Adequate near-term liquidity, with $4.4 billion of unrestricted cash and short-term investments forecast for Sept. 30, 2008, and some assets available for collateral (in contrast to most other large U.S. airlines); and Largest U.S. airline, with substantial market positions in the domestic market, U.S.-U.K. routes, and U.S.-Latin America routes. Participation in the price-competitive, cyclical, and high operating leverage U.S. passenger airline industry; Poor near-term U.S. airline industry outlook, due to high fuel prices and likely recession; A heavy (though declining) burden of debt, leases, and underfunded retiree liability; and A large portion of American Airlines Inc.'s narrow-body fleet consists of older and less fuel-efficient MD80 series aircraft, requiring substantial investment to replace. Standard&Poor's Ratings Services' ratings on Fort
