AMR CORPORATION ANNOUNCES FOURTH QUARTER RESULTS
AMR CORPORATION ANNOUNCES FOURTH QUARTER RESULTS DALLAS, Texas, Jan. 15 /PRNewswire/ -- AMR Corporation (NYSE: AMR),
parent company of American Airlines, Inc., today reported preliminary unaudited fourth quarter and full year net losses of $124.9 million, or $1.83 per share (both primary and fully diluted) and $239.9 million, or $3.54 per share (both primary and full diluted), respectively, for the periods ended December 31, 1991.
The fourth quarter 1991 net loss includes charges aggregating $59.6 million ($39.3 million after tax and $0.58 per share) relating to the reduction in value of American's soon to be retired Boeing 737 and 747SP aircraft and AMR Eagle's Fairchild Metro III aircraft. Without these charges, AMR's fourth quarter net loss would have been $85.6 million, or $1.25 per share (both primary and fully diluted). For the full year, the unaudited net loss would have been $189.2 million, or $2.79 per share (both primary and fully diluted) before recognition of the fourth quarter charges and a previously announced second quarter $17.0 million ($11.4 million after tax) charge related to American's Boeing 737 fleet. In 1990, AMR reported net losses of $215.1 million, or $3.45 per share (both primary and fully diluted) in the fourth quarter and $39.6 million, or $0.64 per share (both primary and fully diluted) for the year. Included in the 1990 fourth quarter results was a $32.0 million provision relating to the retirement of American's Boeing 737 and BAe 146 fleets and $50.0 million of additional revenues resulting from a change in estimate related to certain passenger revenues earned during the first nine months of 1990. Chairman Robert L. Crandall called the 1991 results terrible. "The best thing you can say about last year is that it's over," Crandall said. "Airline results have always been heavily influenced by the overall state of the economy, and economic conditions in 1991 were, as we all know, weak to say the very least. The impact of the dismal economic environment was exacerbated by the war in the Persian Gulf, which drove passengers away in vast numbers early in the year, by rapidly rising costs and by the short-sighted and irrational pricing practices of some of our competitors." Revenues for fourth quarter 1991 were $3.40 billion, a 13.4 percent increase from the $3.0 billion reported in the fourth quarter a year ago. Revenues for the year were $12.89 billion, compared with $11.72 billion for 1990, a 10.0 percent increase. Operating expenses in the fourth quarter increased 6.1 percent to $3.45 billion in 1991, from $3.25 billion in the same period a year ago. For the year, operating expenses were $12.88 billion in 1991, an 11.1 percent increase from $11.60 billion a year ago. Operating losses were $41.4 million in fourth quarter 1991, compared with $245.1 million in the same period in 1990. For the year, operating income was $5.0 million, compared with $124.0 million for 1990. Despite the disappointing results, Crandall noted a few bright spots in 1991. "We are pleased with the very early success of our new services to Europe, particularly to London's Heathrow Airport, by our continued success in Latin America and by the fact that we were able to strengthen our Pacific presence by the addition of routes between Tokyo and Seattle and San Jose," he said. "In recent weeks, we have been encouraged by the downward trend in fuel prices and by some modest indications that some semblance of rationality may be returning to the airline pricing environment. We also hope, of course, that those predicting recovery of the economy are correct," Crandall said. American's available seat miles (a measure of capacity) increased 11.8 percent, from 31.84 billion in fourth quarter 1990 to 35.59 billion in the fourth quarter 1991. For the year, ASMs increased 7.8 percent, from 123.77 billion in 1990 to 133.47 billion in 1991. American flew 21.11 billion revenue passenger miles in 1991's fourth quarter, up 10.5 percent from the 19.09 billion flown in fourth quarter 1990. For the year, revenue passenger miles increased 6.8 percent, from 77.09 billion in 1990 to 82.34 billion in 1991. Fourth quarter load factor (the percentage of seats filled with paying passengers) of 59.3 percent was 0.7 of a point below the 60.0 percent reported for the same period in 1990. For the year, load factor decreased 0.6 of a point from 62.3 percent in 1990 to 61.7 percent in 1991. The fourth quarter breakeven load factor of 59.9 percent was 6.8 points less than the 66.7 percent reported a year ago. For the year, the breakeven load factor was 61.6 percent, 0.2 of a point below the 61.8 percent in 1990. American's yield (the average amount one passenger pays to fly one mile), rose 2.3 percent, from 13.07 cents in fourth quarter 1990 to 13.37 cents for the same period this year. For the year, yield increased to 13.01 cents in 1991 compared with 12.64 cents in 1990, a 2.9 percent increase. American's cargo business remained strong. Freight ton miles increased 21.1 percent to 245.7 million in the fourth quarter, compared with 203.0 million in 1990. For the year, freight ton miles increased to 845.0 million in 1991, from 767.1 million in 1990, a 10.1 percent increase. Mail ton miles increased from 85.9 million in fourth quarter 1990 to 98.7 million this year. For the year, mail ton miles rose to 301.3 million in 1991, compared with 284.5 million for the same period in 1990. -0- 1/15/92 /CONTACT: Andrea Rader of American Airlines, 817-931-0176./ (AMR) CO: AMR Corporation ST: Texas IN: AIR SU: ERN SM -- NY049 -- 9993 01/15/92 12:13 EST
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|Date:||Jan 15, 1992|
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