FORT WORTH, Texas, March 31 /PRNewswire-FirstCall/ -- AMR (NYSE: AMR) announced today the AMR Board of Directors has approved a modification to the American Airlines management compensation program. The change provides for a combination of stock and cash distributions for compensation granted under the 2003-2005 Performance Share Plan, previously known as the Performance Unit Plan. Cash payments will be consistent with American Airlines' Annual Incentive Plan. The AMR Board of Directors also decided to make similar changes to the 2004-2006 Plan.

"During the past several weeks there has been much discussion among management and labor about overall compensation issues in a very challenging and competitive marketplace," said Jeff Brundage, Senior Vice President of Human Resources for American Airlines. "The AMR Board of Directors has come to a decision intended to provide a fair balance between structuring market- competitive levels of management compensation with issues expressed by our union leaders and employees. The objective of the AMR Board in making this change is to endeavor to resolve the grievances brought by American's unions and to support management, the unions, and all employees in their efforts to work collaboratively to restore the company to financial health and avoid the confrontational path taken by other airlines."

         Current AMR Corp. releases can be accessed on the Internet.
                       The address is http://www.aa.com

SOURCE  AMR Corporation
    -0-                             03/31/2006
    /CONTACT:  Tim Smith, Corporate Communications of AMR Corporation,
+1-817-967-1577, or corp.comm@aa.com /
    /Web site:  http://www.aa.com /
    (AMR)

CO:  AMR Corporation; American Airlines
ST:  Texas
IN:  AIR TRA LEI
SU:

MA-CT
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2794 03/31/2006 16:26 EST http://www.prnewswire.com