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: August 26, 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)
Item 8.01 Other Events
American Airlines, Inc., a wholly owned subsidiary of AMR
Corporation, is filing herewith actual fuel cost, unit cost and
capacity and traffic information for July as well as current fuel
cost, unit cost and capacity and traffic forecasts for August,
September, the third quarter and the full year 2004.
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: August 26, 2004
AMR EAGLE EYE
August 26, 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,"
"indicates," "believes," "forecast," 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: changes in economic, business and
financial conditions; the Company's substantial indebtedness;
continued high fuel prices and the availability of fuel; the
residual effects of the war in Iraq; conflicts in the Middle East
or elsewhere; the highly competitive business environment faced
by the Company, with increasing competition from low cost
carriers and historically low fare levels (which could result in
a deterioration of the revenue environment); the ability of the
Company to implement its restructuring program and the effect of
the program on 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 of future financing; 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, 2003.
Given the continued escalation in this year's fuel prices, we now
anticipate spending over $300 million dollars more for fuel
during the third quarter than we would with last year's prices.
For the full year, the additional expense associated with these
record high fuel prices is approximately $1.0 billion dollars.
As a result of soaring fuel prices, our outlook for the third
quarter and the rest of the year has worsened and accordingly we
are providing an update to our cost guidance.
Performance Update
Costs: Third quarter 2004 fuel price guidance changes from
$1.20/gallon to $1.25/gallon. Full year 2004 fuel price
guidance changes from $1.13/gallon to $1.17/gallon.
Revenue: Relatively strong third quarter passenger unit revenue
performance in 2003 will make favorable year-over-year unit
revenue comparisons difficult for the 2004 third quarter. Early
results indicate a modest year-over-year decline in American's
mainline passenger unit revenue performance for the third
quarter. On a consolidated basis, AMR passenger unit revenue for
the third quarter is expected to be only slightly below last
year's levels.
Liquidity: We expect to end the third quarter with a total cash
and short-term investment balance of approximately $3.6 billion,
including about $500 million in restricted cash and short-term
investments.
Kathy Bonanno
Director Investor Relations
AMR EAGLE EYE
Fuel Forecast
Fuel Hedge Position:
3Q04: Hedged on 9% of consumption at $32/bbl WTI Crude
AMR Fuel Price (Including Hedges and Taxes) and Consumption
Actual Forecast
Jul Aug Sep 3Q04 2004
Fuel Price (dollars/gal) 1.18 1.27 1.31 1.25 1.17
Fuel Consumption (MM gals) 293.2 287.7 258.8 839.8 3273.5
Unit Cost Forecast
AMR Consolidated Cost per ASM
Actual Forecast
Jul Aug Sep 3Q04 2004*
AMR Cost per ASM (cents) 9.83 9.95 10.61 10.11 10.07
American Mainline Operations Cost per ASM
Actual Forecast
Jul Aug Sep 3Q04 2004*
AA Cost per ASM (cents) 9.42 9.52 10.17 9.68 9.64
Capacity and Traffic Forecast
AA Mainline Operations
Actual Forecast
Jul Aug Sep 3Q04 2004
ASMs (millions) 15,543 15,590 13,840 44,973 174,903
Domestic 10,265 10,395 9,149 29,809 118,410
International 5,278 5,195 4,691 15,164 56,493
Traffic 12,604 12,216 9,539 34,359 128,970
Regional Affiliate Operations
Actual Forecast
Jul Aug Sep 3Q04 2004
ASMs (millions) 951 966 942 2,858 10,883
Traffic 694 686 590 1,970 7,223
Below the Line Income/Expenses
Total Other Income/(Expense) is estimated at ($190) million
during each of the third and fourth quarters of 2004.
* 1Q04 and 2Q04 as reported