FORT WORTH, Texas, Oct. 17 /PRNewswire-FirstCall/ -- AMR Corporation, the parent company of American Airlines, Inc., today reported a net profit of $175 million for the third quarter of 2007, or $0.61 per diluted share.
As disclosed in AMR's Sept. 21 investor update, the results for the third quarter of 2007 include the impact of a $40 million charge, or $0.13 per diluted share, to reflect an adjustment for additional salary and benefit expense accruals related to years 2003 through 2006 and the first six months of 2007.
The current quarter results compare to a net profit of $15 million for the third quarter of 2006, or $0.06 per diluted share. The year-ago results included a $99 million non-cash charge in Other Income (Expense) to reduce the book value of certain outstanding fuel hedge contracts.
"While record fuel prices in the third quarter were a reminder of the external challenges that we continue to face, we again demonstrated our ongoing progress by posting our sixth straight profitable quarter and our largest net profit in any third quarter since 2000," said AMR Chairman and CEO Gerard Arpey. "We continued to improve our balance sheet while investing in key customer service initiatives, including taking steps to renew our fleet, add new routes, and enhance several products and services. However, we must step up our continued focus on managing costs, work to improve our profit margins, and continue our momentum throughout 2007 and beyond."
Operational Performance
American's mainline passenger revenue per available seat mile (unit revenue) increased by 5.0 percent in the third quarter compared to the year-ago quarter.
Mainline capacity, or total available seat miles, in the third quarter decreased 2.8 percent compared to the same period in 2006, as the Company continued to flatten its schedule to more efficiently utilize its fleet and other resources.
American's mainline load factor -- or the percentage of total seats filled -- was a record 83.9 percent during the third quarter, compared to 81.7 percent in the third quarter of 2006. American's third-quarter yield, which represents average fares paid, increased 2.3 percent compared to the third quarter of 2006, its 10th consecutive quarter of year-over-year yield increases.
AMR reported third quarter consolidated revenues of approximately $5.9 billion, an increase of 1.7 percent year over year. Other revenues, including sales from such sources as confirmed flight changes, purchased upgrades, Buy-on-Board food services, and third-party maintenance work, increased 5.7 percent year over year to $352 million in the third quarter.
American's mainline cost per available seat mile (unit cost) in the third quarter increased 3.9 percent year over year, which was 0.8 percentage points higher than it would have been as a result of the $40 million charge to adjust salary and benefit expense accruals from prior periods. Approximately $30 million of the charge is attributable to years 2003 through 2006 and approximately $10 million is attributable to the first half of 2007.
Third quarter unit costs were also negatively affected by factors such as accelerated depreciation on assets being replaced through planned aircraft cabin refurbishment projects; certain investments to improve the customer experience; higher revenue-related expenses such as food and beverage and credit card fees; and weather cancellations in July.
Excluding fuel and the charge, mainline unit costs in the third quarter increased by 4.0 percent year over year. Arpey said that the Company continues working to achieve $300 million in targeted cost savings for 2007 and continues to focus on cost containment. Among recent examples, American earlier this month announced a consolidation of its reservations offices that will affect the Cincinnati Reservations Office (CRO), effective September 2008. While all of the CRO employees have been offered jobs within American's Reservations group, by consolidating its reservations operations American is able to reduce costs.
Balance Sheet Improvement
AMR continued to strengthen its balance sheet in the third quarter by further reducing debt and improving its liquidity position.
AMR ended the third quarter with $5.8 billion in cash and short-term investments, including a restricted balance of $447 million, compared to a balance of $5.5 billion in cash and short-term investments, including a restricted balance of $464 million, at the end of the third quarter of 2006.
AMR reduced Total Debt, which it defines as the aggregate of its long-term debt, capital lease obligations, the principal amount of airport facility tax-exempt bonds, and the present value of aircraft operating lease obligations, to $16.6 billion at the end of the third quarter of 2007, compared to $19 billion a year earlier. AMR reduced Net Debt, which it defines as Total Debt less unrestricted cash and short-term investments, from $14 billion at the end of the third quarter of 2006 to $11.2 billion in the third quarter of 2007.
As a result of scheduled principal payments as well as incremental efforts to strengthen its balance sheet, AMR's net interest expense for the first nine months of 2007 was $133 million lower than in the same period in 2006, a 23 percent reduction.
AMR contributed $200 million to its defined benefit pension plans in the third quarter, as the Company continues to meet this important commitment to its employees. With the third quarter contribution, the Company has contributed $380 million to these plans in 2007, meeting its projected commitment for the year. The Company has contributed nearly $2 billion to these plans since 2002.
Third Quarter and Recent Highlights -- In September, as part of its fleet renewal strategy and efforts to improve fleet fuel efficiency by more than 20 percent by 2020, American accelerated three Boeing 737s for delivery in the second half of 2009. Those three 737s are part of American's announced plan to accelerate the deliveries of 47 previously ordered 737s into the 2009-2012 timeframe. In addition, on Oct. 1 American notified Boeing that it was exercising an option to purchase an additional 737 for delivery in early 2009, representing its first 737 commitment in addition to those 47 aircraft. Including the four 737s cited today, American so far has scheduled delivery of a total of 13 737s throughout 2009. -- American announced it will begin nonstop service from Chicago O'Hare International Airport to Moscow's Domodedovo International Airport on Monday, June 2, 2008. From Chicago, American is -- or soon will be -- providing links to the world's key developing economies in Russia, China, and India as well as the established markets of Japan, Europe and Latin America. -- American introduced DealFinder, a downloadable, computer desktop tool that offers customers exclusive, targeted, discounted fares to locations throughout American's network. The tool, available at http://www.aa.com/dealfinder, searches for the lowest fares, allowing customers to spend less time planning travel. -- American Airlines Vacations launched its redesigned Web site that enhances the customer's shopping and booking experience on AAVacations.com. The enhancements provide customers with convenient and flexible options when customizing vacation plans. -- American continued to grow and enhance its New York service into Europe, announcing that it will begin two new routes early next year to Milan, Italy, and Barcelona, Spain, from John F. Kennedy International Airport (JFK), as well as a second daily roundtrip between JFK and London's Stansted Airport. American also unveiled its state-of-the-art, $1.3 billion terminal at JFK as part of its continuing commitment to become the airline of choice in the New York market. -- AMR's wholly-owned subsidiary, American Eagle Airlines, Inc., made a $32 million aircraft debt prepayment that brought AMR's prepayment of debt on its Canadair regional jets to $159 million this year. The final payment released 10 CRJ-700 aircraft that were used to secure the debt. Additionally, on Oct. 1 AMR said that American intends to prepay $545 million in aircraft debt in the fourth quarter of 2007. The prepayment is expected to initially eliminate approximately $25 million of annual net interest expense and release 16 aircraft used to secure the loan. -- American, American Eagle, and Texas Aero Engine Services Limited (TAESL), an affiliated engine repair facility, received the coveted Federal Aviation Administration's Diamond Award for excellence in training their Aviation Maintenance Technicians (AMT). Guidance Mainline and Consolidated Capacity
AMR expects its full-year mainline capacity to decrease by 2.2 percent in 2007 compared to 2006, with a 2.4 percent reduction in domestic capacity and a 1.9 percent decrease in international capacity. On a consolidated basis, AMR expects full-year capacity to decrease by 2.1 percent in 2007 compared to 2006. The impact of weather-related cancellations that occurred in the first three quarters of 2007 is included in mainline and consolidated capacity forecasts.
AMR expects mainline capacity in the fourth quarter of 2007 to increase 0.9 percent year over year. It expects consolidated capacity to increase by 0.8 percent in the fourth quarter of 2007 compared to the prior-year period. Reasons for the increase include previously announced aircraft density initiatives and general flattening of the schedule. Mainline departures are expected to be essentially flat year over year, as the Company continues to identify ways to utilize its fleet more productively.
Fuel Expense and Hedging
While the cost of jet fuel remains volatile, as of now AMR is planning for an average system price of $2.27 per gallon in the fourth quarter and $2.10 per gallon for all of 2007. AMR has 40 percent of its anticipated fourth quarter fuel consumption capped at an average crude equivalent of $69 per barrel (jet fuel equivalent of $2.01 per gallon), with 34 percent of its anticipated full-year consumption capped at an average crude equivalent of $66 per barrel (jet fuel equivalent of $1.98 per gallon). Consolidated consumption for the fourth quarter is expected to be 778 million gallons of jet fuel.
Mainline and Consolidated Unit Costs
For the fourth quarter, mainline unit costs are expected to increase 4.5 percent compared to the fourth quarter of 2006, while fourth quarter consolidated unit costs are expected to increase 5.1 percent compared to the fourth quarter of 2006.
In the fourth quarter, mainline unit costs excluding fuel are expected to decrease 1.7 percent year over year while consolidated unit costs excluding fuel are expected to decrease 0.8 percent from the fourth quarter of 2006.
Full-year mainline unit costs are expected to increase 3.0 percent in 2007 compared to 2006, while full-year consolidated unit costs are expected to increase 3.3 percent in 2007 compared to 2006.
AMR expects mainline unit costs excluding fuel to be 2.4 percent higher in 2007 versus 2006 while 2007 consolidated unit costs excluding fuel are expected to increase 2.7 percent year over year.
Excluding the impact of fuel and the out-of-period charge in the third quarter relating to years 2003 through 2006, full-year mainline unit costs are expected to increase 2.1 percent in 2007 compared to 2006 while consolidated unit costs are expected to increase 2.5 percent year over year.
Statements in this release 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 release, the words "expects," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's objectives, plans or goals are forward-looking statements. Forward-looking statements include, without limitation, the Company's expectations concerning operations and financial condition, including changes in capacity, revenues and costs; future financing plans and needs; overall economic and industry 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 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 statement, whether as a result of new information, future events, or otherwise.
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: the materially weakened financial condition of the Company, resulting from its significant losses in recent years; the ability of the Company to generate additional revenues and reduce its costs; changes in economic and other conditions beyond the Company's control, and the volatile results of the Company's operations; the Company's substantial indebtedness and other obligations; the ability of the Company to satisfy existing financial or other covenants in certain of its credit agreements; continued high and volatile fuel prices and further increases in the price of fuel, and the availability of fuel; the fiercely and increasingly competitive business environment faced by the Company; industry consolidation; competition with reorganized and reorganizing carriers; low fares by historical standards and the Company's reduced pricing power; the Company's likely need to raise additional funds and its ability to do so on acceptable terms; changes in the Company's corporate or business strategy; government regulation of the Company's business; conflicts overseas or terrorist attacks; uncertainties with respect to the Company's international operations; outbreaks of a disease (such as SARS or avian flu) that affects travel behavior; labor costs that are higher than those of the Company's competitors; uncertainties with respect to the Company's relationships with unionized and other employee work groups; increased insurance costs and potential reductions of available insurance coverage; the Company's ability to retain key management personnel; potential failures or disruptions of the Company's computer, communications or other technology systems; changes in the price of the Company's common stock; and the ability of the Company to reach acceptable agreements with third parties. 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/A for the year ended December 31, 2006.
Detailed financial information follows: AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Three Months Ended September 30, ------------------------------- Percent 2007 2006 Change ------- ------- ------- Revenues Passenger - American Airlines $4,750 $4,657 2.0 - Regional Affiliates 648 644 0.6 Cargo 196 213 (8.0) Other revenues 352 333 5.7 ------- ------- ------- Total operating revenues 5,946 5,847 1.7 ------- ------- ------- Expenses Wages, salaries and benefits 1,721 1,694 1.6 Aircraft fuel 1,743 1,771 (1.6) Other rentals and landing fees 328 317 3.5 Depreciation and amortization 307 290 5.9 Maintenance, materials and repairs 274 252 8.7 Commissions, booking fees and credit card expense 270 284 (4.9) Aircraft rentals 148 154 (3.9) Food service 139 133 4.5 Other operating expenses 697 668 4.3 ------- ------- ------- Total operating expenses 5,627 5,563 1.2 ------- ------- ------- Operating Income 319 284 12.3 Other Income (Expense) Interest income 90 80 12.5 Interest expense (227) (259) (12.4) Interest capitalized 3 7 (57.1) Miscellaneous - net (10) (97) (89.7) ------- ------- ------- (144) (269) (46.5) ------- ------- ------- Income Before Income Taxes 175 15 * Income tax - - - ------- ------- ------- Net Income $175 $15 * ======= ======= ======= Earnings Per Share Basic $0.70 $0.07 ======= ======= Diluted $0.61 $0.06 ======= ======= Number of Shares Used in Computation Basic 249 213 Diluted 300 237 * Greater than 100% AMR CORPORATION OPERATING STATISTICS (Unaudited) Three Months Ended September 30, ------------------ Percent 2007 2006 Change ------- ------- -------- American Airlines, Inc. Mainline Jet Operations Revenue passenger miles (millions) 36,290 36,382 (0.3) Available seat miles (millions) 43,271 44,532 (2.8) Cargo ton miles (millions) 514 557 (7.7) Passenger load factor 83.9% 81.7% 2.2 pts. Passenger revenue yield per passenger mile (cents) 13.09 12.80 2.3 Passenger revenue per available seat mile (cents) 10.98 10.46 5.0 Cargo revenue yield per ton mile (cents) 38.14 38.32 (0.5) Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1) 11.45 11.02 3.9 Fuel consumption (gallons, in millions) 725 741 (2.2) Fuel price per gallon (cents) 216.5 215.8 0.3 Regional Affiliates Revenue passenger miles (millions) 2,611 2,578 1.3 Available seat miles (millions) 3,442 3,475 (0.9) Passenger load factor 75.9% 74.2% 1.7 pts. AMR Corporation Average Equivalent Number of Employees American Airlines 72,000 73,000 Other 13,800 13,400 ------- ------- Total 85,800 86,400 ======= ======= (1) Excludes $701 million and $702 million of expense incurred related to Regional Affiliates in 2007 and 2006, respectively. AMR CORPORATION OPERATING STATISTICS (Unaudited) OPERATING STATISTICS BY REGIONAL ENTITY American Airlines, Inc. Three Months Ended September 30, 2007 Entity Results --------------------------------------------------- RASM (1) Y-O-Y ASMs (2) Y-O-Y (cents) Change (billions) Change -------- ------- -------- -------- DOT Domestic 10.7 4.8% 27.4 (2.5)% International 11.5 5.3 15.8 (3.3) DOT Latin America 11.6 3.5 7.3 0.1 DOT Atlantic 11.7 2.7 6.8 (0.2) DOT Pacific 10.9 21.0 1.7 (24.2) (1) Revenue per Available Seat Mile (2) Available Seat Miles American Airlines, Inc. Three Months Ended September 30, 2007 Entity Results --------------------------------------------------- Y-O-Y Load Factor Change Yield Y-O-Y (pts) (pts) (cents) Change ----------- ------- -------- -------- DOT Domestic 84.8 2.4 12.57 1.8% International 82.3 1.7 14.01 3.1 DOT Latin America 80.6 2.8 14.33 (0.1) DOT Atlantic 83.4 (0.4) 13.99 3.3 DOT Pacific 84.6 5.3 12.83 13.4 AMR CORPORATION NON-GAAP AND OTHER RECONCILIATIONS (Unaudited) American Airlines, Inc. Mainline Jet Operations Three Months Ended September 30, (in millions, except as noted) -------------------------------- 2007 2006 ---------- ---------- Total operating expenses $5,657 $5,610 Less: Operating expenses incurred related to Regional Affiliates 701 702 Operating expenses excluding ---------- ---------- expenses incurred related to Regional Affiliates $4,956 $4,908 American mainline jet operations available seat miles 43,271 44,532 Operating expenses per available seat mile, excluding Regional Affiliates (cents) 11.45 11.02 Less: Impact of special items (cents) 0.09 - Operating expenses per available ---------- ---------- seat mile, excluding impact of special items (cents) 11.36 11.02 ========== ========== Percent change 3.1% American Airlines, Inc. Mainline Jet Operations Three Months Ended September 30, (in millions, except as noted) -------------------------------- 2007 2006 ---------- ----------- Total operating expenses $5,657 $5,610 Less: Operating expenses incurred related to Regional Affiliates 701 702 Operating expenses excluding ---------- ----------- expenses incurred related to Regional Affiliates $4,956 $4,908 American mainline jet operations available seat miles 43,271 44,532 Operating expenses per available seat mile, excluding Regional Affiliates (cents) 11.45 11.02 Less: Impact of special items (cents) 0.09 - Less: Fuel cost per available seat mile (cents) 3.63 3.59 Operating expenses per available ---------- ---------- seat mile, excluding impact of special items and the cost of fuel (cents) 7.73 7.43 ========== ========== Percent change 4.0% Note: The Company believes that operating expenses per available seat mile, excluding the cost of fuel and special items, assists investors in understanding the impact of fuel prices and special items on the Company's operations. AMR CORPORATION NON-GAAP AND OTHER RECONCILIATIONS (Unaudited) AMR Corporation Calculation of Net Debt As of September 30, (in millions, except as noted) ------------------------- 2007 2006 -------- -------- Current and long-term debt $11,155 $12,971 Current and long-term capital lease obligations 837 942 Principal amount of certain airport facility tax-exempt bonds and the present value of aircraft operating lease obligations 4,585 5,112 -------- -------- 16,577 19,025 -------- -------- Less: Unrestricted cash and short-term investments 5,390 5,054 Net Debt $11,187 $13,971 ======== ======== Note: The Company believes the net debt metric assists investors in understanding changes in the Company's liquidity and the results of its efforts to build a financial foundation under the Company's Turnaround Plan. AMR CORPORATION NON-GAAP AND OTHER RECONCILIATIONS (Unaudited) American Airlines, Inc. Mainline Estimate for Jet Operations Year Ended December 31, (in millions, except as noted) ----------------------- 2007 2006 --------- ---------- Operating expenses per available seat mile, excluding Regional Affiliates (cents) 11.23 10.90 Less: Fuel expense per available seat mile 3.47 3.32 Operating expenses per available seat mile, excluding Regional Affiliates and fuel expense (cents) 7.76 7.58 ========= ========== Percent change 2.4% American Airlines, Inc. Mainline Estimate for Jet Operations Three Months Ended (in millions, except as noted) December 31, ------------------------ 2007 2006 ----------- ---------- Operating expenses per available seat mile, excluding Regional Affiliates (cents) 11.41 10.91 Less: Fuel expense per available seat mile 3.73 3.10 ----------- ---------- Operating expenses per available seat mile, excluding Regional Affiliates and fuel expense (cents) 7.68 7.81 =========== ========== Percent change (1.7)% American Airlines, Inc. Mainline Estimate for Jet Operations Year Ended December 31, (in millions, except as noted) ------------------------ 2007 2006 ---------- ---------- Operating expenses per available seat mile, excluding Regional Affiliates (cents) 11.23 10.90 Less: Impact of special item 0.02 - Less: Fuel expense per available seat mile 3.47 3.32 Operating expenses per available seat mile, excluding Regional Affiliates and fuel expense (cents) 7.74 7.58 ========== ========== Percent change 2.1% AMR CORPORATION NON-GAAP AND OTHER RECONCILIATIONS (Unaudited) Estimate for AMR Corporation Year Ended December 31, (in millions, except as noted) ----------------------- 2007 2006 --------- ---------- Operating expenses per available seat mile (cents) 11.84 11.46 Less: Fuel expense per available seat mile 3.57 3.41 Operating expenses per available seat mile, excluding fuel expense (cents) 8.27 8.05 ========= ========== Percent change 2.7% Estimate for Three Months Ended AMR Corporation December 31, (in millions, except as noted) ----------------------- 2007 2006 --------- ----------- Operating expenses per available seat mile (cents) 12.04 11.45 Less: Fuel expense per available seat mile 3.84 3.18 Operating expenses per available seat mile, excluding fuel expense (cents) 8.20 8.27 ========= ========== Percent change (0.8)% Estimate for AMR Corporation Year Ended December 31, (in millions, except as noted) ----------------------- 2007 2006 --------- ----------- Operating expenses per available seat mile (cents) 11.84 11.46 Less: Impact of special item 0.02 - Less: Fuel expense per available seat mile 3.57 3.41 Operating expenses per available seat mile, excluding fuel expense (cents) 8.25 8.05 ========= ========== Percent change 2.5% AMR CORPORATION NON-GAAP AND OTHER RECONCILIATIONS (Unaudited) AMR Corporation Impact of Special Items Three Months Ended (in millions, except per share amounts) September 30, 2007 ------------------------ Amount EPS -------- -------- Net income $175 $0.61 Impact of special items 40 0.13 -------- -------- Income excluding special items $215 $0.74 ======== ======== AMR Corporation Impact of Special Items Three Months Ended (in millions, except per share amounts) September 30, 2006 ------------------------ Amount EPS -------- -------- Net income $15 $0.06 Impact of special items 99 0.39 -------- -------- Income excluding special items $114 $0.45 ======== ======== Note: The Company believes income excluding special items assists investors in understanding the impact of special items on the Company's operations. AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited) Nine Months Ended September 30, ------------------------------- Percent 2007 2006 Change ------- ------- ------ Revenues Passenger - American Airlines $13,749 $13,621 0.9 - Regional Affiliates 1,864 1,915 (2.7) Cargo 597 605 (1.3) Other revenues 1,042 1,025 1.7 ------- ------- ------ Total operating revenues 17,252 17,166 0.5 ------- ------- ------ Expenses Wages, salaries and benefits 5,047 5,103 (1.1) Aircraft fuel 4,797 4,952 (3.1) Other rentals and landing fees 970 967 0.3 Depreciation and amortization 892 868 2.8 Maintenance, materials and repairs 790 726 8.8 Commissions, booking fees and credit card expense 787 839 (6.2) Aircraft rentals 451 449 0.4 Food service 399 386 3.4 Other operating expenses 2,085 2,001 4.2 ------- ------- ------ Total operating expenses 16,218 16,291 (0.4) ------- ------- ------ Operating Income 1,034 875 18.2 Other Income (Expense) Interest income 257 201 27.9 Interest expense (703) (780) (9.9) Interest capitalized 17 21 (19.0) Miscellaneous - net (32) (103) (68.9) ------- ------- ------ (461) (661) (30.3) ------- ------- ------ Income Before Income Taxes 573 214 * Income tax - - - ------- ------- ------ Net Income $573 $214 * ======= ======= ====== Earnings Per Share Basic $2.35 $1.07 ======= ======= Diluted $1.98 $0.91 ======= ======= Number of Shares Used in Computation Basic 244 201 Diluted 300 259 * Greater than 100% AMR CORPORATION OPERATING STATISTICS (Unaudited) Nine Months Ended September 30, ------------------ Percent 2007 2006 Change -------- ------- --------- American Airlines, Inc. Mainline Jet Operations Revenue passenger miles (millions) 104,534 106,253 (1.6) Available seat miles (millions) 127,609 131,883 (3.2) Cargo ton miles (millions) 1,574 1,640 (4.0) Passenger load factor 81.9% 80.6% 1.3 pts. Passenger revenue yield per passenger mile (cents) 13.15 12.82 2.6 Passenger revenue per available seat mile (cents) 10.77 10.33 4.3 Cargo revenue yield per ton mile (cents) 37.91 36.88 2.8 Operating expenses per available seat mile, excluding Regional Affiliates (cents) (1) 11.17 10.90 2.5 Fuel consumption (gallons, in millions) 2,129 2,183 (2.5) Fuel price per gallon (cents) 203.0 205.0 (1.0) Regional Affiliates Revenue passenger miles (millions) 7,468 7,522 (0.7) Available seat miles (millions) 10,096 10,168 (0.7) Passenger load factor 74.0% 74.0% - (1) Excludes $2.1 billion and $2.0 billion of expense incurred related to Regional Affiliates in 2007 and 2006, respectively. AMR CORPORATION OPERATING STATISTICS (Unaudited) OPERATING STATISTICS BY REGIONAL ENTITY American Airlines, Inc. Nine Months Ended September 30, 2007 Entity Results ------------------------------------------- RASM (1) Y-O-Y ASMs (2) Y-O-Y (cents) Change (billions) Change -------- ------- --------- -------- DOT Domestic 10.6 2.6% 81.4 (3.4)% International 11.1 7.3 46.3 (2.9) DOT Latin America 11.3 5.8 22.3 0.4 DOT Atlantic 11.1 4.8 18.9 (1.2) DOT Pacific 10.2 21.9 5.1 (19.8) (1) Revenue per Available Seat Mile (2) Available Seat Miles American Airlines, Inc. Nine Months Ended September 30, 2007 Entity Results ------------------------------------------ Load Y-O-Y Factor Change Yield Y-O-Y (pts) (pts) (cents) Change -------- ------- --------- ------- DOT Domestic 83.5 1.4 12.68 0.8% International 79.1 1.2 14.02 5.7 DOT Latin America 77.4 2.1 14.65 2.9 DOT Atlantic 80.0 (1.0) 13.81 6.1 DOT Pacific 83.5 5.8 12.21 13.4 AMR CORPORATION NON-GAAP AND OTHER RECONCILIATIONS (Unaudited) American Airlines, Inc. Mainline Jet Operations Nine Months Ended September 30, (in millions, except as noted) ------------------------------- 2007 2006 -------------- ------------- Total operating expenses $16,335 $16,424 Less: Operating expenses incurred related to Regional Affiliates 2,078 2,045 -------------- ------------- Operating expenses excluding expenses incurred related to Regional Affiliates $14,257 $14,379 -------------- ------------- American mainline jet operations available seat miles 127,609 131,883 -------------- ------------- Operating expenses per available seat mile, excluding expenses incurred related to Regional Affiliates (cents) 11.17 10.90 ============== =============
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