NEW YORK (Standard&Poor's) July 16, 2003--AMR Corp. (B-/Negative/--) reported a second-quarter pretax loss, before special items (mostly a credit for federal airline aid) of $357 million, about half the $720 million pretax loss in the second quarter of 2002. Standard&Poor's Ratings Services said its ratings on AMR and unit American Airlines Inc. (B-/Negative/--), which were raised to the current level June 20, 2003, and outlook are not affected. Operating results improved sharply during the quarter, driven by a recovery in traffic as the Iraq war wound down and phasing in of labor cost concessions. Cost per available seat mile improved sharply for American, to 9.5 cents in June from about 11 cents in April. Still, the
