American Airlines Group, Inc.

AMR Corporation Reports a First Quarter Profit of $81 Million, a $173 Million Improvement Year Over Year

April 18, 2007
  Despite Weather Impact, Company Continues Momentum With Fourth Consecutive
                              Profitable Quarter

AMR Strengthens Balance Sheet, Improves Liquidity and Continues to Reinvest in
                          its Products and Services

FORT WORTH, Texas, April 18 /PRNewswire-FirstCall/ -- AMR Corporation (NYSE: AMR), the parent company of American Airlines, Inc., today reported a net profit of $81 million for the first quarter of 2007, or $0.30 per diluted share.

The current quarter results compare to a net loss of $92 million, or $0.49 per diluted share, in the first quarter of 2006.

"In spite of significant weather challenges, we continued to build on our momentum by generating a profit in the first quarter. This is our fourth consecutive profitable quarter and the first time we have generated a profit in the first quarter since 2000," said AMR Chairman and CEO Gerard Arpey. "We strengthened our balance sheet and liquidity, took a key step in our fleet renewal plan and reinvested in our products and services. While we must continue to improve our financial performance, we believe our results show that we have started 2007 on the right track."

Operational Performance

American's mainline passenger revenue per available seat mile (unit revenue) increased by 4.5 percent in the first quarter compared to the year-ago quarter. Mainline capacity, or total available seat miles, in the first quarter decreased 2.5 percent compared to the same period in 2006.

American's mainline load factor -- or the percentage of total seats filled -- was a record 78.1 percent during the first quarter, compared to 77.2 percent in the first quarter of 2006. American's first-quarter yield, which represents average fares, increased 3.3 percent compared to the first quarter of 2006, its eighth consecutive quarter of year-over-year yield increases.

AMR reported first quarter consolidated revenues of approximately $5.4 billion, an increase of 1.6 percent year over year. AMR estimates that severe weather disruptions reduced first quarter consolidated revenue by approximately $60 million.

American's mainline cost per available seat mile (unit cost) in the first quarter was up 0.9 percent year over year, which was 1.6 percentage points higher than originally anticipated largely because of weather impacts that caused American to cancel 2.9 percent of mainline scheduled departures for the first quarter. Excluding fuel, mainline unit costs in the first quarter increased by 2.2 percent year over year.

Balance Sheet Improvement

Arpey noted that AMR continued to strengthen its balance sheet in the first quarter by reducing debt and improving its liquidity position.

AMR ended the first quarter with $5.9 billion in cash and short-term investments, including a restricted balance of $471 million, compared to a balance of $4.8 billion in cash and short-term investments, including a restricted balance of $510 million, at the end of the first 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 $17.5 billion at the end of the first quarter of 2007, compared to $19.7 billion a year earlier. AMR reduced Net Debt, which it defines as Total Debt less unrestricted cash and short-term investments, from $15.4 billion at the end of the first quarter of 2006 to $12.2 billion in the first quarter of 2007.

AMR contributed $62 million to its employees' defined benefit pension plans in the first quarter and made an additional $118 million contribution on April 13, as the Company continues to meet this important commitment to its employees.

"As we continue to execute on our Turnaround Plan, we are seeking to strike the right balance between reinvestment in the business and the need for further financial improvement," Arpey said. "We have more hard work ahead of us, but we believe that we have the right strategy in place to continue building our company for the long term and to continue delivering benefits to shareholders, customers and employees."

    First Quarter Highlights
     -- American announced that it had notified Boeing of its intent to begin
        pulling forward deliveries of 47 737-800 aircraft to replace a portion
        of its MD-80 fleet, with the first three aircraft scheduled for
        delivery in early 2009. Arpey cited the fleet renewal announcement as
        a key step toward American's goal of improving fleet fuel efficiency
        by more than 20 percent by 2020.
     -- American announced that it would invest up to $100 million in
        facility, technology and process improvements to help its Maintenance,
        Repair and Overhaul (MRO) business compete for more third-party
        maintenance contracts. American's MRO business generated nearly
        $95 million in third-party revenue in 2006.
     -- AMR continued to improve its balance sheet by paying down the
        $285 million balance on its revolving credit facility and by prepaying
        $79 million in aircraft debt. In April, the Company also completed the
        refinancing of $350 million of tax-exempt bonds. These actions are
        expected to eliminate approximately $15 million in annual net interest
        expense for the Company.
     -- AMR improved its financial strength by selling 13 million new shares
        of common stock to raise nearly $500 million.
     -- AMR was honored by PLANSPONSOR Magazine as Corporate Plan Sponsor of
        the Year for the Company's efforts to protect and preserve its
        employees' defined benefit pension plans. In addition to contributing
        more than $1.5 billion to its employees' defined benefit pension plans
        since 2002, the Company expects to contribute $364 million to these
        plans in 2007. Through April 13, AMR had made $180 million of its
        expected 2007 contributions.
     -- AMR began to accrue for a potential profit sharing payout to employees
        for the 2007 year, payable in 2008. There can be no assurance that the
        Company's forecast will approximate actual results, which are
        dependent upon many factors, including fuel prices and economic and
        industry conditions.
     -- American launched an initiative to become the clear airline of choice
        for passengers in the New York market, with its commitment
        demonstrated by additional routes, enhanced offers and promotions.
     -- American launched a new online booking tool on AA.com that makes it
        easier and more convenient for AAdvantage program members to redeem
        earned miles for travel.
     -- American announced that it began installing new personal video and
        audio entertainment devices in Business Class cabins on its 58 Boeing
        767-300 aircraft.


    Guidance for the Second Quarter and 2007

    Mainline and Consolidated Capacity

AMR expects its full-year mainline capacity to decrease by 1.8 percent in 2007 compared to 2006, with a 2.0 percent reduction in domestic capacity and a 0.9 percent decrease in international capacity. On a consolidated basis, AMR expects full-year capacity to decrease by 1.5 percent in 2007 compared to 2006. The impact of weather-related cancellations that occurred in the first quarter is included in mainline and consolidated capacity forecasts for 2007.

AMR expects mainline capacity in the second quarter of 2007 to decrease by 3.1 percent year over year. It expects consolidated capacity to decrease by 2.9 percent in the second quarter of 2007 compared to the prior-year period.

Fuel Expense and Hedging

While the cost of jet fuel remains volatile, as of now AMR is planning for an average system price of $2.09 per gallon in the second quarter and $2.09 per gallon for all of 2007. AMR has 34 percent of its anticipated second quarter fuel consumption capped at an average crude equivalent of $65 per barrel (jet fuel equivalent of $2.04 per gallon), with 26 percent of its anticipated full-year consumption capped at an average crude equivalent of $63 per barrel (jet fuel equivalent of $1.96 per gallon). Consolidated consumption for the second quarter is expected to be 791 million gallons of jet fuel.

Mainline and Consolidated Unit Costs

AMR continues to target $300 million in incremental savings for 2007. It expects mainline unit costs excluding fuel to be 1.1 percent higher in 2007 versus 2006 while 2007 consolidated unit costs excluding fuel are expected to increase 1.6 percent year over year.

In the second quarter, mainline unit costs excluding fuel are expected to increase 2.8 percent year over year while consolidated unit costs excluding fuel are expected to increase 3.1 percent from the second quarter of 2006.

Following the weather impact in the first quarter, full-year mainline unit costs are expected to increase 1.6 percent in 2007 compared to 2006, while full-year consolidated unit costs are expected to increase 2.0 percent in 2007 compared to 2006.

For the second quarter, mainline unit costs are expected to increase 2.1 percent compared to the second quarter of 2006, while second quarter consolidated unit costs are expected to increase 2.1 percent compared to the second quarter of 2006.

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 March 31,
                                     -----------------------------    Percent
                                          2007            2006         Change
                                     -------------   -------------   ---------
    Revenues
        Passenger - American Airlines   $4,326          $4,244           1.9
                  - Regional Affiliates    558             569          (1.9)
        Cargo                              201             186           8.1
        Other revenues                     342             345          (0.9)
                                     -------------   -------------   ---------
          Total operating revenues       5,427           5,344           1.6
                                     -------------   -------------   ---------

    Expenses
      Wages, salaries and benefits       1,671           1,729          (3.4)
      Aircraft fuel                      1,410           1,473          (4.3)
      Other rentals and landing fees       329             316           4.1
      Depreciation and amortization        290             287           1.0
      Commissions, booking fees and
       credit card expense                 249             269          (7.4)
      Maintenance, materials and repairs   248             236           5.1
      Aircraft rentals                     151             146           3.4
      Food service                         127             124           2.4
      Other operating expenses             704             649           8.5
                                     -------------   -------------   ---------
        Total operating expenses         5,179           5,229          (1.0)
                                     -------------   -------------   ---------
    Operating Income                       248             115            *

    Other Income (Expense)
      Interest income                       77              53          45.3
      Interest expense                    (241)           (261)         (7.7)
      Interest capitalized                   9               7          28.6
      Miscellaneous - net                  (12)             (6)        100.0
                                     -------------   -------------   ---------
                                          (167)           (207)        (19.3)
                                     -------------   -------------   ---------

    Earnings (Loss) Before Income Taxes     81             (92)           *
    Income tax                             ---             ---          ---
    Net Income (Loss)                      $81            $(92)           *
                                     -------------   -------------   ---------

    Basic Earnings (Loss) Per Share      $0.35          $(0.49)
                                     -------------   -------------
                                     -------------   -------------
    Diluted Earnings (Loss) Per Share    $0.30          $(0.49)
                                     -------------   -------------

    Number of Shares Used in Computation
      Basic                                236             186
      Diluted                              298             186

    * Greater than 100%



                               AMR CORPORATION
                             OPERATING STATISTICS
                                 (Unaudited)

                                              Three Months Ended
                                                    March 31,
                                              -------------------  Percent
                                                2007        2006    Change
                                              --------    -------  --------
    American Airlines, Inc. Mainline Jet
     Operations
        Revenue passenger miles (millions)     32,575      33,015    (1.3)
        Available seat miles (millions)        41,691      42,752    (2.5)
        Cargo ton miles (millions)                524         521     0.6
        Passenger load factor                    78.1%       77.2%    0.9 pts.
        Passenger revenue yield per
         passenger mile (cents)                 13.28       12.85     3.3
        Passenger revenue per available seat
         mile (cents)                           10.38        9.93     4.5
        Cargo revenue yield per ton mile
         (cents)                                38.36       35.65     7.6
        Operating expenses per available
         seat mile, excluding Regional
         Affiliates (cents) (A)                 10.91       10.81     0.9
        Fuel consumption (gallons, in
         millions)                                692         705    (1.8)
        Fuel price per gallon (cents)           184.2       189.0    (2.5)

    Regional Affiliates
        Revenue passenger miles (millions)      2,262       2,277    (0.7)
        Available seat miles (millions)         3,274       3,257     0.5
        Passenger revenue yield per
         passenger mile (cents)                 24.64       24.97    (1.3)
        Passenger revenue per available seat
         mile (cents)                           17.03       17.46    (2.5)
        Passenger load factor                    69.1 %      69.9 %  (0.8)pts.

    AMR Corporation
      Average Equivalent Number of Employees
        American Airlines                      71,500      73,200
        Other                                  13,600      13,400
                                              --------   ---------
             Total                             85,100      86,600
                                              ========   =========

    (A) Excludes $668 million and $654 million of expense incurred related to
        Regional Affiliates in 2007 and 2006, respectively.



    OPERATING STATISTICS BY REGIONAL ENTITY


                                       Three Months Ended March 31, 2007
    American Airlines, Inc.    -----------------------------------------------
    Entity Results               RASM(A)      Y-O-Y       ASMs(B)       Y-O-Y
                                (cents)       Change    (billions)     Change
                               ----------   ---------   ----------   ---------

    DOT Domestic                 10.19          1.0%       26.8         (3.1)%
    International                10.71         11.3        14.9         (1.4)
       DOT Latin America         10.54         10.3         7.8          1.3
       DOT Atlantic               9.94          9.7         5.4         (2.1)
       DOT Pacific                9.29         19.3         1.7        (10.5)

    (A) Revenue per Available Seat Mile
    (B) Available Seat Miles



                                        Three Months Ended March 31, 2007
    American Airlines, Inc.    -----------------------------------------------
    Entity Results                Load       Y-O-Y
                                 Factor      Change       Yield       Y-O-Y
                                 (pts)       (pts)       (cents)      Change
                               ----------   ---------   ----------   ---------

    DOT Domestic                  79.6        0.5        12.80         0.4 %
    International                 75.4        1.8        14.19         8.7
       DOT Latin America          75.9        1.4        15.21         7.3
       DOT Atlantic               72.8       (0.3)       13.65        10.2
       DOT Pacific                82.1        7.3        11.32         8.7



                               AMR CORPORATION
                      NON-GAAP AND OTHER RECONCILIATIONS
                                 (Unaudited)


    American Airlines, Inc. Mainline Jet          Three Months Ended March 31,
     Operations                                   ----------------------------
    (in millions, except as noted)                     2007            2006
                                                  --------------  ------------

    Total operating expenses as reported              $5,218          $5,275
    Less: Operating expenses incurred related to
     Regional                                            668             654
                                                  --------------  ------------
    Affiliates
    Operating expenses, excluding expenses incurred   $4,550          $4,621
    related to Regional Affiliates
    American mainline jet operations available
     seat miles                                       41,691          42,752
                                                  --------------  ------------
    Operating expenses per available seat mile,
     excluding Regional Affiliates (cents)             10.91           10.81
                                                  ==============  ============
    Operating expenses, excluding expenses
     incurred related to Regional Affiliates          $4,550          $4,621
    Less:  Fuel expense                                1,275           1,332
                                                  --------------  ------------
    Operating expenses, excluding expenses incurred
     related to Regional Affiliates and fuel expense  $3,275          $3,289
    American mainline jet operations available
     seat miles                                       41,691          42,752
                                                  --------------  ------------
    Operating expenses per available seat mile,
     excluding Regional Affiliates
     and fuel expense (cents)                           7.86            7.69
                                                  ==============  ============
    Percent change                                       2.2 %

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
    Calculation of Net Debt
                                                           As of March 31
                                                     -------------------------
    (in millions, except as noted)                       2007           2006
                                                     -----------   -----------

    Current and long-term debt                        $11,885        $13,340
    Current and long-term capital lease obligations       875          1,009
    Principal amount of certain airport facility
     tax-exempt bonds and the present value
     of aircraft operating lease obligations            4,775          5,350
                                                     -----------   -----------
                                                       17,535         19,700
    Less:  Unrestricted cash and short-term
     investments                                        5,383          4,268
                                                     -----------   -----------
    Net Debt                                          $12,152        $15,432
                                                     ===========   ===========




    American Airlines, Inc. Mainline Jet                   Estimate for
     Operations                                        Year Ended December 31,
                                                     -------------------------
    (in millions, except as noted)                      2007            2006
                                                     -----------   -----------
    Operating expenses per available seat mile,
     excluding                                         11.08           10.90
    Regional Affiliates (cents)
    Less: Fuel expense per available seat mile          3.42            3.32
                                                     -----------   -----------
    Operating expenses per available seat mile,
     excluding                                          7.66            7.58
                                                     ===========   ===========
      Regional Affiliates and fuel expense (cents)

    Percent change                                       1.1 %




    American Airlines, Inc. Mainline Jet                   Estimate for
     Operations                                    Three Months Ended June 30,
                                                   ---------------------------
    (in millions, except as noted)                      2007           2006
                                                   -------------   -----------

    Operating expenses per available seat mile,
     excluding                                         11.10           10.88
    Regional Affiliates (cents)
    Less: Fuel expense per available seat mile          3.48            3.47
                                                   -------------   -----------
    Operating expenses per available seat mile,
     excluding Regional Affiliates
     and fuel expense (cents)                           7.62            7.41
                                                   =============   ===========
    Percent change                                       2.8 %




    AMR                                                    Estimate for
                                                      Year Ended December 31,
                                                     -------------------------
    (in millions, except as noted)                      2007            2006
                                                     -----------   -----------

    Operating expenses per available seat mile
     (cents)                                           11.69           11.46
    Less: Fuel expense per available seat mile          3.51            3.41
                                                     -----------   -----------
    Operating expenses per available seat mile,
     excluding Regional Affiliates
     and fuel expense (cents)                           8.18            8.05
                                                     ===========   ===========
    Percent change                                       1.6 %



    AMR                                                    Estimate for
                                                   Three Months Ended June 30,
                                                   ---------------------------
    (in millions, except as noted)                     2007            2006
                                                   -------------   -----------

    Operating expenses per available seat mile
     (cents)                                           11.69           11.45
    Less: Fuel expense per available seat mile          3.55            3.56
                                                   -------------   -----------
    Operating expenses per available seat mile,
     excluding Regional Affiliates
     and fuel expense (cents)                           8.14            7.89
                                                   =============   ===========
    Percent change                                       3.1 %

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.

Current AMR Corp. news releases can be accessed on the Internet.

                      The address is:  http://www.aa.com
SOURCE  AMR Corporation
    -0-                             04/18/2007
    /NOTE TO EDITORS:  A live Webcast reporting first quarter results will be
broadcast on the Internet on April 18 at 2 p.m. EDT.  [Windows Media Player
required for viewing]
    AMR's Chairman and Chief Executive Officer, Gerard Arpey, and its
Executive Vice President and Chief Financial Officer, Thomas Horton, will make
a presentation to analysts during a teleconference on Wednesday, April 18, at
2 p.m. EDT.  Following the analyst call, they will hold a question-and-answer
conference call for media.  Reporters interested in listening to the
presentation or participating in the media Q&A should call 817-967-1577./
    /CONTACT:  Andy Backover, 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, Inc.
ST:  Texas
IN:  AIR TRA LEI
SU:  ERN ERP CCA

AH-JP
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9084 04/18/2007 11:01 EDT http://www.prnewswire.com