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---AMR REPORTS FIRST-QUARTER LOSS OF $1.04 BILLION---
AMR Corp. today reported a first quarter net loss of $1.04 billion, or $6.68 per share. This compares with a net loss of $1.56 billion, or $10.09 per share, in the first quarter of 2002, which included a cumulative effect of accounting change of $988 million, or $6.38 per share.
Our first quarter results were truly dreadful, noted AMR''s Chairman and Chief Executive Officer Don Carty. The results we reported today clearly demonstrate the negative effects from high fuel prices leading up to the Iraq war, and passenger concern about traveling before and after fighting commenced, Carty said.
The fact remains that we are confronting a brutally difficult financial and business environment, he said. We are beset on all sides by a struggling economy, the continued uncertainties regarding hostilities in the Middle East, concerns regarding the SARS outbreak, fuel prices that are significantly higher than they were a year ago, and fare levels that are at 30-year lows. All told, it''s a perilous climate and our success is far from assured, Carty said.
In keeping with the provisions of SFAS 109, AMR''s first quarter 2003 results do not reflect a benefit for federal and state income taxes. Conversely, AMR''s first quarter 2002 results did reflect a tax benefit.
Comparison of First-Quarter Results
(in millions)
2003 2002
Loss before income taxes and
cumulative effect of
accounting change $(1,043) $ (863)
Income tax benefit (288)
Loss before cumulative effect
of accounting change (1,043) (575)
Cumulative effect of accounting
change net of tax benefit (988)
Net Loss $(1,043) $(1,563)
Additionally, given the fluidity of AMR''s current situation, the planned conference between AMR''s Senior Vice President and Chief Financial Officer Jeff Campbell and members of the financial community and the media will not occur today as previously scheduled.
AMR Corp. today reported a first quarter net loss of $1.04 billion, or $6.68 per share. This compares with a net loss of $1.56 billion, or $10.09 per share, in the first quarter of 2002, which included a cumulative effect of accounting change of $988 million, or $6.38 per share.
Our first quarter results were truly dreadful, noted AMR''s Chairman and Chief Executive Officer Don Carty. The results we reported today clearly demonstrate the negative effects from high fuel prices leading up to the Iraq war, and passenger concern about traveling before and after fighting commenced, Carty said.
The fact remains that we are confronting a brutally difficult financial and business environment, he said. We are beset on all sides by a struggling economy, the continued uncertainties regarding hostilities in the Middle East, concerns regarding the SARS outbreak, fuel prices that are significantly higher than they were a year ago, and fare levels that are at 30-year lows. All told, it''s a perilous climate and our success is far from assured, Carty said.
In keeping with the provisions of SFAS 109, AMR''s first quarter 2003 results do not reflect a benefit for federal and state income taxes. Conversely, AMR''s first quarter 2002 results did reflect a tax benefit.
Comparison of First-Quarter Results
(in millions)
2003 2002
Loss before income taxes and
cumulative effect of
accounting change $(1,043) $ (863)
Income tax benefit (288)
Loss before cumulative effect
of accounting change (1,043) (575)
Cumulative effect of accounting
change net of tax benefit (988)
Net Loss $(1,043) $(1,563)
Additionally, given the fluidity of AMR''s current situation, the planned conference between AMR''s Senior Vice President and Chief Financial Officer Jeff Campbell and members of the financial community and the media will not occur today as previously scheduled.
