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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_____________
FORM 8-K/A No. 1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event
reported: June 25, 2003
American Airlines, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-2691 13-1502798
(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)
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Item 5. Other Events
On June 25, 2003, American Airlines, Inc.("American"), a wholly
owned subsidiary of AMR Corporation ("AMR"), filed a current
report on Form 8-K disclosing, among other items, the forecasted
second quarter 2003 cost per ASM for AMR and American. This
amendment to the June 25 filing discloses additional information
regarding the impact (a) of the reimbursement of security fees by
the U.S. government and (b) for American, certain costs
associated with its regional affiliates. There are no changes to
the other information provided in the initial filing.
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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
Charles D. MarLett
Corporate Secretary
Dated: July 3, 2003
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AMR EAGLE EYE
June 25, 2003
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, and in documents incorporated herein by reference,
the words "expects", "forecasts", "anticipates" and similar
expressions are intended to identify forward-looking statements.
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
discussion includes forecasts of costs per ASM, revenue
performance and cash flows, each of which is a forward-looking
statement. Forward looking statements are subject to a number of
factors that could cause actual results to differ materially from
our forecasts, including the uncertain financial and business
environment for the Company. These uncertainties include, but
are not limited to, the struggling economy, high fuel prices,
conflicts in the Middle East, the SARS outbreak and historically
low fare levels. 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 Form 10-K for the year ended December 31, 2002.
2Q03 Update
This Eagle Eye update includes 2Q03 unit cost information, the
number of weighted-average common shares outstanding for the
quarter and information regarding AMR's cash position.
Please call if you have questions.
Kathy Bonanno
Director Investor Relations
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AMR EAGLE EYE
Forecast 2Q03 Unit Costs
AMR Estimated Consolidated Cost per ASM (in cents)(1)
Forecast
2Q03
AMR Adjusted Cost per ASM (2) 10.6
Govt grant per ASM (0.8)
_____
AMR Cost per ASM 9.8
AMR Adjusted Cost per ASM Yr/Yr B/(W) 4.7%
American Estimated Mainline Operations Cost per ASM (in cents)(1)
Forecast
2Q03
AA Adjusted Cost per ASM (2) (3) 10.2
Govt grant per ASM (0.8)
Regional Affiliates cost per ASM (4) 1.1
_____
AA Cost per ASM 10.5
AA Adjusted Cost per ASM Yr/Yr B/(W) 4.9%
(1) The numbers presented below exclude one-time adjustments arising
from recent concessionary agreements and certain other special
charges that the company is expected to record in the second quarter,
but is unable to quantify at this time. In total, these charges are
expected to result in some increase to the company's GAAP measured
CASM for the second quarter.
(2) Excludes the receipt of government reimbursement of security fees
of $358 million for AMR (including $315 million for American). We
believe that excluding the reimbursement of security fees provides
a CASM that is more representative of ongoing costs and therefore
more comparable to our historical CASM.
(3) Excludes costs of $414 million related to fixed fee per block hour
agreements with Regional Affiliates (American Eagle, Inc., Executive
Airlines, Inc., Trans States Airlines, Inc. and Chautauqua Airlines,
Inc.). Calculated using AA mainline jet operations ASMs. Therefore
both the numerator and the denominator exclude Regional Affiliates.
We believe that excluding costs related to Regional Affiliates provides
a CASM that is more representative of ongoing costs and therefore more
comparable to American's historical CASM.
(4) Includes Regional Affiliates costs of $414 million divided by AA
mainline ASMs
Recent AMR Events
- In connection with non-labor concessionary agreements, the company issued
common stock. As a result, our weighted average shares outstanding for
2Q03 will be approximately 158M.
- Our current liquidity has been bolstered by our reduced costs, in
combination with recently improved unit revenues (as measured by
revenue per available seat mile). April 2003 unit revenues (which
were impacted by the war in Iraq and concerns over SARS) were
slightly lower than a year ago, and May 2003 unit revenues were up
4% from their year-ago level. We are also experiencing improved
unit revenue trends for June relative to last year. While improving
in recent months, our revenues are still depressed relative to
historical levels. Our reduced costs and improved unit revenues
enabled us to generate positive cash flows from operations in May
2003 (excluding the benefit of the $358 million in security cost
reimbursements we received under the Emergency Wartime Supplemental
Appropriations Act in May). If the improved unit revenue
environment continues, we would expect to show similar positive
operating cash flow results in June 2003.