AMR Corp Expects 8,000 Job Cuts Total Through June 2004
DOW JONES NEWSWIRES
WASHINGTON -- AMR Corp. (AMR), the parent of American Airlines, said it expects to reduce 8,000 jobs by June 2004 in conjunction with Management Reductions and Modified Labor Agreements.
According to a quarterly report filed Friday with the Securities and Exchange Commission, the work-force reduction will affect all work groups and will be accomplished through various measures, including part-time work schedules, furloughs and permanent layoffs.
AMR said, however, that if the revenue environment deteriorates beyond normal seasonal trends or if the company isn''t able to access the capital markets or sell assets, it may be unable to fund its obligations and sustain its operations.
The company recorded a charge of about $60 million in the second quarter ended June 30 as a result of the reductions. The charge was primarily for costs related to severance.
AMR also said its minimum required pension contribution for 2003 amounted to $186 million, and its required pension contribution for 2004 probably will be at least $600 million.
Based on the current regulatory environment and market conditions, AMR said, the company expects its 2005 minimum required pension contributions to significantly exceed its 2004 minimum required pension contributions.
The company''s capital expenditures for the first six months of 2003 amounted to $847 million, the filing said.
- Ben Siegel; Dow Jones Newswires; 202-862-3544
DOW JONES NEWSWIRES
WASHINGTON -- AMR Corp. (AMR), the parent of American Airlines, said it expects to reduce 8,000 jobs by June 2004 in conjunction with Management Reductions and Modified Labor Agreements.
According to a quarterly report filed Friday with the Securities and Exchange Commission, the work-force reduction will affect all work groups and will be accomplished through various measures, including part-time work schedules, furloughs and permanent layoffs.
AMR said, however, that if the revenue environment deteriorates beyond normal seasonal trends or if the company isn''t able to access the capital markets or sell assets, it may be unable to fund its obligations and sustain its operations.
The company recorded a charge of about $60 million in the second quarter ended June 30 as a result of the reductions. The charge was primarily for costs related to severance.
AMR also said its minimum required pension contribution for 2003 amounted to $186 million, and its required pension contribution for 2004 probably will be at least $600 million.
Based on the current regulatory environment and market conditions, AMR said, the company expects its 2005 minimum required pension contributions to significantly exceed its 2004 minimum required pension contributions.
The company''s capital expenditures for the first six months of 2003 amounted to $847 million, the filing said.
- Ben Siegel; Dow Jones Newswires; 202-862-3544
