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: September 25, 2006
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 8.01 Other Events
AMR Corporation is filing herewith its Eagle Eye communication to
investors. This document includes (a) actual unit cost, fuel
price, capacity and traffic information for July and August and
(b) forecasts of unit cost, revenue performance, fuel prices and
fuel hedging, capacity and traffic estimates, liquidity
expectations, other income/expense estimates and share count.
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: September 25, 2006
AMR EAGLE EYE
September 25, 2006
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 document, the words "expects", "plans," "anticipates,"
"indicates," "believes," "forecast," "guidance," "outlook",
"may," "will," "should" and similar expressions are intended to
identify 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; overall economic and industry conditions; plans and
objectives for future operations; 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 report are based
on information available to the Company on the date of this
report. 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 document
includes forecasts of unit cost and revenue performance, fuel
prices and fuel hedging, capacity and traffic estimates, other
income/expense estimates, share count, and statements regarding
the Company's liquidity, 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; the ability of the Company to
generate additional revenues and significantly reduce its costs;
changes in economic and other conditions beyond the Company's
control, and the volatile results of the Company's operations;
the Company's substantial indebtedness and other obligations; the
ability of the Company to satisfy existing financial or other
covenants in certain of its credit agreements; continued high
fuel prices and further increases in the price of fuel, and the
availability of fuel; the fiercely competitive business
environment faced by the Company, and historically low fare
levels; competition with reorganized and reorganizing carriers;
the Company's reduced pricing power; the Company's likely need to
raise additional funds and its ability to do so on acceptable
terms; changes in the Company's business strategy; 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 or
avian flu) that affects travel behavior; 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; 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, 2005.
This Eagle Eye provides updated guidance for the third quarter
and the full year 2006.
Performance Update
Costs: Unit cost forecasts are attached.
Revenue: Third quarter mainline unit revenue is expected to
increase between 6.6% and 7.6% year over year. Third quarter
consolidated unit revenue is expected to increase between 7.1%
and 8.1% year over year. This revenue estimate includes more
than $50 million total impact for August and September related to
the London security threat in August.
Liquidity: We expect to end the third quarter with a cash and
short-term investment balance well over $5 billion, including
nearly $500 million in restricted cash and short-term
investments.
Kenji Hashimoto
Managing Director,Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
3Q06: Hedged on 36% of consumption at an average cap of $66/bbl WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast (as of Sep. 18, 2006)
July Aug Sep 3Q06 2006
Fuel Price (dollars/gal) 2.19 2.21 2.06 2.16 2.03
Fuel Consumption (MM gals) 281.2 279.2 249.3 809.7 3,168.6
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
July Aug Sep 3Q06 2006
AMR Cost per ASM 1/ 11.57 11.69 11.52 11.59 11.45
AMR Cost per ASM (ex-fuel) 2/ 7.84 7.93 8.13 7.96 8.02
American Mainline Cost per ASM
Actual Forecast
July Aug Sep 3Q06 2006
AA Cost per ASM 1/ 11.01 11.11 10.95 11.03 10.88
AA Cost per ASM (ex-fuel) 2/ 7.38 7.44 7.68 7.49 7.56
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
July Aug Sep 3Q06 2006
ASMs 15,280 15,216 14,035 44,531 174,298
Domestic 9,634 9,649 8,866 28,149 108,974
International 5,646 5,567 5,169 16,382 65,324
Traffic 13,303 12,478 10,559 36,340 139,383
Regional Affiliate Operations
Actual Forecast
July Aug Sep 3Q06 2006
ASMs 1,179 1,185 1,117 3,481 13,597
Traffic 927 879 767 2,573 10,013
Share Count (in millions)
Basic Shares 213
Options, performance shares, etc. (1) 23
4.25% notes (dilutive above $0.18/qtr) 17
4.50% notes (dilutive above $0.25/qtr) 15
Total Forecast Potential Dilutive Share Count 268
(1) Based on current quarterly average share price of $22.18
1/ Data is as reported
2/ The company believes that unit costs excluding fuel is a
useful measurement to investors in monitoring the performance
of the company's costs excluding the volatility of fuel.
Reconciliation to GAAP follows:
Actual Forecast
July Aug Sep 3Q06 2006
Cents
AMR CASM 11.57 11.69 11.52 11.59 11.45
Less Fuel CASM 3.73 3.76 3.39 3.63 3.43
AMR CASM Excluding Fuel 7.84 7.93 8.13 7.96 8.02
Actual Forecast
July Aug Sep 3Q06 2006
Cents
AA CASM 11.01 11.11 10.95 11.03 10.88
Less Fuel CASM 3.63 3.67 3.27 3.54 3.32
AA CASM Excluding Fuel 7.38 7.44 7.68 7.49 7.56