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: June 23, 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 April and May 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/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: June 23, 2006
AMR EAGLE EYE
June 23, 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, consumption and 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 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 second quarter
and the full year 2006.
Performance Update
Costs: Unit cost forecasts are attached.
Revenue: Second quarter mainline unit revenue is expected to
increase between 11.1% and 12.1% year over year. Second quarter
consolidated unit revenue is expected to increase between 12.0%
and 13.0% year over year.
Liquidity: We expect to end the second quarter with a cash and
short-term investment balance over $5.5 billion, including
approximately $500 million in restricted cash and short-term
investments.
Kenji Hashimoto
Managing Director, Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
2Q06: Hedged on 30% of consumption at approximately $62/bbl WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Apr May Jun 2Q06 2006
Fuel Price (dollars/gal) 2.02 2.14 2.19 2.12 2.15
Fuel Consumption (MM gals) 264.9 275.2 265.8 805.9 3,147.6
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
Apr May Jun 2Q06 2006
AMR Cost per ASM 1/ 11.23 11.37 11.76 11.45 11.60
AMR Cost per ASM (ex-fuel) 2/ 7.82 7.76 8.10 7.89 8.00
American Mainline Cost per ASM
Actual Forecast
Apr May Jun 2Q06 2006
AA Cost per ASM 1/ 10.62 10.79 11.27 10.89 11.06
AA Cost per ASM (ex-fuel) 2/ 7.32 7.28 7.70 7.43 7.56
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
Apr May Jun 2Q06 2006
ASMs 14,610 15,157 14,757 44,525 174,175
Domestic 9,344 9,671 9,355 28,370 111,397
International 5,266 5,486 5,402 16,155 62,778
Traffic 11,939 12,246 12,540 36,725 139,531
Regional Affiliate Operations
Actual Forecast
Apr May Jun 2Q06 2006
ASMs 1,131 1,165 1,141 3,436 13,582
Traffic 845 901 898 2,643 9,901
AMR EAGLE EYE
Below the Line Income/Expenses
Total Other Income/(Expense) is estimated at ($185) million in
the second quarter of 2006.
Share Count (in millions)
Basic Shares 203
Options, performance shares, etc. (1) 27
4.25% notes (dilutive above $0.18/qtr) 17
4.50% notes (dilutive above $0.25/qtr) 15
Total Forecast Potential Dilutive Share Count 262
(1) Based on current quarterly share price of $25.40
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
Apr May Jun 2Q06 2006
Cents
AMR CASM 11.23 11.37 11.76 11.45 11.60
Less Fuel CASM 3.41 3.61 3.66 3.56 3.60
AMR CASM Excluding Fuel 7.82 7.76 8.10 7.89 8.00
Actual Forecast
Apr May Jun 2Q06 2006
Cents
AA CASM 10.62 10.79 11.27 10.89 11.06
Less Fuel CASM 3.30 3.51 3.57 3.46 3.50
AA CASM Excluding Fuel 7.32 7.28 7.70 7.43 7.56