AMR Corporation announces first round of capacity reductions

AMR announced the first round of reductions to its flight schedule as part of its previously announced plans to reduce capacity in an effort to significantly reduce costs and create a more sustainable supply-and-demand balance in the market. The actions come in the face of skyrocketing fuel prices and a softening economy. To effect these changes, AMR plans to retire 40-45 mainline aircraft (mostly MD-80s and some Airbus A300s) and 35-40 regional jets. In an effort to significantly reduce costs, American Eagle also will retire its Saab fleet by the end of the year.

The initial changes to the flight schedule include, but are not limited to:

— Discontinuing its Chicago – Buenos Aires service effective Sept. 3.

— Discontinuing its Chicago – Honolulu service Jan. 5, 2009. Between

September 3, 2008, and Jan. 5, 2009, American will operate

Chicago – Honolulu service only on peak demand days.

— Discontinuing its Boston – San Diego service effective Sept. 3.

— Discontinue its New York JFK – London Stansted service effective July 2.

— Restructuring American and American Eagle operations at San Juan,

Puerto Rico beginning in September. This round of reductions will

affect American and American Eagle flights originating from San Juan to

the United States and various islands in the Caribbean.

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