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AMR Reports First-Quarter Loss of $1.04 Billion
FORT WORTH, Texas, Apr 23, 2003 /PRNewswire-FirstCall via COMTEX/ -- AMR Corporation (NYSE: AMR), the parent company of American Airlines, Inc., today reported a first quarter net loss of $1.04 billion, or $6.68 per share. This compares with a net loss of $1.56 billion, or $10.09 per share, in the first quarter of 2002, which included a cumulative effect of accounting change of $988 million, or $6.38 per share.
"Our first quarter results were truly dreadful," noted AMR's Chairman and Chief Executive Officer Don Carty. "The results we reported today clearly demonstrate the negative effects from high fuel prices leading up to the Iraq war, and passenger concern about traveling before and after fighting commenced," Carty said.
"The fact remains that we are confronting a brutally difficult financial and business environment," he said. "We are beset on all sides by a struggling economy, the continued uncertainties regarding hostilities in the Middle East, concerns regarding the SARS outbreak, fuel prices that are significantly higher than they were a year ago, and fare levels that are at 30-year lows. All told, it's a perilous climate and our success is far from assured," Carty said.
In keeping with the provisions of SFAS 109, AMR's first quarter 2003 results do not reflect a benefit for federal and state income taxes. Conversely, AMR's first quarter 2002 results did reflect a tax benefit.
Comparison of First Quarter Results
(in millions)
2003 2002
Loss Before Income Taxes and
Cumulative Effect of Accounting Change $(1,043) $ (863)
Income tax benefit --- (288)
Loss Before Cumulative Effect of
Accounting Change (1,043) (575)
Cumulative Effect of Accounting Change,
Net of Tax Benefit --- (988)
Net Loss $(1,043) $(1,563)
Additionally, given the fluidity of AMR's current situation, the planned conference between AMR's Senior Vice President and Chief Financial Officer Jeff Campbell and members of the financial community and the media will not occur today as previously scheduled.
Statements in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. When used in this news release, the words "expects," "anticipates," and similar expressions are intended to identify forward-looking statements. 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 statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to a number of factors that could cause actual results to differ materially from our expectations, including the uncertain financial and business environment for the Company even with the ratification of the labor agreements. These uncertainties include, but are not limited to, the struggling economy, high fuel prices, conflicts in the Middle East, the SARS outbreak and historically low fare levels. Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Form 10-K for the year ended Dec. 31, 2002.
Detailed financial information follows:
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31, Percent
2003 2002 Change
Revenues
Passenger - American Airlines $3,394 $3,484 (2.6)
- Regional Affiliates 326 326 ---
Cargo 134 134 ---
Other revenues 266 219 21.5
Total operating revenues 4,120 4,163 (1.0)
Expenses
Wages, salaries and benefits 2,123 2,080 2.1
Aircraft fuel 729 527 38.3
Depreciation and amortization 338 341 (0.9)
Other rentals and landing fees 291 289 0.7
Commissions, booking fees and
credit card expense 255 320 (20.3)
Maintenance, materials and repairs 231 266 (13.2)
Aircraft rentals 190 226 (15.9)
Food service 149 170 (12.4)
Other operating expenses 683 673 1.5
Total operating expenses 4,989 4,892 2.0
Operating Loss (869) (729) 19.2
Other Income (Expense)
Interest income 13 18 (27.8)
Interest expense (192) (166) 15.7
Interest capitalized 19 22 (13.6)
Miscellaneous - net (14) (8) 75.0
(174) (134) 29.9
Loss Before Income Taxes and
Cumulative Effect of Accounting Change (1,043) (863) 20.9
Income tax benefit --- (288) *
Loss Before Cumulative Effect of
Accounting Change (1,043) (575) 81.4
Cumulative Effect of Accounting Change,
Net of Tax Benefit --- (988) *
Net Loss $(1,043) $(1,563) (33.3)
* Greater than 100%
Note 1: Certain amounts have been reclassified to conform with 2003
presentation.
Note 2: Regional Affiliates include American Eagle Airlines, Inc.,
Executive Airlines, Inc., Trans States Airlines, Inc. and
Chautauqua Airlines, Inc.
AMR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(in millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2003 2002
Basic and Diluted Loss Per Share
Before Cumulative Effect of Accounting Change $(6.68) $(3.71)
Cumulative Effect of Accounting Change --- (6.38)
Net Loss $(6.68) $(10.09)
Number of Shares Used in Computation
Basic and Diluted 156 155
AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended
March 31, Percent
2003 2002 Change
American Airlines, Inc. Mainline Jet
Operations (except as noted)
Revenue passenger miles (millions) 27,838 27,817 0.1
Available seat miles (millions) 40,274 40,089 0.5
Cargo ton miles (millions) 490 463 5.8
Passenger load factor 69.1% 69.4% (0.3) pts.
Passenger revenue yield per
passenger mile (cents) 12.19 12.52 (2.6)
Passenger revenue per available
seat mile (cents) 8.43 8.69 (3.0)
Cargo revenue yield per
ton mile (cents) 27.38 28.74 (4.7)
Operating expenses per available
seat mile (cents) (*) 11.39 11.30 0.8
Operating expenses per available
seat mile (cents) (**) 12.44 11.37 9.4
Fuel consumption (gallons, in millions) 725 745 (2.7)
Fuel price per gallon (cents) 94.0 67.2 39.9
Operating aircraft at period-end 812 852 (4.7)
Regional Affiliates
Revenue passenger miles (millions) 1,165 1,022 14.0
Available seat miles (millions) 1,987 1,728 15.0
Passenger load factor 58.6% 59.1% (0.5) pts.
AMR Corporation
Average Equivalent Number of Employees
American Airlines 92,200 97,800
Other 11,800 11,700
Total 104,000 109,500
* Excludes $423 million and $27 million of expenses incurred related to
Regional Affiliates in 2003 and 2002, respectively.
** Includes $423 million and $27 million of expenses incurred related to
Regional Affiliates in 2003 and 2002, respectively.
Note 1: Certain amounts have been reclassified to conform with 2003
presentation.
Note 2: American Airlines, Inc. 2003 operating expenses include expenses
incurred related to fixed fee per block hour agreements with
Regional Affiliates -- American Eagle Airlines, Inc., Executive
Airlines, Inc., Trans States Airlines, Inc. and Chautauqua
Airlines, Inc. whereas 2002 operating expenses include expenses
incurred related to fixed fee per block hour agreements with
Regional Affiliates -- Trans States Airlines, Inc. and Chautauqua
Airlines, Inc.
Note 3: Regional Affiliates include American Eagle Airlines, Inc.,
Executive Airlines, Inc., Trans States Airlines, Inc. and
Chautauqua Airlines, Inc.
SOURCE AMR Corporation
Corporate Communications of AMR Corporation, +1-817-967-1577,
or
[email protected]