AMR 2Q12 Earnings Release
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: July 18, 2012


AMR CORPORATION _
(Exact name of registrant as specified in its charter)


Delaware 1-8400 75-1825172 _
(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

AMR Corporation (the Company) is furnishing herewith a press release issued on July 18, 2012 by the Company as Exhibit 99.1, which is included herein. This press release was issued to report the Company's second quarter 2012 results

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 Press Release of the Company dated July 18, 2012



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.


    AMR CORPORATION


                                
/s/ Kenneth W. Wimberly
Kenneth W. Wimberly
Corporate Secretary



Dated: July 18, 2012





    

EXHIBIT INDEX

Exhibit

99.1
Description

Press Release of the Company dated July 18, 2012




CONTACT:    Sean Collins
Media Relations
Fort Worth, Texas
817-967-1577
mediarelations@aa.com


FOR RELEASE: Wednesday, July 18, 2012


AMR CORPORATION REPORTS SECOND QUARTER 2012 RESULTS

$6.5 Billion in Quarterly Revenue, Highest in Company History

Net Profit of $95 Million, Excluding Reorganization and Special Items,
a $381 Million Improvement Over a Year Ago

Net Loss of $241 Million; Operating Income of $142 Million

FORT WORTH, Texas - AMR Corporation, the parent company of American Airlines, Inc., today reported second quarter revenue of $6.5 billion, an increase of 5.5 percent year-over-year and the highest quarterly revenue in company history.
In the second quarter of 2012, the company reported a net profit of $95 million, excluding reorganization and special items - a $381 million improvement over the second quarter of 2011. AMR incurred a net loss of $241 million compared to a net loss of $286 million in the same period of 2011.
“Thanks to the great work of the entire American team, this was a time of exceptional improvement. Our revenue performance has topped the industry for several months, leading to our first second quarter profit in five years excluding reorganization and special items,” said Tom Horton, AMR's Chairman and Chief Executive Officer. “And this improvement reflects only a fraction of our ongoing restructuring progress. While there is still much to be done, we expect this momentum to build quickly as the new American re-emerges as an industry leader.”
Financial and Operational Performance
Consolidated passenger revenue per available seat mile (unit revenue) grew 9.1 percent compared to the second quarter of 2011, and mainline passenger unit revenue increased 8.7 percent.

•
Consolidated passenger yield, representing average fares paid, increased 7.1 percent year-over-year in the second quarter of 2012, and mainline passenger yield increased 6.8 percent.

•
Mainline capacity, or total available seat miles, in the second quarter of 2012 decreased 2.4 percent compared to the same period in 2011.

•
American's second quarter 2012 mainline load factor, or the percentage of total seats filled, was 85.1 percent - a record for any quarter.
The company's revenue performance was driven by year-over-year yield improvement and a higher consolidated load factor of 84.5 percent - a record for any quarter as well. Domestic unit revenue improved 8.6 percent in the second quarter versus the same period last year and, for the second consecutive quarter, the company experienced unit revenue increases across all five of its hubs. These results were supported by strong


corporate revenue growth.
International unit revenue increased 9.0 percent in the second quarter, driven by increased load factors across all entities, and strong yield performance. Premium cabin demand improved significantly in both the Atlantic and Pacific entities, generating unit revenue increases of 8.5 percent and 18.1 percent, respectively. American and its joint-business partners, British Airways and Iberia over the Atlantic, and Japan Airlines over the Pacific, have gained momentum in attracting high-value customers to the airlines' enhanced networks. The Latin American entity posted a 6.7 percent unit revenue increase in the second quarter of 2012, including yield improvements in Mexico and Central and South America.
“Our improved financial results were driven by strong unit revenue performance, with growth outpacing the industry in each of the three months of the second quarter,” said Bella Goren, AMR's Chief Financial Officer. “Our consolidated unit revenue rose 9.1 percent, with increases across all five of our hubs and across all international entities. These industry-leading year-over-year revenue increases reflect the strength of our network and alliances, our focus on the customer, and the effectiveness of our overall strategy.”
AMR's consolidated operating expenses, excluding special items, were $6.2 billion, essentially flat with the same period last year. Excluding fuel costs, consolidated unit costs increased 2.3 percent year-over-year.
Reorganization Items and Special Charges
The second quarter 2012 results include $336 million in special charges and reorganization items.

•
Of that amount, $106 million is related to a special charge, primarily associated with employee severance-related costs.

•
The company recognized $230 million in reorganization items resulting from its and certain of its direct and indirect U.S. subsidiaries' voluntary petitions for reorganization under Chapter 11 on Nov. 29, 2011. These items are primarily from estimated claims associated with restructuring the financing arrangements for certain aircraft and rejecting certain special facility revenue bonds, as well as professional fees.
Fuel Impact
Taking into account the impact of fuel hedging, AMR paid approximately $3.24 per gallon for jet fuel in the second quarter of 2012 versus approximately $3.12 per gallon in the second quarter of 2011, a 3.8 percent increase. As a result, the company paid $81 million more for fuel in the second quarter of 2012 than it would have paid at prevailing prices from the prior-year period.
Cash Position
AMR ended the second quarter with approximately $5.8 billion in cash and short-term investments, including a restricted cash balance of $772 million, compared to a balance of approximately $5.6 billion in cash and short-term investments, including a restricted balance of approximately $457 million, at the end of the second quarter of 2011.
At Nov. 30, 2011, the company had approximately $4.8 billion in cash and short-term investments, including a restricted cash balance of $693 million.
Fleet Renewal Progress
Later this year, the company will start placing into service the newest addition to its fleet, the Boeing


777-300ER, which will showcase a number of special features, including fully lie-flat First and Business Class seating, with direct aisle access from every seat; specially designed Main Cabin Extra seating with more legroom and comfort; international Wi-Fi and in-seat entertainment throughout all cabins.
In addition, the company recently unveiled plans for upgrading its international widebody fleet of Boeing 777-200ERs and Boeing 767-300ERs, which will also offer industry-leading interiors and amenities as well as fully lie-flat Business Class seats with aisle access for every seat.

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 more than 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. Because of the company's restructuring, there can be no assurance as to the future value of the company's securities, including its 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
June 30,
 
Percent
Change
 
2012
 
2011
 
Revenues
 
 
 
 
 
    Passenger - American Airlines
$
4,837

 
$
4,557

 
6.1

                      - Regional Affiliates
790

 
711

 
11.1

    Cargo
175

 
187

 
(6.6
)
    Other revenues
650

 
659

 
(1.4
)
      Total operating revenues
6,452

 
6,114

 
5.5

 
 
 
 
 
 
Expenses
 
 
 
 
 
  Aircraft fuel
2,209

 
2,202

 
0.3

  Wages, salaries and benefits
1,778

 
1,764

 
0.8

  Other rentals and landing fees
333

 
355

 
(6.2
)
  Maintenance, materials and repairs
357

 
334

 
6.8

  Depreciation and amortization
261

 
266

 
(2
)
  Commissions, booking fees and credit card expense
263

 
268

 
(2.1
)
  Aircraft rentals
130

 
158

 
(18
)
  Food service
130

 
133

 
(1.6
)
  Special charges
106

 
—

 
*

  Other operating expenses
743

 
712

 
4.4

    Total operating expenses
6,310

 
6,192

 
1.9

 
 
 
 
 
 
Operating Income (Loss)
142

 
(78
)
 
*

 
 
 
 
 
 
Other Income (Expense)
 
 
 
 
 
  Interest income
7

 
7

 
(3.9
)
  Interest expense
(164
)
 
(215
)
 
(23.8
)
  Interest capitalized
12

 
10

 
18.4

  Miscellaneous - net
(8
)
 
(10
)
 
(20
)
    Total other income
(153
)
 
(208
)
 
(26.4
)
 
 
 
 
 
 
Income (Loss) Before Reorganization Items, Net
(11
)
 
(286
)
 
(96.1
)
Reorganization Items, Net
(230
)
 
—

 
*

Income Before Income Taxes
(241
)
 
(286
)
 
(15.7
)
Income tax
—

 
—

 
—

Net Income
$
(241
)
 
$
(286
)
 
(15.7
)
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
Basic
$
(0.72
)
 
$
(0.85
)
 
 
Diluted
$
(0.72
)
 
$
(0.85
)
 
 
 
 
 
 
 
 
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.
Three Months Ended June 30, 2012
Entity Results
RASM1
(cents)
 
Y-O-Y
Change
 
ASMs2
(billions)
 
Y-O-Y
Change
 
 
 
 
 
 
 
 
DOT Domestic
12.75
 
8.6%
 
22.7
 
(1.9)
International
12.46
 
9.0
 
15.6
 
(3.0)
   DOT Latin America
13.61
 
6.7
 
7.3
 
1.3
   DOT Atlantic
11.76
 
8.5
 
6.0
 
(9.2)
   DOT Pacific
10.67
 
18.1
 
2.3
 
1.3




American Airlines, Inc.
Three Months Ended June 30, 2012
Entity Results

Load Factor
(pts)
 
Y-O-Y
Change
(pts)
 

Yield
(cents)
 

Y-O-Y
Change
 
 
 
 
 
 
 
 
DOT Domestic
86.3
 
0.7
 
14.78
 
7.7%
International
83.4
 
2.7
 
14.94
 
5.5
   DOT Latin America
80.6
 
0.7
 
16.88
 
5.9
   DOT Atlantic
85.8
 
2.9
 
13.70
 
4.9
   DOT Pacific
86.1
 
9.1
 
12.39
 
5.7

1 Revenue per Available Seat Mile
2 Available Seat Miles


AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
Three Months Ended
June 30,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
Net Income
$
(241
)
 
$
(286
)
 
(15.7
)
Special Charges
106

 
—

 
*

Reorganization Items
230

 
—

 
*

Net Income Excluding Reorganization and Special Items
95

 
(286
)
 
*



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
Three Months Ended
June 30,
 
Percent
Change
 
2012
 
2011
 
American Airlines, Inc. Mainline Jet Operations
 
 
 
 
 
Revenue passenger miles (millions)
32,586

 
32,788

 
(0.6
)
Available seat miles (millions)
38,289

 
39,228

 
(2.4
)
Cargo ton miles (millions)
456

 
459

 
(0.7
)
Passenger load factor
85.1
%
 
83.6
%
 
1.5 pts

Passenger revenue yield per passenger mile (cents)
14.84

 
13.90

 
6.8

Passenger revenue per available seat mile (cents)
12.63

 
11.62

 
8.7

Cargo revenue yield per ton mile (cents)
38.34

 
40.76

 
(5.9
)
Operating expenses per available seat mile, excluding Regional
   Affiliates (cents) (1)
14.55

 
13.85

 
5.0

Fuel consumption (gallons, in millions)
604

 
627

 
(3.7
)
Fuel price per gallon (dollars)
3.24

 
3.11

 
4.1

 
 
 
 
 
 
Regional Affiliates
 
 
 
 
 
Revenue passenger miles (millions)
2,683

 
2,585

 
3.8

Available seat miles (millions)
3,447

 
3,412

 
1.0

Passenger load factor
77.8
%
 
75.8
%
 
2.1 pts

 
 
 
 
 
 
AMR Corporation
 
 
 
 
 
Average Equivalent Number of Employees
 
 
 
 
 
American Airlines
65,300

 
66,800

 
 
Other
12,800

 
13,700

 
 
   Total
78,100

 
80,500

 
 
(1)Excludes $756 million and $793 million of expense incurred related to Regional Affiliates in 2012 and 2011, respectively.


AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
American Airlines, Inc. Mainline Jet Operations
(in millions, except as noted)
Three Months Ended
June 30,
 
2012
 
2011
Total operating expenses
$
6,325

 
$
6,225

Less: Operating expenses incurred related to Regional Affiliates
756

 
793

Operating expenses excluding expenses incurred related to Regional Affiliates
$
5,569

 
$
5,432

American mainline jet operations available seat miles
38,289

 
39,228

Operating expenses per available seat mile, excluding Regional Affiliates (cents)
14.55

 
13.85

 
 
 
 
Percent change
5
%
 
 

American Airlines, Inc. Mainline Jet Operations
(in millions, except as noted)
Three Months Ended
June 30,
 
2012
 
2011
Total operating expenses
$
6,325

 
$
6,225

Less: Operating expenses incurred related to Regional Affiliates
756

 
793

Operating expenses excluding expenses incurred related to Regional Affiliates
$
5,570

 
$
5,432

American mainline jet operations available seat miles
38,289

 
39,228

Operating expenses per available seat mile, excluding Regional Affiliates (cents)
14.55

 
13.85

 
 
 
 
Less: Impact of reorganization and special Items (cents)
0.28

 
—

Operating expenses per available seat mile, excluding impact of reorganization and special items (cents)
14.27

 
13.85

 
 
 
 
Percent change
3.1
%
 
 
 
 
 
 
Less: Fuel cost per available seat mile (cents)
5.11

 
4.97

Operating expenses per available seat mile, excluding impact of reorganization and special items, and fuel expenses (cents)
9.16

 
8.88

 
 
 
 
Percent change
3.2
%
 
 

Note: The company believes that operating expenses per available seat mile, excluding the cost of fuel, reorganization items 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 Consolidated
(in millions, except as noted)
Three Months Ended
June 30,
 
2012
 
2011
Operating expenses per available seat mile (cents)
15.12

 
14.52

Less: Impact of reorganization and special items (cents)
0.25

 
—

 
 
 
 
Operating expenses per available seat mile, excluding impact of reorganization and special items (cents)
14.87

 
14.52

 
 
 
 
Percent change
2.4
%
 
 
 
 
 
 
Less: Fuel expense per available seat mile (cents)
5.30

 
5.16

Operating expenses per available seat mile, excluding impact of reorganization and special items and fuel expense (cents)
9.57

 
9.36

 
 
 
 
Percent change
2.3
%
 
 




AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
 
Six Months Ended
June 30,
 
Percent Change
 
2012
 
2011
 
Revenues
 
 
 
 
 
    Passenger - American Airlines
$
9,394

 
$
8,691

 
8.1
                      - Regional Affiliates
1,460

 
1,288

 
13.3
    Cargo
343

 
356

 
(3.7)
    Other revenues
1,293

 
1,312

 
(1.4)
      Total operating revenues
12,490

 
11,647

 
7.2
 
 
 
 
 
 
Expenses
 
 
 
 
 
  Aircraft fuel
4,375

 
4,044

 
8.2
  Wages, salaries and benefits
3,560

 
3,486

 
2.1
  Other rentals and landing fees
661

 
707

 
(6.5)
  Maintenance, materials and repairs
700

 
639

 
9.5
  Depreciation and amortization
521

 
542

 
(3.9)
  Commissions, booking fees and credit card expense
529

 
524

 
0.9
  Aircraft rentals
272

 
318

 
(14.4)
  Food service
255

 
253

 
0.6
  Special charges
117

 
—

 
*
  Other operating expenses
1,447

 
1,443

 
0.3
    Total operating expenses
12,437

 
11,956

 
4.0
 
 
 
 
 
 
Operating Income (Loss)
53

 
(309
)
 
*
 
 
 
 
 
 
Other Income (Expense)
 
 
 
 
 
  Interest income
13

 
14

 
(6.8)
  Interest expense
(342
)
 
(415
)
 
(17.6)
  Interest capitalized
24

 
17

 
41.9
  Miscellaneous - net
(18
)
 
(29
)
 
(37.9)
    Total other income
(323
)
 
(413
)
 
(21.8)
 
 
 
 
 
 
Income (Loss) Before Reorganization Items, Net
(270
)
 
(722
)
 
(62.6)
Reorganization Items, Net
(1,630
)
 
—

 
*
Income Before Income Taxes
(1,900
)
 
(722
)
 
*
Income tax
—

 
—

 
—
Net Income
$
(1,900
)
 
$
(722
)
 
*
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
Basic
$
(5.67
)
 
$
(2.16
)
 
 
Diluted
$
(5.67
)
 
$
(2.16
)
 
 
 
 
 
 
 
 
Number of Shares Used in Computation
 
 
 
 
 
Basic
335

 
334

 
 
Diluted
335

 
334

 
 
* Greater than 100%



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)

OPERATING STATISTICS BY REGIONAL ENTITY

American Airlines, Inc.
Six Months Ended June 30, 2012
Entity Results
RASM1
(cents)
 
Y-O-Y
Change
 
ASMs2
(billions)
 
Y-O-Y
Change
 
 
 
 
 
 
 
 
DOT Domestic
12.35
 
9.1%
 
45.2
 
(1.7)
International
12.29
 
9.6
 
31.0
 
(0.3)
   DOT Latin America
13.83
 
8.9
 
15.8
 
3.2
   DOT Atlantic
10.96
 
8.8
 
10.7
 
(7.4)
   DOT Pacific
10.09
 
12.3
 
4.6
 
6.3


American Airlines, Inc.
Six Months Ended June 30, 2012
Entity Results

Load Factor
(pts)
 
Y-O-Y
Change
(pts)
 

Yield
(cents)
 

Y-O-Y
Change
 
 
 
 
 
 
 
 
DOT Domestic
83.3
 
1.3
 
14.84
 
7.4%
International
80.3
 
2.3
 
15.29
 
6.4
   DOT Latin America
79.9
 
(0.1)
 
17.31
 
9.0
   DOT Atlantic
80.4
 
4.2
 
13.63
 
3.1
   DOT Pacific
81.9
 
5.7
 
12.32
 
4.5
1 Revenue per Available Seat Mile
2 Available Seat Miles






AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
Six Months Ended
June 30,
 
Percent
Change
 
2012
 
2011
 
Net Income
$
(1,900
)
 
(722
)
 
*
Special Charges
117

 
31

 
*
Reorganization Items
1,630

 
—

 
*
Net Income Excluding Reorganization and Special Items
(153
)
 
(691
)
 
(77.9)
* Greater than 100%


AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
Six Months Ended
June 30,
 
Percent
Change
 
2012
 
2011
 
American Airlines, Inc. Mainline Jet Operations
 
 
 
 
 
Revenue passenger miles (millions)
62,546

 
61,953

 
1.0
Available seat miles (millions)
76,207

 
77,078

 
(1.1)
Cargo ton miles (millions)
901

 
898

 
0.3
Passenger load factor
82.1
%
 
80.4
%
 
1.7 pts
Passenger revenue yield per passenger mile (cents)
15.02

 
14.03

 
7.1
Passenger revenue per available seat mile (cents)
12.33

 
11.28

 
9.3
Cargo revenue yield per ton mile (cents)
38.07

 
39.66

 
(4.0)
Operating expenses per available seat mile, excluding
   Regional Affiliates (cents) (1)
14.38

 
13.63

 
5.5
Fuel consumption (gallons, in millions)
1,196

 
1,224

 
(2.2)
Fuel price per gallon (dollars)
3.24

 
2.93

 
10.3
 
 
 
 
 
 
Regional Affiliates
 
 
 
 
 
Revenue passenger miles (millions)
5,054

 
4,720

 
7.1
Available seat miles (millions)
6,781

 
6,567

 
3.2
Passenger load factor
74.5
%
 
71.9
%
 
2.7 pts
 
 
 
 
 
 
AMR Corporation
 
 
 
 
 
Average Equivalent Number of Employees
 
 
 
 
 
American Airlines
65,500

 
66,250

 
 
Other
13,000

 
13,500

 
 
Total
78,500

 
79,750

 
 
(1)Excludes $1.5 billion and $1.5 billion of expense incurred related to Regional Affiliates in 2012 and 2011, respectively.
###
Current AMR Corp. news releases can be accessed at http://www.aa.com