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

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

| 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 |                                 |
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| Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Former name, former address and former fiscal year , if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| 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 90days.   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.   ¨ LargeAccelerated Filer     ¨ Accelerated Filer     þ Non-accelerated Filer    Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant wasrequired to submit and post such files). ¨ Yes   ¨  No  |
| 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 October 16, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

|                                                          |   |               |   |   |              |   |
|---------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                          |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                                          |   | September 30,      |   |   | September 30,     |   |
|                                                          |   | 2009               |   |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Revenues                                                      |   |               |   |   |              |   |   |   |   |   |   |   |
|     Passenger                             |   | $                  | 3,882  |   |              | $      | 4,946 |   |   | $ | 11,239 |   |   | $ | 14,060 |   |
|     Regional Affiliates                   |   |               | 523    |   |              |   | 668 |   |   |   | 1,493 |   |   |   | 1,932 |   |
|     Cargo                                 |   |               | 136    |   |              |   | 230 |   |   |   | 414 |   |   |   | 678 |   |
|     Other revenues                        |   |               | 581    |   |              |   | 558 |   |   |   | 1,695 |   |   |   | 1,559 |   |
|       Total operating revenues  |   |               | 5,122  |   |              |   | 6,402 |   |   |   | 14,841 |   |   |   | 18,229 |   |
|                                                          |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                      |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Wages, salaries and benefits                      |   |               | 1,555  |   |              |   | 1,477 |   |   |   | 4,645 |   |   |   | 4,461 |   |
|   Aircraft fuel                                     |   |               | 1,313  |   |              |   | 2,461 |   |   |   | 3,696 |   |   |   | 6,501 |   |
|   Regional payments to AMR Eagle                    |   |               | 516    |   |              |   | 656 |   |   |   | 1,483 |   |   |   | 1,883 |   |
|   Other rentals and landing fees                    |   |               | 312    |   |              |   | 313 |   |   |   | 915 |   |   |   | 894 |   |
|   Maintenance, materials and repairs                |   |               | 269    |   |              |   | 240 |   |   |   | 762 |   |   |   | 753 |   |
|   Depreciation and amortization                     |   |               | 235    |   |              |   | 245 |   |   |   | 714 |   |   |   | 780 |   |
|   Commissions, booking fees and credit card expense |   |               | 222    |   |              |   | 264 |   |   |   | 646 |   |   |   | 780 |   |
|   Aircraft rentals                                  |   |               | 129    |   |              |   | 120 |   |   |   | 384 |   |   |   | 367 |   |
|   Food service                                      |   |               | 128    |   |              |   | 133 |   |   |   | 365 |   |   |   | 388 |   |
|   Special charges                                   |   |               | 64     |   |              |   | 25 |   |   |   | 100 |   |   |   | 1,188 |   |
|   Other operating expenses                          |   |               | 625    |   |              |   | 736 |   |   |   | 1,863 |   |   |   | 2,075 |   |
|     Total operating expenses              |   |               | 5,368  |   |              |   | 6,670 |   |   |   | 15,573 |   |   |   | 20,070 |   |
|                                                          |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating Loss                                                |   |               | (246   | )      |              |   | (268 | ) |   |   | (732 | ) |   |   | (1,841 | ) |
|                                                          |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)                                        |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Interest income                                   |   |               | 5      |   |              |   | 36 |   |   |   | 25 |   |   |   | 134 |   |
|   Interest expense                                  |   |               | (145   | )      |              |   | (143 | ) |   |   | (416 | ) |   |   | (424 | ) |
|   Interest capitalized                              |   |               | 11     |   |              |   | 10 |   |   |   | 31 |   |   |   | 23 |   |
|   Related party interest - net                      |   |               | (2     | )      |              |   | (12 | ) |   |   | (12 | ) |   |   | (43 | ) |
|   Miscellaneous - net                               |   |               | (29    | )      |              |   | (19 | ) |   |   | (56 | ) |   |   | (52 | ) |
|                                                          |   |               | (160   | )      |              |   | (128 | ) |   |   | (428 | ) |   |   | (362 | ) |
|                                                          |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loss Before Income Taxes                                      |   |               | (406   | )      |              |   | (396 | ) |   |   | (1,160 | ) |   |   | (2,203 | ) |
| Income tax (Benefit)                                          |   |               | (29    | )      |              |   | - |   |   |   | (29 | ) |   |   | - |   |
| Net Loss                                                      |   | $                  | (377   | )      |              | $      | (396 | ) |   | $ | (1,131 | ) |   | $ | (2,203 | ) |

----

|                                                                     |   | September 30, |   |   |   | December 31, |
|--------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------------|
|                                                                     |   | 2009          |   |   |   | 2008         |
| Assets                                                                   |   |          |   |   |
| Current Assets                                                           |   |          |   |   |
|   Cash                                                         |   | $             | 166    |   |   |         | $ | 188 |   |
|   Short-term investments                                       |   |          | 3,937  |   |   |         |   | 2,910 |   |
|   Restricted cash and short-term investments                   |   |          | 459    |   |   |         |   | 459 |   |
|   Receivables, net                                             |   |          | 803    |   |   |         |   | 797 |   |
|   Inventories, net                                             |   |          | 504    |   |   |         |   | 481 |   |
|   Fuel derivative contracts                                    |   |          | 111    |   |   |         |   | 188 |   |
|   Fuel derivative collateral deposits                          |   |          | 78     |   |   |         |   | 575 |   |
|   Other current assets                                         |   |          | 249    |   |   |         |   | 175 |   |
|     Total current assets                             |   |          | 6,307  |   |   |         |   | 5,773 |   |
|                                                                     |   |          |   |   |   |         |   |   |   |
| Equipment and Property                                                   |   |          |   |   |   |         |   |   |   |
|   Flight equipment, net                                        |   |          | 10,005 |   |   |         |   | 10,109 |   |
|   Other equipment and property, net                            |   |          | 2,276  |   |   |         |   | 2,325 |   |
|   Purchase deposits for flight equipment                       |   |          | 733    |   |   |         |   | 670 |   |
|                                                                     |   |          | 13,014 |   |   |         |   | 13,104 |   |
|                                                                     |   |          |   |   |   |         |   |   |   |
| Equipment and Property Under Capital Leases                              |   |          |   |   |   |         |   |   |   |
|   Flight equipment, net                                        |   |          | 235    |   |   |         |   | 181 |   |
|   Other equipment and property, net                            |   |          | 54     |   |   |         |   | 59 |   |
|                                                                     |   |          | 289    |   |   |         |   | 240 |   |
|                                                                     |   |          |   |   |   |         |   |   |   |
| Route acquisition costs and airport operating and gate lease rights, net |   |          | 1,074  |   |   |         |   | 1,090 |   |
| Other assets                                                             |   |          | 2,520  |   |   |         |   | 2,311 |   |
|                                                                     |   | $             | 23,204 |   |   |         | $ | 22,518 |   |
| Liabilities and Stockholder’s Equity (Deficit)                     |   |          |   |   |   |         |   |   |   |
| Current Liabilities                                                      |   |          |   |   |   |         |   |   |   |
|   Accounts payable                                             |   | $             | 1,009  |   |   |         | $ | 891 |   |
|   Accrued liabilities                                          |   |          | 1,850  |   |   |         |   | 1,917 |   |
|   Air traffic liability                                        |   |          | 3,573  |   |   |         |   | 3,708 |   |
|   Payable to affiliates, net                                   |   |          | 2,872  |   |   |         |   | 2,427 |   |
|   Current maturities of long-term debt                         |   |          | 809    |   |   |         |   | 1,305 |   |
|   Fuel derivative liability                                    |   |          | 156    |   |   |         |   | 716 |   |
|   Current obligations under capital leases                     |   |          | 91     |   |   |         |   | 107 |   |
|     Total current liabilities                        |   |          | 10,360 |   |   |         |   | 11,071 |   |
|                                                                     |   |          |   |   |   |         |   |   |   |
| Long-term debt, less current maturities                                  |   |          | 7,280  |   |   |         |   | 6,102 |   |
| Obligations under capital leases, less current obligations               |   |          | 589    |   |   |         |   | 582 |   |
| Pension and postretirement benefits                                      |   |          | 7,005  |   |   |         |   | 6,613 |   |
| Other liabilities, deferred gains and deferred credits                   |   |          | 3,188  |   |   |         |   | 3,055 |   |
|                                                                     |   |          |   |   |   |         |   |   |   |
| Stockholder’s Equity (Deficit)                                     |   |          |   |   |   |         |   |   |   |
|   Common stock                                                 |   |          | -      |   |   |         |   | - |   |
|   Additional paid-in capital                                   |   |          | 3,926  |   |   |         |   | 3,891 |   |
|   Accumulated other comprehensive loss                         |   |          | (2,504 | )      |   |         |   | (3,287 | ) |
|   Accumulated deficit                                          |   |          | (6,640 | )      |   |         |   | (5,509 | ) |
|                                                                     |   |          | (5,218 | )      |   |         |   | (4,905 | ) |
|                                                                     |   | $             | 23,204 |   |   |         | $ | 22,518 |   |

----

|                                                                                      |   | Nine Months Ended September 30, |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                      |   | 2009                            |   |   | 2008 |   |
|  Net Cash Provided by (used for) Operating Activities                                |   | $                               | 779    |   |   | $ | (163 | ) |
|                                                                                 |   |                            |   |   |   |   |   |   |
| Cash Flow from Investing Activities:                                                      |   |                            |   |   |   |   |   |   |
|   Capital expenditures                                                          |   |                            | (1,089 | ) |   |   | (670 | ) |
|   Net (increase)/decrease in short-term investments                             |   |                            | (1,027 | ) |   |   | (58 | ) |
|   Net (increase)/decrease in restricted cash and short-term investments         |   |                            | -      |   |   |   | (28 | ) |
|   Proceeds from sale of equipment and property                                  |   |                            | 9      |   |   |   | 14 |   |
|   Cash collateral on spare parts financing                                      |   |                            | 52     |   |   |   | 9 |   |
|         Net cash used by investing activities     |   |                            | (2,055 | ) |   |   | (733 | ) |
|                                                                                      |   |                            |   |   |   |   |   |   |
| Cash Flow from Financing Activities:                                                      |   |                            |   |   |   |   |   |   |
|   Payments on long-term debt and capital lease obligations                      |   |                            | (1,313 | ) |   |   | (393 | ) |
| Proceeds from:                                                                            |   |                            |   |   |   |   |   |   |
|     Issuance of debt                                                  |   |                            | 1,889  |   |   |   | 823 |   |
|     Cash held in trust for 1999 EETC financing                        |   |                            | (276   | ) |   |   | - |   |
|     Sale leaseback transactions                                       |   |                            | 509    |   |   |   | 151 |   |
|     Reimbursement from construction reserve account                   |   |                            | 1      |   |   |   | 1 |   |
|     Funds transferred from affiliates, net                            |   |                            | 444    |   |   |   | 437 |   |
|         Net cash provided by financing activities |   |                            | 1,254  |   |   |   | 1,019 |   |
|                                                                                      |   |                            |   |   |   |   |   |   |
| Net increase (decrease) in cash                                                           |   |                            | (22    | ) |   |   | 123 |   |
| Cash at beginning of period                                                               |   |                            | 188    |   |   |   | 145 |   |
|                                                                                      |   |                            |   |   |   |   |   |   |
| Cash at end of period                                                                     |   | $                               | 166    |   |   | $ | 268 |   |
|                                                                                      |   |                            |   |   |   |   |   |   |

----

| AMERICAN AIRLINES, INC. |
|-------------------------|

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
|------------------------------------------------------|

| (Unaudited) |
|-------------|

| 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 generallyaccepted 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 subsidiaryof 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 included in the American Airlines, Inc. Annual Report on Form 10-K for the year ended December 31, 2008 (2008 Form 10-K).  Further, in connection with preparation of the condensed consolidated financial statements and in accordance with therecently issued guidance by the FASB, the Company evaluated subsequent events after the balance sheet date of September 30, 2009 through October 21, 2009. During the first three quarters of 2009, the Company experienced continued significant weakening of the revenue environment, especially in international markets, due to the worldwide economic recession.  Lower revenues, coupled with the recent severe disruptions in the capital markets and other sources of funding, and historicallyhigh fuel prices, have negatively impacted the Company and significantly impacted its results of operations and cash flows for the three and nine months ended September 30, 2009.  Consequently, the Company has taken numerous steps to improve its liquidity through the issuance of debt.  Primarily as a result of financing transactions completed in the first three quarters of 2009, unrestricted cash and short-term investments increased from $3.1 billion as of December 31, 2008 to $4.1 billionat September 30, 2009.Through September 30, 2009, the Company secured approximately $4.5 billion of financing ($1.9 billion relates to future financing of aircraft deliveries) through the advance purchase of AAdvantage Miles in the AAdvantage frequent flier program by Citibank (South Dakota), N.A. (Citibank), issuance of pass through trust certificates, issuanceof senior secured notes, loans on certain aircraft and the sale leaseback financing of certain aircraft.  See Note 5 to these condensed consolidated financial statements for additional information regarding these transactions.The Company remains heavily indebted and has significant obligations.  As of the date of this Form 10-Q, the Company believes it has sufficient liquidity to fund its operations and obligations, including repayment of debt and capital leases, capital expenditures and other contractual obligations; however there can be no assurancesto that effect.  |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | In June 2009, American entered into an amendment to a purchase agreement with The Boeing Company (Boeing).  Pursuant to the amendment, American exercised rights to purchase an additional eight 737-800 aircraft and the delivery dates of certain aircraft were rescheduled.  As a result, as of September 30, 2009, American had twelve 737-800purchase commitments for the remainder of 2009 and 45 737-800 purchase commitments for 2010.  American’s 737-800 purchase commitments remain at eight in 2011.  In addition to these aircraft, American has firm commitments for eleven 737-800 aircraft and seven Boeing 777 aircraft scheduled to be delivered in 2013-2016. American has selected GE Aviation as the exclusive provider of engines for its expected order of Boeing 787-9 aircraft. American previously announced plans (subject to certain reconfirmation rights) to acquire 42 Boeing 787-9 aircraft, with the right to acquire an additional 58 Boeing 787-9 aircraft. As of September 30, 2009, payments for the above purchase commitments will approximate $315 million for the remainder of 2009, $1.3 billion in 2010, $350 million in 2011, $217 million in 2012, $478 million in 2013, and $552 million for 2014 and beyond. These amounts are net of purchase deposits currently held by the manufacturer. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                         |   | CapitalLeases |   |   | OperatingLeases |   |
|----------------------------------------------------------------------------------------------|--------|---------------|--------|--------|-----------------|--------|
|                                                                                         |   |          |   |   |            |   |
|          As of September 30, 2009                    |   | $             | 28     |   |            | $      | 222 |   |
|          2010                                        |   |          | 176    |   |            |   | 969 |   |
|          2011                                        |   |          | 179    |   |            |   | 960 |   |
|          2012                                        |   |          | 128    |   |            |   | 778 |   |
|          2013                                        |   |          | 114    |   |            |   | 691 |   |
|          2014 and thereafter                         |   |          | 523    |   |            |   | 5,319 |   |
|                                                                                         |   | $             | 1,148  |   |            | $      | 8,939 |   |
|          Less amount representing interest           |   |          | 468    |   |            |   |   |   |
|                                                                                         |   |          |   |   |            |   |   |   |
|          Present value of net minimum lease payments |   | $             | 680    |   |            |   |   |   |

|   |   |
|--------|--------|

|   | At September 30, 2009 the Company was operating 175 jet aircraft under operating leases and subleasing 39 turboprop aircraft to AMR Eagle also under operating leases and 82 jet aircraft under capital leases. On December 18, 2007, the European Commission issued a Statement of Objection (SO) against 26 airlines, including the Company.  The SO alleges that these carriers participated in a conspiracy to set surcharges on cargo shipments in violation of European Union (EU) law.  The SO states that, in the event that the allegations in the SO are affirmed, the Commission will impose fines againstthe Company.  The Company intends to vigorously contest the allegations and findings in the SO under EU laws, and it intends to cooperate fully with all other pending investigations.  Based on the information to date, the Company has not recorded any reserve for this exposure for the quarter ended September 30, 2009. In the event that the SO is affirmed or other investigations uncover violations of the U.S. antitrust laws or the competition laws of some other jurisdiction, or if the Companywere named and found liable in any litigation based on these allegations, such findings and related legal proceedings could have a material adverse impact on the Company.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Accumulated depreciation of owned equipment and property at September 30, 2009 and December 31, 2008 was $9.1 billion and $9.0 billion, respectively.  Accumulated amortization of equipment and property under capital leases at September 30, 2009 and December 31, 2008 was $558 million and $536 million, respectively. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | As discussed in Note 8 to the consolidated financial statements in the Form 8-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 $88 million during the nine months ended September 30, 2009 to $3.5 billion as of September 30, 2009, including the impact of comprehensive income for the nine months ended September 30, 2009 and changes from other adjustments. The change in the valuation allowance reflects the recording by the Company in September 2009 of an income tax expense credit of approximately $29 million resulting from the Company’s anticipated electionunder Section 3081 of the Housing and Economic Recovery Act of 2008 (as extended by Section 1201(b) of the American Recovery and Reinvestment Act of 2009), allowing corporations to accelerate utilization of certain research and alternative minimum tax (AMT) credit carryforwards in lieu of applicable bonus depreciation on certain qualifying capital investments. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.   | Long-term debt consisted of (in millions): |
|----------------|--------------------------------------------|

|                                                                                                                                                                                                                      |   | September 30, 2009 |   |   | December 31, 2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                      |   |               |   |   |              |   |
|          Secured variable and fixed rate indebtedness due through 2021         (effective rates from 3.22% - 13.0% at September 30, 2009) |   | $                  | 3,192  |   |              | $      | 2,633 |   |
|          Enhanced equipment trust certificates due through 2019         (rates from 3.85% - 12.00% at September 30, 2009)                 |   |               | 2,317  |   |              |   | 2,382 |   |
|          6.0% - 8.5% special facility revenue bonds due through 2036                                                                                                              |   |               | 1,662  |   |              |   | 1,674 |   |
|          AAdvantage Miles advance purchase (effective rate 8.3%)                                                                                                                  |   |               | 890    |   |              |   | - |   |
|          Credit facility agreement due through 2010                                                                                                                               |   |               | -      |   |              |   | 691 |   |
|          Other                                                                                                                                                                    |   |               | 28     |   |              |   | 27 |   |
|                                                                                                                                                                                                                      |   |               | 8,089  |   |              |   | 7,407 |   |
|                                                                                                                                                                                                                      |   |               |   |   |              |   |   |   |
|          Less current maturities                                                                                                                                                  |   |               | 809    |   |              |   | 1,305 |   |
|                                                                                                                                                                                                                      |   |               |   |   |              |   |   |   |
|          Long-term debt, less current maturities                                                                                                                                  |   | $                  | 7,280  |   |              | $      | 6,102 |   |
|                                                                                                                                                                                                                      |   |               |   |   |              |   |   |   |

----

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
|------------------------------------------------------------------|

| (Unaudited) |
|-------------|

----

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
|------------------------------------------------------------------|

| (Unaudited) |
|-------------|

|   | The terms of the 2009 Sale Leaseback are based on previous transactions with GECAS. The 2009 Sale Leaseback is subject to certain terms and conditions, including a condition to the effect that, at the time of entering into the sale and leaseback of a particular Boeing 737-800 aircraft, American has at least a certain amount of unrestricted cash and short term investments.  See Note 2 for additionalinformation concerning the Company’s lease obligations. As of September 30, 2009, American’s remaining 2009-2011 Boeing 737-800 purchase commitments were twelve in the remainder of 2009, 45 in 2010 and eight in 2011. American currently expects to finance all of these remaining 2009-2011 Boeing 737-800 deliveries using a combination of the 2009 Sale Leaseback, funds from the sale of 10.375 percent pass through certificates completed by American inJuly 2009 and other previously arranged financing.  Accordingly, American does not expect to use its previously arranged backstop financing to finance any of its Boeing 737-800 aircraft deliveries scheduled for 2010 and 2011; however, such backstop financing arrangement remains in place. As a condition to entering into the 2009 Loan Facility and the 2009 Sale Leaseback, American entered into certain cross-default and cross-collateralization arrangements for the benefit of GECAS involving, among other things, the 2009 Loan Facility, the 2009 Sale Leaseback and certain previously-existing debt and lease financings involving GECAS with respect to more than 50 aircraft. In addition to the transactions described above, during the nine months ended September 30, 2009, the Company raised approximately $320 million under other loans secured by various aircraft. The loans generally bear interest at a LIBOR-based variable rate with a fixed margin which resets quarterly and are due in installments through 2019. On October 9, 2009, American completed the offering of $450 million aggregate principal amount of its 10.5 percent senior secured notes due 2012 (the Senior Notes) which are guaranteed by AMR.  The Senior Notes are secured by certain of American’s aircraft, and proceeds from the offering of the notes were used to refinance American’s $432 million term loan credit facility which hada scheduled maturity of December 17, 2010 and which was retired early on September 28, 2009. A very large majority of the Company’s aircraft assets (including most of the aircraft eligible for the benefits of Section 1110 of the U.S. Bankruptcy Code) are encumbered. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The Company utilizes the market approach to measure fair value for its financial assets and liabilities.  The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in millions)                      |                                            |   |  Fair Value Measurements as of September 30, 2009                                      |
|----------------------------------------------|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------|
|                                         |                                            |   |                                                                                        |   |   |   |   |   |   |
| Description                                  |                                            |   | Total                                                                                       |   | Level 1 |   | Level 2 |   | Level 3 |
|                                         |                                            |   |                                                                                        |   |   |   |   |   |   |
| Short term investments 1                     |  $   3,937                  |   |  $      1,762                                            |   |  $  2,175 |   |              - |
| Restricted cash and short-term investments 1 |  $     459        |   |            459                       |   |             - |   |              - |
| Fuel derivative contracts, net liability 1   |  $      (45) |   |                - |   |         (45) |   |              - |
|                                         |                                            |   |                                                                                        |   |   |   |   |   |   |
| Total                                        |                                            |   |  $   4,351                                                              |   |  $      2,221 |   |  $  2,130 |   |  $          - |

|   | 1 Unrealized gains or losses on short term investments, restricted cash and short-term investments and derivatives qualifying for hedge accounting are recorded in Accumulated other comprehensive income (loss) at each measurement date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

AMERICAN AIRLINES, INC. 

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
|------------------------------------------------------------------|

| (Unaudited) |
|-------------|

|   | The fair values of the Company's long-term debt were estimated using quoted market prices where available.  For long-term debt not actively traded, fair values were estimated using discounted cash flow analyses, based on the Company's current estimated incremental borrowing rates for similar types of borrowing arrangements. The carrying amounts and estimated fair values of the Company's long-term debt, including current maturities, were (in millions): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                              |   | September 30, 2009 |      |   | December 31, 2008 |   |
|-----------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                              |   | Carrying Value     |      |   | Fair Value        |   |   | Carrying Value |   |   | Fair Value |   |
|        Secured variable and fixed rate indebtedness |   | $                  | 3,192     |   |              | $      | 2,442 |   |   | $ | 2,633 |   |   | $ | 1,649 |   |
|        Enhanced equipment trust certificates        |   |               | 2,317     |   |              |   | 2,238 |   |   |   | 2,382 |   |   |   | 1,886 |   |
|        6.0% - 8.5% special facility revenue bonds   |   |               | 1,662     |   |              |   | 1,645 |   |   |   | 1,674 |   |   |   | 1,001 |   |
|        AAdvantage Miles advance purchase            |   |               |  890 |   |              |   |  890 |   |   |   | - |   |   |   | - |   |
|        Credit facility agreement                    |   |               | -         |   |              |   | - |   |   |   | 691 |   |   |   | 545 |   |
|        Other                                        |   |               | 28        |   |              |   | 28 |   |   |   | 27 |   |   |   | 28 |   |
|                                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   | $                  | 8,089     |   |              | $      | 7,243 |   |   | $ | 7,407 |   |   | $ | 5,109 |   |

| 7. | The following tables provide the components of net periodic benefit cost for the three and nine months ended September 30, 2009 and 2008 (in millions): |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                         |   | Pension Benefits                 |   |
|------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                         |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|                                                                         |   | 2009                             |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|        Components of net periodic benefit cost |   |                             |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |                             |   |   |   |   |   |   |   |   |   |   |
|        Service cost                            |   | $                                | 83     |   |   | $ | 81 |   |   | $ | 250 |   |   | $ | 243 |   |
|        Interest cost                           |   |                             | 178    |   |   |   | 171 |   |   |   | 534 |   |   |   | 513 |   |
|        Expected return on assets               |   |                             | (141   | ) |   |   | (197 | ) |   |   | (425 | ) |   |   | (592 | ) |
|        Amortization of:                        |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Prior service cost                      |   |                             | 3      |   |   |   | 4 |   |   |   | 10 |   |   |   | 12 |   |
|        Unrecognized net loss                   |   |                             | 36     |   |   |   | 1 |   |   |   | 109 |   |   |   | 2 |   |
|                                                                         |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Net periodic benefit cost               |   | $                                | 159    |   |   | $ | 60 |   |   | $ | 478 |   |   | $ | 178 |   |

----

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
|------------------------------------------------------------------|

| (Unaudited) |
|-------------|

|                                                                         |   | Retiree Medical and Other Benefits |   |
|------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                         |   | Three Months EndedSeptember 30,    |   |   | Nine Months EndedSeptember 30, |   |
|                                                                         |   | 2009                               |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|        Components of net periodic benefit cost |   |                               |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |                               |   |   |   |   |   |   |   |   |   |   |
|        Service cost                            |   | $                                  | 15     |   |   | $ | 14 |   |   | $ | 44 |   |   | $ | 41 |   |
|        Interest cost                           |   |                               | 45     |   |   |   | 43 |   |   |   | 134 |   |   |   | 129 |   |
|        Expected return on assets               |   |                               | (3     | ) |   |   | (5 | ) |   |   | (10 | ) |   |   | (15 | ) |
|        Amortization of:                        |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Prior service cost                      |   |                               | (2     | ) |   |   | (3 | ) |   |   | (6 | ) |   |   | (10 | ) |
|        Unrecognized net (gain) loss            |   |                               | (3     | ) |   |   | (5 | ) |   |   | (10 | ) |   |   | (17 | ) |
|                                                                         |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Net periodic benefit cost               |   | $                                  | 52     |   |   | $ | 44 |   |   | $ | 152 |   |   | $ | 128 |   |

| 8. | As a result of the revenue environment, high fuel prices and the Company’s restructuring activities, including its capacity reductions, the Company has recorded a number of charges during the last few years.  The following table summarizes the components of the Company’s special charges, the remaining accruals for these charges and the capacity reduction related charges (in millions) as of September30, 2009: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                              |   | Aircraft Charges |      |   | Facility Exit Costs |   |     | Employee Charges |   |   | Total    |   |
|-----------------------------------------------------------------------------------|--------|------------------|-----------|--------|---------------------|--------|----------|------------------|--------|--------|----------|--------|
|         Remaining accrual at December 31, 2008 |   | $                |  108 |   |                | $      |  16 |             |   | $      |  14 |   |   | $ |  138 |   |
|        Capacity reduction charges                   |   |             | 99        |   |                |   | -        |             |   |   | -        |   |   |   | 99 |   |
|        Non-cash charges                             |   |             | 6         |   |                |   | -        |             |   |   | -        |   |   |   | 6 |   |
|        Adjustments                                  |   |             | -         |   |                |   | (3       | )                |   |   | -        |   |   |   | (3 | ) |
|        Payments                                     |   |             | (35       | )      |                |   | (2       | )                |   |   | (14      | )      |   |   | (51 | ) |
|        Remaining accrual at September 30, 2009      |   | $                | 178       |   |                | $      | 11       |             |   | $      | -        |   |   | $ | 189 |   |

|   | Cash outlays related to the accruals for aircraft charges and facility exit costs will occur through 2017 and 2018, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

----

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
|------------------------------------------------------------------|

| (Unaudited) |
|-------------|

| 9. | As part of the Company's risk management program, it uses a variety of financial instruments, primarily heating oil option and collar contracts, as cash flow hedges to mitigate commodity price risk.  The Company does not hold or issue derivative financial instruments for trading purposes.  As of September 30, 2009, the Company had fuel derivative contracts outstanding covering 21 millionbarrels of jet fuel that will be settled over the next 24 months.  A deterioration of the Company’s liquidity position may negatively affect the Company’s ability to hedge fuel in the future. For the quarter and nine months ended September 30, 2009, the Company recognized an increase of approximately $96 million and $518 million, respectively, in fuel expense on the accompanying consolidated statements of operations related to its fuel hedging agreements, including the ineffective portion of the hedges.  For the quarter and nine months ended September 30, 2008, the Company recognizeda decrease of approximately $117 million and $521 million, respectively, in fuel expense related to its fuel hedging agreements including the ineffective portion of the hedges.  The net fair value of the Company’s fuel hedging agreements at September 30, 2009 and December 31, 2008, representing the amount the Company would pay to terminate the agreements (net of settled contract assets), totaled $37 million and $450 million, respectively, which excludes a payable related to contracts that settledin the last month of each respective reporting period.  As of September 30, 2009, the Company estimates that during the remainder of 2009 it will reclassify from Accumulated other comprehensive loss into fuel expense approximately $84 million in net losses (based on prices as of September 30, 2009) related to its fuel derivative hedges, including losses from terminated contracts with a bankrupt counterparty and unwound trades. The impact of cash flow hedges on the Company’s consolidated financial statements is depicted below (in millions):  |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fair Value of Aircraft Fuel Derivative Instruments (all cash flow hedges)  |   |
|---------------------------------------------------------------------------------|--------|
| Asset Derivatives as of                                                         |   | Liability Derivatives as of |   |
| September 30, 2009                                                              |   | December 31, 2008 |   |   | September 30, 2009 |   | December 31, 2008 |   |
| Balance Sheet Location                                                          |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   |  Fair Value |   |
| Fuel derivative contracts                                                       |   | $ | 70 |   | Fuel derivative contracts |   | $ | - |   |   | Fuel derivative liability |   | $    115 |   |  Fuel derivativeliability |   | $ | 528 |

| Effect of Aircraft Fuel Derivative Instruments on Statements of Operations (all cash flow hedges)  |   |
|---------------------------------------------------------------------------------------------------------|--------|
| Amount of Gain (Loss) Recognized in OCI on Derivative1 as of September 30,                              |   | Location of Gain (Loss) Reclassified from Accumulated OCI into Income 1 |   | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income 1 for the nine months ended September 30, |   | Location of Gain (Loss) Recognized in Income on Derivative 2 |   | Amount of Gain (Loss) Recognized in Income on Derivative 2 for the nine months ended September 30, |   |
| 2009                                                                                                    |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| $                                                                                                       | 89     |   |   | $ | 365 |   | Aircraft Fuel |   | $ | (526 | ) |   | $ | 510 |   | Aircraft Fuel |   | $ | 8 |   |   | $ | 11 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
|------------------------------------------------------------------|

| (Unaudited) |
|-------------|

| Amount of Gain (Loss) Reclassified from Accumulated OCI into Income 1 for the three months ended September 30, |   | Location of Gain (Loss) Recognized in Income on Derivative 2 |   | Amount of Gain (Loss) Recognized in Income on Derivative 2 for the three months ended September 30, |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|
| 2009                                                                                                           |   |  2008                                                   |   |                                                                                                |   |   | 2009 |   |  2008 |   |   |   |
|                                                                                                           |   |                                                         |   |                                                                                                |   |   |   |   |   |   |   |   |
| $                                                                                                              | (99    | )                                                            |   | $                                                                                                   | 121    |   |   | Aircraft Fuel |   | $                         3 |   | $ | (4 | ) |   |
|                                                                                                           |   |                                                         |   |

|   | The Company is also exposed to credit losses in the event of non-performance by counterparties to these financial instruments, and although no assurances can be given, the Company does not expect any of the counterparties to fail to meet its obligations.  The credit exposure related to these financial instruments is represented by the fair value of contracts with a positive fair value at the reporting date, reduced by the effects of master netting agreements.  Tomanage credit risks, the Company selects counterparties based on credit ratings, limits its exposure to a single counterparty under defined guidelines, and monitors the market position of the program and its relative market position with each counterparty. The Company also maintains industry-standard security agreements with a number of its counterparties which may require the Company or the counterparty to post collateral if the value of selected instruments exceed specified mark-to-market thresholds or uponcertain changes in credit ratings. As of September 30, 2009, the aggregate fair value of all qualifying cash flow derivatives with credit-risk-related contingent features that are in a net liability position is $45 million, for which the Company had posted collateral of $78 million. The Company had surplus collateral with a certain counterparty as of September 30, 2009 due to a timing lag in collateral reconciliation. In addition to the Company’s qualifying cash flow hedges, American has hedges that were effectively unwound in 2008 that are recorded as assets and liabilities on the balance sheet.  The fair value of these offsetting positions not designated as hedges as of September 30, 2009 was a $41 million asset recorded in Fuel derivative contracts and a $41 million liability recorded in Fuel derivativeliability. 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 September 30, 2009 and 2008, comprehensive loss was $273 million and $1.5 billion, respectively, and for the nine month periods ended September30, 2009 and 2008, comprehensive loss was $348 million and $2.5 billion, respectively. Total comprehensive loss for the year ended December 31, 2008 was $6.4 billion.  The difference between net earnings (loss) and comprehensive income (loss) for the three and nine month periods ended September 30, 2009 and 2008 is due primarily to the accounting for the Company’s derivative financial instruments and the actuarial loss on the pensionbenefit obligation of the Company’s pension plans.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                |   | Nine Months Ended September 30, 2009 |   |
|-------------------------------------|--------|--------------------------------------|--------|
|                                |   | RASM(cents)                          |   |   | Y-O-YChange |   |   | ASMs (billions) |   |   | Y-O-YChange |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |
| DOT Domestic                        |   |                                 | 9.80   |   |   |   |    (10.0)% |   |   |   | 70.1 |   |   |   |   (10.2)% |   |
| International                       |   |                                 | 9.75   |   |   |   | (18.1) |   |   |   | 44.8 |   |   |   | (4.0) |   |
|    DOT Latin America |   |                                 | 10.65  |   |   |   | (15.4) |   |   |   | 21.5 |   |   |   | (6.4) |   |
|    DOT Atlantic      |   |                                 | 8.93   |   |   |   | (20.7) |   |   |   | 18.3 |   |   |   | (2.4) |   |
|    DOT Pacific       |   |                                 | 8.87   |   |   |   | (20.5) |   |   |   | 5.1 |   |   |   | 1.1 |   |

----

| (in millions) Operating Expenses             |   | Nine Months EndedSeptember 30, 2009 |   |   | Change from 2008 |   |   | Percentage Change |   |   |
|---------------------------------------------------|--------|-------------------------------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|
|                                              |   |                                |   |   |             |   |   |              |   |   |
| Wages, salaries and benefits                      |   | $                                   | 4,645  |   |             | $      | 184    |              |   |   | 4.1 | % |   |
| Aircraft fuel                                     |   |                                | 3,696  |   |             |   | (2,805 | )                 |   |   | (43.1 | ) | (a) |
| Regional payments to AMR Eagle                    |   |                                | 1,483  |   |             |   | (512   | )                 |   |   | (25.7 | ) | (b) |
| Other rentals and landing fees                    |   |                                | 915    |   |             |   | 21     |              |   |   | 2.3 |   |   |
| Maintenance, materials and repairs                |   |                                | 762    |   |             |   | 9      |              |   |   | 1.2 |   |   |
| Depreciation and amortization                     |   |                                | 714    |   |             |   | (66    | )                 |   |   | (8.5 | ) | (c) |
| Commissions, booking fees and credit card expense |   |                                | 646    |   |             |   | (134   | )                 |   |   | (17.2 | ) | (d) |
| Aircraft rentals                                  |   |                                | 384    |   |             |   | 17     |              |   |   | 4.6 |   |   |
| Food service                                      |   |                                | 365    |   |             |   | (23    | )                 |   |   | (5.9 | ) |   |
| Special charges                                   |   |                                | 100    |   |             |   | (1,088 | )                 |   |   | (91.6 | ) | (e) |
| Other operating expenses                          |   |                                | 1,863  |   |             |   | (100   | )                 |   |   | (5.1 | ) |   |
| Total operating expenses                          |   |                                | 15,573 |   |             |   | (4,497 | )                 |   |   | (22.4 | )% |   |

| (a)   | Aircraft fuel expense decreased primarily due to a 38.1 percent decrease in the Company’s price per gallon of fuel (net of the impact of fuel hedging) and an 8.1 percent decrease in the Company’s fuel consumption. The Company recorded $518 million in net losses and $521 million in net gains on its fuel hedging contracts for the nine monthsended September 30, 2009 and September 30, 2008, respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Regional payments to AMR Eagle expense decreased in conjunction with the 22.7 percent decrease in Regional Affiliates’ passenger revenue. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Depreciation and amortization expense decreased due to an impairment charge in 2008. |
|-----------------|--------------------------------------------------------------------------------------|

| (d)   | Commissions, booking fees and credit card expense decreased in conjunction with the 18.6 percent decrease in the Company’s revenues. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Special charges in 2008 are related to an impairment charge of $1.0 billion to write down the Company’s McDonnell Douglas MD-80 fleet and certain related long-lived assets to their estimated fair values. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Other Income (Expense) |
|------------------------|

----

| Income Tax |
|------------|

| Regional Affiliates |
|---------------------|

|                    |   | Nine Months Ended September 30, |   |
|-------------------------|--------|---------------------------------|--------|
|                    |   | 2009                            |   |   | 2008 |   |
| Revenues:               |   |                            |   |   |   |   |
| Regional Affiliates     |   | $                               | 1,493  |   |   | $ | 1,932 |   |
| Other                   |   |                            | 102    |   |   |   | 92 |   |
|                    |   | $                               | 1,595  |   |   | $ | 2,024 |   |
| Expenses:               |   |                            |   |   |   |   |   |   |
| Regional payments       |   | $                               | 1,575  |   |   | $ | 2,072 |   |
| Restructuring charges   |   |                            | -      |   |   |   | 113 |   |
| Other incurred expenses |   |                            | 260    |   |   |   | 238 |   |
|                    |   | $                               | 1,835  |   |   | $ | 2,423 |   |

| Outlook |
|---------|

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|   |          |                                                                                                                                                                                                         |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | limit our ability to obtain additional funding for working capital, capital expenditures, acquisitions and general corporate purposes, and adversely affect the terms on which such funding can be obtained; |
|   |          |                                                                                                                                                                                                         |
|   | •  | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness and other obligations, thereby reducing the funds available for other purposes;                |
|   |          |                                                                                                                                                                                                         |
|   | •  | make us more vulnerable to economic downturns; and                                                                                                                                                      |
|   |          |                                                                                                                                                                                                         |
|   | •  | limit our ability to withstand competitive pressures and reduce our flexibility in responding to changing business and economic conditions.                                                                  |

----

|   |          |                                                                                                                                                                                                                             |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | actual or potential changes in international, national, regional and local economic, business and financial conditions, including recession, inflation, higher interest rates, wars, terrorist attacks or political instability; |
|   |          |                                                                                                                                                                                                                             |
|   | •  | changes in consumer preferences, perceptions, spending patterns or demographic trends;                                                                                                                                           |
|   |          |                                                                                                                                                                                                                             |
|   | •  | changes in the competitive environment due to industry consolidation and other factors;                                                                                                                                          |
|   |          |                                                                                                                                                                                                                             |
|   | •  | actual or potential disruptions to the air traffic control systems;                                                                                                                                                              |
|   |          |                                                                                                                                                                                                                             |
|   | •  | increases in costs of safety, security and environmental measures;                                                                                                                                                               |
|   |          |                                                                                                                                                                                                                             |
|   | •  | outbreaks of diseases that affect travel behavior; and                                                                                                                                                                      |
|   |          |                                                                                                                                                                                                                             |
|   | •  | weather and natural disasters.                                                                                                                                                                                                   |

----

----

|   |          |                                                                                                                                                                                   |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | changes in law which affect the services that can be offered by airlines in particular markets and at particular airports;                                                             |
|   |          |                                                                                                                                                                                   |
|   | •  | the granting and timing of certain governmental approvals (including foreign government approvals) needed for codesharing alliances and other arrangements with other airlines;        |
|   |          |                                                                                                                                                                                   |
|   | •  | restrictions on competitive practices (for example court orders, or agency regulations or orders, that would curtail an airline’s ability to respond to a competitor);           |
|   |          |                                                                                                                                                                                   |
|   | •  | the adoption of regulations that impact customer service standards (for example new passenger security standards, passenger bill of rights);                                           |
|   |          |                                                                                                                                                                                   |
|   | •  | restrictions on airport operations, such as restrictions on the use of takeoff and landing slots at airports or the auction of slot rights currently or previously held by us; or |
|   |          |                                                                                                                                                                                   |
|   | •  | the adoption of more restrictive locally imposed noise restrictions.                                                                                                                   |

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| The following exhibits are included herein: |
|---------------------------------------------|

| 12   | Computation of ratio of earnings to fixed charges for the three and nine months ended September 30, 2009 and 2008. |
|----------------|--------------------------------------------------------------------------------------------------------------------|

| 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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