Solid to dominant positions in major markets served: domestic U.S., trans-Atlantic routes, Latin American routes; and Above-average share of business traffic, due to extensive route network and the industry's largest frequent flyer program membership. 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 High operating costs, including high labor costs. On Feb. 28, 2003, Standard&Poor's Ratings Services lowered its ratings for AMR Corp. and subsidiary American Airlines Inc., and revised the CreditWatch implications on those ratings to developing from negative. The downgrade reflected continuing heavy losses and diminishing liquidity, with the potential for a voluntary bankruptcy filing by midyear if American is not
