AMR Corp. and its American Airlines Inc. subsidiary, like other U.S. airlines, face weak passenger demand, which resulted in a $390 million second quarter net loss (including about $70 million of nonrecurring charges). AMR Corp. had $2.8 billion of unrestricted cash as of June 30, 2009, an amount likely to decline during the seasonally weaker third and fourth quarters. We are placing our ratings both companies, including the 'B-' corporate credit ratings on each, on CreditWatch with negative implications. On July 22, 2009, Standard&Poor's Ratings Services placed its ratings, including the 'B-' corporate credit ratings, on AMR Corp. and its American Airlines Inc. subsidiary, on CreditWatch with negative implications, due to concerns about revenue generation and liquidity. AMR
