Solid to dominant positions in major markets served: domestic U.S., trans-Atlantic routes, Latin American routes; Above-average share of business traffic, due to extensive route network and the industry's largest frequent flyer program membership; and Satisfactory access to liquidity in the form of cash, available bank lines, and unencumbered aircraft for collateral. Participation in the price-competitive, cyclical, and high operating leverage U.S. passenger airline industry; Heavy losses incurred in 2001 and 2002, eroding financial strength; and Relatively high labor costs, with American's pilot contract currently open for renegotiation. Ratings of AMR Corp. and its principal operating subsidiary, American Airlines Inc., were lowered to current levels June 28, 2002, and removed from CreditWatch, where they were placed Sept. 13, 2001 (along with
