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: March 24, 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 January and February
and (b) forecasts of unit cost, revenue performance, fuel prices
and fuel hedging, capacity and traffic estimates, liquidity
expectations and other income/expense estimates.
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/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: March 24, 2006
AMR EAGLE EYE
March 24, 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 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, 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 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' Annual Report on Form 10-K for the year ended December
31, 2005.
This Eagle Eye provides updated guidance for the first quarter
and the full year 2006.
Performance Update
Costs: Unit cost forecasts are attached.
Revenue: First quarter mainline unit revenue is expected to
increase between 9.2% and 10.2% year over year. First quarter
consolidated unit revenue is expected to increase between 9.9%
and 10.9% year over year.
Liquidity: We expect to end the first quarter with a cash and
short-term investment balance over $4.5 billion, including
approximately $500 million in restricted cash and short-term
investments.
Kathy Bonanno
Director Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
1Q06: Hedged on 32% of consumption at approximately $63/bbl WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Jan Feb Mar 1Q06 2006
Fuel Price (dollars/gal) 1.85 1.93 1.96 1.91 1.97
Fuel Consumption (MM gals) 266.1 238.9 270.8 775.8 3,138.0
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
Jan Feb Mar 1Q06 2006
AMR Cost per ASM 1/ 10.99 11.83 11.32 11.36 11.25
AMR Cost per ASM (ex-fuel) 2/ 7.87 8.57 8.00 8.13 7.95
American Mainline Cost per ASM
Actual Forecast
Jan Feb Mar 1Q06 2006
AA Cost per ASM 1/ 10.45 11.27 10.77 10.82 10.73
AA Cost per ASM (ex-fuel) 2/ 7.42 8.10 7.55 7.67 7.52
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
Jan Feb Mar 1Q06 2006
ASMs 14,698 13,146 14,877 42,721 173,833
Domestic 9,489 8,503 9,619 27,611 110,642
International 5,209 4,643 5,258 15,110 63,191
Traffic 11,044 9,867 11,876 32,787 138,495
Regional Affiliate Operations
Actual Forecast
Jan Feb Mar 1Q06 2006
ASMs 1,124 1,010 1,120 3,254 13,586
Traffic 740 703 828 2,271 9,791
AMR EAGLE EYE
Below the Line Income/Expenses
Total Other Income/(Expense) is estimated at ($210) million in
the first quarter of 2006
Share Count
Basic Shares: 186 million
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
Cents Jan Feb Mar 1Q06 2006
AMR CASM 10.99 11.83 11.32 11.36 11.25
Less Fuel CASM 3.12 3.26 3.32 3.23 3.30
AMR CASM Excluding Fuel 7.87 8.57 8.00 8.13 7.95
Actual Forecast
Cents Jan Feb Mar 1Q06 2006
AA CASM 10.45 11.27 10.77 10.82 10.73
Less Fuel CASM 3.03 3.17 3.22 3.15 3.21
AA CASM Excluding Fuel 7.42 8.10 7.55 7.67 7.52