UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION

                     Washington, D. C. 20549

                          _____________

                            FORM 8-K

                         CURRENT REPORT

             Pursuant to Section 13 or 15(d) of the

                 Securities Exchange Act of 1934


Date of earliest event
  reported:  March 30, 2007


                     American Airlines, Inc.
     (Exact name of registrant as specified in its charter)


        Delaware                   1-2691                13-1502798
 (State of Incorporation) (Commission File Number)     (IRS Employer
                                                     Identification No.)


4333 Amon Carter Blvd.      Fort Worth, Texas              76155
 (Address of principal executive offices)                (Zip Code)


                            (817) 963-1234
                    (Registrant's telephone number)



   (Former name or former address, if changed since last report.)



Check  the  appropriate  box below if  the  Form  8-K  filing  is
intended to simultaneously satisfy the filing obligation  of  the
registrant under any of the following provisions:

[ ]  Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))



Item 8.01.  Other Events.

American Airlines, Inc. is filing herewith a press release issued
by  its parent corporation, AMR Corporation, on March 30, 2007 as
Exhibit  99.1, which is included herein.  This press release  was
issued to provide an update on actions taken in the first quarter
of  2007  as part of AMR Corporation's efforts to strengthen  its
balance sheet.








                            SIGNATURE



     Pursuant to the requirements of the Securities Exchange  Act
of  1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.


                                        American Airlines, Inc.



                                        /s/ Kenneth W. Wimberly
                                        Kenneth W. Wimberly
                                        Corporate Secretary



Dated:  March 30, 2007
                                        Exhibit 99.1

                              CONTACT:       Andy Backover
                                   	     Corporate Communications
                                             Fort Worth, Texas
                                             817-967-1577
                                             corp.comm@aa.com

FOR RELEASE:  Friday, March 30, 2007

                AMR CORPORATION CONTINUES EFFORTS
                 TO STRENGTHEN ITS BALANCE SHEET

  COMPANY PAYS DOWN $285 MILLION REVOLVING CREDIT FACILITY AND
    PREPAYS $79 MILLION OF AIRCRAFT DEBT; PROVIDES UPDATE ON
                  $350 MILLION BOND REFINANCING

ACTIONS TO RESULT IN APPROXIMATELY $15 MILLION OF ANNUAL NET INTEREST
                             SAVINGS

     FORT WORTH, Texas - AMR Corp., the parent company of
American Airlines, Inc., today provided an update on actions
taken in the first quarter of 2007 as part of its ongoing efforts
to strengthen its balance sheet and build a stronger financial
foundation.
     AMR said that American Airlines has paid in full the $285
million principal balance of its senior secured revolving credit
facility, which had been fully drawn since its establishment in
December 2004. AMR's $444 million term loan facility remains
outstanding.
     The Company said that the revolving credit facility may be
redrawn, subject to certain conditions, and repaid from time to
time depending on various factors, such as economic and industry
conditions and the Company's financial condition.
     AMR also said that its wholly-owned subsidiary, American
Eagle Airlines, Inc., has prepaid $79 million in principal amount
of aircraft debt. The prepayment, which occurred in February, is
incremental to AMR's $1.3 billion in scheduled principal payments
in 2007.
     AMR anticipates ending the first quarter of 2007 with
approximately $5.8 billion in cash and short-term investments,
including a restricted balance of nearly $500 million,
compared to a cash and short-term investment balance of $4.8
billion, including a restricted balance of $510 million, in the
first quarter of 2006.
     AMR also said that it expects to complete by mid-April the
refinancing of $350 million in municipal bonds that originally
were issued in 1990 to help fund the development of American's
Alliance Maintenance and Engineering Base in Fort Worth, Texas.
The closing of the transaction is subject to certain government
approvals. The refinanced bonds, to be issued by AllianceAirport
Authority, Inc., will have a blended interest rate of 5.46
percent, down from a rate of 7.5 percent in the current bonds,
and a final maturity of Dec. 1, 2029.
     AMR estimates that by paying down the revolving credit
facility balance, prepaying the aircraft debt and refinancing the
maintenance facility bonds, as described above, it will eliminate
approximately $15 million of its annual net interest expense.
     "We believe that these actions illustrate our continued
progress in strengthening our balance sheet, which is an
important component of our Turnaround Plan that has helped to
position our company for long-term success," said Thomas W.
Horton, Executive Vice President of Finance and Planning and
Chief Financial Officer of AMR. "While there is more work to do,
we are building a stronger company by reducing debt and
increasing liquidity while continuing to find ways to grow
revenue and reduce costs."
     Other examples of AMR's balance sheet improvement include:

  -  AMR has raised more than $1.1 billion through three equity
     issuances in the past 17 months, including the sale of 13 million
     new shares in January that raised approximately $500 million.
  -  AMR reduced its total debt, which includes the principal
     amount of airport facility tax-exempt bonds and the present value
     of aircraft operating lease obligations, to $18.4 billion at the
     end of the fourth quarter of 2006, compared to $20.1 billion a
     year earlier. The Company expects to end the first quarter of
     2007 with total debt of approximately $17.6 billion.
  -  AMR reduced its net debt, which is defined as total debt
     less unrestricted cash and short-term investments, from $16.3
     billion at the end of 2005 to $13.6 billion at the end of 2006.
     The Company expects to end the first quarter of 2007 with net
     debt of approximately $12.3 billion.

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  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 on 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.  This  release
includes  forecasts  of total debt and net debt,  and  statements
regarding  the Company's liquidity, each of which is  a  forward-
looking  statement. 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  likely  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, 2006.




                         AMR CORPORATION
               NON-GAAP AND OTHER RECONCILIATIONS
                           (Unaudited)
AMR Corporation                               Est. as of
Calculation of Net Debt                        March 31    As of December 31
(in millions, except as noted)                   2007*      2006       2005

Current and long-term debt                      $11,900    $12,463    $13,607
Current and long-term capital
lease obligations                                   900        927      1,088
Principal amount of certain airport facility
tax-exempt bonds and the present value of         4,800      4,973      5,435
aircraft operating lease obligations
                                                 17,600     18,363     20,130
Less: Unrestricted cash and short-term            5,300      4,715      3,814
investments

Net Debt				        $12,300    $13,648    $16,316



Note:  The Company believes the Net Debt metric assists investors
in understanding changes in the Company's liquidity and its
progress in building a financial foundation under the Company's
Turnaround Plan.
* The Company's estimates could differ from actual results.

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