American Airlines 1998 Annual Report Download - page 10

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IN1998, AMR SHAREHOLDERS WERE
rewarded for their investment with the best financial perfor-
mance in the company’s history. AMR’s after tax earnings of $1.3 billion were a record and a 33 percent
improvement over 1997. Earnings per share, at $7.52 (diluted), was up approximately 40 percent, reflecting
the dual benefits of improved earnings and an aggressive share repurchase program. The biggest driver of
AMR’s 1998 financial success was the strong performance of American Airlines.
For the year, American’s passenger traffic was up 1.8 percent, and the
airline’s load factor, or percentage of total seats filled, was — at 70.2 percent
— up 0.7 points versus the prior year. A stable pricing environment helped
American increase its yield — or the average amount collected per passenger
mile — by 0.9 percent.
Record earnings, share repurchases, a stock split, and debt reduction enhanced AMR shareholder value in 1998.
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