance, materials and
repairs 255 274 (6.9)
Commissions to agents 144 241 (40.2)
Aircraft rentals 225 152 48.0
Food service 167 190 (12.1)
Other operating expenses 801 855 (6.3)
Special charges, net 102 - -
Total operating expenses 4,952 4,779 3.6
Operating Income (Loss) (1,148) 80 *
Other Income (Expense)
Interest income 30 46 (34.8)
Interest expense (165) (114) 44.7
Interest capitalized 28 41 (31.7)
Miscellaneous - net (15) 30 *
(122) 3 *
Income (Loss) Before Income Taxes (1,270) 83 *
Income tax provision (benefit) (472) 36 *
Net Earnings (Loss) $(798) $ 47 *
Continued on next page.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
Three Months Ended December 31,
2001 2000
Earnings (Loss) Per Share
Basic
Net Earnings (Loss) $ (5.17) $ 0.31
Diluted
Net Earnings (Loss) $ (5.17) $ 0.29
Number of Shares Used in Computation
Basic 154 151
Diluted 154 165
* Greater than 100%
Note: Certain amounts have been reclassified to conform with 2001
presentation.
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AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended December 31, Percent
2001 2000 Change
American Airlines
Revenue passenger miles (millions) 22,109 27,539 (19.7)
Available seat miles (millions) 34,115 39,497 (13.6)
Cargo ton miles (millions) 434 587 (26.1)
Passenger load factor 64.8% 69.7% (4.9) pts.
Breakeven load factor (*) 86.2% 67.1% 19.1 pts.
Passenger revenue yield per
passenger mile (cents) 12.46 14.67 (15.1)
Passenger revenue per available
seat mile (cents) 8.07 10.23 (21.1)
Cargo revenue yield per ton
mile (cents) 30.34 32.21 (5.8)
Operating expenses per available
seat mile (cents) (*) 11.10 11.02 0.7
Fuel consumption (gallons, in
millions) 633 760 (16.7)
Fuel price per gallon (cents) 70.4 90.8 (22.5)
Fuel price per gallon, excluding
fuel taxes (cents) 65.3 84.8 (23.0)
Operating aircraft at period-end 712 717 (0.7)
TWA LLC
Revenue passenger miles (millions) 3,314 -
Available seat miles (millions) 5,642 -
Passenger load factor 58.7% -
Passenger revenue yield per
passenger mile (cents) 12.50 -
Passenger revenue per available
seat mile (cents) 7.34 -
Operating expenses per available
seat mile (cents) (*) 12.81 -
Operating aircraft at period-end 169 -
AMR Eagle
Revenue passenger miles (millions) 873 909 (4.0)
Available seat miles (millions) 1,539 1,565 (1.7)
Passenger load factor 56.7% 58.1% (1.4) pts.
Operating aircraft at period-end 290 261 11.1
AMR Corporation
Average Equivalent Number of Employees
American Airlines 83,800 94,400
TWA LLC 14,100 -
Other 11,400 13,000
Total 109,300 107,400
(*) Excludes special charges, net
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Year Ended December 31, Percent
2001 2000 Change
Revenues
Passenger - American Airlines $14,104 $16,394 (14.0)
- TWA LLC 1,676 - -
- AMR Eagle 1,378 1,452 (5.1)
Cargo 662 721 (8.2)
Other revenues 1,143 1,136 0.6
Total operating revenues 18,963 19,703 (3.8)
Expenses
Wages, salaries and benefits 8,032 6,783 18.4
Aircraft fuel 2,888 2,495 15.8
Depreciation and amortization 1,404 1,202 16.8
Other rentals and landing fees 1,197 999 19.8
Maintenance, materials and
repairs 1,165 1,095 6.4
Commissions to agents 835 1,037 (19.5)
Aircraft rentals 829 607 36.6
Food service 778 777 0.1
Other operating expenses 3,695 3,327 11.1
Special charges, net 610 - -
Total operating expenses 21,433 18,322 17.0
Operating Income (Loss) (2,470) 1,381 *
Other Income (Expense)
Interest income 110 154 (28.6)
Interest expense (538) (467) 15.2
Interest capitalized 144 151 (4.6)
Miscellaneous - net (2) 68 *
(286) (94) *
Income (Loss) From Continuing
Operations Before Income Taxes
and Extraordinary Loss (2,756) 1,287 *
Income tax provision (benefit) (994) 508 *
Income (Loss) From Continuing
Operations Before
Extraordinary Loss (1,762) 779 *
Income From Discontinued
Operations (net of applicable
income taxes and minority interest) - 43 -
Income (Loss) Before
Extraordinary Loss (1,762) 822 *
Extraordinary Loss (net of
applicable income taxes) - (9) -
Net Earnings (Loss) $(1,762) $ 813 *
Continued on next page.
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AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
Year Ended December 31,
2001 2000
Earnings (Loss) Per Share
Basic
Income (Loss) from Continuing
Operations $(11.43) $ 5.20
Discontinued Operations - 0.30
Extraordinary Loss - (0.07)
Net Earnings (Loss) $(11.43) $ 5.43
Diluted
Income (Loss) from Continuing
Operations $(11.43) $ 4.81
Discontinued Operations - 0.27
Extraordinary Loss - (0.05)
Net Earnings (Loss) $(11.43) $ 5.03
Number of Shares Used in Computation
Basic 154 150
Diluted 154 162
* Greater than 100%
Note: Certain amounts have been reclassified to conform with 2001
presentation.
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AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Year Ended December 31, Percent
2001 2000 Change
American Airlines
Revenue passenger miles (millions) 106,224 116,594 (8.9)
Available seat miles (millions) 153,035 161,030 (5.0)
Cargo ton miles (millions) 2,058 2,280 (9.7)
Passenger load factor 69.4% 72.4% (3.0) pts.
Breakeven load factor (*) 78.1% 65.3% 12.8 pts.
Passenger revenue yield per
passenger mile (cents) 13.28 14.06 (5.5)
Passenger revenue per available
seat mile (cents) 9.22 10.18 (9.4)
Cargo revenue yield per
ton mile (cents) 30.24 31.31 (3.4)
Operating expenses per available
seat mile (cents) (*) 11.14 10.45 6.6
Fuel consumption (gallons, in millions) 2,913 3,045 (4.3)
Fuel price per gallon (cents) 80.9 77.9 3.9
Fuel price per gallon, excluding
fuel taxes (cents) 75.4 72.3 4.3
Operating aircraft at period-end 712 717 (0.7)
TWA LLC (**)
Revenue passenger miles (millions) 14,381 -
Available seat miles (millions) 21,653 -
Passenger load factor 66.4% -
Passenger revenue yield per
passenger mile (cents) 11.66 -
Passenger revenue per available
seat mile (cents) 7.74 -
Operating expenses per available
seat mile (cents) (*) 10.58 -
Operating aircraft at period-end 169 -
AMR Eagle
Revenue passenger miles (millions) 3,725 3,731 (0.2)
Available seat miles (millions) 6,471 6,256 3.4
Passenger load factor 57.6% 59.6% (2.0) pts.
Operating aircraft at period-end 290 261 11.1
AMR Corporation
Average Equivalent Number of Employees
American Airlines 92,900 93,400
TWA LLC 12,900 -
Other 12,600 13,000
Total 118,400 106,400
(*) Excludes special charges, net
(**) For the period April 10, 2001 through December 31, 2001.