The recent upgrade on AMR Corp. and subsidiary American Airlines Inc. reflects improving earnings and cash flow prospects, driven by better revenue generation and ongoing cost-cutting efforts, which have more than offset the effect of high fuel prices. In addition, AMR recently bolstered its liquidity with a $400 million equity offering that supplements $4.3 billion of unrestricted cash at March 31, 2006. In the first quarter of 2006, accelerating revenue gains (passenger revenue per available seat mile +10.8%) were sufficient to more than offset 34% higher fuel costs and allow a much reduced net loss: $92 million, versus a $231 million net loss (before a nonrecurring excise tax refund) in the like period of 2005. Reductions in capacity by bankrupt
