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: September 22, 2005
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)
(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
American Airlines, Inc., a wholly owned subsidiary of AMR Corporation
(AMR), is filing herewith AMR's Eagle Eye communication to investors
This document includes (a) actual unit cost, fuel price, capacity
and traffic information for July and August and (b) forecasts of
unit cost, revenue performance and 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.
American Airlines, Inc.
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: September 22, 2005
AMR EAGLE EYE
September 22, 2005
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" 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:
changes in economic, business and financial conditions; the
Company's substantial indebtedness; continued high fuel prices
and the availability of fuel; further increases in the price of
fuel; the impact of events in Iraq; conflicts in the Middle East
or elsewhere; the highly competitive business environment faced
by the Company, characterized by increasing pricing transparency
and competition from low cost carriers and financially distressed
carriers; historically low fare levels and fare simplification
initiatives (both of which could result in a further
deterioration of the revenue environment); the ability of the
Company to reduce its costs further without adversely affecting
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 a disease (such as SARS)
that affects travel behavior; uncertainties with respect to the
Company's relationships with unionized and other employee work
groups; the inability of the Company to satisfy existing
financial or other covenants in certain of its credit agreements;
the availability and terms of future financing; the ability of
the Company to reach acceptable agreements with third parties;
and increased insurance costs and potential reductions of
available insurance coverage. 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, 2004.
This Eagle Eye provides updated guidance for the third quarter
and the full year 2005.
Performance Update
Costs: Unit cost forecasts are attached. Changes in unit costs
from prior guidance are primarily attributed to higher fuel prices
and less capacity.
Special Items: In the third quarter, AMR expects to incur a one-
time charge of $80.4 million dollars for a contract termination.
This is expected to be somewhat offset by a one-time credit of $22.1
million related to the reversal of an insurance reserve, following
a favorable legal decision.
Revenue: Third quarter mainline unit revenue is expected to
increase between 11.5% and 12.5% year over year. Consolidated
third quarter unit revenue is expected to increase between 10.5%
and 11.5% year over year.
Liquidity: We expect to end the third quarter with a cash and
short-term investment balance well over $3.5 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:
3Q05: Hedged on 1.0% of consumption at approximately $27/bbl
WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Jul Aug Sep 3Q05 2005
Fuel Price (dollars/gal) 1/ 1.75 1.86 2.05 1.88 1.77
Fuel Consumption (MM gals) 294.3 286.2 255.4 835.9 3,249.1
Unit Cost Forecast (cents)
AMR Consolidated Cost per ASM
Actual Forecast
Jul Aug Sep 3Q05 2005
AMR Cost per ASM 1/ 10.60 10.85 11.88 11.08 10.90
AMR Cost per ASM (ex-
special items) 2/ 10.60 10.85 11.50 10.96 10.90
AMR Cost per ASM (ex-fuel
and special items) 2/ 7.59 7.65 8.07 7.76 7.85
American Mainline Cost per ASM
Actual Forecast
Jul Aug Sep 3Q05 2005
AA Cost per ASM 1/ 10.11 10.34 11.39 10.59 10.39
AA Cost per ASM (ex-
special items) 2/ 10.11 10.34 10.98 10.46 10.39
AMR Cost per ASM (ex-fuel
and special items) 2/ 7.18 7.24 7.66 7.35 7.43
Capacity and Traffic Forecast (millions)
AA Mainline Operations
Actual Forecast
Jul Aug Sep 3Q05 2005
ASMs 16,005 15,508 14,160 45,673 177,239
Domestic 10,418 10,129 9,150 29,697 115,311
International 5,587 5,379 5,010 15,976 61,928
Traffic 13,624 12,653 10,754 37,031 138,606
Regional Affiliate Operations
Actual Forecast
Jul Aug Sep 3Q05 2005
ASMs 1,113 1,136 1,084 3,333 12,756
Traffic 835 803 731 2,369 8,856
AMR EAGLE EYE
Below the Line Income/Expenses
Total Other Income/(Expense) is estimated at ($205) million
in the third quarter of 2005
1/ Data is as reported and includes a net charge of $58 million
in September and 3Q05, reflecting a contract termination and
the reversal of an insurance reserve, following a favorable
legal decision.
2005 data also includes a $55 million special fuel tax credit
received in 1Q05.
2/ The company believes that unit costs excluding fuel and
special items are useful to investors in monitoring
the performance of the company's costs excluding the
volatility of fuel and one-time items. Reconciliation to
GAAP follows:
Actual Forecast
Jul Aug Sep 3Q05 2005
AMR CASM (cents) 10.60 10.85 11.88 11.08 10.90
Less Special Items CASM (cents) - - 0.38 0.12 -
AMR CASM Excluding Special
Items (cents) 10.60 10.85 11.50 10.96 10.90
Less Fuel CASM (cents) 3.01 3.20 3.43 3.20 3.05
AMR CASM Excluding Special
Items & Fuel (cents) 7.59 7.65 8.07 7.76 7.85
Actual Forecast
Jul Aug Sep 3Q05 2005
AA CASM (cents) 10.11 10.34 11.39 10.59 10.39
Less Special Items CASM (cents) - - 0.41 0.13 -
AA CASM Excluding Special
Items (cents) 10.11 10.34 10.98 10.46 10.39
Less Fuel CASM (cents) 2.93 3.10 3.32 3.11 2.96
AA CASM Excluding Special
Items and Fuel (cents) 7.18 7.24 7.66 7.35 7.43