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, 2004
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 5. Other Events
AMR Corporation is filing herewith actual fuel cost, unit cost
and capacity and traffic information for April and May as well as
current fuel cost, unit cost and capacity and traffic
expectations for June, the second quarter and the full year 2004.
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, 2004
AMR EAGLE EYE
June 18, 2004
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,"
"believes," "forecast," 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 needs, overall
economic conditions, plans and objectives for future operations,
the impact on the Company of its results of operations for the
past three 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, capacity estimates and
liquidity expectations, 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 higher than expected fuel
prices; the availability of fuel; the residual effects of the war
in Iraq; conflicts in the Middle East or elsewhere; the highly
competitive business environment faced by the Company, with
increasing competition from low cost carriers and historically
low fare levels; the ability of the Company to implement its
restructuring program and the effect of the program on
operational performance and service levels; uncertainties with
respect to the Company's international operations; changes in the
Company's business strategy; 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 of future financing; 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, 2003.
Performance Update
Costs: Fuel prices are higher than anticipated, and will
negatively impact our 2004 CASM guidance. Revised mainline CASM
guidance for 2Q04 is 9.6 cents. Full year 2004 fuel price
guidance has changed from $0.99/gallon to $1.09/gallon.
Revenue: Despite rising fuel prices, fare levels remain largely
unchanged. The limited increases that have been implemented will
have a minimal impact on total system revenue. For the second
quarter, strong year over year unit revenue performance in April
is expected to be largely offset by more difficult year over year
comparisons in May and June.
Liquidity: We expect to end the quarter with a cash and short-
term investment balance of approximately $3.7 billion, including
about $500 million in restricted cash and short-term investments.
Kathy Bonanno
Director Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
2Q04: Hedged on 16% of consumption at $32/bbl WTI Crude
American Mainline Fuel Price Including Hedges and Taxes
Actual Forecast
Apr May Jun 2Q04 2004
Fuel Price (dollars/gal) 1.05 1.14 1.14 1.11 1.09
Fuel Consumption (MM gals) 249.8 254.2 253.0 757.0 3,024.7
Unit Cost Forecast
AMR Consolidated Cost per ASM
Actual Forecast
Apr May Jun 2Q04 2004
AMR Cost per ASM (cents) 9.9 10.1 10.0 10.0 10.0
American Mainline Operations Cost per ASM
Actual Forecast
Apr May Jun 2Q04 2004
AA Cost per ASM (cents) 9.4 9.6 9.6 9.6 9.5
Capacity and Traffic Forecast
AA Mainline Operations
Actual Yr/Yr H/(L) Forecast Yr/Yr H/(L)
Apr May Jun 2Q04 2004
Capacity 8.5% 9.2% 7.5% 8.4% 6.1%
Domestic 4.1% 2.6% 2.3% 3.0% 2.7%
International 19.7% 26.3% 19.7% 23.2% 16.0%
Traffic 15.3% 8.5% 7.7% 10.3% 7.7%
Regional Affiliate Operations
Actual Yr/Yr H/(L) Forecast Yr/Yr H/(L)
Apr May Jun 2Q04 2004
Capacity 27.5% 25.3% 26.9% 26.5% 26.8%
Traffic 36.9% 30.9% 32.3% 33.3% 29.2%