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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 17, 2004
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 9. Regulation FD Disclosure
American Airlines, Inc., a wholly owned subsidiary of AMR
Corporation, is filing herewith actual fuel cost, unit cost and
capacity and traffic information for January and February as well
as current fuel cost, unit cost and capacity and traffic
expectations for March, the first quarter and the full year 2004.
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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: March 17, 2004
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AMR EAGLE EYE
March 17, 2004
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,"
"believes," 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 needs, overall
economic conditions, plans and objectives for future operations,
the impact on the Company of its results of operations for the
past three 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, capacity estimates and
liquidity expectations, 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 uncertain
financial and business environment the Company faces, the
struggling economy, high fuel prices and the availability of
fuel, continuing U.S. military involvement in Iraq, conflicts in
the Middle East or elsewhere, historically low fare levels and
the general competitive environment, the Company's ability to
implement its restructuring program and the effect of the program
on the Company's operational performance and service levels,
uncertainties with respect to the Company's international
operations, changes in the Company's business strategy, actions
by U.S. or foreign government agencies, the possible occurrence
of additional terrorist attacks, another outbreak of SARS or
another disease that affects travel behavior, the inability of
the Company to satisfy existing liquidity requirements or other
covenants in certain of its or American's credit agreements and
the availability of future financing. 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, 2003.
Performance Update
Costs: Fuel prices are higher than anticipated, however,
increased fuel costs will only slightly impact our 1Q04 CASM
guidance. Positive variances versus our expectations in a
number of other expense lines are largely offsetting fuel price
increases, resulting in revised mainline CASM guidance for 1Q04
of 9.48 cents, a 16.8 percent reduction year over year. Our full
year 2004 fuel price guidance has changed from $0.87/gallon to
$0.99/gallon.
Revenue: For the first quarter, any year over year unit revenue
benefits from improving structural and macro-economic conditions
are likely to be more than offset by intensifying competition -
particularly on transcontinental routes - and the effects of
significant increases in industry capacity.
Liquidity: We expect to end the quarter with a cash and short-
term investment balance of more than $3.0 billion, plus
approximately $500 million in restricted cash and short-term
investments. In February, AA issued $180 million of Fixed Rate
Secured Notes due 2009 and AMR issued $324 million of senior
convertible notes due 2024.
Kathy Bonanno
Director Investor Relations
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AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
1Q04 Hedged on 21% of consumption at $23/bbl WTI Crude
American Mainline Fuel Price Including Hedges and Taxes
Actual Forecast
Jan Feb Mar 1Q04 2004
Fuel Price (dollars/gal) 0.99 1.03 1.01 1.01 0.99
Fuel Consumption (MM gals) 249.2 235.9 254.0 739.1 3,020.6
Unit Cost Forecast
AMR Consolidated Cost per ASM
Actual Forecast
Jan Feb Mar 1Q04 2004
AMR Cost per ASM (cents) 10.05 10.04 9.68 9.92 9.75
Yr/Yr B/(W)* 12.7% 18.1% 17.3% 16.0% 7.3%
American Mainline Operations Cost per ASM
Actual Forecast
Jan Feb Mar 1Q04 2004
AA Cost per ASM (cents) 9.63 9.59 9.24 9.48 9.34
Yr/Yr B/(W)* 13.4% 18.9% 18.0% 16.7% 8.1%
Capacity and Traffic Forecast
AA Mainline Operations
Actual Yr/Yr H/(L) Forecast Yr/Yr H/(L)
Jan Feb Mar 1Q04 2004
Capacity 1.0% 11.8% 5.0% 5.7% 6.3%
Domestic (2.8%) 8.8% 2.0% 2.4% 2.8%
International 10.4% 19.3% 14.6% 14.6% 10.8%
Traffic 4.0% 12.1% 6.1% 7.2% 5.2%
Regional Affiliate Operations
Actual Yr/Yr H/(L) Forecast Yr/Yr H/(L)
Jan Feb Mar 1Q04 2004
Capacity 16.2% 31.1% 22.1% 22.8% 26.1%
Traffic 24.1% 38.2% 29.5% 30.4% 26.8%
* Compared to 2003 unit costs as reported