AMR Corporation Reports a First Quarter Loss of $92 Million, a $70 Million Improvement Over Last Year's First Quarter Loss of $162 Million

April 19, 2006
AMR Achieves the Improvement Despite the Impact of High Fuel Costs First Quarter Results Also Are Marked By an Operating Profit and Positive Operating Cash Flow Performance

FORT WORTH, Texas, April 19, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- AMR Corporation (NYSE: AMR), parent company of American Airlines, Inc., today reported a net loss of $92 million in the first quarter of 2006, or $.49 per share, as compared to a net loss of $162 million, or $1.00 per share, in the first quarter of 2005. First quarter 2005 results included a benefit of $69 million, or $.43 per share, related to certain excise tax refunds.

"A loss of any size is never satisfactory," said AMR Chairman and CEO Gerard Arpey, "but it is somewhat gratifying to have improved our first quarter results by $139 million year over year excluding last year's excise tax refunds, despite the Company paying $349 million more for fuel because of higher fuel prices during the first quarter of 2006 versus the same period last year." Arpey also pointed out that the Company achieved a first quarter operating profit of $115 million, and had positive operating cash flow for the period.

For the quarter, American's passenger revenue per available seat mile was up 10.8 percent year over year. American's load factor -- or percentage of seats filled -- for the first quarter was 77.2 percent, up 1.8 points over the first quarter of 2005, while yield, representing average fares, was up 8.2 percent. Overall, AMR's revenue from all sources -- passenger, cargo and other categories -- grew in the first quarter by $594 million, or 12.5 percent, year over year.

"Thanks to the hard work of our people and the changes we have made, we are creating new streams of revenue and are bringing additional customers into the network. These efforts are driving unit revenues to near 2000 levels," Arpey said. "Unfortunately, the price of fuel has increased by more than 143 percent since then, adding $3.6 billion to our annual cost structure. Even with strong demand for air travel, we have been able to pass only a very small portion of that increase on to our customers." On a year over year basis, American's mainline cost per available seat mile was up by 10.3 percent. Excluding fuel, mainline unit costs increased 2.9 percent versus the first quarter of last year.

Under the tenets of its Turnaround Plan and working collaboratively with its employees and unions, American continues to focus sharply on numerous cost savings initiatives as it works to achieve sustained profitability. One such step is a flattening of the summer peak schedule that allows the airline to reduce the extra resources that it carries year-round to support the summer peak. As a result, American is placing 27 of its MD80 aircraft into temporary storage in phases by July 1, 2006, to improve the overall efficiency of its operations.

In an initiative to reduce distribution costs, American at the end of March successfully renegotiated its agreement with Worldspan, a global distribution system (GDS) that enables an airline to display its products over an extensive network of travel agencies. The new arrangement provides American with substantially lower costs and greater flexibility in continuing to adopt new cost-effective technologies as they become available. American is in discussions with some of the other GDSs as well.

Despite the continuing challenges of a very difficult industry, Arpey said he is pleased with the airline's progress to date, and expects a very robust summer. "It looks like another very busy summer for our industry," he said. "Our planes should be full, which among other things means we have a golden opportunity -- if we stay focused on running a good airline, controlling costs, and giving our customers what they truly value -- to build on the momentum reflected in the financial results we are reporting today."

Arpey pointed out that as of April 14, AMR had contributed $120 million to its various defined benefit plans this year.

AMR ended the quarter with $4.8 billion in cash and short-term investments, including a restricted balance of $510 million.

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," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, without limitation, the Company's expectations concerning operations and financial conditions, including changes in capacity, revenues and costs, future financing plans and needs, overall economic 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 significantly 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 fuel prices and further increases in the price of fuel, and the availability of fuel; the fiercely competitive business environment faced by the Company, and historically low fare levels; competition with reorganized and reorganizing carriers; the Company's reduced pricing power; the Company's need to raise additional funds and its ability to do so on acceptable terms; changes in the Company's 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; 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 for the year ended December 31, 2005.

Detailed financial information follows:

                               AMR CORPORATION
                   (in millions, except per share amounts)

                                     Three Months Ended March 31,     Percent
                                        2006             2005
       Passenger - American Airlines   $4,244           $3,841           10.5
                 - Regional Affiliates    569              451           26.2
       Cargo                              186              183            1.6
       Other revenues                     345              275           25.5
         Total operating revenues       5,344            4,750           12.5

       Wages, salaries and benefits     1,729            1,644            5.2
       Aircraft fuel                    1,473            1,097           34.3
       Other rentals and landing fees     316              300            5.3
       Depreciation and amortization      287              290           (1.0)
       Commissions, booking fees
        and credit card expense           269              271           (0.7)
       Maintenance, materials
        and repairs                       236              235            0.4
       Aircraft rentals                   146              148           (1.4)
       Food service                       124              125           (0.8)
       Other operating expenses           649              617            5.2
         Total operating expenses       5,229            4,727           10.6

     Operating Income                     115               23              *

     Other Income (Expense)
       Interest income                     53               36           47.2
       Interest expense                  (261)            (235)          11.1
       Interest capitalized                 7               23          (69.6)
       Miscellaneous - net                 (6)              (9)         (33.3)
                                         (207)            (185)         (11.9)

     Loss Before Income Taxes             (92)            (162)         (43.2)

     Income tax                           ---              ---            ---
     Net Loss                            $(92)           $(162)         (43.2)

     Basic and Diluted Loss Per Share  $(0.49)          $(1.00)
     Number of Shares Used
      in Computation
       Basic and Diluted                  186              161

     * Greater than 100%

                               AMR CORPORATION
                             OPERATING STATISTICS

                                               Three Months Ended
                                                    March 31,       Percent
                                                2006       2005     Change
     American Airlines, Inc. Mainline
     Jet Operations
       Revenue passenger miles (millions)      33,015     32,327      2.1
       Available seat miles (millions)         42,752     42,854     (0.2)
       Cargo ton miles (millions)                 521        539     (3.3)
       Passenger load factor                    77.2%      75.4%      1.8 pts.
       Passenger revenue yield per
        passenger mile (cents)                  12.85      11.88      8.2
       Passenger revenue per available
        seat mile (cents)                        9.93       8.96     10.8
       Cargo revenue yield per ton mile (cents) 35.65      33.95      5.0
       Operating expenses per available
        seat mile, excluding Regional
        Affiliates (cents) (A)                  10.81       9.80     10.3
       Fuel consumption (gallons, in millions)    705        729     (3.3)
       Fuel price per gallon (cents) (B)        189.0      136.6     38.4

     Regional Affiliates
       Revenue passenger miles (millions)       2,277      1,885     20.8
       Available seat miles (millions)          3,257      2,916     11.7
       Passenger load factor                    69.9%      64.7%      5.2 pts.

     AMR Corporation
       Average Equivalent Number of Employees
       American Airlines                       73,200     75,100
       Other                                   13,400     13,400
         Total                                 86,600     88,500

     (A)  Excludes $654 million and $583 million of expense incurred related
          to Regional Affiliates in 2006 and 2005, respectively.
     (B)  Includes the impact of a $55 million fuel excise tax refund in 2005.

                               AMR CORPORATION

     American Airlines, Inc. Mainline Jet                 Three Months Ended
      Operations                                               March 31,
     (in millions, except as noted)                     2006            2005

       Total operating expenses as reported            $5,275          $4,781
       Less: Operating expenses incurred
        related to Regional Affiliates                    654             583
       Operating expenses, excluding expenses
        incurred related to Regional Affiliates        $4,621          $4,197
       American mainline jet operations
        available seat miles                           42,752          42,854
       Operating expenses per available seat mile,
        excluding Regional Affiliates (cents)           10.81            9.80

     Percent change                                     10.3%

       Operating expenses, excluding expenses
        incurred related to Regional Affiliates        $4,621          $4,197
       Less:  Fuel expense                              1,332             996
       Operating expenses, excluding expenses
        incurred related to Regional Affiliates
        and fuel expense                               $3,289          $3,201
       American mainline jet operations available
        seat miles                                     42,752          42,854
       Operating expenses per available seat mile,
        excluding Regional Affiliates and fuel expense
        (cents)                                          7.69            7.47

     Percent change                                      2.9%

     Note:  The company believes that operating expenses per available seat
     mile, excluding the cost of fuel, assists investors in understanding the
     impact of fuel prices on the Company's operations.

     AMR Corporation
     Fuel Price vs. 1st Quarter 2005

     Average fuel price per gallon
          Three months ended March 31, 2006                            189.7

          Three months ended March 31, 2005             137.9
          Add: Impact of fuel credit                      6.9
     Change in price (cents)                                            44.9
     2006 consumption (gallons, in millions)                           x 776
     Impact of fuel price variance (in millions)                       $ 349

                               AMR CORPORATION

     AMR Corporation
     Impact of Special Items                             Three Months Ended
     (in millions)                                             March 31,
                                                         2006            2005

     Net loss                                            $(92)          $(162)
     Add: Impact of special items                         ---             (69)
     Net loss excluding special items                    $(92)          $(231)

     Difference                                         $(139)

     Note:  The Company believes that results of operations excluding the
     impact of special items assists investors in understanding the impact of
     special items on the Company's operations.

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SOURCE AMR Corporation

Al Becker, Corporate Communications of AMR Corporation, +1-817-967-1577, or