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Amr Corp (AAL) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2012

American Airlines Group Inc.

CIK: 6201 Ticker: AAL
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: January 16, 2013


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 2.02 Results of Operations

AMR Corporation (the Company) is furnishing herewith a press release issued on January 16, 2013 by the Company as Exhibit 99.1, which is included herein. This press release was issued to report the Company's fourth quarter 2012 results.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 Press Release of the Company dated January 16, 2013














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: January 16, 2013




EXHIBIT INDEX

Exhibit

99.1
Description

Press Release of the Company dated January 16, 2013






CONTACT:    Sean Collins
Media Relations
Fort Worth, Texas
817-967-1577
mediarelations@aa.com
FOR RELEASE: Wednesday, Jan. 16, 2013

AMR Corporation Reports Fourth Quarter 2012 Net Profit of
$262 Million, a $1.4 Billion Improvement Over Fourth Quarter 2011
Excluding reorganization and special items, the fourth quarter net loss would be $88 million, a $121 million improvement over the same period last year
Fort Worth, Texas - AMR Corporation, the parent company of American Airlines, Inc., today reported results for the fourth quarter and year ended December 31, 2012. Key points include:

Revenue of $24.9 billion in 2012, the highest in company history

Full-year operating profit of $494 million, excluding special items, a $749 million improvement over 2011

Full-year net loss of $1.9 billion. Excluding reorganization and special items, the full-year net loss was $130 million, a $932 million improvement over 2011

American took delivery of 11 new aircraft in the fourth quarter (nine 737-800s and two 777-300ERs) and 30 new aircraft during the full year (28 737-800s and two 777-300ERs), putting the airline on track to have the youngest, most fuel-efficient fleet among U.S. network carriers by 2017

“We have made enormous progress towards building the new American,” said Tom Horton, AMR's Chairman and CEO. “It is remarkable what the American team has been able to accomplish, including generating record revenue and a return to an operating profit for the year while restructuring every aspect of our company. I want to thank all of our people for their dedication, hard work and commitment to serving our customers during this time. Our momentum is growing toward emerging as a strong, healthy and vibrant competitor. In fact, with what we have accomplished, we expect to show strong results beginning in the first quarter of 2013.”
In the fourth quarter, AMR reported a net profit of $262 million compared to a net loss of $1.1 billion in the fourth quarter of 2011. AMR's fourth quarter results include $350 million of net positive reorganization and special items, which are detailed below.
Excluding reorganization and special items, the net loss in the fourth quarter of 2012 was $88 million, a $121 million improvement from the prior year. The fourth quarter of 2012 was negatively impacted by Hurricane Sandy and the early November snow storm in the Northeast and, separately, by the residual headwind on fourth quarter bookings from the operational disruptions experienced in late September and early October. The cumulative impact from these events is estimated to have reduced net profits by $142 million.
For full-year 2012, American recorded a net loss of $1.9 billion, compared to 2011's full-year net loss of $2.0 billion. AMR's full year 2012 results include $1.7 billion of net negative reorganization and special items, which are detailed below.
Excluding reorganization and special items, the net loss for 2012 was $130 million, a $932 million improvement over 2011. The company's operating profit, excluding special items, of $494 million for 2012 was a $749 million improvement over last year.

Restructuring Progress



During the last year, AMR has completed the majority of its financial restructuring, including reducing debt, renegotiating aircraft leases and facilities agreements, grounding older airplanes, rationalizing the regional fleet, and renegotiating supplier relationships. AMR expects these actions to continue to increasingly improve its cost structure in 2013, as the company approaches its targeted restructuring related savings by the end of 2013.
In 2012:
American achieved labor cost reductions of 17 percent across all workgroups, including management, independent employees and unionized workgroups, all of which ratified agreements for six-year terms. Progress was also made at American Eagle, which achieved costs savings and reached agreements with its unionized workgroups
American made changes to its organizational structure to reduce management positions, making American's management workgroup the leanest among the network carriers
Renegotiated the financing terms for more than 400 mainline and regional aircraft, which includes completing its financial contracts on its 216 Embraer aircraft. Improved terms on these aircraft significantly lower AMR's aircraft ownership related costs, while also harmonizing its aircraft retirement and new aircraft delivery schedules
Negotiated more than 95 percent of American's 725 facility leases
Evaluated and/or renegotiated over 9,000 vendor/supplier agreements - American's suppliers have made significant contributions to its strategic plan for success, allowing AMR to meet its savings objectives as outlined in its business plan
Realized over $400 million in restructuring related savings in the fourth quarter, primarily from renegotiated aircraft leases, reductions to management and support staff positions, freezing the pension plans for all workgroups, and sun-setting the retiree medical program for active employees

“Throughout 2012, we have executed on all aspects of our business plan - streamlining our organizational structure, increasing unit revenues, reducing unit costs, and restructuring our balance sheet,” said Bella Goren, AMR's Chief Financial Officer. “The strong financial foundation we are building gives us the ability to deliver returns to our financial stakeholders and make investments that create enhanced value for our customers and our people.”

Revenue Performance
For the fourth quarter of 2012, the company reported consolidated revenue of $5.9 billion, 0.3 percent lower compared to the prior year. The combined effects of Hurricane Sandy, the November snow storm in the Northeast, and the booking headwind from the earlier operational disruption, negatively impacted revenue by an estimated $155 million in the fourth quarter.
Fourth quarter consolidated passenger revenue per available seat mile (PRASM) was comparable to the same period last year, and mainline PRASM decreased by 0.4 percent. Absent the same factors that impacted revenues - described above - American estimates that PRASM would have been approximately 2.0 percentage points higher than the fourth quarter of 2011.
For full-year 2012, AMR reported record consolidated revenue of $24.9 billion, up 3.7 percent compared to 2011, on 1.0 percent less capacity. For 2012, AMR's consolidated and mainline PRASM rose 5.8 percent and 5.6 percent year-over-year, respectively. Consolidated revenue performance was driven by a 4.6 percent year-over-year improvement in yield, or average fares paid, and record high consolidated and mainline load factors, or percentage of seats filled, of 82.2 percent and 82.8 percent, respectively. Domestic PRASM improved 5.5 percent in full-year 2012 versus full-year 2011, with PRASM increases across all five of American's hubs.
International PRASM increased 5.7 percent in 2012 over the prior year, driven by improved yield performance across all entities and increased load factors. “We are making tremendous progress strengthening American's global network by focusing the flying from our hubs to the most important domestic and international cities with the highest concentration of business travelers,” said Virasb Vahidi, American's Chief Commercial Officer. “We are enhancing relationships with the best international alliance partners and creating a pipeline of industry-leading products and services, including a significant renewal and transformation of our fleet that will drive revenue performance in the coming years.”



American's 2012 revenue improvement is a result of solid execution on its network, alliances, and product strategy. The recent revenue progress does not yet account for the benefits expected from initiatives accomplished in the restructuring.

Operating Expense
For the fourth quarter, AMR's consolidated operating expenses, excluding special items, decreased $139 million, or 2.3 percent, versus the same period in 2011. American's mainline cost per available seat mile (unit cost) in the fourth quarter decreased 3.3 percent versus the same period last year, excluding special items in both periods. Taking into account the impact of fuel hedging, AMR paid $3.22 per gallon for jet fuel in the fourth quarter versus $3.01 a gallon in the fourth quarter of 2011, a 6.6 percent increase. As a result, the company paid $135 million more for fuel in the fourth quarter of 2012 than it would have paid at prevailing prices from the prior-year period.
Excluding fuel and special items, mainline and consolidated unit costs in the fourth quarter of 2012 decreased 8.9 percent and 7.6 percent year-over-year, respectively, primarily driven by American's restructuring efforts. “The significant improvement in the fourth quarter in non-fuel unit cost underscores the results we have been able to achieve in our restructuring efforts and the competitive cost structure we have put in place for the future,” said Bella Goren, AMR's Chief Financial Officer.
Since many of the restructuring savings were implemented near the end of the year, AMR's full year 2012 consolidated operating expenses, excluding special items, were up 0.3 percent, or $84 million, year-over-year. They also reflect a negative impact of $514 million due to higher fuel prices in 2012. American's 2012 mainline unit costs, excluding special items, increased 1.5 percent versus the prior year. Excluding fuel and special items, mainline unit costs decreased 0.9 percent for the same period.
An unaudited summary of full-year 2012 results is available in the tables at the back of this press release.

Cash Position
AMR ended the fourth quarter with approximately $4.7 billion in cash and short-term investments, including a restricted cash balance of $850 million, compared to a balance of approximately $4.7 billion in cash and short-term investments, including a restricted balance of approximately $738 million, at the end of the fourth quarter of 2011.

2012 Notable Accomplishments
American has made significant progress in its plan to transform the airline into an industry leader. While the restructuring process is allowing the company to achieve a competitive cost structure and strengthen its balance sheet, American also showed improvement across all aspects of its business. Key accomplishments in 2012 include:

Financial:
The largest annual revenue in company history
Unit revenue growth that outpaced the industry average in 2012 - driven by strong customer demand for American's product. Mainline and consolidated PRASM, passenger yield and load factor in 2012 were all records for any year in AMR's history
Full-year 2012 operating profit, excluding special items, of $494 million, a $749 million improvement over 2011

Fleet Renewal and Transformation:
American made substantial progress on its fleet renewal plans and is on pace to have the youngest fleet in the industry in the next five years.
In the fourth quarter, the size of American's fleet of 737-800s surpassed that of its MD-80s. 737-800s offer a 35 percent reduction in fuel cost per seat versus the MD-80
American became the first U.S. airline to take delivery of the Boeing 777-300ER, giving the airline's fleet additional network flexibility, while delivering a state of the art customer experience, and better operating economics



American has 59 new mainline aircraft slated for delivery in 2013 and is in the midst of a significant renewal and transformation of its fleet

Customer Experience Enhancements:
American has taken many steps to provide an exceptional customer experience throughout the entire travel journey.
Announced a redesigned interior of its international widebody aircraft, including 777-200ERs and 767-300ERs
Will be the first domestic carrier to offer three-class service and fully lie-flat First and Business Class seats on transcontinental flights
Installing Main Cabin Extra to give customers more leg room in the Coach cabin
Introduced new travel options and a brand new booking path on AA.com offering customers more choices to book competitive, round-trip fares, as well as select new combinations of products and services customers value most

Network and Alliances Strategy:
American bolstered its network and alliances by expanding service from its hubs to the domestic and international cities most desirable to high value customers and by enhancing existing and forging new strategic partnerships.
International Expansion - American announced new routes and expansion into new international markets that have strong growth prospects, including:
Manaus and São Paulo, Brazil; Roatan, Honduras; Asuncion, Paraguay; Puebla, Mexico; Bogotá, Colombia
Dusseldorf, Germany and Dublin, Ireland
Seoul, South Korea
Joint Businesses - The continuing maturation of American's joint business agreements with IAG, parent of British Airways and Iberia, over the Atlantic, and Japan Airlines over the Pacific, were instrumental in driving unit revenue improvements of 5.9 percent and 9.6 percent over the Atlantic and Pacific in 2012, respectively
Codeshare - American expanded its long-standing partnership with LATAM Airlines group by embarking on codeshare agreements with TAM and LAN Colombia
oneworld® - New member airberlin and members-elect Malaysia and Qatar Airways will bolster American's network

Reorganization and Special Items:
AMR's fourth quarter 2012 results include $350 million of net positive reorganization and special items.
Of that amount, AMR recognized a $569 million non-cash income tax benefit from continuing operations during the fourth quarter of 2012 related to gains in Other Comprehensive Income
The company recognized a $441 million loss in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries' voluntary petitions for reorganization under Chapter 11 on November 29, 2011. These items primarily result from estimated claims associated with restructuring the financing arrangements for certain debt, aircraft leases, as well as professional fees
The company recognized $58 million in special charges, primarily associated with personnel related restructuring costs
The fourth quarter results also include a $280 million benefit from settlement of a commercial dispute

AMR's full year 2012 results include $1.7 billion of net negative reorganization and special items.
Of that amount, the company recognized a $2.2 billion loss in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries' voluntary petitions for reorganization under Chapter 11 on November 29, 2011. These items are primarily from estimated claims associated with restructuring the financing arrangements for certain debt, aircraft leases, and rejecting certain special facility revenue bonds, as well as professional fees
The company recognized $387 million in special charges, primarily associated with personnel related restructuring costs
As described above, in the fourth quarter, the company recognized a $569 million non-cash income tax benefit from continuing operations, and a $280 million benefit from a settlement of a commercial dispute
Capacity Guidance
AMR estimates consolidated capacity in the first quarter of 2013 to be down 1.7 percent versus the first quarter of 2012.
Factors contributing to this estimated reduction in capacity include the absence of Leap Day in 2013, and progress American has made in implementing its Main Cabin Extra program removing seats from the coach cabin. To date, American



has completed the retrofit of its Boeing 757 and 767 fleets, has completed approximately half of its 737 fleet, and will commence the retrofit of the MD-80 fleet in January 2013 with completion targeted for the second quarter.
As previously reported, American experienced an unusually high number of pilot retirements in the fall of 2011 that resulted in capacity reductions for the period November 2011 to February 2012.
Absent the impact of the capacity reductions in January and February of 2012 due to pilot retirements, consolidated capacity in the first quarter of 2013 is estimated to be down 3.4 percent year-over-year.
First Quarter Unit Costs Guidance
AMR will continue to realize restructuring related savings and estimates that in the first quarter of 2013, unit costs will improve year-over-year, despite a capacity headwind due to consolidated capacity decreasing by 1.7 percent and lapping some restructuring related savings that impacted the first quarter of last year.

About American Airlines
American Airlines, American Eagle® and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,500 daily flights. The combined network fleet numbers nearly 900 aircraft. American's award-winning website, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 9,000 daily flights to 150 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, and AAdvantage are trademarks of American Airlines, Inc. AMR Corporation common stock trades under the symbol “AAMRQ” on the OTCQB marketplace, operated by OTC Markets Group.

Cautionary Statement Regarding Forward-Looking Statements and Information
This news release could be viewed as containing forward-looking statements or information. Actual results may differ materially from the results suggested by the statements and information contained herein for a number of reasons, including, but not limited to, the impact of the restructuring of the company and certain of its U.S. subsidiaries, the company's ability to refinance, extend or repay its near and intermediate term debt, the company's substantial level of indebtedness and related interest rates, the potential impact of volatile and rising fuel prices, impairments and restructuring charges, and the potential impact of labor unrest. Because of the company's restructuring, there can be no assurance as to the future value of the company's or any of its subsidiaries' securities, including AMR common stock, which could have little or no value at the end of the restructuring process. Accordingly, the company urges that caution be exercised with respect to existing and future investments in any of these securities (including the company's common stock) or other claims. Readers are referred to the documents filed by the company with the Securities and Exchange Commission, including the company's Form 10-K for the period ended December 31, 2011, which further identify the important risk factors that could cause actual results to differ materially from the forward-looking statements in this news release. The company disclaims any obligation to update any forward-looking statement or information.



Detailed financial information follows:



AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
Revenues
 
 
 
 
 
    Passenger - American Airlines
$
4,440

 
$
4,439

 
                      - Regional Affiliates
706

 
701

 
0.8
    Cargo
170

 
171

 
(0.6)
    Other revenues
621

 
645

 
(3.7)
      Total operating revenues
5,937

 
5,956

 
(0.3)
 
 
 
 
 
 
Expenses
 
 
 
 
 
  Aircraft fuel
2,162

 
2,006

 
7.8
  Wages, salaries and benefits
1,555

 
1,790

 
(13.1)
  Other rentals and landing fees
314

 
361

 
(13.0)
  Maintenance, materials and repairs
354

 
301

 
17.7
  Depreciation and amortization
239

 
271

 
(11.7)
  Commissions, booking fees and credit card expense
244

 
253

 
(3.5)
  Aircraft rentals
140

 
179

 
(21.8)
  Food service
142

 
128

 
10.7
  Special charges
58

 
725

 
(92.0)
  Other operating expenses
725

 
725

 
    Total operating expenses
5,933

 
6,739

 
(12.0)
 
 
 
 
 
 
Operating Income (Loss)
4

 
(783
)
 
*
 
 
 
 
 
 
Other Income (Expense)
 
 
 
 
 
  Interest income
6

 
6

 
1.6
  Interest expense
(159
)
 
(199
)
 
(20.3)
  Interest capitalized
14

 
12

 
10.6
  Miscellaneous - net
270

 
(13
)
 
*
    Total other income
131

 
(194
)
 
*
 
 
 
 
 
 
Income (Loss) Before Reorganization Items, Net
135

 
(977
)
 
*
Reorganization Items, Net
(441
)
 
(118
)
 
*
Income Before Income Taxes
(307
)
 
(1,095
)
 
(72.0)
Income tax
(569
)
 
 
*
Net Income
$
262

 
$
(1,095
)
 
*
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
Basic
$
0.78

 
$
(3.27
)
 
 
Diluted
$
0.69

 
$
(3.27
)
 
 
 
 
 
 
 
 
Number of Shares Used in Computation
 
 
 
 
 
Basic
335

 
335

 
 
Diluted
382

 
335

 
 
* Greater than 100%



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)

OPERATING STATISTICS BY REGIONAL ENTITY

American Airlines, Inc.
Three Months Ended December 31, 2012
Entity Results
RASM1
 
Y-O-Y
 
ASMs2
 
Y-O-Y
 
(cents)
 
Change
 
(billions)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
11.8
 
0.3%
 
22.0
 
(1)%
International
11.9
 
(1.4)%
 
15.4
 
2.5%
     DOT Latin America
13.3
 
(5.4)%
 
8.1
 
9.4%
     DOT Atlantic
10.5
 
3.7%
 
5.0
 
(9.1)%
     DOT Pacific
10.1
 
(1.2)%
 
2.3
 
8.5%
 
 
 
 
 
 
 
 

American Airlines, Inc.
Three Months Ended December 31, 2012
Entity Results
Load Factor
 
Y-O-Y
 
Yield
 
Y-O-Y
 
(pts)
 
Change (pts)
 
(cents)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
82.7
 
(0.6)
 
14.3
 
1.0%
International
79.9
 
(0.4)
 
14.9
 
(0.9)%
     DOT Latin America
78.1
 
(2.3)
 
17.0
 
(2.6)%
     DOT Atlantic
82.1
 
1.7
 
12.8
 
1.6%
     DOT Pacific
81.1
 
2.0
 
12.4
 
(3.6)%

1 Revenue per Available Seat Mile
2 Available Seat Miles



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
AMR Corporation Consolidated
 
 
 
 
 
Revenue passenger miles (millions)
33,068

 
33,181

 
(0.3)
Available seat miles (millions)
40,813

 
40,750

 
0.2
Cargo ton miles (millions)
436

 
441

 
(1.2)
Passenger load factor
81.0
%
 
81.4
%
 
 (0.4) pts
Passenger revenue yield per passenger mile (cents)
15.56

 
15.49

 
0.5
Passenger revenue per available seat mile (cents)
12.61

 
12.61

 
Cargo revenue yield per ton mile (cents)
38.98

 
38.77

 
0.5
Fuel consumption (gallons, in millions)
673

 
665

 
1.1
Fuel price per gallon (dollars)
3.22

 
3.01

 
6.6
 
 
 
 
 
 
American Airlines, Inc. Mainline Jet Operations
 
 
 
 
 
Revenue passenger miles (millions)
30,558

 
30,640

 
(0.3)
Available seat miles (millions)
37,466

 
37,308

 
0.4
Cargo ton miles (millions)
436

 
441

 
(1.2)
Passenger load factor
81.6
%
 
82.1
%
 
 (0.6) pts
Passenger revenue yield per passenger mile (cents)
14.53

 
14.49

 
0.3
Passenger revenue per available seat mile (cents)
11.85

 
11.90

 
(0.4)
Cargo revenue yield per ton mile (cents)
38.98

 
38.77

 
0.5
Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1)
13.84

 
16.10

 
(14.0)
Fuel consumption (gallons, in millions)
595

 
587

 
1.4
Fuel price per gallon (dollars)
3.22

 
3.02

 
6.6
 
 
 
 
 
 
Regional Affiliates
 
 
 
 
 
Revenue passenger miles (millions)
2,511

 
2,541

 
(1.2)
Available seat miles (millions)
3,347

 
3,442

 
(2.8)
Passenger load factor
75.0
%
 
73.8
%
 
1.2 pts
 
 
 
 
 
 
AMR Corporation
 
 
 
 
 
Average Equivalent Number of Employees
 
 
 
 
 
American Airlines
62,400

 
66,500

 
 
Other
13,800

 
13,700

 
 
Total
76,200

 
80,200

 
 
 
 
 
 
 
 

(1) Excludes $744 million and $740 million of expense incurred related to Regional Affiliates in 2012 and 2011, respectively.




AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
Net Income
$
262

 
$
(1,095
)
 
*
Special Items
 
 
 
 
 
Revenue

 
43

 
(100.0)
Severance Related and Impairment Charges
58

 
725

 
(92.0)
Settlement of a Commercial Dispute
(280
)
 

 
*
OCI Tax Benefit
(569
)
 

 
*
Reorganization Items
441

 
118

 
*
Net Income Excluding Reorganization and Special Items
(88
)
 
(209
)
 
(57.9)
* Greater than 100%



AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
Three Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 

 
 
 
 
Operating Profit
$
4

 
$
(783
)
 
*
Special Items
 
 
 
 
 
Revenue

 
43

 
 
Severance Related and Impairment Charges
58

 
725

 
(92.0)
Operating Profit, excluding special items
62

 
(15
)
 
*
* Greater than 100%




AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
AMR Corporation Consolidated
Three Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
5,933

 
$
6,739

Available seat miles
40,813

 
40,750

Operating expenses per available seat mile (cents)
14.54

 
16.54

Less: Impact of special Items (cents)
0.15

 
1.78

 
 
 
 
 
Operating expenses per available seat mile, excluding impact of special items (cents)
14.39

 
14.76

 
 
 
 
 
Percent change
(2.5
)%
 
 
 
 
 
 
 
Less: Fuel expense per available seat mile (cents)
5.29

 
4.92

Operating expenses per available seat mile, excluding impact of special items and fuel expense (cents)
9.10

 
9.84

 
 
 
 
 
Percent change
(7.6
)%
 
 




AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
American Airlines, Inc. Mainline Jet Operations
Three Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
5,931

 
$
6,748

Less: Operating expenses incurred related to Regional Affiliates
744

 
740

Operating expenses excluding expenses incurred related to Regional Affiliates
$
5,187

 
$
6,008

American mainline jet operations available seat miles
37,466

 
37,308

Operating expenses per available seat mile, excluding Regional Affiliates (cents)
13.84

 
16.10

 
 
 
 
 
Percent change
(14.0
)%
 
 
 
 
 
 
 
Less: Impact of special Items (cents)
0.15

 
1.94

Operating expenses per available seat mile, excluding Regional Affiliates and impact of special items (cents)
13.69

 
14.16

 
 
 
 
 
Percent change
(3.3
)%
 
 
 
 
 
 
 
Less: Fuel cost per available seat mile (cents)
5.11

 
4.74

Operating expenses per available seat mile, excluding Regional Affiliates,
 impact of special items, and fuel expenses (cents)
8.58

 
9.42

 
 
 
 
 
Percent change
(8.9
)%
 
 
 
 
 
 
 
Note: The Company believes that operating expenses per available seat mile, excluding the cost of fuel and special items, assists investors in understanding the impact of fuel prices and special items on the Company's operations.


American Airlines, Inc. Mainline Jet Operations
Three Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Operating expenses per available seat mile, excluding Regional
 
 
 
 
Affiliates (cents)
13.84

 
16.10

Less: Fuel expense per available seat mile (cents)
5.11

 
4.74

Operating expenses per available seat mile, excluding Regional
 

 
 

 
Affiliates and fuel expenses (cents)
8.73

 
11.36

 
 
 
 
 
Percent change
(23.2
)%
 
 



AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share amounts)
(Unaudited)
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
Revenues
 

 
 
 
 
    Passenger - American Airlines
$
18,743

 
$
17,947

 
4.4
                      - Regional Affiliates
2,914

 
2,724

 
7.0
    Cargo
669

 
703

 
(4.8)
    Other revenues
2,529

 
2,605

 
(2.9)
      Total operating revenues
24,855

 
23,979

 
3.7
 
 
 
 
 
 
Expenses
 
 
 
 
 
  Aircraft fuel
8,717

 
8,304

 
5.0
  Wages, salaries and benefits
6,897

 
7,053

 
(2.2)
  Other rentals and landing fees
1,304

 
1,432

 
(8.9)
  Maintenance, materials and repairs
1,400

 
1,284

 
9.1
  Depreciation and amortization
1,015

 
1,086

 
(6.5)
  Commissions, booking fees and credit card expense
1,050

 
1,062

 
(1.1)
  Aircraft rentals
550

 
662

 
(17.0)
  Food service
536

 
518

 
3.4
  Special charges
387

 
725

 
(46.7)
  Other operating expenses
2,892

 
2,907

 
(0.5)
    Total operating expenses
24,748

 
25,033

 
(1.1)
 
 
 
 
 
 
Operating Income (Loss)
107

 
(1,054
)
 
*
 
 
 
 
 
 
Other Income (Expense)
 
 
 
 
 
  Interest income
26

 
26

 
(1.7)
  Interest expense
(662
)
 
(826
)
 
(19.8)
  Interest capitalized
50

 
40

 
24.8
  Miscellaneous - net
242

 
(47
)
 
*
    Total other income
(344
)
 
(807
)
 
(57.4)
 
 
 
 
 
 
Income (Loss) Before Reorganization Items, Net
(237
)
 
(1,861
)
 
(87.3)
Reorganization Items, Net
(2,208
)
 
(118
)
 
*
Income Before Income Taxes
(2,445
)
 
(1,979
)
 
23.6
Income tax
(569
)
 

 
*
Net Income
$
(1,876
)
 
$
(1,979
)
 
(5.2)
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
Basic
$
(5.60
)
 
$
(5.91
)
 
 
Diluted
$
(5.60
)
 
$
(5.91
)
 
 
 
 
 
 
 
 
Number of Shares Used in Computation
 
 
 
 
 
Basic
335

 
335

 
 
Diluted
335

 
335

 
 
* Greater than 100%



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)

OPERATING STATISTICS BY REGIONAL ENTITY

American Airlines, Inc.
Twelve Months Ended December 31, 2012
 
Entity Results
RASM1
 
Y-O-Y
 
ASMs2
 
Y-O-Y
 
(cents)
 
Change
 
(billions)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
12.2
 
5.5%
 
89.9
 
(1.9)%
International
12.4
 
5.7%
 
62.7
 
0.1%
     DOT Latin America
13.9
 
3.8%
 
31.3
 
4.4%
     DOT Atlantic
11.2
 
5.9%
 
22.3
 
(6.6)%
     DOT Pacific
10.5
 
9.6%
 
9.1
 
3.5%
 
 
 
 
 
 
 
 

American Airlines, Inc.
Twelve Months Ended December 31, 2012
 
Entity Results
Load Factor
 
Y-O-Y
 
Yield
 
Y-O-Y
 
(pts)
 
Change (pts)
 
(cents)
 
Change
 
 
 
 
 
 
 
 
DOT Domestic
83.7
 
0.5
 
14.6
 
5.0%
International
81.6
 
1.5
 
15.2
 
3.8%
     DOT Latin America
80.4
 
(0.4)
 
17.3
 
4.3%
     DOT Atlantic
82.9
 
2.9
 
13.5
 
2.3%
     DOT Pacific
82.4
 
4.3
 
12.7
 
3.9%
1 Revenue per Available Seat Mile
2 Available Seat Miles

 



AMR CORPORATION
OPERATING STATISTICS
(Unaudited)
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
AMR Corporation Consolidated
 
 
 
 
 
Revenue passenger miles (millions)
136,620

 
136,386

 
0.2
Available seat miles (millions)
166,224

 
167,828

 
(1.0)
Cargo ton miles (millions)
1,761

 
1,783

 
(1.2)
Passenger load factor
82.2
%
 
81.3
%
 
0.9 pts
Passenger revenue yield per passenger mile (cents)
15.85

 
15.16

 
4.6
Passenger revenue per available seat mile (cents)
13.03

 
12.32

 
5.8
Cargo revenue yield per ton mile (cents)
37.97

 
39.40

 
(3.7)
Fuel consumption (gallons, in millions)
2,723

 
2,756

 
(1.2)
Fuel price per gallon (gallons)
3.20

 
3.01

 
6.3
 
 
 
 
 
 
American Airlines, Inc. Mainline Jet Operations
 
 
 
 
 
Revenue passenger miles (millions)
126,406

 
126,491

 
(0.1)
Available seat miles (millions)
152,628

 
154,321

 
(1.1)
Cargo ton miles (millions)
1,761

 
1,783

 
(1.2)
Passenger load factor
82.8
%
 
82.0
%
 
0.9 pts
Passenger revenue yield per passenger mile (cents)
14.83

 
14.19

 
4.5
Passenger revenue per available seat mile (cents)
12.28

 
11.63

 
5.6
Cargo revenue yield per ton mile (cents)
37.97

 
39.40

 
(3.7)
Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1)
14.27

 
14.30

 
(0.2)
Fuel consumption (gallons, in millions)
2,410

 
2,445

 
(1.5)
Fuel price per gallon (gallons)
3.20

 
3.01

 
6.3
 
 
 
 
 
 
Regional Affiliates
 
 
 
 
 
Revenue passenger miles (millions)
10,214

 
9,895

 
3.2
Available seat miles (millions)
13,595

 
13,507

 
0.7
Passenger load factor
75.1
%
 
73.3
%
 
1.9 pts
 
 
 
 
 
 
AMR Corporation
 
 
 
 
 
Average Equivalent Number of Employees
 
 
 
 
 
American Airlines
64,550

 
66,500

 
 
Other
13,200

 
13,600

 
 
Total
77,750

 
80,100

 
 

(1) Excludes $3 billion and $3.1 billion of expense incurred related to Regional Affiliates in 2012 and 2011, respectively.






AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 
 
 
 
 
Net Income
$
(1,876
)
 
$
(1,979
)
 
(5.2)
Special Items
 
 
 
 
 
Revenue

 
43

 
(100.0)
Severance Related and Impairment Charges
387

 
756

 
(48.8)
Settlement of a Commercial Dispute
(280
)
 

 
*
OCI Tax Benefit
(569
)
 

 
*
Reorganization Items
2,208

 
118

 
*
Net Income Excluding Reorganization and Special Items
(130
)
 
(1,062
)
 
(87.7)
* Greater than 100%


AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(in millions)
(Unaudited)
 
Twelve Months Ended
December 31,
 
Percent
 
2012
 
2011
 
Change
 
 

 
 
 
 
Operating Profit
$
107

 
$
(1,054
)
 
*
Special Items
 
 
 
 
 
Revenue

 
43

 
(100)
Severance Related and Impairment Charges
387

 
756

 
(48.8)
Operating Profit, excluding special items
494

 
(255
)
 
*
* Greater than 100%





AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)
AMR Corporation Consolidated
Twelve Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
24,748

 
$
25,033

Available seat miles
166,224

 
167,828

Operating expenses per available seat mile (cents)
14.89

 
14.92

Less: Impact of special Items (cents)
0.23

 
0.45

 
 
 
 
 
Operating expenses per available seat mile, excluding impact of
 
 
 
 
special items (cents)
14.66

 
14.47

 
 
 
 
 
Percent change
1.3
 %
 
 
 
 
 
 
 
Less: Fuel expense per available seat mile (cents)
5.25

 
4.95

Operating expenses per available seat mile, excluding impact of special items and fuel expense (cents)
 
 
 
9.41

 
9.52

 
 
 
 
 
Percent change
(1.1
)%
 
 





AMR CORPORATION
NON-GAAP AND OTHER RECONCILIATIONS
(Unaudited)

American Airlines, Inc. Mainline Jet Operations
Twelve Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
Total operating expenses
$
24,784

 
$
25,128

Less: Operating expenses incurred related to Regional Affiliates
3,007

 
3,055

Operating expenses excluding expenses incurred related to Regional Affiliates
$
21,777

 
$
22,073

American mainline jet operations available seat miles
152,628

 
154,321

Operating expenses per available seat mile, excluding Regional Affiliates (cents)
14.27

 
14.30

 
 
 
 
 
Percent change
(0.2
)%
 
 
 
 
 
 
 
Less: Impact of special Items (cents)
0.25

 
0.49

Operating expenses per available seat mile, excluding Regional
 
 
 
 
Affiliates and impact of special items (cents)
14.02

 
13.81

 
 
 
 
 
Percent change
1.5
 %
 
 
 
 
 
 
 
Less: Fuel cost per available seat mile (cents)
5.05

 
4.76

Operating expenses per available seat mile, excluding Regional Affiliates,
 
 
 
 
 impact of special items, and fuel expenses (cents)
8.97

 
9.05

 
 
 
 
 
Percent change
(0.9
)%
 
 

Note: The Company believes that operating expenses per available seat mile, excluding the cost of fuel and special items, assists investors in understanding the impact of fuel prices and special items on the Company's operations.

American Airlines, Inc. Mainline Jet Operations
Twelve Months Ended
December 31,
(in millions, except as noted)
2012
 
2011
 
 
 
 
 
Operating expenses per available seat mile, excluding Regional
 
 
 
 
Affiliates (cents)
14.27

 
14.30

Less: Fuel expense per available seat mile (cents)
5.05

 
4.76

Operating expenses per available seat mile, excluding Regional
 

 
 

 
Affiliates and fuel expenses (cents)
9.22

 
9.54

 
 
 
 
 
Percent change
(3.3
)%
 
 








Aircraft in Service
 
 
 
 
 
 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
Mainline Aircraft in Service
Mainline Aircraft
 
YE2012A
1QE
2QE
3QE
4QE
YE2013E
McDonnell Douglas MD-80
 
190
(7)
(6)
(12)
(14)
151
Boeing 737-800
 
195
9
9
8
5
226
Boeing 757-200
 
102
(5)
(3)
(2)
(2)
90
Boeing 767-200ER
 
14
(2)
(4)
8
Boeing 767-300ER
 
58
58
Boeing 777-200ER
 
47
47
Boeing 777-300ER
 
2
3
3
1
1
10
Airbus A319
 
10
5
15
Airbus A321
 
5
5
 
 
 
 
 
 
 
 
Total Mainline Aircraft
 
608
(2)
3
5
(4)
610
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regional Aircraft in Service
Regional Aircraft
 
YE2012A
1QE
2QE
3QE
4QE
YE2013E
Embraer RJ-135
 
21
(2)
(8)
(4)
(7)
Embraer RJ-140
 
74
(3)
71
Embraer RJ-145
 
118
118
Bombardier CRJ-200
 
12
11
23
Bombardier CRJ-700
 
47
47
Super ATR
 
9
(3)
(6)
 
 
 
 
 
 
 
 
Total Regional Aircraft
 
281
6
(14)
(4)
(10)
259
 
 
 
 
 
 
 
 
Regional fleet plan reflects plan for aircraft operated by wholly owned subsidiaries of AMR and aircraft
under executed air service agreements that are operated by third parties.

###
Current AMR Corp. news releases can be accessed at http://www.aa.com



The following information was filed by American Airlines Group Inc. (AAL) on Wednesday, January 16, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

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Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Operations
Consolidated Statements Of Operations (parenthetical)
Consolidated Statements Of Stockholders' Equity (deficit)
Consolidated Statements Of Stockholders' Equity (deficit) (parenthetical)
Accumulated Other Comprehensive Income (loss)
Accumulated Other Comprehensive Income (loss) (components Of Accumulated Other Comprehensive Income (loss)) (details)
Accumulated Other Comprehensive Income (loss) (tables)
Commitments, Contingencies And Guarantees
Commitments, Contingencies And Guarantees (aircraft Acquisition Commitments) (details)
Commitments, Contingencies And Guarantees (narrative) (details)
Commitments, Contingencies And Guarantees (tables)
Earnings (loss) Per Share
Earnings (loss) Per Share (computations Of Basic And Diluted Earnings (loss) Per Share) (details)
Earnings (loss) Per Share (tables)
Financial Instruments And Risk Management
Financial Instruments And Risk Management (effect Of Cash Flow Hedges On Financial Statements) (details)
Financial Instruments And Risk Management (effect Of Derivative Instruments On Statements Of Operations) (details)
Financial Instruments And Risk Management (narrative) (details)
Financial Instruments And Risk Management (summary Of Carrying Value And Estimated Fair Values Of Long-term Debt) (details)
Financial Instruments And Risk Management (tables)
Income Taxes
Income Taxes (components Of Income Tax Provision (benefit)) (details)
Income Taxes (computation Of Income Tax Expense (benefit)) (details)
Income Taxes (deferred Tax Assets And Liabilities) (details)
Income Taxes (narrative) (details)
Income Taxes (reconciliation Of Unrecognized Tax Benefit) (details)
Income Taxes (tables)
Indebtedness
Indebtedness (components Of Long-term Debt) (details)
Indebtedness (narrative) (details)
Indebtedness (schedule Of Collateral Coverage Tests) (details)
Indebtedness (schedule Of Maturities Of Long Term Debt And Operating Lease Payments) (details)
Indebtedness (tables)
Intangible Assets
Intangible Assets (narrative) (details)
Intangible Assets (summary Of Amortization Of Intangible Assets) (details)
Intangible Assets (tables)
Investments And Fair Value Measurements
Investments And Fair Value Measurements (assets And Liabilities Measured At Fair Value On A Recurring Basis) (details)
Investments And Fair Value Measurements (short-term Investments By Contractual Maturity) (details)
Investments And Fair Value Measurements (short-term Investments) (details)
Investments And Fair Value Measurements (tables)
Leases
Leases (future Minimum Lease Payments Under Capital And Operating Leases) (details)
Leases (narrative) (details)
Leases (tables)
Quarterly Financial Data
Quarterly Financial Data (narrative) (details)
Quarterly Financial Data (summarized Financial Data By Quarter) (details)
Quarterly Financial Data (tables)
Reorganization
Reorganization (components Of Long-term Debt) (details)
Reorganization (narrative) (details)
Reorganization (schedule Of Liabilities Subject To Compromise) (details)
Reorganization (schedule Of Reorganization Items) (details)
Reorganization Reorganization (tables)
Retirement Benefits
Retirement Benefits (benefit Payments Of Expected Future Service ) (details)
Retirement Benefits (changes In Fair Value Measurements Of Level 3 Investments) (details)
Retirement Benefits (components Of Net Periodic Benefit Cost) (details)
Retirement Benefits (fair Values Of Company's Other Postretirement Benefit Plan Assets) (details)
Retirement Benefits (narrative) (details)
Retirement Benefits (schedule Of Accumulated Benefit Obligations Exceeding Fair Value Of Plan Assets) (details)
Retirement Benefits (schedule Of Amounts Recognized In Consolidated Balance Sheets) (details)
Retirement Benefits (schedule Of Amounts Recognized In Other Comprehensive Loss) (details)
Retirement Benefits (schedule Of Assumption Used Calculating Benefit Obligation) (details)
Retirement Benefits (schedule Of Changes In Pension, Retiree Medical, Other Benefit Obligations And Fair Value Assets) (details)
Retirement Benefits (schedule Of Fair Values Of Pension Plan Assets By Asset Category) (details)
Retirement Benefits (schedule Of Health Care Cost Trend Rates) (details)
Retirement Benefits (schedule Of One Percentage Point Change In Assumed Health Care Cost Trend Rates) (details)
Retirement Benefits (summary Of Target Assets Allocation) (details)
Retirement Benefits (tables)
Schedule Ii - Valuation And Qualifying Accounts And Reserves
Schedule Ii - Valuation And Qualifying Accounts And Reserves (details)
Segment Reporting
Segment Reporting (operating Revenues By Geographic Region) (details)
Segment Reporting (tables)
Share Based Compensation
Share Based Compensation (narrative) (details)
Share Based Compensation (schedule Of Stock Options/sars Activity) (details)
Share Based Compensation (schedule Of Stock-based Activities) (details)
Share Based Compensation (status And Changes Of Non-vested Options/sars) (details)
Share Based Compensation (stock Based Compensation Awards, Expected Fair Value Assumptions) (details)
Share Based Compensation (tables)
Special Charges And Restructuring Activities
Special Charges And Restructuring Activities (components Of Company's Special Charges) (details)
Special Charges And Restructuring Activities (narrative) (details)
Special Charges And Restructuring Activities (tables)
Subsequent Events
Subsequent Events (narrative) (details)
Subsequent Events Aircraft Purchase Commitments (tables)
Subsequent Events Subsequent Events (aircraft Purchase Commitments) (details) (details)
Summary Of Accounting Policies
Summary Of Accounting Policies (narrative) (details)
Summary Of Accounting Policies (policy)
Summary Of Accounting Policies (schedule Of Depreciable Lives Used For Principal Depreciable Asset Classifications) (details)
Summary Of Accounting Policies Summary Of Accounting Policies (tables)
Ticker: AAL
CIK: 6201
Form Type: 10-K Annual Report
Accession Number: 0000006201-13-000023
Submitted to the SEC: Wed Feb 20 2013 4:01:06 PM EST
Accepted by the SEC: Wed Feb 20 2013
Period: Monday, December 31, 2012
Industry: Air Transportation Scheduled

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