SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event
reported: March 22, 2002
American Airlines, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-2691 13-1502798
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(State of Incorporation) (Commission File Number) (IRS Employer Identification No.)
4333 Amon Carter Blvd. Fort Worth, Texas 76155
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(Address of principal executive offices) (Zip Code)
(817) 963-1234
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(Registrant's telephone number)
Item 9. Regulation FD Disclosure
American Airlines, Inc. (American or the Company, a wholly owned subsidiary of
AMR Corporation), is furnishing herewith certain data regarding its unit costs,
fuel, traffic and capacity for February through May of 2002. Additionally, the
Company is providing information on the recently passed economic stimulus
package which contains a provision regarding net operating loss (NOL) carryback
which is favorable to AMR.
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/ Charles D. MarLett
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Charles D. MarLett
Corporate Secretary
Dated: March 22, 2002
AMR EAGLE EYE
March 21, 2002
Statements in this report 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 report, the words "expect", "forecast", "anticipates" and similar
expressions are intended to identify forward-looking statements. All such
statements are based on information available to the Company on the date of this
report. The Company undertakes no obligation to update or revise any
forward-looking statement, regardless of reason. This discussion includes
forecasts of costs per ASM, capacity, traffic, fuel cost and fuel consumption,
earnings, and operational considerations, each of which is a forward-looking
statement. There are a number of factors that could cause actual results to
differ materially from our forecasts. Such factors include, but are not limited
to: the continuing impact of the events of September 11, 2001 to the company,
general economic conditions, competitive factors within the airline industry
which could affect the demand for air travel, changes in the Company's business
strategy, changes in commodity prices, the inability to successfully integrate
the operations of TWA into those of American and to improve their profitability,
higher than expected integration costs, and the inability to successfully
integrate the workforce of TWA. For additional information regarding these and
other factors see the Company's filings with the Securities and Exchange
Commission, including but not limited to the Company's Form 10-K for the year
ended December 31, 2001.
MONTHLY UPDATE
Attached is our updated monthly guidance on unit cost, fuel, traffic and
capacity for February through May of 2002 which includes, among other changes,
an increase in our expected fuel price per gallon reflecting the recent run-up
in fuel prices. Please note that both AMR Consolidated and AA Mainline
Operations reflect the inclusion of TWA LLC operations in the 2002 statistics.
Additionally, the recently passed economic stimulus package contains a provision
regarding net operating loss (NOL) carryback which is favorable to AMR.
Previously, tax law allowed NOLs to be carried back two years and carried
forward twenty years. The new law extends the carryback period from two years to
five years for losses arising in 2001 and 2002. This will enable AMR to use its
large 2001 NOL, and any NOL arising in 2002, to recover federal income taxes
paid from 1996-2000. The net result is likely to be the recovery of several
hundred million dollars of taxes, with a present value benefit in excess of
$200 million.
However, while the economics of this change to the NOL look back period are
positive, it will drive an accounting charge in 2002. During the 1996-2000
period, a tax benefit was recorded for foreign income taxes paid which were used
as a credit against AMR's U.S. tax liability. The elimination of our tax
liability from these earlier periods means foreign tax credits cannot be used in
those years and must be carried forward to future years. However, the
carryforward period (5 years from the year foreign taxes were paid) will expire
before all of these credits can be used. As a result, we expect to record a tax
charge of up to $55 million to reflect the forfeiture of these tax credits. This
charge will be split between the first and second quarters of 2002.
Based on ATA reported revenue data for January and February, the combined
revenue performance of AA and TWA, relative to 2001, is slightly better than the
industry. However, on a reported basis (i.e. excluding TWA's results for Jan/Feb
2001), the year-over-year decline was greater than the industry reflecting below
average unit revenues at TWA LLC. Despite this, the sequential trends are
showing improvement similar to those of the industry overall.
Please call if you have additional questions.
Michael Thomas
Director, Investor Relations
AMR EAGLE EYE
UNIT COSTS
AMR CONSOLIDATED COST PER ASM (IN CENTS)
Actual ---------------Forecast--------------
Feb Mar Apr May
AMR Cost per ASM 12.2 11.9 11.8 11.5
Yr/Yr B/(W) (1.8%) (0.9%) (5.2%) (5.0%)
AMERICAN MAINLINE OPERATIONS COST PER ASM (IN CENTS)
Actual ---------------Forecast--------------
Feb Mar Apr May
AA Cost per ASM 11.8 11.5 11.4 11.0
Yr/Yr B/(W) (3.1%) (1.5%) (5.7%) (4.4%)
CAPACITY, TRAFFIC AND FUEL
Actual ---------------Forecast--------------
Feb Mar Apr May
AA MAINLINE OPS:
Capacity (yr/yr) 1.8% 3.9% (9.0%) (12.4%)
Traffic (yr/yr) 4.6% 7.8% (10.9%) (11.6%)
Fuel (cents/gal incl. tax) 67 70 71 71
Fuel Consumption (mil. gal.) 228 262 264 277
AMERICAN EAGLE:
Capacity (yr/yr) 1.2% (0.2%) (2.3%) (2.4%)
Traffic (yr/yr) 9.6% 4.2% 1.0% 2.1%
Note: Both AMR Consolidated and AA Mainline include TWA LLC operations in 2002.
Note: TWA LLC became part of AA/AMR on April 10th, 2001.