On April 10, 2007, Standard&Poor's Ratings Services affirmed its ratings on AMR Corp. (B/Positive/B-2) and subsidiary American Airlines Inc. (B/Positive/--). The rating outlook was revised to positive from stable. The positive rating outlook reflects ongoing earnings, cash flow, and balance sheet improvements that, if sustained could support an upgrade over the next year. Ratings on Fort Worth, Texas-based AMR and American reflect participation in the competitive, cyclical, and capital-intensive airline industry; erosion of financial strength by substantial losses during 2001-2005; and a heavy debt and pension burden. Satisfactory liquidity, with $4.7 billion of unrestricted cash and short-term investments at Dec. 31, 2006, and an improving earnings trend, are positives. American Airlines is the world's largest airline, measured by
