Solid-to-dominant positions in major markets served: domestic U.S., trans-Atlantic routes, Latin American routes; and Improved cost structure, as a result of substantial labor concessions. Participation in the price-competitive, cyclical, and high operating leverage U.S. passenger airline industry; Substantial losses incurred since 2001, eroding financial strength; Heavy debt, lease, and unfunded retiree liability burden; and Limited financial flexibility. The 'B-' corporate credit ratings on AMR Corp. and American Airlines Inc. reflect a weak financial profile following several years of huge losses, a heavy debt and pension burden, and participation in the competitive, cyclical, and capital-intensive airline industry. An improved cost structure following labor concessions and fairly good liquidity are positives. AMR's American Airlines Inc. subsidiary is the world's largest airline, with
