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Editor’s Note: A Live Webcast
reporting third quarter earnings will Click here for Windows Media Player Click here for Real Player AMR CORPORATION REPORTS THIRD QUARTER EARNINGS FOR RELEASE: Wednesday, Oct. 18, 2000 FORT WORTH, Texas – AMR Corporation, parent company of American Airlines, Inc., today reported third-quarter earnings of $322 million or $1.96 per common share diluted, before an extraordinary loss. This compares to net earnings of $213 million, or $1.38 per common share diluted, in the same period in 1999. After accounting for the extraordinary loss, a $9 million after-tax loss on the repurchase of $167 million of unsecured debt, AMR reported net earnings of $313 million, or $1.91 per common share diluted. "We’re very pleased with our third-quarter performance – the second-best third quarter in our company’s history and our third-best quarter ever, " said Donald J. Carty, American’s chairman and CEO. "The underlying fundamentals of our business – both traffic and pricing – remained solid and combined to generate double-digit revenue growth, which more than offset the effect of the sharp increases in fuel prices." Carty said American has finished reconfiguring the full coach cabins on its entire domestic fleet as part of its "More Room Throughout Coach" program. "While difficult to yet quantify, from the reaction we’re getting, it’s been a big hit with customers." Carty also said American benefited, perhaps disproportionately, from the difficulties of a major competitor this summer. Carty applauded the hard work of AA’s employees, who during the quarter handled record numbers of passengers in the face of ongoing air traffic control problems and weather delays. He said the continuing strong economy helped generate AA’s top 10 busiest traffic days ever during the quarter, with a July load factor of 80.3 percent, August at 78.4 percent -- up almost six points from August 1999 -- and September, when traffic traditionally declines, at almost 70 percent. "Our people worked under difficult conditions – and we’re proud of the many caring and creative ways they served our customers," Carty said. Carty said the strong economy also benefited AMR’s cargo operations, which had third-quarter revenue results of $183 million, the best quarterly results in the company’s history. This figure represents a year-over-year growth of 14.4 percent. On the cost side, Carty said American has continued to be aggressive in its fuel hedging program, which reduced the airline’s costs by more than $150 million and provided a cushion against sharp price increases during the quarter. He also noted that American’s continuing online sales success has reduced distribution costs and will do so further as the popularity of AA.com and other Internet-based travel sites grows. American’s international traffic was up about 5 percent during the quarter, a reflection of the continuing strength of oneworld and the particular success of AA’s immunized bilateral agreements with Swissair and Sabena over the Atlantic, as well as its alliances with Cathay Pacific, Japan Air Lines and EVA over the Pacific. "Our newly announced San Jose–Taipei and San Jose–Paris service will enhance our international route network and further solidify our position on the West Coast, which has improved markedly over even a year ago," Carty said. "We think linking Silicon Valley with the very important technology industries of Taiwan and opening a new European gateway for the Bay Area both represent smart strategic moves." On the domestic front, American expanded its network by adding service to focus business travel cities like Boston, New York, the Los Angeles basin, San Jose and Austin – all locations where AA already has a strong presence. The company also announced realignments of its major hubs in Dallas/Fort Worth and Chicago aimed at improving dependability and customer service. American’s regional partner, American Eagle, has been aggressively deploying regional jets throughout its network to strengthen American’s hubs and will have an all-jet operation in Chicago O’Hare by November. "We clearly have strengthened both our domestic and international networks more than any other U.S. carrier this year, improving our competitive position and offering our customers broader and better choices," Carty said. # # # Statements in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which represent the Company’s expectations or beliefs concerning future events. When used in this release, the word "expects" and similar expressions are intended to identify forward-looking statements. All forward-looking statements in this release are based upon information available to the Company on the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to a number of factors that could cause actual results to differ materially from our expectations. Additional information concerning these and other factors is contained in the Company’s Securities and Exchange Commission filings, including but not limited to the Form 10-K for the year ended Dec. 31, 1999. AMR CORPORATION (Unaudited)
AMR CORPORATION (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited)
AMR CORPORATION (Unaudited)
AMR CORPORATION
AMR CORPORATION
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