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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: June 18, 2001
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 9. Regulation FD Disclosure
AMR Corporation (the "Company") is furnishing herewith certain
data regarding its unit costs, capacity, traffic and fuel, and a
monthly update.
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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: June 18, 2001
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June 18, 2001
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 report, the words "expect", "forecast", "anticipates" and
similar expressions are intended to identify forward-looking
statements. All such statements are based on information
available to the Company on the date of this report. The Company
undertakes no obligation to update or revise any forward-looking
statement, regardless of reason. This discussion includes
forecasts of costs per ASM, capacity, traffic, fuel cost and fuel
consumption, earnings, and operational considerations, each of
which is a forward-looking statement. There are a number of
factors that could cause actual results to differ materially from
our forecasts. Such factors include, but are not limited to:
general economic conditions, competitive factors within the
airline industry which could affect the demand for air travel,
changes in the Company's business strategy, changes in commodity
prices, the inability to successfully integrate the operations of
TWA into those of American and to improve their profitability,
higher than expected integration costs, and the inability to
successfully integrate the workforce of TWA. For additional
information regarding these and other factors see the Company's
filings with the Securities and Exchange Commission, including
but not limited to the Company's Form 10-K for the year ended
December 31, 2000.
Capacity Adjustments
In light of the current weak economic climate and the significant
drop in demand for business travel, AMR will be making
adjustments to its capacity for the remainder of 2001 and for
2002 by retiring 22 aircraft.
To facilitate this reduction, AMR will retire TWA LLC's fleet of
19 DC-9s. These aircraft had been scheduled to leave the fleet
over the course of the next three years. With this revised plan,
all of TWA's DC-9s will be out of service by the first quarter of
next year.
Additionally, AMR has decided not to renew leases on two 727
aircraft with lease expirations at the end of this year. These
two units were originally part of the fleet plan through 2003.
Finally, AMR will not return to service a recently damaged F-100.
Overall, these changes will slightly reduce our planned capacity
growth for the remainder of 2001, and will reduce capacity for
2002 by approximately one percent. As a result of these early
aircraft retirements, AMR will be making a number of schedule
changes designed to minimize the impact to our customers. These
changes will be focused on reducing unprofitable flying across
the system. However, we do not anticipate any significant
changes in service at the St. Louis hub.
These changes to the DC-9, 727 and F-100 fleets are in addition
to AMR's other recent schedule adjustments which included the
announcement of our suspension of service in Los Angeles - Paris
and Chicago - Rome as well as our previous adjustments to
aircraft utilization rates which have reduced capacity for the
second half of 2001 by approximately 0.5 %.
In addition to the cost and capital spending controls we
announced last quarter, we will continue to re-evaluate our
capacity growth and the associated capital spending
requirements going forward as economic conditions warrant.
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Second Quarter Results
The economic slowdown both in the US, and to a lesser extent
overseas, has already had a measurable impact on AMR's revenue
performance for the second quarter. Assuming these same revenue
trends continue for the month of June, we would anticipate
reporting a loss in excess of $100 million for the second quarter
of 2001.
Ultimately, should the current economic conditions continue
throughout the rest of 2001, we would expect AMR to post a loss
for the full year 2001.
Aircraft Charge
As indicated in our First Quarter 2001 10-Q, AMR's proposed
transaction with United/US Airways prompted an impairment review
of certain fleet types in accordance with SFAS 121. We have now
completed this review and AMR will be taking a non-cash charge in
the second quarter to adjust the values of our F-100, ATR-42 and
Saab-340 aircraft. It is expected that this charge will be
approximately $425 million after-tax. This charge does not
affect our current fleet plan or the on-going operation of these
aircraft.
Monthly Update
Attached is our monthly guidance on unit cost, fuel, traffic and
capacity. As with last month's update, we are now including
information for TWA LLC and have included TWA in the AMR unit
cost guidance.
Please call if you have additional questions.
Michael Thomas
Director, Investor Relations
June 19, 2001
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AMR EAGLE EYE
Unit Costs
AMR Consolidated Coosts Per ASM (in cents) Including TWA LLC
Actual --------- Forecast----
May June July Aug
AMR Cost per ASM 10.8 11.4 10.9 10.9
American Mainline Operations Cost per ASM (in cents)
Actual -------- Forecast----
May June July Aug
AA Cost per ASM 10.6 11.3 10.8 10.7
Prior Year (2000) Restated* 10.3 10.5 10.3 10.4
TWA LLC Operating Cost per ASM (in cents)
Actual -------Forecast--------
May June July Aug
TWA Cost per ASM 9.4 9.4 9.3 9.7
Capacity, Traffic and Fuel
Actual --------Forecast-------
May June July Aug
AA Mainline Ops:
Capacity (yr/yr) 2.9% 4.1% 2.3% 2.5%
Traffic (yr/yr) -4.3% -2.0% -1.0% -0.8%
Fuel (cents/gal incl. tax) 82 83 82 82
Fuel Consumption (mil. gal.) 266 273 282 280
American Eagle:
Capacity (yr/yr) 9.6% 6.3% 6.3% 8.1%
Traffic (yr/yr) 7.6% 3.0% 4.4% 5.5%
TWA Airlines LLC:
Capacity (000,000) ASMs 3,004 3,027 3,093 2,962
Traffic (000,000) RPMs 2,028 2,117 2,281 2,152
* Certain airline related small businesses have been
reclassified under American Mainline Operations (e.g. contract
maintenance and magazine). As a result, we have provided
restated numbers for 2000 on a comparable basis. Please note
that this minor change does not impact AMR consolidated numbers.