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    AMR Corporation Reports Significant Improvement in Second Quarter 2010 Financial Results
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    Despite Higher Fuel Prices, Net Loss Reduced to $10.7 Million Compared to Net Loss of $390 Million in Same Period Last Year

    FORT WORTH, Texas, July 21 /PRNewswire-FirstCall/ -- AMR Corporation, the parent company of American Airlines, Inc., today reported a net loss of $10.7 million for the second quarter of 2010, or $0.03 per share, compared to a net loss of $390 million, or $1.39 per share, in the second quarter of 2009.

    These results include the impact of significantly higher fuel prices compared to the year-ago quarter. Including the impact of fuel hedging, AMR paid nearly $334 million more for jet fuel in the second quarter, at an average of $2.37 per gallon, than it would have paid at prices prevailing during the second quarter of 2009, when it paid $1.90 per gallon. The second quarter 2009 results included the impact of approximately $70 million in non-recurring charges related to the sale of certain aircraft and the grounding of leased Airbus A300 aircraft prior to lease expiration. Excluding those non-recurring charges, the second quarter 2009 loss was $319 million, or $1.14 per share.

    "Though increased fuel prices added dramatically to our expenses this quarter, we made substantial progress improving our financial performance comparatively, both year-over-year and in sequential quarters," said AMR Chairman and CEO Gerard Arpey. "As we move forward, we remain focused on our primary goals of driving revenue growth, controlling costs, and returning to sustained profitability.

    "Our plan to achieve these objectives is distinguished by our cornerstone network strategy, the ongoing implementation of our planned joint business agreements in the trans-Atlantic and trans-Pacific markets, additional alliance and network activities, and our ongoing fleet renewal efforts.

    "Taken together, these initiatives are designed to grow revenue, fortify our network, and control our unit costs – all central elements of our Flight Plan 2020. We believe our plan, and these initiatives, are paving the way to a more successful and competitive company."

    Arpey also highlighted several recent developments that demonstrate the Company's progress in executing the five tenets of Flight Plan 2020: Fly Profitably, Invest Wisely, Earn Customer Loyalty, Strengthen and Defend our Global Network, and Be a Good Place for Good People.

    Since the end of the second quarter, American and fellow oneworld® members British Airways and Iberia received final regulatory approval in the U.S. and European Union to operate a joint business between North America and Europe.

    Capitalizing on the momentum from the granting of antitrust immunity across the Atlantic, and anticipating similar immunity across the Pacific, AMR today announced a reorganization of its senior management team.

    Tom Horton, previously Executive Vice President Finance and Planning and Chief Financial Officer, has been promoted to President – AMR and American Airlines and will continue to report directly to Arpey.  With his expanded responsibilities, Horton will oversee the finance, planning, sales and marketing, customer service and information technology organizations. As part of these changes, Bella Goren will assume the role of Senior Vice President – Chief Financial Officer. Goren, formerly Senior Vice President – Customer Relationship Marketing, will report to Horton. (More information on the organizational changes is available in a separate press release issued today.)

    In addition, American this week announced it will expand its partnership with JetBlue Airways in the coming months, so that members of American's AAdvantage® program and JetBlue's TrueBlue® customer loyalty program will be able to earn AAdvantage miles or TrueBlue points, respectively, when they fly only on American and JetBlue cooperative interline routes. Also, American today extended its fleet renewal efforts by agreeing to purchase 35 more-fuel-efficient Boeing 737-800 aircraft to continue replacing its MD80 fleet.

    Financial and Operational Performance

    AMR reported second quarter consolidated revenues of approximately $5.7 billion, an increase of 16.0 percent year over year. American, its regional affiliates, and AA Cargo, as well as the 'other revenue' category, all experienced double-digit, year-over-year increases, as total operating revenue was approximately $785 million better in second quarter 2010 compared to the second quarter of the previous year.

    Consolidated passenger revenue per available seat mile (unit revenue) grew 16.7 percent compared to the second quarter of 2009, while mainline unit revenue at American grew 16.8 percent. Tight capacity control that drove higher load factors and improving economic conditions drove higher unit revenue.

    Passenger yield, which represents the average fares paid, increased at American by 14.0 percent year over year in the second quarter.

    Mainline unit costs in the second quarter increased 3.5 percent year over year, excluding fuel costs and 2009 special items. Trans-Atlantic cancellations caused by the eruption of the Icelandic volcano reduced operating earnings by an estimated $17 million.

    Mainline capacity, or total available seat miles, in the second quarter decreased by 0.4 percent compared to the prior year's second quarter, as the Company continues to maintain capacity discipline.

    American's mainline load factor – or percentage of total seats filled – was 83.9 percent during the second quarter, 2.0 points higher than the year-ago period.

    Balance Sheet Update

    AMR ended the second quarter with approximately $5.5 billion in cash and short-term investments, including a restricted balance of $461 million, compared to a balance of $3.3 billion in cash and short-term investments, including a restricted balance of $460 million, at the end of the second quarter of 2009.

    AMR's Total Debt, which it defines as the aggregate of its long-term debt, capital lease obligations, the principal amount of airport facility tax-exempt bonds, and the present value of aircraft operating lease obligations, was $16.1 billion at the end of the second quarter of 2010, compared to $14.2 billion a year earlier.

    AMR's Net Debt, which it defines as Total Debt less unrestricted cash and short-term investments, was $11.0 billion at the end of the second quarter, compared to $11.4 billion in the second quarter of 2009.

    Second Quarter Highlights

    • American received authority from the U.S. Department of Transportation (DOT) to operate daily, year-round scheduled service from New York's John F. Kennedy International Airport to Tokyo International Airport at Haneda (HND). American will serve the JFK – Tokyo (Haneda) route starting Jan. 20, 2011.
    • American Airlines launched its first flight between Chicago O'Hare International Airport and Beijing Capital International Airport, one of the world's busiest airports, on May 25.
    • American Airlines was awarded by the DOT rights to fly 11 new flights per week between the United States and Brazil beginning Nov. 18. American will fly between New York and Rio de Janeiro and between Miami and Brasilia.
    • AMR named Daniel P. Garton President and Chief Executive Officer of American Eagle. AMR also reiterated its intent to evaluate the possible divestiture of American Eagle.
    • Through the Atlantic Interoperability Initiative to Reduce Emissions (AIRE), American became the first U.S. airline to test next-generation technology and procedures designed to significantly reduce carbon emissions and save fuel on trans-Atlantic routes.

     

    Guidance

    Mainline and Consolidated Capacity

    AMR expects its full-year mainline capacity to increase by 0.9 percent in 2010 compared to 2009, with domestic capacity down 0.1 percent and an increase of international capacity of 2.4 percent compared to 2009 levels. On a consolidated basis, AMR expects full-year capacity to increase by 1.2 percent in 2010 compared to 2009.

    The Company's 2010 capacity levels include the reinstatement of flying that was canceled in 2009 due to the H1N1 virus and the launch of Chicago-Beijing service, which was deferred from 2009.

    AMR expects mainline capacity in the third quarter of 2010 to increase by 3.0 percent compared to the third quarter of 2009, with domestic capacity expected to be up 0.3 percent and international capacity expected to be up 7.3 percent compared to third quarter 2009 levels. AMR expects consolidated capacity in the third quarter of 2010 to increase by 3.4 percent compared to the third quarter of 2009.

    Fuel Expense and Hedging

    While the cost of jet fuel has been increasing recently and remains very volatile, based on the July 8 forward curve, AMR is planning for an average system price of $2.25 per gallon in the third quarter of 2010 and $2.29 per gallon for all of 2010. Consolidated consumption for the third quarter is expected to be 715 million gallons of jet fuel.

    AMR has 44 percent of its anticipated third quarter 2010 fuel consumption hedged at an average cap of $2.38 per gallon of jet fuel equivalent ($89 per barrel crude equivalent), with 43 percent subject to an average floor of $1.81 per gallon of jet fuel equivalent ($66 per barrel crude equivalent). AMR has 38 percent of its anticipated full-year consumption hedged at an average cap of $2.43 per gallon of jet fuel equivalent ($92 per barrel crude equivalent), with 37 percent subject to an average floor of $1.83 per gallon of jet fuel equivalent ($67 per barrel crude equivalent).

    Mainline and Consolidated Cost per Available Seat Mile (CASM), Excluding Special Items

      
      

    3Q2010 (est.) vs. 3Q2009
    H/(L)

    Full year 2010 (est.) vs. 2009
    H/(L)

     

    Mainline

    1.7%

    4.0%

     
     

    Excluding Fuel

    (0.1)

    1.2

     

    Consolidated

    2.0

    4.1

     
     

    Excluding Fuel

    0.0

    1.2

     
      
        

     

    The estimated 1.2 percent increase in consolidated cost per seat mile, excluding fuel and special items, for 2010 is primarily due to anticipated higher revenue-related expenses (such as credit card fees, commissions, and booking fees), airport-related expenses (such as landing fees and facilities costs), and financing costs related to new aircraft deliveries. The third quarter and full year estimates above exclude the potential impact of current tentative labor agreements that, if they become effective in 2010, would increase full year unit costs by an estimated 0.4 percent, which would result in a full year cost estimate in line with previous guidance. The increased costs are largely the result of the signing bonus and wage increases included in the agreements. If the agreements are ratified, the Company anticipates implementing productivity improvements consistent with the agreements that will help to offset the ongoing cost of salary increases. 

    Editor's Note: AMR's Chairman and Chief Executive Officer, Gerard Arpey, and its Executive Vice President and Chief Financial Officer, Thomas Horton, will make a presentation to analysts during a teleconference on Wednesday, July 21, 2010, at 2 p.m. EDT. Following the analyst call, they will hold a question-and-answer conference call for media. Reporters interested in listening to the presentation or participating in the media Q&A should call 817-967-1577.

    Statements in this release 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 release, the words "expects," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe our objectives, plans or goals, or actions we may take in the future, are 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 plans and needs; the amounts of the Company's unencumbered assets and other sources of liquidity; fleet plans; overall economic and industry conditions; plans and objectives for future operations; regulatory approvals and actions, including the Company's application for antitrust immunity with other oneworld alliance members; and the impact on the Company of its results of operations in recent 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 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 statement, whether as a result of new information, future events, or otherwise. This release includes forecasts of unit cost and revenue performance, fuel prices and fuel hedging, capacity and traffic estimates, other income/expense estimates, share count, statements regarding the Company's liquidity, and statements regarding expectations of regulatory approval of our application for antitrust immunity with other oneworld members, 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: the materially weakened financial condition of the Company, resulting from its significant losses in recent years; very weak demand for air travel and lower investment asset returns resulting from the severe global economic downturn; the Company's need to raise substantial additional funds and its ability to do so on acceptable terms; the ability of the Company to generate additional revenues and reduce its costs; continued high and volatile fuel prices and further increases in the price of fuel, and the availability of fuel; the Company's substantial indebtedness and other obligations; the ability of the Company to satisfy certain covenants and conditions in certain of its financing and other agreements; changes in economic and other conditions beyond the Company's control, and the volatile results of the Company's operations; the fiercely and increasingly competitive business environment faced by the Company; potential industry consolidation and alliance changes; competition with reorganized carriers; low fare levels by historical standards and the Company's reduced pricing power; changes in the Company's corporate or business strategy; extensive government regulation of the Company's business; conflicts overseas or terrorist attacks; uncertainties with respect to the Company's international operations; outbreaks of a disease (such as SARS, avian flu or the H1N1 virus) that affects travel behavior; labor costs that are higher than those of the Company's competitors; uncertainties with respect to the Company's relationships with unionized and other employee work groups; increased insurance costs and potential reductions of available insurance coverage; the Company's ability to retain key management personnel; potential failures or disruptions of the Company's computer, communications or other technology systems; losses and adverse publicity resulting from any accident involving the Company's aircraft; interruptions or disruptions in service at one or more of the Company's primary market airports; the heavy taxation of the airline industry; changes in the price of the Company's common stock; and the ability of the Company to reach acceptable agreements with third parties. 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, 2009.

    AMR CORPORATION
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except per share amounts)
    (Unaudited)

     
         
     

    Three Months Ended June 30,

     

    Percent

     
     

    2010

     

    2009

     

    Change

     

    Revenues

          

       Passenger - American Airlines

    $           4,279

     

    $      3,677

     

    16.4%

     

                         - Regional Affiliates

    600

     

    513

     

    16.9

     

       Cargo

    170

     

    134

     

    27.5

     

       Other revenues

    625

     

    565

     

    10.2

     

         Total operating revenues

    5,674

     

    4,889

     

    16.0

     
           

    Expenses

          

     Wages, salaries and benefits

    1,714

     

    1,698

     

    0.9

     

     Aircraft fuel

    1,655

     

    1,334

     

    24.1

     

     Other rentals and landing fees

    352

     

    338

     

    3.9

     

     Maintenance, materials and repairs

    340

     

    314

     

    8.3

     

     Depreciation and amortization

    267

     

    282

     

    (5.1)

     

     Commissions, booking fees and credit card expense

    248

     

    207

     

    19.5

     

     Aircraft rentals

    145

     

    126

     

    14.9

     

     Food service

    121

     

    123

     

    (0.5)

     

     Special charges

    -

     

    23

     

    (100.0)

     

     Other operating expenses

    636

     

    670

     

    (5.4)

     

       Total operating expenses

    5,478

     

    5,115

     

    7.1

     
           

    Operating Income (Loss)

    196

     

    (226)

     

    *

     
           

    Other Income (Expense)

          

     Interest income

    6

     

    9

     

    (22.6)

     

     Interest expense

    (209)

     

    (167)

     

    25.6

     

     Interest capitalized

    8

     

    10

     

    (23.6)

     

     Miscellaneous – net

    (12)

     

    (16)

     

    (18.8)

     
     

    (207)

     

    (164)

     

    26.2

     
           

    Loss Before Income Taxes

    (11)

     

    (390)

     

    (97.3)

     

    Income tax

    -

     

    -

     

    -

     

    Net Loss

    $             (11)

     

    $       (390)

     

    (97.3)

     
           

    Loss Per Share

          

    Basic

    $        (0.03)

     

    $       (1.39)

       

    Diluted

    $        (0.03)

     

    $       (1.39)

       
           

    Number of Shares Used in Computation

          

     Basic

    333

     

    280

       

     Diluted

    333

     

    280

       

    * Greater than 100%

     
           

     

    AMR CORPORATION
    OPERATING STATISTICS
    (Unaudited)

     
         
     

    Three Months Ended
    June 30,

     

    Percent

     
     

    2010

     

    2009

     

    Change

     

    American Airlines, Inc. Mainline Jet Operations

          

       Revenue passenger miles (millions)

    32,215

     

    31,564

     

    2.1

     

       Available seat miles (millions)

    38,413

     

    38,566

     

    (0.4)

     

       Cargo ton miles (millions)

    478

     

    399

     

    19.9

     

       Passenger load factor

    83.9%

     

    81.8%

     

    2.0 pts

     

       Passenger revenue yield per passenger mile (cents)

    13.28

     

    11.65

     

    14.0

     

       Passenger revenue per available seat mile (cents)

    11.14

     

    9.53

     

    16.8

     

       Cargo revenue yield per ton mile (cents)

    35.67

     

    33.53

     

    6.4

     

       Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1)

    12.62

     

    11.76

     

    7.3

     

       Fuel consumption (gallons, in millions)

    627

     

    638

     

    (1.7)

     

       Fuel price per gallon (dollars)

    2.37

     

    1.89

     

    25.5

     
           

    Regional Affiliates

          

       Revenue passenger miles (millions)

    2,230

     

    2,182

     

    2.2

     

       Available seat miles (millions)

    2,994

     

    2,921

     

    2.5

     

       Passenger load factor

    74.5%

     

    74.7%

     

    (0.2) pts

     
           

    AMR Corporation

          

    Average Equivalent Number of Employees

          

       American Airlines

    65,600

     

    66,900

       

       Other

    12,700

     

    12,300

       

            Total

    78,300

     

    79,200

       

    (1)  Excludes $662 million and $608 million of expense incurred related to Regional Affiliates in 2010 and 2009, respectively.

     
          

     

    AMR CORPORATION
    OPERATING STATISTICS
    (Unaudited)


    OPERATING STATISTICS BY REGIONAL ENTITY

     
       

    American Airlines, Inc.

    Three Months Ended June 30, 2010

     

    Entity Results

    RASM(1)
    (cents)

     

    Y-O-Y
    Change

     

    ASMs(2)
    (billions)

     

    Y-O-Y
    Change

     
             

    DOT Domestic

    11.20

     

    14.4%

     

    23.4

     

    0.0%

     

    International

    11.05

     

    20.9

     

    15.0

     

    (1.0)

     

      DOT Latin America

    10.90

     

    13.8

     

    7.2

     

    2.7

     

      DOT Atlantic

    11.36

     

    28.3

     

    6.0

     

    (6.2)

     

      DOT Pacific

    10.57

     

    25.3

     

    1.8

     

    3.6

     
      
            

     
      

    American Airlines, Inc.

    Three Months Ended June 30, 2010

     

    Entity Results

    Load Factor
    (pts)

     

    Y-O-Y
    Change
    (pts)

     

    Yield
    (cents)

     

    Y-O-Y
    Change

     
             

    DOT Domestic

    85.7

     

    0.8

     

    13.06

     

    13.3%

     

    International

    81.0

     

    3.8

     

    13.64

     

    15.1

     

      DOT Latin America

    76.3

     

    3.3

     

    14.27

     

    8.9

     

      DOT Atlantic

    85.0

     

    4.3

     

    13.37

     

    21.9

     

      DOT Pacific

    86.3

     

    6.0

     

    12.25

     

    16.6

     

    (1)   Revenue per Available Seat Mile

    (2)   Available Seat Miles

     
            

     

    AMR CORPORATION
    NON-GAAP AND OTHER RECONCILIATIONS
    (Unaudited)

     
       

    American Airlines, Inc. Mainline Jet Operations

    Three Months Ended June 30,

     

    (in millions, except as noted)

    2010

     

    2009

     
         

    Total operating expenses

    $        5,510

     

    $      5,144

     

    Less: Operating expenses incurred related to Regional Affiliates

    662

     

    608

     

    Operating expenses excluding expenses incurred related to Regional
    Affiliates

    $        4,848

     

    $      4,537

     

    American mainline jet operations available seat miles

    38,413

     

    38,566

     

    Operating expenses per available seat mile, excluding Regional
    Affiliates (cents)

    12.62

     

    11.76

     
         

    Percent change

    7.3%

       
      
        

     
      

    American Airlines, Inc. Mainline Jet Operations

    Three Months Ended June 30,

     

    (in millions, except as noted)

    2010

     

    2009

     
         

    Total operating expenses

    $        5,510

     

    $      5,144

     

    Less: Operating expenses incurred related to Regional Affiliates

    662

     

    608

     

    Operating expenses excluding expenses incurred related to Regional
    Affiliates

    $        4,848

     

    $      4,537

     

    American mainline jet operations available seat miles

    38,413

     

    38,566

     

    Operating expenses per available seat mile, excluding Regional
    Affiliates (cents)

    12.62

     

    11.76

     

    Less:  Impact of special items (cents)

    -

     

    0.18

     

    Operating expenses per available seat mile, excluding impact of
    special items (cents)

    12.62

     

    11.58

     
         

    Percent change

    9.0%

       
         

    Less: Fuel cost per available seat mile (cents)

    3.87

     

    3.12

     

    Operating expenses per available seat mile, excluding impact of
    special items and the cost of fuel (cents)

    8.75

     

    8.46

     
         

    Percent change

    3.5%

       
         

    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.

     
        

     

    AMR CORPORATION
    NON-GAAP AND OTHER RECONCILIATIONS
    (Unaudited)

     
       

    AMR Corporation
    Calculation of Net Debt

    As of June 30,

     

    (in millions)

    2010

     

    2009

     
         

    Current and long-term debt

    $  10,869

     

    $  9,416

     

    Current and long-term capital lease obligations

    628

     

    676

     

    Principal amount of certain airport facility tax-exempt bonds and the
    present value of aircraft operating lease obligations

    4,588

     

    4,082

     
     

    16,085

     

    14,174

     

    Less:  Unrestricted cash and short-term investments

    5,084

     

    2,808

     

    Net Debt

    $       11,001

     

    $       11,366

     

    Note:  The Company believes the net debt metric assists investors in  understanding changes in the Company's
    liquidity and the results  of its efforts to build a financial foundation under the Company's Turnaround Plan.

     
        

     
      

    AMR Corporation

    Three Months Ended June 30,

     
     

    2010

     

    2009

     
         

    Operating expenses per available seat mile (cents)

             13.23

     

    12.33

     

    Less:  Impact of special items (cents)

    -

     

    0.17

     

    Operating expenses per available seat mile (cents)

    13.23

     

    12.16

     
         

    Percent change

    8.8%

       
         

    Less: Fuel cost per available seat mile (cents)

    4.00

     

    3.22

     

    Operating expenses per available seat mile, excluding impact of special
    items and the cost of fuel (cents)

    9.23

     

    8.94

     
         

    Percent change

    3.2%

       
      
        

     

    AMR CORPORATION
    NON-GAAP AND OTHER RECONCILIATIONS
    (Unaudited)

     

    American Airlines, Inc. Mainline Jet Operations

    Three Months Ended September 30,

     
     

    2010 (Estimate)

     

    2009 (Actual)

     
         

    Operating expenses per available seat mile, excluding Regional Affiliates
    (cents)

    12.26

     

    12.29

     

    Less: Impact of special items (cents)

    -

     

    0.24

     

    Operating expenses per available seat mile, excluding Regional
    Affiliates and impact of special items (cents)

    12.26

     

    12.05

     
         

    Percent change

    1.7%

       
         

    Less: Fuel expense per available seat mile (cents)

    3.63

     

    3.41

     

    Operating expenses per available seat mile, excluding Regional
    Affiliates, impact of special items and fuel expense (cents)

    8.63

     

    8.64

     
         

    Percent change

    (0.1)%

       
      
        

     
      

    American Airlines, Inc. Mainline Jet Operations

    Year Ended December 31,

     
     

    2010 (Estimate)

     

    2009 (Actual)

     
         

    Operating expenses per available seat mile, excluding Regional Affiliates
    (cents)

    12.53

     

    12.22

     

    Less: Impact of special items (cents)

    0.03

     

    0.20

     

    Operating expenses per available seat mile, excluding Regional
    Affiliates and impact of special items (cents)

    12.50

     

    12.02

     
         

    Percent change

    4.0%

       
         

    Less: Fuel expense per available seat mile (cents)

    3.68

     

    3.31

     

    Operating expenses per available seat mile, excluding Regional
    Affiliates, impact of special items and fuel expense (cents)

    8.82

     

    8.71

     
         

    Percent change

    1.2%

       
      
        

     

    AMR CORPORATION
    NON-GAAP AND OTHER RECONCILIATIONS
    (Unaudited)

     

    AMR Corporation


    Three Months Ended September 30,

     
     

    2010 (Estimate)

     

    2009 (Actual)

     
         

    Operating expenses per available seat mile (cents)

    12.85

     

    12.82

     

    Less: Impact of special items (cents)

    -

     

    0.22

     

    Operating expenses per available seat mile, excluding impact of
    special items (cents)

    12.85

     

    12.60

     
         

    Percent change

    2.0%

       
         

    Less: Fuel expense per available seat mile (cents)

    3.75

     

    3.51

     

    Operating expenses per available seat mile, excluding impact of
    special items and fuel expense (cents)

    9.10

     

    9.09

     
         

    Percent change

    0.0%

       
      
         

     
      

    AMR Corporation

    Year Ended December 31,

     
     

    2010 (Estimate)

     

    2009 (Actual)

     
         

    Operating expenses per available seat mile (cents)

    13.14

     

    12.81

     

    Less: Impact of special items (cents)

    0.03

     

    0.22

     

    Operating expenses per available seat mile, excluding impact of
    special items (cents)

    13.11

     

    12.59

     
         

    Percent change

    4.1%

       
         

    Less: Fuel expense per available seat mile (cents)

    3.81

     

    3.40

     

    Operating expenses per available seat mile, excluding impact of
    special items and fuel expense (cents)

    9.30

     

    9.19

     
         

    Percent change

    1.2%

       
      
         

     
      

    AMR Corporation


    Three Months Ended June 30,

     

    (in millions, except as noted)

    2010

     

    2009

     
         

    Net Loss

    (11)

     

    (390)

     

    Less: Impact of special items

    -

     

    (70)

     

    Net Loss, excluding impact of special items                                

    (11)

     

    (319)

     

    Loss Per Share

        

    Basic

    (0.03)

     

    (1.14)

     

    Diluted

    (0.03)

     

    (1.14)

     
      
         

     

    AMR CORPORATION
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except per share amounts)
    (Unaudited)

     
     

    Six Months Ended June 30,

     

    Percent

     
     

    2010

     

    2009

     

    Change

     

    Revenues

          

       Passenger - American Airlines

    $  8,110

     

    $      7,357

     

    10.2%

     

                         - Regional Affiliates

    1,098

     

    970

     

    13.2

     

       Cargo

    324

     

    278

     

    16.7

     

       Other revenues

    1,210

     

    1,123

     

    7.7

     

         Total operating revenues

    10,742

     

    9,728

     

    10.4

     
           

    Expenses

          

     Wages, salaries and benefits

    3,417

     

    3,386

     

    0.9

     

     Aircraft fuel

    3,131

     

    2,632

     

    19.0

     

     Other rentals and landing fees

    704

     

    662

     

    6.3

     

     Maintenance, materials and repairs

    691

     

    619

     

    11.7

     

     Depreciation and amortization

    534

     

    554

     

    (3.5)

     

     Commissions, booking fees and credit card expense


            482

     

    424

     

    13.7

     

     Aircraft rentals

    274

     

    250

     

    9.4

     

     Food service

    236

     

    237

     

    (0.1)

     

     Special charges

    -

     

    36

     

    (100.0)

     

     Other operating expenses

    1,375

     

    1,348

     

    1.9

     

       Total operating expenses

    10,844

     

    10,148

     

    6.8

     
           

    Operating Loss

    (102)

     

    (420)

     

    (75.7)

     
           

    Other Income (Expense)

          

     Interest income

    11

     

    20

     

    (42.7)

     

     Interest expense

    (418)

     

    (353)

     

    18.4

     

     Interest capitalized

    18

     

    20

     

    (13.1)

     

     Miscellaneous – net

    (25)

     

    (32)

     

    (21.9)

     
     

    (414)

     

    ( 345)

     

    20.0

     
           

    Loss Before Income Taxes

    (516)

     

    (765)

     

    (32.5)

     

    Income tax

    -

     

    -

     

    -

     

    Net Loss

    $  (516)

     

    $        (765)

     

    (32.5)

     
           

    Loss Per Share

          

    Basic

    $  (1.55)

     

    $  (2.74)

       

    Diluted

    $  (1.55)

     

    $  (2.74)

       
           

    Number of Shares Used in Computation

          

    Basic

    333

     

    279

       

    Diluted

    333

     

    279

       
          

     

    AMR CORPORATION
    OPERATING STATISTICS
    (Unaudited)

     
         
     

    Six Months Ended
    June 30,

     

    Percent

     
     

    2010

     

    2009

     

    Change

     

    American Airlines, Inc. Mainline Jet Operations

          

       Revenue passenger miles (millions)

    60,916

     

    60,158

     

    1.3

     

       Available seat miles (millions)

    75,259

     

    76,348

     

    (1.4)

     

       Cargo ton miles (millions)

    925

     

    770

     

    20.2

     

       Passenger load factor

    80.9%

     

    78.8%

     

    2.1 pts

     

       Passenger revenue yield per passenger mile (cents)

    13.31

     

    12.23

     

    8.9

     

       Passenger revenue per available seat mile (cents)

    10.78

     

    9.64

     

    11.8

     

       Cargo revenue yield per ton mile (cents)

    35.04

     

    36.12

     

    (3.0)

     

     Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1)

    12.76

     

    11.79

     

    8.2

     

       Fuel consumption (gallons, in millions)

    1,225

     

    1,255

     

    (2.3)

     

       Fuel price per gallon (dollars)

    2.30

     

    1.90

     

    21.0

     
           

    Regional Affiliates

          

       Revenue passenger miles (millions)

    4,093

     

    4,043

     

    1.2

     

       Available seat miles (millions)

    5,767

     

    5,739

     

    0.5

     

       Passenger load factor

    71.0%

     

    70.4%

     

    0.5 pts

     
           

    (1)  Excludes $1.3 billion and $1.2 billion of expense incurred related to Regional Affiliates in 2010 and 2009, respectively.

     
          

     

    AMR CORPORATION
    OPERATING STATISTICS
    (Unaudited)


    OPERATING STATISTICS BY REGIONAL ENTITY

     
       

    American Airlines, Inc.

    Six Months Ended June 30, 2010

     

    Entity Results

    RASM(1)
    (cents)

     

    Y-O-Y
    Change

     

    ASMs(2)
    (billions)

     

    Y-O-Y
    Change

     
             

    DOT Domestic

    10.73

     

    10.2%

     

    46.2

     

    (0.5)%

     

    International

    10.86

     

    14.5

     

    29.0

     

    (2.9)

     

      DOT Latin America

    11.40

     

    9.2

     

    14.5

     

    (1.4)

     

      DOT Atlantic

    10.42

     

    23.4

     

    11.0

     

    (5.9)

     

      DOT Pacific

    9.91

     

    11.9

     

    3.4

     

    0.8

     

    (1)  Revenue per Available Seat Mile

    (2)  Available Seat Miles

     
            

     
      

    American Airlines, Inc.

    Six Months Ended June 30, 2010

     

    Entity Results

    Load Factor
    (pts)

     

    Y-O-Y
    Change
    (pts)

     

    Yield
    (cents)

     

    Y-O-Y
    Change

     
             

    DOT Domestic

    82.3

     

    0.6

     

    13.03

     

    9.3%

     

    International

    78.8

     

    4.4

     

    13.78

     

    8.1

     

      DOT Latin America

    77.5

     

    4.4

     

    14.71

     

    2.9

     

      DOT Atlantic

    78.7

     

    3.9

     

    13.24

     

    17.2

     

      DOT Pacific

    84.2

     

    6.0

     

    11.77

     

    4.0

     
      
            

     

    Current AMR Corp. releases can be accessed on the Internet.

    The address is http://www.aa.com

    SOURCE AMR Corporation

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