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AMR Corporation Reports First Quarter 2013 Net Profit Of $8 Million, Excluding Reorganization And Special Items



AMR Corporation Reports First Quarter 2013 Net Profit Of $8 Million, Excluding
                       Reorganization And Special Items

GAAP Net Loss of $341 Million, a $1.3 Billion Improvement over First Quarter
2012

PR Newswire

FORT WORTH, Texas, April 18, 2013

FORT WORTH, Texas, April 18, 2013 /PRNewswire/ -- AMR Corporation, the parent
company of American Airlines, Inc., today reported results for the first
quarter ended March 31, 2013. Key highlights include:

  o Revenue of $6.1 billion, the highest first quarter revenue in company
    history
  o Net profit of $8 million, excluding reorganization and special items, a
    $256 million improvement year-over-year, and AMR's first profitable first
    quarter since 2007
  o Operating profit of $125 million, excluding special items, a $203 million
    improvement over first quarter 2012. GAAP operating profit of $52 million,
    a $141 million improvement year-over-year
  o Consolidated unit costs, excluding fuel and special items, improved 3.2
    percent year-over-year, marking the second consecutive quarter of non-fuel
    unit costs reduction
  o Building on its fleet renewal momentum, American took delivery of 12 new
    aircraft in the first quarter (nine 737-800s and three 777-300ERs)
  o On April 15, AMR filed its Plan of Reorganization and Disclosure
    Statement; the hearing to consider approval of the Disclosure Statement is
    scheduled for June 4 
  o On April 15, AMR filed its Registration Statement with the SEC to move
    forward with its anticipated merger with US Airways

(Logo: http://photos.prnewswire.com/prnh/20130208/DA56847LOGO)

"Thanks to the entire American team, we have made great progress in building
the new American. For the first time in six years, we produced a first quarter
profit, excluding reorganization items and special charges, and our fourth
consecutive quarterly operating profit," said Tom Horton, AMR's chairman,
president and CEO. "And the momentum is building. We have raised revenues and
built a competitive cost structure and sound foundation for the future. We're
investing in hundreds of new aircraft and industry-leading products and have
renewed our iconic American brand. Looking forward, our pending merger with
our partners at US Airways positions American to be the world's leading
airline. With great work by everyone on the American team, the new American is
taking flight."

In the first quarter, AMR reported a net profit of $8 million, excluding
reorganization and special items, a $256 million improvement compared to the
prior-year period. AMR incurred a GAAP net loss of $341 million versus a GAAP
net loss of $1.7 billion in the first quarter of 2012.  First quarter results
were negatively impacted by $349 million of reorganization and special items,
which are detailed below.

Restructuring Progress

AMR is on track to realize savings targeted in the restructuring process. To
date, AMR has completed the majority of its financial restructuring, including
reducing debt, renegotiating aircraft leases and facilities agreements,
grounding older aircraft, rationalizing the regional fleet, renegotiating
supplier relationships, and making a number of other important changes.

"The fundamental changes we have been able to achieve in streamlining our cost
structure and making our operations more efficient are yielding substantial
results," said Bella Goren, AMR's chief financial officer. "Building on the
substantial progress that is evident in our results, we are continuing to
implement initiatives that create greater value for our financial
stakeholders, employees and customers."

Year-over-year cost reductions in salary, benefit and non-operating expenses
were driven by AMR's restructuring efforts. Through the restructuring process,
American reached six-year agreements with all workgroups and reduced
management positions, making American's management staffing the leanest among
network carriers.

AMR also realized improvements in depreciation and amortization expense,
offset by increased aircraft rent expense with the company taking delivery of
a combined 36 new modern, fuel efficient Boeing 737-800 and 777-300ER aircraft
over the past 12 months, all of which have been leased. American is in the
midst of significant renewal and transformation of its fleet and expects to
take delivery of 59 new mainline aircraft during 2013.

Throughout the remainder of the year, AMR expects to realize additional
savings improvements as the company gains court approval to implement new
terms negotiated with certain vendors and suppliers. It also plans to build on
momentum from restructuring by implementing new scope clauses established in
new labor agreements that will enable AMR to compete more effectively in
certain markets by better matching aircraft size with demand as American
begins operating larger regional jets and expands codeshare agreements.

Revenue Performance

For the first quarter of 2013, AMR reported consolidated revenue of $6.1
billion, approximately 1.0 percent higher compared to the prior-year period on
1.3 percent less capacity. First quarter consolidated and mainline passenger
revenue per available seat mile (PRASM) increased 2.6 percent and 2.7 percent
year-over-year, respectively.  Consolidated revenue performance was driven by
record passenger yield, or average fares paid, of 16.27 cents per mile, a 0.6
percent year-over-year improvement, and strong consolidated and mainline load
factors, or percentage of seats filled, of 79.9 percent and 80.6 percent,
respectively. 

Domestic PRASM improved 2.7 percent in the first quarter versus the first
quarter of 2012, with PRASM increases across all five of American's hubs, with
the Los Angeles and Chicago hubs showing particular strength. International
PRASM increased 2.6 percent in the first quarter of 2013 over the prior-year
period, driven by strong performance in the Atlantic entity. Absolute PRASM
and yields in the Latin entity remain robust and further American's belief
that targeted growth in the region will be accretive to earnings.

Other revenues in the first quarter increased 1.2 percent compared to the
prior period, driven primarily by an increase in AAdvantage^® miles sold to
partners and by growth in American Eagle's ground-handling business performed
for third parties.

"We achieved a quarterly yield that was the highest in company history for any
quarter, and an all-time first quarter record in revenue," said Virasb Vahidi,
American's chief commercial officer. "As we look to the second quarter, we
remain focused on delivering for our customers through new products and
services, the renewal of our fleet and greater access to more destinations
across our growing global network."

Operating Expense

For the first quarter, AMR's consolidated operating expenses decreased $80
million, or 1.3 percent, versus the same period in 2012. Excluding special
items, AMR's consolidated operating expenses decreased $142 million, or 2.3
percent, year-over-year.  American's mainline cost per available seat mile
(unit cost) in the first quarter decreased 0.6 percent, including special
items in both periods, and 1.7 percent versus the same period last year,
excluding special items. Taking into account the impact of fuel hedging, AMR
paid $3.26 per gallon for jet fuel in the first quarter of 2013 versus $3.24
per gallon in the first quarter of 2012, a 0.7 percent increase. As a result,
the company paid $14 million more for fuel in the first quarter of 2013 than
it would have paid at prevailing prices from the prior-year period.

Excluding fuel and special items, mainline and consolidated unit costs in the
first quarter of 2013 decreased 4.1 percent and 3.2 percent year-over-year,
respectively, primarily driven by the company's restructuring efforts. Despite
lower capacity, this was the second consecutive quarter of non-fuel unit cost
reduction. In addition, AMR achieved an operating profit of $125 million and
an operating margin of approximately 2.0 percent, an improvement of
approximately $203 million and 3.3 points, respectively, over the prior-year
period, excluding special items.

An unaudited summary of first quarter 2013 results, including reconciliations
of non-GAAP to GAAP financial measures, is available in the tables at the back
of this press release.

Cash Position

AMR ended the first quarter with approximately $5.1 billion in cash and
short-term investments, including a restricted cash balance of $853 million,
compared to a balance of approximately $5.6 billion in cash and short-term
investments, including a restricted balance of approximately $771 million, at
the end of the first quarter of 2012.

Operational Performance

American ran a strong operation in the first quarter, achieving an on-time
arrival rate of 80.8 percent. In the month of March, 81.8 percent of
American's mainline flights arrived on time, American's best March performance
since 2003. American's solid operational results for the quarter also include
posting a completion factor of 98.4 percent.

Other First Quarter Highlights

  o In January, American Airlines became the first and only U.S. airline to
    introduce the Boeing 777-300ER (Extended Range) aircraft – the new
    flagship of American's fleet. The company now has five 777-300ER aircraft
    in service, operating between New York Kennedy and both London Heathrow
    and Sao Paulo, and between Dallas/Fort Worth and London Heathrow.
  o LATAM Airlines Group announced it will join oneworld^®, and American filed
    applications with regulators for codeshare agreements with TAM and LAN
    Colombia. Pending approval, this will strengthen American's existing
    service to Latin America by offering customers greater travel options and
    convenience.
  o American and Finnair announced Finnair's intent to join the transatlantic
    joint business American shares with British Airways and Iberia, providing
    our North American and European customers more choices and better
    connections across the Atlantic.
  o American signed agreements with oneworld member-elect Qatar Airways, based
    in Doha, Qatar, and the newest oneworld member, Malaysia Airlines, to
    codeshare on each other's flights, which will provide new growth
    opportunities for American in the Middle East and Southeast Asia, as well
    as for our new partners in the United States.
  o American and Alaska Airlines announced an expanded codeshare agreement
  o American filed an application with the U.S. Department of Transportation
    for the right to fly additional frequencies from its Los Angeles and
    Chicago hubs to Brazil, beginning in 2013 and 2014, respectively.
  o American completed its private offering of two tranches of enhanced
    equipment trust certificates (EETC) in the amount of $664.4 million. This
    marked the first EETC financing in history for an airline in
    restructuring.

Pending Merger Transaction

On Feb. 14, AMR and US Airways Group, Inc. (NYSE: LCC) announced that the
boards of directors of both companies unanimously approved a definitive merger
agreement under which the companies will combine to create one of the world's
largest global airlines, which will have an implied combined equity value of
approximately $11 billion based on the price of US Airways stock as of Feb.
13, 2013. The merger will offer benefits to both airlines' customers,
communities, employees, investors and creditors. Among other things, the
combined company is expected to:

  o Benefit customers due to an expanded global network and investment in new
    aircraft, technology, products and services
  o Enhance the oneworld alliance, offering a seamless global network
  o Improve loyalty benefits for both airlines' members by expanding
    opportunities to earn and redeem miles
  o Provide a path to improved compensation and benefits with greater
    long-term opportunities for employees of both companies
  o Enhance recoveries for financial stakeholders – AMR stakeholders to own 72
    percent and US Airways shareholders to own 28 percent of the combined
    company's diluted common stock
  o Build upon the iconic, globally recognized American Airlines brand
  o Be headquartered in Dallas/Fort Worth, with a significant operational
    presence in Phoenix

American's proposed Plan of Reorganization provides the potential for full
recovery for American's creditors and a recovery of at least 3.5 percent of
the aggregate diluted common stock of the combined airline for the company's
shareholders. It is unusual in Chapter 11 cases – and unprecedented in recent
airline restructurings – for shareholders to receive meaningful recoveries.

Merger Milestones

The following merger milestones have been achieved to date:

  o Jan. 31: Filed the required notification materials under the
    Hart-Scott-Rodino Act (HSR) with the U.S. Department of Justice and U.S.
    Federal Trade Commission
  o Feb. 14: Announced the definitive merger agreement between AMR and US
    Airways
  o Feb. 25: AMR and US Airways announced that Beverly Goulet, senior vice
    president and chief integration officer for American Airlines, and Scott
    Kirby, president of US Airways, will jointly lead a transition-planning
    team to design and oversee the new American integration
  o March 21: AMR and US Airways announced the creation of the Integration
    Management Office (IMO) to support the transition team and the selection
    of McKinsey & Company to advise the IMO
  o March 28: AMR received court approval to merge with US Airways
  o April 15: AMR filed its Chapter 11 Plan of Reorganization, Disclosure
    Statement and Registration Statement; a hearing to consider approval of
    the Disclosure Statement is scheduled for June 4

The merger is conditioned on the approval by the Court, regulatory approvals,
approval by US Airways shareholders, other customary closing conditions, and
confirmation and consummation of the Plan of Reorganization in accordance with
the provisions of the Bankruptcy Code. The combination is expected to be
completed in the third quarter of 2013. Prior to closing of the transaction,
the transition-planning team composed of leaders from both companies will
develop an integration plan designed to assure a smooth and sustainable
transition with a focus on maximizing the potential value of the merger.

Reorganization and Special Items

AMR's first quarter 2013 results include the impact of $349 million in
reorganization and special items.

  o Of that amount, AMR recognized a $160 million loss in reorganization items
    resulting from certain of its direct and indirect U.S. subsidiaries'
    voluntary petitions for reorganization under Chapter 11 on Nov. 29, 2011.
    These items primarily result from an adjustment to previously recorded
    estimated allowed claim amounts for certain special facility revenue
    bonds, as well as for professional fees.
  o The company recognized interest charges of $116 million to recognize
    post-petition interest expense on unsecured obligations which is to be
    allowed pursuant to the company's Plan of Reorganization filed on April
    15.
  o The company's operating expenses for the first quarter also include
    special charges and merger-related expenses of $28 million, and a $45
    million charge to benefits expense due to an increase in workers'
    compensation claims in recent months, as well as adverse developments on
    older claims.

Capacity Guidance

AMR estimates consolidated capacity in the second quarter of 2013 to be up
approximately 1.0 percent versus the second quarter of 2012. For the full year
2013, consolidated capacity is estimated to increase approximately 1.5 percent
versus the prior year.

American continues to make progress in implementing Main Cabin Extra, removing
certain seats to provide customers with more leg room in the Main Cabin. To
date, American has completed the retrofit of its Boeing 757 and 767 fleets and
more than 90 percent of its 737 fleet.  The retrofit of the MD-80 fleet
commenced in January 2013, and to date, Main Cabin Extra has been added to
approximately two-thirds of the MD-80 fleet with completion targeted for the
second quarter of this year.

About American Airlines
American Airlines focuses on providing an exceptional travel experience across
the globe, serving more than 260 airports in more than 50 countries and
territories. American's fleet of nearly 900 aircraft fly more than 3,500 daily
flights worldwide from hubs in Chicago, Dallas/Fort Worth, Los Angeles, Miami
and New York. American flies to nearly 100 international locations including
important markets such as London, Madrid, Sao Paulo and Tokyo. With more than
500 new planes scheduled to join the fleet, including continued deliveries of
the Boeing 737 family of aircraft and new additions such as the Boeing
777-300ER and the Airbus A320 family of aircraft, American is building toward
the youngest and most modern fleet among major U.S. carriers. American's
website, aa.com^®, provides customers with easy access to check and book
fares, and personalized news, information and travel offers. American's
AAdvantage^® program lets members redeem miles for flights to almost 950
destinations worldwide, as well as flight upgrades, vacation packages, car
rentals, hotel stays and other retail products. The airline also offers nearly
40 Admirals Club^® locations worldwide providing comfort, convenience, and an
environment with a full range of services making it easy for customers to stay
productive without interruption. American is a founding member of the
oneworld^® alliance, which brings together some of the best and biggest
airlines in the world, including global brands like British Airways, Cathay
Pacific, Iberia Airlines, Japan Airlines, LAN and Qantas. Together, its
members serve more than 840 destinations served by some 9,000 daily flights to
nearly 160 countries and territories. Connect with American on Twitter
@AmericanAir or Facebook.com/AmericanAirlines. American Airlines, Inc. and
American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AMR
Corporation common stock trades under the symbol "AAMRQ" on the OTCQB
marketplace, operated by OTC Markets Group.

Additional Information and Where To Find It
This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval.  The
proposed merger transaction between and US Airways will be submitted to the
stockholders of US Airways for their consideration.  AMR has filed with the
Securities and Exchange Commission ("SEC") a registration statement on Form
S-4, which includes a preliminary proxy statement of US Airways that also
constitutes a prospectus of AMR.  US Airways expects to file with the SEC a
definitive proxy statement on Schedule 14A, and AMR and US Airways also plan
to file other documents with the SEC regarding the proposed transaction. 
Investors and security holders of US Airways are urged to read the PRELIMINARY
proxy statement/prospectus and other relevant documents that will be filed
with the SEC (including the definitive proxy statement/PROSPECTUS) carefully
and in their entirety when they become available because they contain
important information about the proposed transaction.  Investors and security
holders may obtain free copies of the preliminary proxy statement/prospectus
and other documents containing important information about AMR and US Airways
(including the definitive proxy statement/prospectus), once such documents are
filed with the SEC, through the website maintained by the SEC at
http://www.sec.gov.  Copies of the documents filed with the SEC by US Airways,
when and if available, can be obtained free of charge on US Airways' website
at www.usairways.com or by directing a written request to US Airways Group,
Inc., 111 West Rio Salado Parkway, Tempe, Arizona 85281, Attention: Vice
President, Legal Affairs.  Copies of the documents filed with the SEC by AMR,
when and if available, can be obtained free of charge on AMR's website at
www.aa.com or by directing a written request to AMR Corporation, P.O. Box
619616, MD 5675, Dallas/Fort Worth International Airport, Texas 75261-9616,
Attention: Investor Relations or by emailing investor.relations@aa.com.

US Airways, AMR and certain of their respective directors, executive officers
and certain members of management may be deemed to be participants in the
solicitation of proxies from the stockholders of US Airways in connection with
the proposed transaction.  Information about the directors and executive
officers of US Airways is set forth in its Annual Report on Form 10-K/A, which
was filed with the SEC on April 16, 2013, and the preliminary proxy
statement/prospectus related to the proposed transaction, which was filed with
the SEC on April 15, 2013.  Information about the directors and executive
officers of AMR is set forth in its Annual Report on Form 10-K/A, which was
filed with the SEC on April 16, 2013, and the preliminary proxy
statement/prospectus related to the proposed transaction, which was filed with
the SEC on April 15, 2013.  These documents can be obtained free of charge
from the sources indicated above.  Other information regarding the
participants in the proxy solicitation may also be included in the definitive
proxy statement/prospectus and other relevant materials when and if filed with
the SEC in connection with the proposed transaction.

Cautionary Statement Regarding Forward-Looking Statements and Information
This news release could be viewed as containing forward-looking statements or
information. Actual results may differ materially from the results suggested
by the statements and information contained herein for a number of reasons,
including, but not limited to, risks related to the pending merger, including
fulfillment of conditions and receipt of consents and approvals, the company's
ability to secure financing for all of its scheduled aircraft deliveries, the
impact of the restructuring of the company and certain of its U.S.
subsidiaries, the company's ability to refinance, extend or repay its near and
intermediate term debt, the company's substantial level of indebtedness and
related interest rates, the potential impact of volatile and rising fuel
prices, impairments and restructuring charges, and the potential impact of
labor unrest. Because of the company's restructuring, there can be no
assurance as to the future value of the company's or any of its subsidiaries'
securities, including AMR common stock.  Accordingly, the company urges that
caution be exercised with respect to existing and future investments in any of
these securities (including AMR's common stock) or other claims. Readers are
referred to the documents filed by the company with the Securities and
Exchange Commission, including the company's Form 10-K for the period ended
December 31, 2012, as amended by its Form 10-K/A filed April 16, 2013, which
further identify the important risk factors that could cause actual results to
differ materially from the forward-looking statements in this news release.
The company disclaims any obligation to update any forward-looking statement
or information.

Detailed financial information follows:

 

AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
                                              Three Months Ended
                                                                       Percent
                                              March 31,
                                              2013        2012         Change
Revenues
    Passenger - American Airlines             $    4,614  $    4,557   1.3
                      - Regional Affiliates   679         670          1.3
    Cargo                                     155         168          (8.0)
    Other revenues                            650         642          1.2
      Total operating revenues                6,098       6,037        1.0
Expenses
  Aircraft fuel                               2,200       2,165        1.6
  Wages, salaries and benefits                1,484       1,782        (16.7)
  Other rentals and landing fees              346         328          5.4
  Maintenance, materials and repairs          383         343          11.8
  Depreciation and amortization               246         260          (5.6)
  Commissions, booking fees and credit card   276         266          3.7
expense
  Aircraft rentals                            164         143          14.7
  Food service                                139         125          11.5
  Special charges and merger related          28          11           *
  Other operating expenses                    780         703          11.0
    Total operating expenses                  6,046       6,126        (1.3)
Operating Income (Loss)                       52          (89)         *
Other Income (Expense)
  Interest income                             4           6            (28.3)
  Interest expense                            (262)       (178)        46.9
  Interest capitalized                        12          12           2.6
  Miscellaneous – net                         (9)         (10)         (10.0)
    Total other income                        (255)       (170)        50.0
Income (Loss) Before Reorganization Items,    (203)       (259)        (21.8)
Net
Reorganization Items, Net                     (160)       (1,401)      (88.6)
Income (Loss) Before Income Taxes             (363)       (1,660)      (78.1)
Income tax                                    (22)        -            *
Net Income (Loss)                             $    (341)  $  (1,660)   (79.4)
Earnings (Loss) Per Share
Basic                                         $   (1.02)  $    (4.95)
Diluted                                       $   (1.02)  $    (4.95)
Number of Shares Used in Computation
  Basic                                       335         335
  Diluted                                     335         335
* Greater than 100%

 

AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
OPERATING STATISTICS BY REGIONAL ENTITY
American Airlines, Inc. Three Months Ended March 31, 2013
Entity Results          RASM^1       Y-O-Y         ASMs^2      Y-O-Y
                        (cents)      Change        (billions)  Change
DOT Domestic            12.3         2.7%          21.9        (2.3%)
International           12.4         2.6%          15.5        -
     DOT Latin America  14.0         (0.1%)        8.9         4.9%
     DOT Atlantic       10.8         8.4%          4.4         (7.2%)
     DOT Pacific        9.3          (2.2%)        2.2         (3.6%)
American Airlines, Inc. Three Months Ended March 31, 2013
Entity Results          Load Factor  Y-O-Y         Yield       Y-O-Y
                        (pts)        Change (pts)  (cents)     Change
DOT Domestic            82.2         2.0           14.9        0.2%
International           78.3         1.1           15.9        1.2%
     DOT Latin America  78.8         (0.4)         17.8        0.4%
     DOT Atlantic       76.4         2.8           14.1        4.4%
     DOT Pacific        80.1         2.4           11.6        (5.1%)

^1 Revenue Per Available Seat Mile
^2 Available Seat Miles

 

AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
                                                   Three Months Ended
                                                                       Percent
                                                   March 31,
                                                   2013       2012     Change
AMR Corporation Consolidated
Revenue passenger miles (millions)                 32,531     32,331   0.6
Available seat miles (millions)                    40,711     41,251   (1.3)
Cargo ton miles (millions)                         410        445      (7.8)
Passenger load factor                              79.9%      78.4%    1.5 pts
Passenger revenue yield per passenger mile (cents) 16.27      16.17    0.6
Passenger revenue per available seat mile (cents)  13.00      12.67    2.6
Cargo revenue yield per ton mile (cents)           37.72      37.80    (0.2)
Fuel consumption (gallons, in millions)            674        668      0.9
Fuel price per gallon (dollars)                    3.26       3.24     0.7
American Airlines, Inc. Mainline Operations
Revenue passenger miles (millions)                 30,139     29,960   0.6
Available seat miles (millions)                    37,392     37,918   (1.4)
Cargo ton miles (millions)                         410        445      (7.8)
Passenger load factor                              80.6%      79.0%    1.6 pts
Passenger revenue yield per passenger mile (cents) 15.31      15.21    0.7
Passenger revenue per available seat mile (cents)  12.34      12.02    2.7
Cargo revenue yield per ton mile (cents)           37.72      37.80    (0.2)
Operating expenses per available seat mile,        14.13      14.22    (0.6)
excluding Regional Affiliates (cents) (1)
Fuel consumption (gallons, in millions)            592        592      -
Fuel price per gallon (dollars)                    3.27       3.23     1.1
Regional Affiliates
Revenue passenger miles (millions)                 2,393      2,370    0.9
Available seat miles (millions)                    3,319      3,333    (0.4)
Passenger load factor                              72.1%      71.1%    1.0 pts
AMR Corporation
Average Equivalent Number of Employees
American Airlines                                  59,700     65,700
Other                                              14,000     13,200
Total                                              73,700     78,900

(1) Excludes $754 million and $742 million of expense incurred related to
Regional Affiliates in 2013 and 2012, respectively.

 

AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
                                     Three Months Ended
                                                                       Percent
                                     March 31,
                                     2013             2012             Change
Operating Expense                    $        6,046   $        6,126   (1.3)
Special Items
Workers' compensation                (45)             -                *
Special charges and merger related   (28)             (11)             *
Operating Expense excluding special  5,973            6,115            (2.3)
items
* Greater than 100%
                                     Three Months Ended
                                                                       Percent
                                     March 31,
                                     2013             2012             Change
Net Income                           $        (341)   $     (1,660)    (79.4)
Special Items
Workers' compensation                45               -                *
Special charges and merger related   28               11               *
Post-petition interest expense on    116              -                *
unsecured obligations
Reorganization Items, Net            160              1,401            (88.6)
Net Income (Loss) excluding special  8                (248)            *
items
* Greater than 100%
                                     Three Months Ended
                                                                       Percent
                                     March 31,
                                     2013             2012             Change
Operating Profit                     $            52  $          (89)  *
Special Items
Workers' compensation                45               -                *
Special charges and merger related   28               11               *
Operating Profit (Loss) excluding    125              (78)             *
special items
* Greater than 100%

AMR believes that excluding the impact of special items from operating
expense, net income (loss), and operating profit (loss), assists investors in
understanding the impact of special items on the Company's results of
operations.

 

AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
AMR Corp. Consolidated Operating Expense per       Three Months Ended
Available Seat Mile                                                    Percent
                                                   March 31,
(in millions, except as noted)                     2013        2012    Change
Total Operating Expense                            $  6,046    $6,126
Available Seat Miles                               40,711      41,251
Operating expenses per available seat mile (cents) 14.85       14.85   -
Items Excluded (cents)
         Aircraft fuel and taxes                   5.40        5.25
         Workers' compensation                     0.11        -
         Special charges and merger related        0.07        0.03
Operating expenses per available seat mile,
excluding impact of fuel, merger, and special      9.27        9.57    (3.2)
charges (cents)
American Airlines, Inc. Mainline Operations        Three Months Ended
Operating Expense per Available Seat Mile                              Percent
                                                   March 31,
(in millions, except as noted)                     2013        2012    Change
Total operating expenses                           $  6,038    $6,132
Less: Operating expenses incurred related to       754         742
Regional Affiliates
Operating expenses excluding expenses incurred     $  5,284    $5,390
related to Regional Affiliates
American mainline operations available seat miles  37,392      37,918
Operating expenses per available seat mile,        14.13       14.21   (0.6)
excluding Regional Affiliates (cents)
Items Excluded (cents)
         Aircraft fuel and taxes                   5.17        5.05
         Workers' compensation                     0.11        -
         Special charges and merger related        0.07        0.03
Operating expenses per available seat mile,
excluding Regional Affiliates impact of fuel,      8.77        9.14    (4.1)
merger, and special charges (cents)
AMR believes that operating expenses per available seat mile, excluding the
cost of fuel, merger, and
special items, assists investors in understanding the impact of fuel prices
and merger and special items on the Company's operations.

 

AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
American Airlines, Inc. Mainline Operations       Three Months Ended
Operating Expense per Available Seat Mile                              Percent
                                                  March 31,
(in millions, except as noted)                    2013        2012     Change
Operating expenses per available seat mile,
excluding Regional                                14.13       14.21

Affiliates (cents)
Less: Fuel expense per available seat mile        5.17        5.05
(cents)
Operating expenses per available seat mile,
excluding Regional Affiliates and fuel expenses   8.96        9.17     (2.3)
(cents)
American Airlines, Inc. Mainline Operations       Three Months Ended
Operating Expense per Available Seat Mile                              Percent
                                                  March 31,
(in millions, except as noted)                    2013        2012     Change
Operating expenses per available seat mile,       14.13       14.21
excluding Regional Affiliates (cents)
Items Excluded (cents)
     Workers' compensation                        0.11        -
     Special charges and merger related           0.07        0.03
Operating expenses per available seat mile,
excluding Regional
     Affiliates, Workers' Compensation, Special   13.94       14.19    (1.7)
Charges and Merger Related (cents)

Aircraft in Service
As of March 31, 2013
                         Mainline Aircraft in Service
Mainline Aircraft        YE2012A 1QA 2QE  3QE  4QE  YE2013E
McDonnell Douglas MD-80  190     (5) (5)  (12) (13) 155
Boeing 737-800           195     9   9    8    5    226
Boeing 757-200           102     (1) (5)  (3)  (3)  90
Boeing 767-200ER         14      (2) 0    0    (3)  9
Boeing 767-300ER         58      0   0    0    0    58
Boeing 777-200ER         47      0   0    0    0    47
Boeing 777-300ER         2       3   3    1    1    10
Airbus A319              0       0   0    10   5    15
Airbus A321              0       0   0    0    5    5
Total Mainline Aircraft  608     4   2    4    (3)  615
                         Regional Aircraft in Service
Regional Aircraft        YE2012A 1QA 2QE  3QE  4QE  YE2013E
Embraer RJ-135           21      (2) (8)  (4)  (7)  0
Embraer RJ-140           74      0   0    0    (3)  71
Embraer RJ-145           118     0   0    0    0    118
Embraer E-175            0       0   0    4    11   15
Bombardier CRJ-200       12      11  0    0    0    23
Bombardier CRJ-700       47      0   0    0    0    47
Super ATR                9       (3) (6)  0    0    0
Total Regional Aircraft  281     6   (14) 0    1    274

Regional fleet plan reflects plan for aircraft operated by wholly owned
subsidiaries of AMR and aircraft under executed air service agreements that
are operated by third parties.

SOURCE American Airlines

Website: http://www.aa.com
Contact: Sean Collins, +1-817-967-1577, mediarelations@aa.com
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