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American Airlines Files Form 8-K with the U.S. Securities and Exchange Commission
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United States Securities and Exchange Commission Form 8-K

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: January 16, 2013
 
 
American Airlines, Inc.
(Exact name of registrant as specified in its charter)
 
 
Delaware 1-2691 13-1502798 _
(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
 
American Airlines, Inc. is furnishing herewith a press release issued on January 16, 2013 by its parent company, AMR Corporation (AMR), as Exhibit 99.1, which is included herein. This press release was issued to report AMR's fourth quarter 2012 results.
 
Item 9.01 Financial Statements and Exhibits
 
(c) Exhibits
 
Exhibit 99.1 Press Release of AMR dated January 16, 2013
 
 
 
 
 
 
 


 
 
 
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.
 
 
    American Airlines, Inc.
 
 
                                
/s/ Kenneth W. Wimberly
Kenneth W. Wimberly
Corporate Secretary
 
 
 
Dated: January 16, 2013


EXHIBIT INDEX
 
 
  
Exhibit
 
99.1
Description
 
Press Release of AMR dated January 16, 2013
 
 



CONTACT:    Sean Collins
Media Relations
Fort Worth, Texas
817-967-1577
mediarelations@aa.com
FOR RELEASE: Wednesday, Jan. 16, 2013
 
AMR Corporation Reports Fourth Quarter 2012 Net Profit of
$262 Million, a $1.4 Billion Improvement Over Fourth Quarter 2011
Excluding reorganization and special items, the fourth quarter net loss would be $88 million, a $121 million improvement over the same period last year
Fort Worth, Texas - AMR Corporation, the parent company of American Airlines, Inc., today reported results for the fourth quarter and year ended December 31, 2012. Key points include:
 
  
Revenue of $24.9 billion in 2012, the highest in company history
 
  
Full-year operating profit of $494 million, excluding special items, a $749 million improvement over 2011
 
  
Full-year net loss of $1.9 billion. Excluding reorganization and special items, the full-year net loss was $130 million, a $932 million improvement over 2011
 
  
American took delivery of 11 new aircraft in the fourth quarter (nine 737-800s and two 777-300ERs) and 30 new aircraft during the full year (28 737-800s and two 777-300ERs), putting the airline on track to have the youngest, most fuel-efficient fleet among U.S. network carriers by 2017
 
“We have made enormous progress towards building the new American,” said Tom Horton, AMR's Chairman and CEO. “It is remarkable what the American team has been able to accomplish, including generating record revenue and a return to an operating profit for the year while restructuring every aspect of our company. I want to thank all of our people for their dedication, hard work and commitment to serving our customers during this time. Our momentum is growing toward emerging as a strong, healthy and vibrant competitor. In fact, with what we have accomplished, we expect to show strong results beginning in the first quarter of 2013.”
In the fourth quarter, AMR reported a net profit of $262 million compared to a net loss of $1.1 billion in the fourth quarter of 2011. AMR's fourth quarter results include $350 million of net positive reorganization and special items, which are detailed below.
Excluding reorganization and special items, the net loss in the fourth quarter of 2012 was $88 million, a $121 million improvement from the prior year. The fourth quarter of 2012 was negatively impacted by Hurricane Sandy and the early November snow storm in the Northeast and, separately, by the residual headwind on fourth quarter bookings from the operational disruptions experienced in late September and early October. The cumulative impact from these events is estimated to have reduced net profits by $142 million.
For full-year 2012, American recorded a net loss of $1.9 billion, compared to 2011's full-year net loss of $2.0 billion. AMR's full year 2012 results include $1.7 billion of net negative reorganization and special items, which are detailed below.
Excluding reorganization and special items, the net loss for 2012 was $130 million, a $932 million improvement over 2011. The company's operating profit, excluding special items, of $494 million for 2012 was a $749 million improvement over last year.
 
Restructuring Progress



During the last year, AMR has completed the majority of its financial restructuring, including reducing debt, renegotiating aircraft leases and facilities agreements, grounding older airplanes, rationalizing the regional fleet, and renegotiating supplier relationships. AMR expects these actions to continue to increasingly improve its cost structure in 2013, as the company approaches its targeted restructuring related savings by the end of 2013.
In 2012:
  
American achieved labor cost reductions of 17 percent across all workgroups, including management, independent employees and unionized workgroups, all of which ratified agreements for six-year terms. Progress was also made at American Eagle, which achieved costs savings and reached agreements with its unionized workgroups
  
American made changes to its organizational structure to reduce management positions, making American's management workgroup the leanest among the network carriers
  
Renegotiated the financing terms for more than 400 mainline and regional aircraft, which includes completing its financial contracts on its 216 Embraer aircraft. Improved terms on these aircraft significantly lower AMR's aircraft ownership related costs, while also harmonizing its aircraft retirement and new aircraft delivery schedules
  
Negotiated more than 95 percent of American's 725 facility leases
  
Evaluated and/or renegotiated over 9,000 vendor/supplier agreements - American's suppliers have made significant contributions to its strategic plan for success, allowing AMR to meet its savings objectives as outlined in its business plan
  
Realized over $400 million in restructuring related savings in the fourth quarter, primarily from renegotiated aircraft leases, reductions to management and support staff positions, freezing the pension plans for all workgroups, and sun-setting the retiree medical program for active employees
 
“Throughout 2012, we have executed on all aspects of our business plan - streamlining our organizational structure, increasing unit revenues, reducing unit costs, and restructuring our balance sheet,” said Bella Goren, AMR's Chief Financial Officer. “The strong financial foundation we are building gives us the ability to deliver returns to our financial stakeholders and make investments that create enhanced value for our customers and our people.”
 
Revenue Performance
For the fourth quarter of 2012, the company reported consolidated revenue of $5.9 billion, 0.3 percent lower compared to the prior year. The combined effects of Hurricane Sandy, the November snow storm in the Northeast, and the booking headwind from the earlier operational disruption, negatively impacted revenue by an estimated $155 million in the fourth quarter.
Fourth quarter consolidated passenger revenue per available seat mile (PRASM) was comparable to the same period last year, and mainline PRASM decreased by 0.4 percent. Absent the same factors that impacted revenues - described above - American estimates that PRASM would have been approximately 2.0 percentage points higher than the fourth quarter of 2011.
For full-year 2012, AMR reported record consolidated revenue of $24.9 billion, up 3.7 percent compared to 2011, on 1.0 percent less capacity. For 2012, AMR's consolidated and mainline PRASM rose 5.8 percent and 5.6 percent year-over-year, respectively. Consolidated revenue performance was driven by a 4.6 percent year-over-year improvement in yield, or average fares paid, and record high consolidated and mainline load factors, or percentage of seats filled, of 82.2 percent and 82.8 percent, respectively. Domestic PRASM improved 5.5 percent in full-year 2012 versus full-year 2011, with PRASM increases across all five of American's hubs.
International PRASM increased 5.7 percent in 2012 over the prior year, driven by improved yield performance across all entities and increased load factors. “We are making tremendous progress strengthening American's global network by focusing the flying from our hubs to the most important domestic and international cities with the highest concentration of business travelers,” said Virasb Vahidi, American's Chief Commercial Officer. “We are enhancing relationships with the best international alliance partners and creating a pipeline of industry-leading products and services, including a significant renewal and transformation of our fleet that will drive revenue performance in the coming years.”



American's 2012 revenue improvement is a result of solid execution on its network, alliances, and product strategy. The recent revenue progress does not yet account for the benefits expected from initiatives accomplished in the restructuring.
 
Operating Expense
For the fourth quarter, AMR's consolidated operating expenses, excluding special items, decreased $139 million, or 2.3 percent, versus the same period in 2011. American's mainline cost per available seat mile (unit cost) in the fourth quarter decreased 3.3 percent versus the same period last year, excluding special items in both periods. Taking into account the impact of fuel hedging, AMR paid $3.22 per gallon for jet fuel in the fourth quarter versus $3.01 a gallon in the fourth quarter of 2011, a 6.6 percent increase. As a result, the company paid $135 million more for fuel in the fourth quarter of 2012 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 fourth quarter of 2012 decreased 8.9 percent and 7.6 percent year-over-year, respectively, primarily driven by American's restructuring efforts. “The significant improvement in the fourth quarter in non-fuel unit cost underscores the results we have been able to achieve in our restructuring efforts and the competitive cost structure we have put in place for the future,” said Bella Goren, AMR's Chief Financial Officer.
Since many of the restructuring savings were implemented near the end of the year, AMR's full year 2012 consolidated operating expenses, excluding special items, were up 0.3 percent, or $84 million, year-over-year. They also reflect a negative impact of $514 million due to higher fuel prices in 2012. American's 2012 mainline unit costs, excluding special items, increased 1.5 percent versus the prior year. Excluding fuel and special items, mainline unit costs decreased 0.9 percent for the same period.
An unaudited summary of full-year 2012 results is available in the tables at the back of this press release.
 
Cash Position
AMR ended the fourth quarter with approximately $4.7 billion in cash and short-term investments, including a restricted cash balance of $850 million, compared to a balance of approximately $4.7 billion in cash and short-term investments, including a restricted balance of approximately $738 million, at the end of the fourth quarter of 2011.
 
2012 Notable Accomplishments
American has made significant progress in its plan to transform the airline into an industry leader. While the restructuring process is allowing the company to achieve a competitive cost structure and strengthen its balance sheet, American also showed improvement across all aspects of its business. Key accomplishments in 2012 include:
 
Financial:
  
The largest annual revenue in company history
  
Unit revenue growth that outpaced the industry average in 2012 - driven by strong customer demand for American's product. Mainline and consolidated PRASM, passenger yield and load factor in 2012 were all records for any year in AMR's history
  
Full-year 2012 operating profit, excluding special items, of $494 million, a $749 million improvement over 2011
 
Fleet Renewal and Transformation:
American made substantial progress on its fleet renewal plans and is on pace to have the youngest fleet in the industry in the next five years.
  
In the fourth quarter, the size of American's fleet of 737-800s surpassed that of its MD-80s. 737-800s offer a 35 percent reduction in fuel cost per seat versus the MD-80
  
American became the first U.S. airline to take delivery of the Boeing 777-300ER, giving the airline's fleet additional network flexibility, while delivering a state of the art customer experience, and better operating economics
  
American has 59 new mainline aircraft slated for delivery in 2013 and is in the midst of a significant renewal and transformation of its fleet
 
Customer Experience Enhancements:
American has taken many steps to provide an exceptional customer experience throughout the entire travel journey.
  
Announced a redesigned interior of its international widebody aircraft, including 777-200ERs and 767-300ERs
  
Will be the first domestic carrier to offer three-class service and fully lie-flat First and Business Class seats on transcontinental flights
  
Installing Main Cabin Extra to give customers more leg room in the Coach cabin
  
Introduced new travel options and a brand new booking path on AA.com offering customers more choices to book competitive, round-trip fares, as well as select new combinations of products and services customers value most
 
Network and Alliances Strategy:
American bolstered its network and alliances by expanding service from its hubs to the domestic and international cities most desirable to high value customers and by enhancing existing and forging new strategic partnerships.
  
International Expansion - American announced new routes and expansion into new international markets that have strong growth prospects, including:
  
Manaus and São Paulo, Brazil; Roatan, Honduras; Asuncion, Paraguay; Puebla, Mexico; Bogotá, Colombia
  
Dusseldorf, Germany and Dublin, Ireland
  
Seoul, South Korea
  
Joint Businesses - The continuing maturation of American's joint business agreements with IAG, parent of British Airways and Iberia, over the Atlantic, and Japan Airlines over the Pacific, were instrumental in driving unit revenue improvements of 5.9 percent and 9.6 percent over the Atlantic and Pacific in 2012, respectively
  
Codeshare - American expanded its long-standing partnership with LATAM Airlines group by embarking on codeshare agreements with TAM and LAN Colombia
  
oneworld® - New member airberlin and members-elect Malaysia and Qatar Airways will bolster American's network
 
Reorganization and Special Items:
AMR's fourth quarter 2012 results include $350 million of net positive reorganization and special items.
  
Of that amount, AMR recognized a $569 million non-cash income tax benefit from continuing operations during the fourth quarter of 2012 related to gains in Other Comprehensive Income
  
The company recognized a $441 million loss in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries' voluntary petitions for reorganization under Chapter 11 on November 29, 2011. These items primarily result from estimated claims associated with restructuring the financing arrangements for certain debt, aircraft leases, as well as professional fees
  
The company recognized $58 million in special charges, primarily associated with personnel related restructuring costs
  
The fourth quarter results also include a $280 million benefit from settlement of a commercial dispute
 
AMR's full year 2012 results include $1.7 billion of net negative reorganization and special items.
  
Of that amount, the company recognized a $2.2 billion loss in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries' voluntary petitions for reorganization under Chapter 11 on November 29, 2011. These items are primarily from estimated claims associated with restructuring the financing arrangements for certain debt, aircraft leases, and rejecting certain special facility revenue bonds, as well as professional fees
  
The company recognized $387 million in special charges, primarily associated with personnel related restructuring costs
  
As described above, in the fourth quarter, the company recognized a $569 million non-cash income tax benefit from continuing operations, and a $280 million benefit from a settlement of a commercial dispute

Capacity Guidance
AMR estimates consolidated capacity in the first quarter of 2013 to be down 1.7 percent versus the first quarter of 2012.
Factors contributing to this estimated reduction in capacity include the absence of Leap Day in 2013, and progress American has made in implementing its Main Cabin Extra program removing seats from the coach cabin. To date, American has completed the retrofit of its Boeing 757 and 767 fleets, has completed approximately half of its 737 fleet, and will commence the retrofit of the MD-80 fleet in January 2013 with completion targeted for the second quarter.
As previously reported, American experienced an unusually high number of pilot retirements in the fall of 2011 that resulted in capacity reductions for the period November 2011 to February 2012.
Absent the impact of the capacity reductions in January and February of 2012 due to pilot retirements, consolidated capacity in the first quarter of 2013 is estimated to be down 3.4 percent year-over-year.
First Quarter Unit Costs Guidance
AMR will continue to realize restructuring related savings and estimates that in the first quarter of 2013, unit costs will improve year-over-year, despite a capacity headwind due to consolidated capacity decreasing by 1.7 percent and lapping some restructuring related savings that impacted the first quarter of last year.
 
About American Airlines
American Airlines, American Eagle® and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,500 daily flights. The combined network fleet numbers nearly 900 aircraft. American's award-winning website, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld®alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 9,000 daily flights to 150 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc. AMR Corporation common stock trades under the symbol “AAMRQ” on the OTCQB marketplace, operated by OTC Markets Group.
 
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, 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, which could have little or no value at the end of the restructuring process. Accordingly, the company urges that caution be exercised with respect to existing and future investments in any of these securities (including the company'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, 2011, 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
December 31,
 
Percent
 
2012
 
2011
 
Change
Revenues
 
 
 
 
 
    Passenger - American Airlines
$
4,440
 
 
$
4,439
 
 
                      - Regional Affiliates
706
 
 
701
 
 
0.8
    Cargo
170
 
 
171
 
 
(0.6)
    Other revenues
621
 
 
645
 
 
(3.7)
      Total operating revenues
5,937
 
 
5,956
 
 
(0.3)
 
 
 
 
 
 
Expenses
 
 
 
 
 
  Aircraft fuel
2,162
 
 
2,006
 
 
7.8
  Wages, salaries and benefits
1,555
 
 
1,790
 
 
(13.1)
  Other rentals and landing fees
314
 
 
361
 
 
(13.0)
  Maintenance, materials and repairs
354
 
 
301
 
 
17.7
  Depreciation and amortization
239
 
 
271
 
 
(11.7)
  Commissions, booking fees and credit card expense
244
 
 
253
 
 
(3.5)
  Aircraft rentals
140
 
 
179
 
 
(21.8)
  Food service
142
 
 
128
 
 
10.7
  Special charges
58
 
 
725
 
 
(92.0)
  Other operating expenses
725
 
 
725
 
 
    Total operating expenses
5,933
 
 
6,739
 
 
(12.0)
 
 
 
 
 
 
Operating Income (Loss)
4
 
 
(783
)
 
*
 
 
 
 
 
 
Other Income (Expense)
 
 
 
 
 
  Interest income
6
 
 
6
 
 
1.6
  Interest expense
(159
)
 
(199
)
 
(20.3)
  Interest capitalized
14
 
 
12
 
 
10.6
  Miscellaneous - net
270
 
 
(13
)
 
*
    Total other income
131
 
 
(194
)
 
*
 
 
 
 
 
 
Income (Loss) Before Reorganization Items, Net
135
 
 
(977
)
 
*
Reorganization Items, Net
(441
)
 
(118
)
 
*
Income Before Income Taxes
(307
)
 
(1,095
)
 
(72.0)
Income tax
(569
)
 
 
*
Net Income
$
262
 
 
$
(1,095
)
 
*
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
Basic
$
0.78
 
 
$
(3.27
)
 
 
Diluted
$
0.69
 
 
$
(3.27
)
 
 
 
 
 
 
 
 
Number of Shares Used in Computation
 
 
 
 
 
Basic
335
 
 
335
 
 
 
Diluted
382
 
 
335
 
 
 
* Greater than 100%



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
OPERATING STATISTICS BY REGIONAL ENTITY
 
 
        
American Airlines, Inc.
Three Months Ended December 31, 2012
Entity Results
RASM1
 
Y-O-Y
 
ASMs2
 
Y-O-Y
 
(cents)
 
Change
 
(billions)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
11.8
 
0.3%
 
22.0
 
(1)%
International
11.9
 
(1.4)%
 
15.4
 
2.5%
     DOT Latin America
13.3
 
(5.4)%
 
8.1
 
9.4%
     DOT Atlantic
10.5
 
3.7%
 
5.0
 
(9.1)%
     DOT Pacific
10.1
 
(1.2)%
 
2.3
 
8.5%
 
 
 
 
 
 
 
 
 
 
        
American Airlines, Inc.
Three Months Ended December 31, 2012
Entity Results
Load Factor
 
Y-O-Y
 
Yield
 
Y-O-Y
 
(pts)
 
Change (pts)
 
(cents)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
82.7
 
(0.6)
 
14.3
 
1.0%
International
79.9
 
(0.4)
 
14.9
 
(0.9)%
     DOT Latin America
78.1
 
(2.3)
 
17.0
 
(2.6)%
     DOT Atlantic
82.1
 
1.7
 
12.8
 
1.6%
     DOT Pacific
81.1
 
2.0
 
12.4
 
(3.6)%
 
1 Revenue per Available Seat Mile
2 Available Seat Miles



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
        
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
AMR Corporation Consolidated
 
 
 
 
 
Revenue passenger miles (millions)
33,068
 
 
33,181
 
 
(0.3)
Available seat miles (millions)
40,813
 
 
40,750
 
 
0.2
Cargo ton miles (millions)
436
 
 
441
 
 
(1.2)
Passenger load factor
81.0
%
 
81.4
%
 
 (0.4) pts
Passenger revenue yield per passenger mile (cents)
15.56
 
 
15.49
 
 
0.5
Passenger revenue per available seat mile (cents)
12.61
 
 
12.61
 
 
Cargo revenue yield per ton mile (cents)
38.98
 
 
38.77
 
 
0.5
Fuel consumption (gallons, in millions)
673
 
 
665
 
 
1.1
Fuel price per gallon (dollars)
3.22
 
 
3.01
 
 
6.6
 
 
 
 
 
 
American Airlines, Inc. Mainline Jet Operations
 
 
 
 
 
Revenue passenger miles (millions)
30,558
 
 
30,640
 
 
(0.3)
Available seat miles (millions)
37,466
 
 
37,308
 
 
0.4
Cargo ton miles (millions)
436
 
 
441
 
 
(1.2)
Passenger load factor
81.6
%
 
82.1
%
 
 (0.6) pts
Passenger revenue yield per passenger mile (cents)
14.53
 
 
14.49
 
 
0.3
Passenger revenue per available seat mile (cents)
11.85
 
 
11.90
 
 
(0.4)
Cargo revenue yield per ton mile (cents)
38.98
 
 
38.77
 
 
0.5
Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1)
13.84
 
 
16.10
 
 
(14.0)
Fuel consumption (gallons, in millions)
595
 
 
587
 
 
1.4
Fuel price per gallon (dollars)
3.22
 
 
3.02
 
 
6.6
 
 
 
 
 
 
Regional Affiliates
 
 
 
 
 
Revenue passenger miles (millions)
2,511
 
 
2,541
 
 
(1.2)
Available seat miles (millions)
3,347
 
 
3,442
 
 
(2.8)
Passenger load factor
75.0
%
 
73.8
%
 
1.2 pts
 
 
 
 
 
 
AMR Corporation
 
 
 
 
 
Average Equivalent Number of Employees
 
 
 
 
 
American Airlines
62,400
 
 
66,500
 
 
 
Other
13,800
 
 
13,700
 
 
 
Total
76,200
 
 
80,200
 
 
 
 
 
 
 
 
 
 
(1) Excludes $744 million and $740 million of expense incurred related to Regional Affiliates in 2012 and 2011, respectively.
 



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
          
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
Net Income
$
262
 
 
$
(1,095
)
 
*
Special Items
 
 
 
 
 
Revenue
 
 
43
 
 
(100.0)
Severance Related and Impairment Charges
58
 
 
725
 
 
(92.0)
Settlement of a Commercial Dispute
(280
)
 
 
 
*
OCI Tax Benefit
(569
)
 
 
 
*
Reorganization Items
441
 
 
118
 
 
*
Net Income Excluding Reorganization and Special Items
(88
)
 
(209
)
 
(57.9)
* Greater than 100%
 
 
 
AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
          
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
 
Operating Profit
$
4
 
 
$
(783
)
 
*
Special Items
 
 
 
 
 
Revenue
 
 
43
 
 
 
Severance Related and Impairment Charges
58
 
 
725
 
 
(92.0)
Operating Profit, excluding special items
62
 
 
(15
)
 
*
* Greater than 100%
 



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
 
         
AMR Corporation Consolidated
Three Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
5,933
 
 
$
6,739
 
Available seat miles
40,813
 
 
40,750
 
Operating expenses per available seat mile (cents)
14.54
 
 
16.54
 
Less: Impact of special Items (cents)
0.15
 
 
1.78
 
 
 
 
 
 
Operating expenses per available seat mile, excluding impact of special items (cents)
14.39
 
 
14.76
 
 
 
 
 
 
Percent change
(2.5
)%
 
 
 
 
 
 
 
Less: Fuel expense per available seat mile (cents)
5.29
 
 
4.92
 
Operating expenses per available seat mile, excluding impact of special items and fuel expense (cents)
9.10
 
 
9.84
 
 
 
 
 
 
Percent change
(7.6
)%
 
 
 



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
 
         
American Airlines, Inc. Mainline Jet Operations
Three Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
5,931
 
 
$
6,748
 
Less: Operating expenses incurred related to Regional Affiliates
744
 
 
740
 
Operating expenses excluding expenses incurred related to Regional Affiliates
$
5,187
 
 
$
6,008
 
American mainline jet operations available seat miles
37,466
 
 
37,308
 
Operating expenses per available seat mile, excluding Regional Affiliates (cents)
13.84
 
 
16.10
 
 
 
 
 
 
Percent change
(14.0
)%
 
 
 
 
 
 
 
Less: Impact of special Items (cents)
0.15
 
 
1.94
 
Operating expenses per available seat mile, excluding Regional Affiliates and impact of special items (cents)
13.69
 
 
14.16
 
 
 
 
 
 
Percent change
(3.3
)%
 
 
 
 
 
 
 
Less: Fuel cost per available seat mile (cents)
5.11
 
 
4.74
 
Operating expenses per available seat mile, excluding Regional Affiliates,
 impact of special items, and fuel expenses (cents)
8.58
 
 
9.42
 
 
 
 
 
 
Percent change
(8.9
)%
 
 
 
 
 
 
 
Note: The Company believes that operating expenses per available seat mile, excluding the cost of fuel and special items, assists investors in understanding the impact of fuel prices and special items on the Company's operations.
 
 
 
       
American Airlines, Inc. Mainline Jet Operations
Three Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Operating expenses per available seat mile, excluding Regional
 
 
 
 
Affiliates (cents)
13.84
 
 
16.10
 
Less: Fuel expense per available seat mile (cents)
5.11
 
 
4.74
 
Operating expenses per available seat mile, excluding Regional
 
 
 
 
 
 
Affiliates and fuel expenses (cents)
8.73
 
 
11.36
 
 
 
 
 
 
Percent change
(23.2
)%
 
 



AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
 
          
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
Revenues
 
 
 
 
 
 
    Passenger - American Airlines
$
18,743
 
 
$
17,947
 
 
4.4
                      - Regional Affiliates
2,914
 
 
2,724
 
 
7.0
    Cargo
669
 
 
703
 
 
(4.8)
    Other revenues
2,529
 
 
2,605
 
 
(2.9)
      Total operating revenues
24,855
 
 
23,979
 
 
3.7
 
 
 
 
 
 
Expenses
 
 
 
 
 
  Aircraft fuel
8,717
 
 
8,304
 
 
5.0
  Wages, salaries and benefits
6,897
 
 
7,053
 
 
(2.2)
  Other rentals and landing fees
1,304
 
 
1,432
 
 
(8.9)
  Maintenance, materials and repairs
1,400
 
 
1,284
 
 
9.1
  Depreciation and amortization
1,015
 
 
1,086
 
 
(6.5)
  Commissions, booking fees and credit card expense
1,050
 
 
1,062
 
 
(1.1)
  Aircraft rentals
550
 
 
662
 
 
(17.0)
  Food service
536
 
 
518
 
 
3.4
  Special charges
387
 
 
725
 
 
(46.7)
  Other operating expenses
2,892
 
 
2,907
 
 
(0.5)
    Total operating expenses
24,748
 
 
25,033
 
 
(1.1)
 
 
 
 
 
 
Operating Income (Loss)
107
 
 
(1,054
)
 
*
 
 
 
 
 
 
Other Income (Expense)
 
 
 
 
 
  Interest income
26
 
 
26
 
 
(1.7)
  Interest expense
(662
)
 
(826
)
 
(19.8)
  Interest capitalized
50
 
 
40
 
 
24.8
  Miscellaneous - net
242
 
 
(47
)
 
*
    Total other income
(344
)
 
(807
)
 
(57.4)
 
 
 
 
 
 
Income (Loss) Before Reorganization Items, Net
(237
)
 
(1,861
)
 
(87.3)
Reorganization Items, Net
(2,208
)
 
(118
)
 
*
Income Before Income Taxes
(2,445
)
 
(1,979
)
 
23.6
Income tax
(569
)
 
 
 
*
Net Income
$
(1,876
)
 
$
(1,979
)
 
(5.2)
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
Basic
$
(5.60
)
 
$
(5.91
)
 
 
Diluted
$
(5.60
)
 
$
(5.91
)
 
 
 
 
 
 
 
 
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.
Twelve Months Ended December 31, 2012
 
Entity Results
RASM1
 
Y-O-Y
 
ASMs2
 
Y-O-Y
 
(cents)
 
Change
 
(billions)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
12.2
 
5.5%
 
89.9
 
(1.9)%
International
12.4
 
5.7%
 
62.7
 
0.1%
     DOT Latin America
13.9
 
3.8%
 
31.3
 
4.4%
     DOT Atlantic
11.2
 
5.9%
 
22.3
 
(6.6)%
     DOT Pacific
10.5
 
9.6%
 
9.1
 
3.5%
 
 
 
 
 
 
 
 
 
 
         
American Airlines, Inc.
Twelve Months Ended December 31, 2012
 
Entity Results
Load Factor
 
Y-O-Y
 
Yield
 
Y-O-Y
 
(pts)
 
Change (pts)
 
(cents)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
83.7
 
0.5
 
14.6
 
5.0%
International
81.6
 
1.5
 
15.2
 
3.8%
     DOT Latin America
80.4
 
(0.4)
 
17.3
 
4.3%
     DOT Atlantic
82.9
 
2.9
 
13.5
 
2.3%
     DOT Pacific
82.4
 
4.3
 
12.7
 
3.9%
1 Revenue per Available Seat Mile
2 Available Seat Miles
 
 



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
        
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
AMR Corporation Consolidated
 
 
 
 
 
Revenue passenger miles (millions)
136,620
 
 
136,386
 
 
0.2
Available seat miles (millions)
166,224
 
 
167,828
 
 
(1.0)
Cargo ton miles (millions)
1,761
 
 
1,783
 
 
(1.2)
Passenger load factor
82.2
%
 
81.3
%
 
0.9 pts
Passenger revenue yield per passenger mile (cents)
15.85
 
 
15.16
 
 
4.6
Passenger revenue per available seat mile (cents)
13.03
 
 
12.32
 
 
5.8
Cargo revenue yield per ton mile (cents)
37.97
 
 
39.40
 
 
(3.7)
Fuel consumption (gallons, in millions)
2,723
 
 
2,756
 
 
(1.2)
Fuel price per gallon (gallons)
3.20
 
 
3.01
 
 
6.3
 
 
 
 
 
 
American Airlines, Inc. Mainline Jet Operations
 
 
 
 
 
Revenue passenger miles (millions)
126,406
 
 
126,491
 
 
(0.1)
Available seat miles (millions)
152,628
 
 
154,321
 
 
(1.1)
Cargo ton miles (millions)
1,761
 
 
1,783
 
 
(1.2)
Passenger load factor
82.8
%
 
82.0
%
 
0.9 pts
Passenger revenue yield per passenger mile (cents)
14.83
 
 
14.19
 
 
4.5
Passenger revenue per available seat mile (cents)
12.28
 
 
11.63
 
 
5.6
Cargo revenue yield per ton mile (cents)
37.97
 
 
39.40
 
 
(3.7)
Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1)
14.27
 
 
14.30
 
 
(0.2)
Fuel consumption (gallons, in millions)
2,410
 
 
2,445
 
 
(1.5)
Fuel price per gallon (gallons)
3.20
 
 
3.01
 
 
6.3
 
 
 
 
 
 
Regional Affiliates
 
 
 
 
 
Revenue passenger miles (millions)
10,214
 
 
9,895
 
 
3.2
Available seat miles (millions)
13,595
 
 
13,507
 
 
0.7
Passenger load factor
75.1
%
 
73.3
%
 
1.9 pts
 
 
 
 
 
 
AMR Corporation
 
 
 
 
 
Average Equivalent Number of Employees
 
 
 
 
 
American Airlines
64,550
 
 
66,500
 
 
 
Other
13,200
 
 
13,600
 
 
 
Total
77,750
 
 
80,100
 
 
 
 
(1) Excludes $3 billion and $3.1 billion of expense incurred related to Regional Affiliates in 2012 and 2011, respectively.
 
 
 



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
          
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
Net Income
$
(1,876
)
 
$
(1,979
)
 
(5.2)
Special Items
 
 
 
 
 
Revenue
 
 
43
 
 
(100.0)
Severance Related and Impairment Charges
387
 
 
756
 
 
(48.8)
Settlement of a Commercial Dispute
(280
)
 
 
 
*
OCI Tax Benefit
(569
)
 
 
 
*
Reorganization Items
2,208
 
 
118
 
 
*
Net Income Excluding Reorganization and Special Items
(130
)
 
(1,062
)
 
(87.7)
* Greater than 100%
 
 
AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
          
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
 
Operating Profit
$
107
 
 
$
(1,054
)
 
*
Special Items
 
 
 
 
 
Revenue
 
 
43
 
 
(100)
Severance Related and Impairment Charges
387
 
 
756
 
 
(48.8)
Operating Profit, excluding special items
494
 
 
(255
)
 
*
* Greater than 100%
 
 



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
 
         
AMR Corporation Consolidated
Twelve Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
24,748
 
 
$
25,033
 
Available seat miles
166,224
 
 
167,828
 
Operating expenses per available seat mile (cents)
14.89
 
 
14.92
 
Less: Impact of special Items (cents)
0.23
 
 
0.45
 
 
 
 
 
 
Operating expenses per available seat mile, excluding impact of
 
 
 
 
special items (cents)
14.66
 
 
14.47
 
 
 
 
 
 
Percent change
1.3
 %
 
 
 
 
 
 
 
Less: Fuel expense per available seat mile (cents)
5.25
 
 
4.95
 
Operating expenses per available seat mile, excluding impact of special items and fuel expense (cents)
 
 
 
9.41
 
 
9.52
 
 
 
 
 
 
Percent change
(1.1
)%
 
 
 
 



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
 
 
         
American Airlines, Inc. Mainline Jet Operations
Twelve Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
24,784
 
 
$
25,128
 
Less: Operating expenses incurred related to Regional Affiliates
3,007
 
 
3,055
 
Operating expenses excluding expenses incurred related to Regional Affiliates
$
21,777
 
 
$
22,073
 
American mainline jet operations available seat miles
152,628
 
 
154,321
 
Operating expenses per available seat mile, excluding Regional Affiliates (cents)
14.27
 
 
14.30
 
 
 
 
 
 
Percent change
(0.2
)%
 
 
 
 
 
 
 
Less: Impact of special Items (cents)
0.25
 
 
0.49
 
Operating expenses per available seat mile, excluding Regional
 
 
 
 
Affiliates and impact of special items (cents)
14.02
 
 
13.81
 
 
 
 
 
 
Percent change
1.5
 %
 
 
 
 
 
 
 
Less: Fuel cost per available seat mile (cents)
5.05
 
 
4.76
 
Operating expenses per available seat mile, excluding Regional Affiliates,
 
 
 
 
 impact of special items, and fuel expenses (cents)
8.97
 
 
9.05
 
 
 
 
 
 
Percent change
(0.9
)%
 
 
 
Note: The Company believes that operating expenses per available seat mile, excluding the cost of fuel and special items, assists investors in understanding the impact of fuel prices and special items on the Company's operations.
 
 
       
American Airlines, Inc. Mainline Jet Operations
Twelve Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
 
 
 
 
 
Operating expenses per available seat mile, excluding Regional
 
 
 
 
Affiliates (cents)
14.27
 
 
14.30
 
Less: Fuel expense per available seat mile (cents)
5.05
 
 
4.76
 
Operating expenses per available seat mile, excluding Regional
 
 
 
 
 
 
Affiliates and fuel expenses (cents)
9.22
 
 
9.54
 
 
 
 
 
 
Percent change
(3.3
)%
 
 
 
 
 
 
 



 
        
Aircraft in Service
 
 
 
 
 
 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
Mainline Aircraft in Service
Mainline Aircraft
 
YE2012A
1QE
2QE
3QE
4QE
YE2013E
McDonnell Douglas MD-80
 
190
(7)
(6)
(12)
(14)
151
Boeing 737-800
 
195
9
9
8
5
226
Boeing 757-200
 
102
(5)
(3)
(2)
(2)
90
Boeing 767-200ER
 
14
(2)
(4)
8
Boeing 767-300ER
 
58
58
Boeing 777-200ER
 
47
47
Boeing 777-300ER
 
2
3
3
1
1
10
Airbus A319
 
10
5
15
Airbus A321
 
5
5
 
 
 
 
 
 
 
 
Total Mainline Aircraft
 
608
(2)
3
5
(4)
610
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regional Aircraft in Service
Regional Aircraft
 
YE2012A
1QE
2QE
3QE
4QE
YE2013E
Embraer RJ-135
 
21
(2)
(8)
(4)
(7)
Embraer RJ-140
 
74
(3)
71
Embraer RJ-145
 
118
118
Bombardier CRJ-200
 
12
11
23
Bombardier CRJ-700
 
47
47
Super ATR
 
9
(3)
(6)
 
 
 
 
 
 
 
 
Total Regional Aircraft
 
281
6
(14)
(4)
(10)
259
 
 
 
 
 
 
 
 
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.
 
###
Current AMR Corp. news releases can be accessed at http://www.aa.com
 
 

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