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AMR CORPORATION ANNOUNCES RESULTS

 AMR CORPORATION ANNOUNCES RESULTS
 DALLAS/FORT WORTH INTERNATIONAL AIRPORT, July 15 /PRNewswire/ -- AMR


Corporation (NYSE: AMR) today reported a second quarter 1992 net loss of $166 million, or $2.21 per share (both primary and fully diluted). These results include the after-tax impact of both a provision for anticipated losses associated with its CONFIRM RS system development ($109 million) and the cash payment required by a recent class action settlement by American and several other airlines ($9 million).
 Without these charges, AMR's second quarter net loss would have been $48 million, or $0.64 per share (both primary and fully diluted).
 The second quarter 1992 results compare with net earnings of $10 million, or $0.15 per share, for the same period in 1991.
 For the first six months of 1992, AMR recorded a net loss of $146 million, or $1.96 per share (both primary and fully diluted). This compares with a 1991 net loss of $185 million, or $2.76 per share (both primary and fully diluted), for the same six-month period.
 AMR Chairman Robert L. Crandall called the results "an enormous disappointment.
 "Our operating results in the second quarter were very adversely affected by the need to match discounted fares of our competition, which were set below American's new Value Pricing structure, and secondly, by continuing increases in fuel prices," he said.
 American established its Value Pricing Plan in April. The plan replaced a vast number of very confusing ticket prices with just four fare types.
 "We introduced Value Pricing because our customers have told us they want a more understandable and equitable fare structure and because our industry clearly needs a stable, fair and simple pricing structure that will renew consumer confidence and provide increased revenue," he said.
 "Unfortunately, our competitors have chosen to continue filing many different fares, thus proliferating complexity and preventing Value Pricing from working as it should. Thus, despite strong traffic growth in the second quarter, yield declined by 3.6 percent, a very unfortunate result," Crandall said.
 Crandall also noted that second quarter fuel prices were four cents higher than in the first quarter. Each one-cent increase in the price of fuel adds approximately $2.4 million per month to AMR's costs.
 Work on CONFIRM, a project to develop a much more sophisticated and comprehensive hotel and car rental reservation system than currently exists, has been suspended. While a final determination of the financial impact of the suspension has not been made, AMR felt it prudent to make a provision for potential losses from the project.
 "The prospect of suffering a loss on the CONFIRM project is very disappointing, particularly in light of the extraordinary track record we've established in using information systems as a key element in our overall business strategy and our success in developing other independent information systems businesses," Crandall said.
 Revenues for the second quarter were $3.59 billion, a 12.3 percent increase from the $3.19 billion reported in the second quarter a year ago. Revenues for the first six months of 1992 were $7.09 billion, compared with $5.96 billion for January-June 1991.
 Operating expenses in the second quarter increased 14.1 percent to $3.53 billion in 1992, from $3.09 billion in the same period a year ago. For the six months, operating expenses were $6.90 billion in 1992, a 13.0 percent increase from $6.11 billion a year ago.
 American's available seat miles (a measure of capacity) increased 15.5 percent, from 32.54 billion in 1991 to 37.57 billion in the second quarter 1992. For the six-month period, ASMs increased 17.6 percent, from 62.47 billion in 1991 to 73.48 billion in 1992.
 American flew 23.68 billion revenue passenger miles (the number of seats per mile filled by paying passengers), in the second quarter, up 14.6 percent from the 20.66 billion flown in the second quarter 1991. For the six months, revenue passenger miles increased 18.7 percent, from 37.58 billion in 1991 to 44.59 billion in 1992.
 Second quarter load factor (the percentage of seats filled with paying passengers) of 63.0 percent was slightly below the 63.5 percent reported for the same period in 1991. For the six months, load factor increased from 60.2 percent in 1991 to 60.7 percent in 1992.
 The second quarter breakeven load factor of 61.9 percent was 1.1 points greater than the 60.8 percent reported a year ago. For the six months, the breakeven load factor was 59.0 percent this year, compared with 62.2 percent in 1991.
 American's yield (the average amount one passenger pays to fly one mile), declined 3.6 percent, from 12.90 cents in second quarter 1991 to 12.43 cents for the same period this year. For the six months, yield rose to 13.16 cents in 1992 compared with 13.12 cents for the same period in 1991.
 American's cargo business remained strong. Freight ton miles increased 41.4 percent to 281 million in the second quarter, and from 385 million in 1991 to 533 million for the six-month period in 1992. Mail ton miles increased from 67 million in second quarter 1991 to 87 million this year. For the six months, mail ton miles increased to 173 million in 1992, compared with 131 million for the same period in 1991.
 -0- 7/15/92
 /NOTE TO EDITORS: American Chief Financial Officer Michael J. Durham will hold a telephone press conference at 2 p.m. CDT to discuss the second quarter earnings. You may tap into the press conference by calling 817-967-7500/
 /CONTACT: Andrea Rader of American Airlines, 817-931-0176/
 (AMR) CO: AMR Corporation ST: Texas IN: AIR SU: ERN


TQ -- NY046 -- 9504 07/15/92 11:32 EDT
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Date:Jul 15, 1992
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