|                                    |
|-----------------------------------------|
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|                                    |
| UNITED      STATES                      |
| SECURITIES      AND EXCHANGE COMMISSION |

| American      Airlines, Inc.                               |
|------------------------------------------------------------|
| (Exact      name of registrant as specified in itscharter) |

| Delaware                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                | 13-1502798                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|-------------------------------------------|
| (State      or other jurisdiction of      incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                | (I.R.S.      Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |                                      |
| 4333      Amon Carter Blvd.Fort      Worth, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                |  76155                               |
| (Address      of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                | (Zip      Code)                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |                                      |
| Registrant's      telephone number, including area code                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (817)      963-1234 |                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |                                      |
| Not      Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (Former      name, former address and former fiscal year , if changed since last      report)                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days.   þ  Yes   ¨  No                                                              |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, or a non-accelerated filer.  See definition      of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the      Exchange Act.   ¨ Large Accelerated      Filer     ¨ Accelerated      Filer     þ Non-accelerated      Filer          |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act).  ¨      Yes  þ No                                                                                                                                                                                                                                                                                                                                                           |
| Indicate      the number of shares outstanding of each of the issuer's classes of common      stock, as of the latest practicable date.                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Common      Stock, $1 par value - 1,000 shares as of July 14, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

|                                                               |   |                    |   |   |                  |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                               |   | Three      Months Ended |   |   | Six      Months Ended |   |
|                                                               |   | June      30,           |   |   | June      30,         |   |
|                                                               |   | 2008                    |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Revenues                                                           |   |                    |   |   |                  |   |   |   |   |   |   |   |
|     Passenger                                  |   | $                       | 4,735  |   |                  | $      | 4,525 |   |   | $ | 9,114 |   |   | $ | 8,701 |   |
|     Regional      Affiliates                   |   |                    | 684    |   |                  |   | 658 |   |   |   | 1,264 |   |   |   | 1,216 |   |
|     Cargo                                      |   |                    | 233    |   |                  |   | 200 |   |   |   | 448 |   |   |   | 401 |   |
|     Other      revenues                        |   |                    | 503    |   |                  |   | 470 |   |   |   | 1,001 |   |   |   | 937 |   |
|       Total      operating revenues  |   |                    | 6,155  |   |                  |   | 5,853 |   |   |   | 11,827 |   |   |   | 11,255 |   |
|                                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                           |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|   Aircraft      fuel                                     |   |                    | 2,182  |   |                  |   | 1,479 |   |   |   | 4,039 |   |   |   | 2,754 |   |
|   Wages,      salaries and benefits                      |   |                    | 1,500  |   |                  |   | 1,496 |   |   |   | 2,984 |   |   |   | 3,007 |   |
|   Regional      payments to AMR Eagle                    |   |                    | 642    |   |                  |   | 579 |   |   |   | 1,227 |   |   |   | 1,123 |   |
|   Other      rentals and landing fees                    |   |                    | 287    |   |                  |   | 284 |   |   |   | 581 |   |   |   | 585 |   |
|   Depreciation      and amortization                     |   |                    | 276    |   |                  |   | 248 |   |   |   | 536 |   |   |   | 490 |   |
|   Commissions, booking      fees and credit card expense |   |                    | 259    |   |                  |   | 268 |   |   |   | 516 |   |   |   | 517 |   |
|   Maintenance,      materials and repairs                |   |                    | 257    |   |                  |   | 208 |   |   |   | 513 |   |   |   | 403 |   |
|   Aircraft      rentals                                  |   |                    | 123    |   |                  |   | 149 |   |   |   | 247 |   |   |   | 297 |   |
|   Food      service                                      |   |                    | 131    |   |                  |   | 130 |   |   |   | 256 |   |   |   | 255 |   |
|   Special      charges                                   |   |                    | 1,163  |   |                  |   | - |   |   |   | 1,163 |   |   |   | - |   |
|   Other      operating expenses                          |   |                    | 674    |   |                  |   | 618 |   |   |   | 1,338 |   |   |   | 1,247 |   |
|     Total      operating expenses              |   |                    | 7,494  |   |                  |   | 5,459 |   |   |   | 13,400 |   |   |   | 10,678 |   |
|                                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss)                                       |   |                    | (1,339 | )      |                  |   | 394 |   |   |   | (1,573 | ) |   |   | 577 |   |
|                                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense)                                        |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|   Interest      income                                   |   |                    | 46     |   |                  |   | 84 |   |   |   | 98 |   |   |   | 160 |   |
|   Interest      expense                                  |   |                    | (137   | )      |                  |   | (182 | ) |   |   | (282 | ) |   |   | (369 | ) |
|   Interest      capitalized                              |   |                    | 8      |   |                  |   | 5 |   |   |   | 13 |   |   |   | 14 |   |
|   Related      party interest - net                      |   |                    | (12    | )      |                  |   | (21 | ) |   |   | (30 | ) |   |   | (41 | ) |
|   Miscellaneous      - net                               |   |                    | (29    | )      |                  |   | (9 | ) |   |   | (33 | ) |   |   | (19 | ) |
|                                                               |   |                    | (124   | )      |                  |   | (123 | ) |   |   | (234 | ) |   |   | (255 | ) |
|                                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) Before Income Taxes                             |   |                    | (1,463 | )      |                  |   | 271 |   |   |   | (1,807 | ) |   |   | 322 |   |
| Income      tax                                                    |   |                    | -      |   |                  |   | - |   |   |   | - |   |   |   | - |   |
| Net      Earnings (Loss)                                           |   | $                       | (1,463 | )      |                  | $      | 271 |   |   | $ | (1,807 | ) |   | $ | 322 |   |

----

|                                                                               |   | June      30, |   |   | December      31, |   |
|------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                                                               |   | 2008          |   |   | 2007              |   |
| Assets                                                                             |   |          |   |   |              |   |
| Current      Assets                                                                |   |          |   |   |              |   |
|   Cash                                                                   |   | $             | 281    |   |              | $      | 145 |   |
|   Short-term      investments                                            |   |          | 4,669  |   |              |   | 4,286 |   |
|   Restricted      cash and short-term investments                        |   |          | 434    |   |              |   | 428 |   |
|   Receivables,      net                                                  |   |          | 1,139  |   |              |   | 1,003 |   |
|   Inventories,      net                                                  |   |          | 643    |   |              |   | 544 |   |
|   Fuel      derivative contracts                                         |   |          | 1,282  |   |              |   | 416 |   |
|   Other      current assets                                              |   |          | 277    |   |              |   | 204 |   |
|     Total      current assets                                  |   |          | 8,725  |   |              |   | 7,026 |   |
|                                                                               |   |          |   |   |              |   |   |   |
| Equipment      and Property                                                        |   |          |   |   |              |   |   |   |
|   Flight      equipment, net                                             |   |          | 10,177 |   |              |   | 11,142 |   |
|   Other      equipment and property, net                                 |   |          | 2,343  |   |              |   | 2,366 |   |
|   Purchase      deposits for flight equipment                            |   |          | 481    |   |              |   | 239 |   |
|                                                                               |   |          | 13,001 |   |              |   | 13,747 |   |
|                                                                               |   |          |   |   |              |   |   |   |
| Equipment      and Property Under Capital Leases                                   |   |          |   |   |              |   |   |   |
|   Flight      equipment, net                                             |   |          | 340    |   |              |   | 686 |   |
|   Other      equipment and property, net                                 |   |          | 67     |   |              |   | 76 |   |
|                                                                               |   |          | 407    |   |              |   | 762 |   |
|                                                                               |   |          |   |   |              |   |   |   |
| Route      acquisition costs and airport operating and gate lease rights,      net |   |
|                                                                               |   |          | 1,103  |   |              |   | 1,135 |   |
| Other      assets                                                                  |   |          | 2,677  |   |              |   | 2,715 |   |
|                                                                               |   | $             | 25,913 |   |              | $      | 25,385 |   |
| Liabilities      and Stockholders’ Equity                                    |   |          |   |   |              |   |   |   |
| Current      Liabilities                                                           |   |          |   |   |              |   |   |   |
|   Accounts      payable                                                  |   | $             | 1,293  |   |              | $      | 1,083 |   |
|   Accrued      liabilities                                               |   |          | 2,666  |   |              |   | 2,128 |   |
|   Air      traffic liability                                             |   |          | 4,889  |   |              |   | 3,986 |   |
|   Payable      to affiliates, net                                        |   |          | 1,727  |   |              |   | 1,610 |   |
|   Current      maturities of long-term debt                              |   |          | 579    |   |              |   | 382 |   |
|   Current      obligations under capital leases                          |   |          | 133    |   |              |   | 147 |   |
|     Total      current liabilities                             |   |          | 11,287 |   |              |   | 9,336 |   |
|                                                                               |   |          |   |   |              |   |   |   |
| Long-term      debt, less current maturities                                       |   |          | 6,304  |   |              |   | 6,600 |   |
| Obligations      under capital leases, less current obligations                    |   |          | 622    |   |              |   | 680 |   |
| Pension      and postretirement benefits                                           |   |          | 3,670  |   |              |   | 3,620 |   |
| Other      liabilities, deferred gains and deferred credits                        |   |          | 3,612  |   |              |   | 3,705 |   |
|                                                                               |   |          |   |   |              |   |   |   |
| Stockholders’      Equity                                                    |   |          |   |   |              |   |   |   |
|   Common      stock                                                      |   |          | -      |   |              |   | - |   |
|   Additional      paid-in capital                                        |   |          | 3,865  |   |              |   | 3,862 |   |
|   Accumulated      other comprehensive income                            |   |          | 1,338  |   |              |   | 560 |   |
|   Accumulated      deficit                                               |   |          | (4,785 | )      |              |   | (2,978 | ) |
|                                                                               |   |          | 418    |   |              |   | 1,444 |   |
|                                                                               |   | $             | 25,913 |   |              | $      | 25,385 |   |

|                                                                                       |   | Six      Months Ended June 30, |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                       |   | 2008                           |   |   | 2007 |   |
|  Net      Cash Provided by Operating Activities                                       |   | $                              | 1,016  |   |   | $ | 1,534 |   |
|                                                                                       |   |                           |   |   |   |   |   |   |
| Cash      Flow from Investing Activities:                                                  |   |                           |   |   |   |   |   |   |
|   Capital      expenditures                                                      |   |                           | (458   | ) |   |   | (337 | ) |
|   Net      increase in short-term investments                                    |   |                           | (383   | ) |   |   | (1,080 | ) |
|   Net      increase in restricted cash and short-term investments                |   |                           | (6     | ) |   |   | (2 | ) |
|   Proceeds      from sale of equipment and property                              |   |                           | 7      |   |   |   | 20 |   |
|   Other                                                                          |   |                           | 8      |   |   |   | 4 |   |
|         Net      cash used by investing activities |   |                           | (832   | ) |   |   | (1,395 | ) |
|                                                                                       |   |                           |   |   |   |   |   |   |
| Cash      Flow from Financing Activities:                                                  |   |                           |   |   |   |   |   |   |
|   Payments      on long-term debt and capital lease obligations                  |   |                           | (270   | ) |   |   | (610 | ) |
| Proceeds      from:                                                                        |   |                           |   |   |   |   |   |   |
|   Issuance      of long-term debt                                                |   |                           | 70     |   |   |   | - |   |
|   Sale      leaseback transactions                                               |   |                           | 151    |   |   |   | - |   |
|   Reimbursement      from construction reserve account                           |   |                           | -      |   |   |   | 59 |   |
|   Funds      transferred from affiliates, net                                    |   |                           | 1      |   |   |   | 505 |   |
|         Net      cash used by financing activities |   |                           | (48    | ) |   |   | (46 | ) |
|                                                                                       |   |                           |   |   |   |   |   |   |
| Net      increase in cash                                                                  |   |                           | 136    |   |   |   | 93 |   |
| Cash      at beginning of period                                                           |   |                           | 145    |   |   |   | 120 |   |
|                                                                                       |   |                           |   |   |   |   |   |   |
| Cash      at end of period                                                                 |   | $                              | 281    |   |   | $ | 213 |   |
|                                                                                       |   |                           |   |   |   |   |   |   |

----

| 1.   | The      accompanying unaudited condensed consolidated financial statements have      been prepared in accordance with generally accepted accounting principles      for interim financial information and with the instructions to Form 10-Q      and Article 10 of Regulation S-X.  Accordingly, they do not      include all of the information and footnotes required by generally      accepted accounting principles for complete financial statements. In the      opinion of management, these financial statements contain all adjustments,      consisting of normal recurring accruals, necessary to present fairly the      financial position, results of operations and cash flows for the periods      indicated. Results of operations for the periods presented herein are not      necessarily indicative of results of operations for the entire year.      American Airlines, Inc. (American or the Company) is a wholly owned      subsidiary of AMR Corporation (AMR). The condensed consolidated financial      statements also include the accounts of variable interest entities for      which the Company is the primary beneficiary. For further information,      refer to the consolidated financial statements and footnotes thereto      included in the American Airlines, Inc. Annual Report on Form 10-K for the      year ended December 31, 2007 (2007 Form 10-K). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Beginning      in the first quarter of 2008, American reclassified revenues associated      with the marketing component of AAdvantage program mileage sales from      Passenger revenue to Other revenue.  As a result of this change,      approximately $148 million and $298 million of revenue was reclassified      from Passenger revenue to Other revenue for the three and six months ended      June 30, 2007, respectively, to conform to the current      presentation. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | As      of June 30, 2008, the Company had commitments to acquire 33 Boeing 737-800      aircraft in 2009, seven Boeing 737-800 aircraft in 2010 and an aggregate      of 20 Boeing 737 aircraft and seven Boeing 777 aircraft in 2013 through      2016.  Payments will approximate $278 million in the remainder      of 2008, $682 million in 2009, $107 million in 2010, $102 million in 2011,      $310 million in 2012, and $1.3 billion for 2013 and beyond. These amounts      are net of purchase deposits currently held by the      manufacturer.  However, if as anticipated, the Company commits      to accelerating the delivery dates of a significant number of aircraft in      the future, a significant portion of the $1.7 billion commitment from 2011      and beyond will be accelerated into 2008, 2009 and 2010.  In      addition, any incremental aircraft orders will increase the Company’s      commitments. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Accumulated      depreciation of owned equipment and property at June 30, 2008 and December      31, 2007 was $8.6 billion and $10.5 billion,      respectively.  Accumulated amortization of equipment and      property under capital leases at June 30, 2008 and December 31, 2007 was      $590 million and $1.2 billion, respectively.  During the second      quarter of 2008, the Company recorded an impairment charge to write down      its McDonnell Douglas MD80 fleet and certain related long-lived assets to      their estimated fair values.  As a result $2.7 billion of      accumulated depreciation and amortization was eliminated as a new cost      basis was established for these aircraft. See Note 9 to the condensed      consolidated financial statements for more information regarding the      impairment charges. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.   | As      discussed in Note 7 to the consolidated financial statements in the 2007      Form 10-K, the Company has a valuation allowance against the full amount      of its net deferred tax asset. The Company currently provides a valuation      allowance against deferred tax assets when it is more likely than not that      some portion, or all of its deferred tax assets, will not be realized. The      Company’s deferred tax asset valuation allowance increased approximately      $336 million during the six months ended June 30, 2008 to $1.5 billion as      of June 30, 2008, including the impact of comprehensive loss for the six      months ended June 30, 2008 and changes from other    adjustments. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | As      of June 30, 2008, American had issued guarantees covering approximately      $1.1 billion of AMR’s unsecured debt.  In addition, as of June      30, 2008, AMR and American had issued guarantees covering approximately      $327 million of AMR Eagle’s secureddebt. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | In      September 2006, the Financial Accounting Standards Board (FASB) issued      Statement of Financial Accounting Standards No. 157 “Fair Value      Measurements” (SFAS 157).  SFAS 157 introduces a framework for      measuring fair value and expands required disclosure about fair value      measurements of assets and liabilities.  SFAS 157 for financial      assets and liabilities is effective for fiscal years beginning after      November 15, 2007, and the Company has adopted the standard for those      assets and liabilities as of January 1, 2008 and the impact of adoption      was not significant. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in      millions)                                |   | Fair Value Measurements as of June 30,      2008 |   |
|---------------------------------------------------|--------|--------------------------------------------------|--------|
| Description                                       |   | Total                                            |   |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |
|                                              |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Short      term investments 1                     |   | $                                                | 4,669  |   |   | $ | 1,477 |   |   | $ | 3,192 |   |   | $ | - |   |
| Restricted      cash and short-term investments 1 |   |                                             | 434    |   |   |   | 434 |   |   |   | - |   |   |   | - |   |
| Fuel      derivative contracts 1                  |   |                                             | 1,282  |   |   |   | - |   |   |   | 1,282 |   |   |   | - |   |
|                                              |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                             |   | $                                                | 6,385  |   |   | $ | 1,911 |   |   | $ | 4,474 |   |   | $ | - |   |
|                                              |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| 8.   | The      following tables provide the components of net periodic benefit cost for      the three and six months ended June 30, 2008 and 2007 (in      millions): |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | Pension      Benefits                |   |
|----------------------------------------------|--------|--------------------------------------|--------|
|                                         |   | Three      Months EndedJune      30, |   |   | Six      Months EndedJune      30, |   |
|                                         |   | 2008                                 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                         |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Components of net      periodic benefit cost |   |                                 |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Service      cost                            |   | $                                    | 81     |   |   | $ | 93 |   |   | $ | 162 |   |   | $ | 185 |   |
| Interest      cost                           |   |                                 | 171    |   |   |   | 168 |   |   |   | 342 |   |   |   | 336 |   |
| Expected      return on assets               |   |                                 | (197   | ) |   |   | (187 | ) |   |   | (395 | ) |   |   | (374 | ) |
| Amortization      of:                        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prior      service cost                      |   |                                 | 4      |   |   |   | 4 |   |   |   | 8 |   |   |   | 8 |   |
| Unrecognized      net loss                   |   |                                 | 1      |   |   |   | 6 |   |   |   | 1 |   |   |   | 13 |   |
|                                         |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      periodic benefit cost               |   | $                                    | 60     |   |   | $ | 84 |   |   | $ | 118 |   |   | $ | 168 |   |

|                                         |   | Retiree      Medical and Other Benefits |   |
|----------------------------------------------|--------|-----------------------------------------|--------|
|                                         |   | Three      Months EndedJune      30,    |   |   | Six      Months EndedJune      30, |   |
|                                         |   | 2008                                    |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                         |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Components of net      periodic benefit cost |   |                                    |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Service      cost                            |   | $                                       | 14     |   |   | $ | 18 |   |   | $ | 27 |   |   | $ | 35 |   |
| Interest      cost                           |   |                                    | 43     |   |   |   | 49 |   |   |   | 86 |   |   |   | 96 |   |
| Expected      return on assets               |   |                                    | (5     | ) |   |   | (5 | ) |   |   | (10 | ) |   |   | (9 | ) |
| Amortization      of:                        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prior      service cost                      |   |                                    | (3     | ) |   |   | (3 | ) |   |   | (7 | ) |   |   | (7 | ) |
| Unrecognized      net (gain) loss            |   |                                    | (6     | ) |   |   | (2 | ) |   |   | (12 | ) |   |   | (4 | ) |
|                                         |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      periodic benefit cost               |   | $                                       | 43     |   |   | $ | 57 |   |   | $ | 84 |   |   | $ | 111 |   |

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| 9.   | In      accordance with Statement of Financial Accounting Standards No. 144,      “Accounting for the Impairment or Disposal of Long-Lived Assets” (SFAS      144), the Company records impairment charges on long-lived assets used in      operations when events and circumstances indicate that the assets may be      impaired, the undiscounted cash flows estimated to be generated by those      assets are less than the carrying amount of those assets and the net book      value of the assets exceeds their estimated fair value. In May 2008, the      Company announced capacity reductions due to unprecedented high fuel costs      and the other challenges facing the industry.  In connection      with these capacity reductions, the Company concluded that a triggering      event had occurred and required a test for impairment.  As a      result of this test, the Company concluded the carrying value of its      McDonnell Douglas MD-80 fleet was no longer recoverable. Consequently,      during the second quarter of 2008, the Company recorded an impairment      charge of $1 billion to write down the McDonnell Douglas MD-80 fleet and      certain related long-lived assets to their estimated fair      values.  No portion of these impairment charges will result in      future cash expenditures.  All other fleet types were tested for      impairment but were concluded to be recoverable with projected      undiscounted cash flows or had fair values at levels above current      carrying value.  The McDonnell Douglas MD-80 aircraft will be      depreciated over their remaining useful lives averaging approximately five      years.  AMR Eagle also concluded that the carrying value of its      Embraer RJ-135 fleet was also no longer recoverable.  Based on      the terms of the capacity purchase agreement with AMR Eagle, American paid      AMR Eagle during the second quarter of 2008 for their $115 million      impairment charge related to the Embraer RJ-135 fleet which was recorded      as a component of special charges. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                      |   | Aircraft      Charges |       |   | Facility      Exit Costs |   |     | Employee      Charges |   |   | Capacity      Purchase Payment |   |   | Other  |    |   | Total  |   |
|-------------------------------------------------------------------------------------------|--------|-----------------------|------------|--------|--------------------------|--------|----------|-----------------------|--------|--------|--------------------------------|--------|--------|--------|---------|--------|--------|--------|
|  Remaining      accrual at      December 31,      2007 |   | $                     |  124  |   |                     | $      |  18 |                  |   | $      |  -                        |   |   | $      |  - |   |   | $      |  - |   |   | $ |  142 |   |
| Capacity      reduction charges                                                           |   |                  | 969        |   |                     |   | -        |                  |   |   | 54                             |   |   |   | 115     |   |   |   | 25 |   |   |   | 1,163 |   |
| Non-cash      charges                                                                     |   |                  | (      969 | )      |                     |   | -        |                  |   |   | -                              |   |   |   | -       |   |   |   | (25 | ) |   |   | (994 | ) |
| Adjustments                                                                               |   |                  | -          |   |                     |   | (5       | )                     |   |   | -                              |   |   |   | -       |   |   |   | - |   |   |   | (5 | ) |
| Payments                                                                                  |   |                  | (22        | )      |                     |   | -        |                  |   |   | -                              |   |   |   | (115    | )      |   |   | - |   |   |   | (137 | ) |
| Remaining      accrual at      June 30,2008                 |   | $                     | 102        |   |                     | $      | 13       |                  |   | $      | 54                             |   |   | $      | -       |   |   | $      | - |   |   | $ | 169 |   |

| 10. | The      Company includes changes in the fair value of certain derivative financial      instruments that qualify for hedge accounting and unrealized gains and      losses on available-for-sale securities in comprehensive income. For the      three month periods ended June 30, 2008 and 2007, comprehensive income      (loss) was $(840) million and $271 million, respectively, and for the six      month periods ended June 30, 2008 and 2007, comprehensive income (loss)      was $(1.0) billion and $394 million, respectively. Total comprehensive      income for the year ended December 31, 2007 was $2.3      billion.  The difference between net earnings (loss) and      comprehensive income (loss) for the three and six month periods ended June      30, 2008 and 2007 is due primarily to the accounting for the Company’s      derivative financial instruments.  Due to the current value of      the Company’s derivative contracts, some agreements with counterparties      require collateral to be deposited with the Company.  As of June      30, 2008 the collateral held in Short-term investments by AMR from such      counterparties was $835 million, an increase of $671 million from December      31, 2007, which is included in cash flows from      operations.  Ineffectiveness is inherent in hedging jet fuel      with derivative positions based in crude oil or other crude oil related      commodities.  As required by Statement of Financial Accounting      Standard No. 133, “Accounting for Derivative Instruments and Hedging      Activities”, the Company assesses, both at the inception of each hedge and      on an on-going basis, whether the derivatives that are used in its hedging      transactions are highly effective in offsetting changes in cash flows of      the hedged items.  In doing so, the Company uses a regression      model to determine the correlation of the change in prices of the      commodities used to hedge jet fuel (NYMEX Heating oil) to the change in      the price of jet fuel.  The Company also monitors the actual      dollar offset of the hedges’ market values as compared to hypothetical jet      fuel hedges.  The fuel hedge contracts are generally deemed to      be “highly effective” if the R-squared is greater than 80 percent and the      dollar offset correlation is within 80 percent to 125      percent.  The Company discontinues hedge accounting      prospectively if it determines that a derivative is no longer expected to      be highly effective as a hedge or if it decides to discontinue the hedging      relationship. |
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In 2007, American paid in full the$255 million principal balance of the Revolving Facility and as of June 30,2008, it remained undrawn.  American’s obligations under the CreditFacility are guaranteed by AMR.

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|                                     |   | Six      Months Ended June 30, 2008 |   |
|------------------------------------------|--------|-------------------------------------|--------|
|                                     |   | RASM(cents)                         |   |   | Y-O-YChange |   |   | ASMs      (billions) |   |   | Y-O-YChange |   |
|                                     |   |                                |   |   |   |   |   |   |   |   |   |   |
| DOT      Domestic                        |   |                                | 10.91  |   |   |   | 6.4 | % |   |   | 52.0 |   |   |   | (3.6 | )% |
| International                            |   |                                | 11.19  |   |   |   | 7.2 |   |   |   | 30.8 |   |   |   | 1.2 |   |
|    DOT      Latin America |   |                                | 11.91  |   |   |   | 9.1 |   |   |   | 15.5 |   |   |   | 3.2 |   |
|    DOT      Atlantic      |   |                                | 10.44  |   |   |   | 3.1 |   |   |   | 12.0 |   |   |   | (0.5 | ) |
|    DOT      Pacific       |   |                                | 10.51  |   |   |   | 11.9 |   |   |   | 3.3 |   |   |   | (1.6 | ) |

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| (in      millions) Operating      Expenses        |   | Six      Months EndedJune      30, 2008 |   |   | Change      from 2007 |   |   | Percentage      Change |   |   |
|--------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------|--------|--------|------------------------|--------|--------|
|                                                   |   |                                    |   |   |                  |   |   |                   |   |   |
| Aircraft      Fuel                                     |   | $                                       | 4,039  |   |                  | $      | 1,285  |                   |   |   | 46.7 | % | (a) |
| Wages,      salaries and benefits                      |   |                                    | 2,984  |   |                  |   | (23    | )                      |   |   | (0.8 | ) |   |
| Regional      payments to AMR Eagle                    |   |                                    | 1,227  |   |                  |   | 104    |                   |   |   | 9.3 |   |   |
| Other      rentals and landing fees                    |   |                                    | 581    |   |                  |   | (4     | )                      |   |   | (0.7 | ) |   |
| Depreciation      and amortization                     |   |                                    | 536    |   |                  |   | 46     |                   |   |   | 9.4 |   |   |
| Commissions,      booking fees and credit card expense |   |                                    | 516    |   |                  |   | (1     | )                      |   |   | (0.2 | ) |   |
| Maintenance,      materials and repairs                |   |                                    | 513    |   |                  |   | 110    |                   |   |   | 27.3 |   | (b) |
| Aircraft      rentals                                  |   |                                    | 247    |   |                  |   | (50    | )                      |   |   | (16.8 | ) |   |
| Food      service                                      |   |                                    | 256    |   |                  |   | 1      |                   |   |   | 0.4 |   |   |
| Special      charges                                   |   |                                    | 1,163  |   |                  |   | 1,163  |                   |   |   | * |   | (c) |
| Other      operating expenses                          |   |                                    | 1,338  |   |                  |   | 91     |                   |   |   | 7.3 |   |   |
| Total      operating expenses                          |   | $                                       | 13,400 |   |                  | $      | 2,722  |                   |   |   | 25.5 | % |   |

| (a)   | Aircraft      fuel expense increased primarily due to a 50.7 percent increase in the      Company’s price per gallon of fuel (net of the impact of fuel hedging)      offset by a 2.6 percent decrease in the Company’s fuel      consumption. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Maintenance,      materials and repairs expense increased due to a heavier workscope of      scheduled airframe maintenance overhauls, repair costs and volume, and      contractual engine repair rates, which are driven by aircraft      age. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Special      charges are related to a non-cash impairment charge of $1.0 billion to      write down the McDonnell Douglas MD-80 fleet, AMR Eagle’s $115 million      special charge and certain related long lived assets down to their      estimated fair values. This impairment charge was triggered by the record      increase in fuel prices over the last twelve months.  In      addition, the Company accrued $54 million for severance costs related to      the capacity reductions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                 |   | Six      Months EndedJune      30, |   |
|--------------------------------------|--------|------------------------------------|--------|
|                                 |   | 2008                               |   |   | 2007 |   |
| Revenues:                            |   |                               |   |   |   |   |
| Regional      Affiliates             |   | $                                  | 1,264  |   |   | $ | 1,216 |   |
| Other                                |   |                               | 56     |   |   |   | 49 |   |
|                                 |   | $                                  | 1,320  |   |   | $ | 1,265 |   |
|                                 |   |                               |   |   |   |   |   |   |
| Expenses:                            |   |                               |   |   |   |   |   |   |
| Payments      to Regional Affiliates |   | $                                  | 1,350  |   |   | $ | 1,222 |   |
| Special      Charges                 |   |                               | 115    |   |   |   | - |   |
| Other      incurred expenses         |   |                               | 160    |   |   |   | 156 |   |
|                                 |   | $                                  | 1,625  |   |   | $ | 1,378 |   |

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| 10.1  |  Amended      and Restated Career Performance Shares Deferred Stock Award Agreement      dated as of July 25, 2005 between the Company and Gerard J.      Arpey |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2  |  Purchase      Agreement No. 1977 Supplement No. 27 dated May 14,  2008 |
|------------|------------------------------------------------------------------------------|

| 10.3  | Purchase      Agreement No. 1977 Supplement No. 28 dated June 30,  2008 |
|------------|-------------------------------------------------------------------------|

| 10.5  | Letter      agreement dated July 20, 2008, between AMR, American and Thomas W.      Horton. |
|------------|---------------------------------------------------------------------------------------------|

| 12  | Computation      of ratio of earnings to fixed charges for the three and six months ended      June 30, 2008 and 2007. |
|----------|------------------------------------------------------------------------------------------------------------------------|

| 31.1  | Certification      of Chief Executive Officer pursuant to Rule  13a-14(a). |
|------------|----------------------------------------------------------------------------|

| 31.2  | Certification      of Chief Financial Officer pursuant to Rule  13a-14(a). |
|------------|----------------------------------------------------------------------------|

| 32  | Certification      pursuant to Rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of      2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18,      United States Code). |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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