|                               |
|------------------------------------|
| 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 |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |           |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |           |                                 |
| Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (Former name, former address and former fiscal year , if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 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 April 14, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

----

| (Unaudited) (In millions)                                     |   |
|---------------------------------------------------------------|--------|
|                                                          |   |   |   |
|                                                          |   | Three Months Ended March 31, |   |
|                                                          |   | 2010 |   |   | 2009 |   |
| Revenues                                                      |   |   |   |   |   |   |
|   Passenger                                         |   | $ | 3,831 |   |   | $ | 3,680 |   |
|   Regional Affiliates                               |   |   | 498 |   |   |   | 457 |   |
|   Cargo                                             |   |   | 154 |   |   |   | 144 |   |
|   Other revenues                                    |   |   | 580 |   |   |   | 553 |   |
|      Total operating revenues        |   |   | 5,063 |   |   |   | 4,834 |   |
|                                                          |   |   |   |   |   |   |   |   |
|  Expenses                                                |   |   |   |   |   |   |   |   |
|   Wages, salaries and benefits                      |   |   | 1,550 |   |   |   | 1,538 |   |
|   Aircraft fuel                                     |   |   | 1,330 |   |   |   | 1,179 |   |
|   Regional payments to AMR Eagle                    |   |   | 516 |   |   |   | 474 |   |
|   Other rentals and landing fees                    |   |   | 320 |   |   |   | 295 |   |
|   Maintenance, materials and repairs                |   |   | 284 |   |   |   | 243 |   |
|   Commissions, booking fees and credit card expense |   |   | 234 |   |   |   | 217 |   |
|   Depreciation and amortization                     |   |   | 230 |   |   |   | 235 |   |
|   Aircraft rentals                                  |   |   | 132 |   |   |   | 127 |   |
|   Food service                                      |   |   | 115 |   |   |   | 114 |   |
|   Special charges                                   |   |   | - |   |   |   | 14 |   |
|   Other operating expenses                          |   |   | 674 |   |   |   | 625 |   |
|     Total operating expenses              |   |   | 5,385 |   |   |   | 5,061 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Operating Loss                                                |   |   | (322 | ) |   |   | (227 | ) |
|                                                          |   |   |   |   |   |   |   |   |
| Other Income (Expense)                                        |   |   |   |   |   |   |   |   |
|   Interest income                                   |   |   | 5 |   |   |   | 11 |   |
|   Interest expense                                  |   |   | (167 | ) |   |   | (142 | ) |
|   Interest capitalized                              |   |   | 9 |   |   |   | 10 |   |
|   Related party interest - net                      |   |   | (3 | ) |   |   | (6 | ) |
|   Miscellaneous - net                               |   |   | (11 | ) |   |   | (12 | ) |
|                                                          |   |   | (167 | ) |   |   | (139 | ) |
|                                                          |   |   |   |   |   |   |   |   |
| Loss Before Income Taxes                                      |   |   | (489 | ) |   |   | (366 | ) |
| Income tax                                                    |   |   | - |   |   |   | - |   |
| Net Loss                                                      |   | $ | (489 | ) |   | $ | (366 | ) |
|                                                          |   |   |   |   |   |   |   |   |

----

| (Unaudited) (In millions)                                                                      |   |
|------------------------------------------------------------------------------------------------|--------|
|                                                                                           |   |   |   |   |   |   |
|                                                                                           |   | March 31, |   |   | December 31, |   |
|                                                                                           |   | 2010 |   |   | 2009 |   |
| Assets                                                                                         |   |   |   |   |   |   |
| Current Assets                                                                                 |   |   |   |   |   |   |
|   Cash                                                                               |   | $ | 185 |   |   | $ | 149 |   |
|   Short-term investments                                                             |   |   | 4,352 |   |   |   | 4,241 |   |
|   Restricted cash and short-term investments                                         |   |   | 460 |   |   |   | 460 |   |
|   Receivables, net                                                                   |   |   | 825 |   |   |   | 744 |   |
|   Inventories, net                                                                   |   |   | 515 |   |   |   | 518 |   |
|   Fuel derivative contracts                                                          |   |   | 149 |   |   |   | 135 |   |
|   Other current assets                                                               |   |   | 274 |   |   |   | 307 |   |
|     Total current assets                                                   |   |   | 6,760 |   |   |   | 6,554 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Equipment and Property                                                                         |   |   |   |   |   |   |   |   |
|   Flight equipment, net                                                              |   |   | 10,077 |   |   |   | 10,016 |   |
|   Other equipment and property, net                                                  |   |   | 2,223 |   |   |   | 2,245 |   |
|   Purchase deposits for flight equipment                                             |   |   | 524 |   |   |   | 608 |   |
|                                                                                           |   |   | 12,824 |   |   |   | 12,869 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Equipment and Property Under Capital Leases                                                    |   |   |   |   |   |   |   |   |
|   Flight equipment, net                                                              |   |   | 235 |   |   |   | 243 |   |
|   Other equipment and property, net                                                  |   |   | 51 |   |   |   | 52 |   |
|                                                                                           |   |   | 286 |   |   |   | 295 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| International slots and route authorities                                                      |   |   | 735 |   |   |   | 736 |   |
| Domestic slots and airport operating and gate lease rights, less accumulated amortization, net |   |   | 231 |   |   |   | 236 |   |
| Other assets                                                                                   |   |   | 2,256 |   |   |   | 2,274 |   |
|                                                                                           |   | $ | 23,092 |   |   | $ | 22,964 |   |
| Liabilities and Stockholder’s Equity                                                     |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                            |   |   |   |   |   |   |   |   |
|   Accounts payable                                                                   |   | $ | 1,066 |   |   | $ | 988 |   |
|   Accrued liabilities                                                                |   |   | 1,885 |   |   |   | 1,917 |   |
|   Air traffic liability                                                              |   |   | 3,906 |   |   |   | 3,431 |   |
|   Fuel derivative liability                                                          |   |   | 45 |   |   |   | 80 |   |
|   Payable to affiliates, net                                                         |   |   | 2,938 |   |   |   | 3,008 |   |
|   Current maturities of long-term debt                                               |   |   | 786 |   |   |   | 791 |   |
|   Current obligations under capital leases                                           |   |   | 85 |   |   |   | 90 |   |
|     Total current liabilities                                              |   |   | 10,711 |   |   |   | 10,305 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Long-term debt, less current maturities                                                        |   |   | 7,397 |   |   |   | 7,385 |   |
| Obligations under capital leases, less current obligations                                     |   |   | 559 |   |   |   | 599 |   |
| Pension and postretirement benefits                                                            |   |   | 7,531 |   |   |   | 7,397 |   |
| Other liabilities, deferred gains and deferred credits                                         |   |   | 3,159 |   |   |   | 3,156 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Stockholder’s Equity                                                                     |   |   |   |   |   |   |   |   |
|   Common stock                                                                       |   |   | - |   |   |   | - |   |
|   Additional paid-in capital                                                         |   |   | 3,950 |   |   |   | 3,938 |   |
|   Accumulated other comprehensive loss                                               |   |   | (2,743 | ) |   |   | (2,833 | ) |
|   Accumulated deficit                                                                |   |   | (7,472 | ) |   |   | (6,983 | ) |
|                                                                                           |   |   | (6,265 | ) |   |   | (5,878 | ) |
|                                                                                           |   | $ | 23,092 |   |   | $ | 22,964 |   |

----

| (Unaudited) (In millions)                                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                           |   |   |   |
|                                                                                                                                           |   | Three Months Ended March 31, |   |
|                                                                                                                                           |   | 2010 |   |   | 2009 |   |
|  Net Cash Provided by Operating Activities                                                                                                |   | $ | 405 |   |   | $ | 422 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash Flow from Investing Activities:                                                                                                           |   |   |   |   |   |   |   |   |
|   Capital expenditures                                                                                                               |   |   | (306 | ) |   |   | (166 | ) |
|   Net (increase) decrease in short-term investments  Net (increase) decrease in restricted cash and short-term investments |   |   | (111- | )                 |   |   | 237(3 | )   |
|   Proceeds from sale of equipment and property                                                                                       |   |   | 1 |   |   |   | 4 |   |
|   Cash collateral on spare parts financing                                                                                           |   |   | - |   |   |   | 46 |   |
|         Net cash provided by (used for) investing activities                                           |   |   | (416 | ) |   |   | 118 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Cash Flow from Financing Activities:                                                                                                           |   |   |   |   |   |   |   |   |
|   Payments on long-term debt and capital lease obligations                                                                           |   |   | (181 | ) |   |   | (332 | ) |
|   Proceeds from:                                                                                                                     |   |   |   |   |   |   |   |   |
|     Issuance of debt and sale leaseback transactions                                                                       |   |   | 297 |   |   |   | 174 |   |
|     Reimbursement from construction reserve account                                                                        |   |   | 1 |   |   |   | 1 |   |
|   Funds transferred to affiliates, net                                                                                               |   |   | (70 | ) |   |   | (388 | ) |
|         Net cash provided by (used for) financing activities                                           |   |   | 47 |   |   |   | (545 | ) |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash                                                                                                                |   |   | 36 |   |   |   | (5 | ) |
| Cash at beginning of period                                                                                                                    |   |   | 149 |   |   |   | 188 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Cash at end of period                                                                                                                          |   | $ | 185 |   |   | $ | 183 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |

----

| AMERICAN AIRLINES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) |
|----------------------------------------------------------------------------------------|

| 1. | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principlesfor complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. American Airlines, Inc. (American or the Company) is a wholly owned subsidiary of AMR Corporation (AMR). Thecondensed 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 filed on February 17, 2010 (the 2009 Form 10-K). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | As of March 31, 2010, American had 35 Boeing 737-800 aircraft purchase commitments for the remainder of 2010 and eight Boeing 737-800 aircraft purchase commitments in 2011.  In addition to these aircraft purchase commitments, American has firm commitments for eleven Boeing 737-800 aircraft and seven Boeing 777 aircraft scheduled to be delivered in 2013 through 2016.  In addition, American previouslyannounced 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.  American has selected GE Aviation as the exclusive provider of engines for its expected order of Boeing 787-9 aircraft. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Accumulated depreciation of owned equipment and property at March 31, 2010 and December 31, 2009 was $9.3 billion and $9.2 billion, respectively.  Accumulated amortization of equipment and property under capital leases at March 31, 2010 and December 31, 2009 was $539 million and $571 million, respectively. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | As discussed in Note 8 to the consolidated financial statements in the 2009 Form 10-K, the Company has a valuation allowance against the full amount of its net deferred tax asset. The Company currently provides a valuation allowance against deferred tax assets when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. The Company’s deferred tax asset valuationallowance increased approximately $132 million during the three months ended March 31, 2010 to $3.7 billion as of March 31, 2010, including the impact of comprehensive income for the three months ended March 31, 2010 and changes from other adjustments. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| AMERICAN AIRLINES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) |
|----------------------------------------------------------------------------------------|

| 5. | As of March 31, 2010, American had issued guarantees covering approximately $887 million of AMR’s unsecured debt.  In addition, as of March 31, 2010, AMR and American had issued guarantees covering approximately $239 million of AMR Eagle’s secured debt (and interest thereon). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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.   The Company’s short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuationof these securities.  The Company’s fuel derivative contracts, which consist of commodity options and collars, are valued using energy and commodity market data which is derived by combining raw inputs with quantitative models and processes to generate forward curves and volatilities.  No changes in valuation techniques or inputs occurred during the three months ended March 31, 2010. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in millions)                                |   | Fair Value Measurements as of March 31, 2010 |   |
|----------------------------------------------|--------|----------------------------------------------|--------|
| Description                                  |   | Total                                        |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Short term investments 1, 2                  |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Money market funds                           |   | $                                            | 213    |   |   | $ | 213 |   |   | $ | - |   |   | $ | - |   |
| Government agency investments                |   |                                         | 642    |   |   |   | - |   |   |   | 642 |   |   |   | - |   |
| Repo investments                             |   |                                         | 1,028  |   |   |   | - |   |   |   | 1,028 |   |   |   | - |   |
| Short term obligations                       |   |                                         | 2,469  |   |   |   | - |   |   |   | 2,469 |   |   |   | - |   |
|                                         |   |                                         | 4,352  |   |   |   | 213 |   |   |   | 4,139 |   |   |   | - |   |
|                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted cash and short-term investments 1 |   |                                         | 460    |   |   |   | 460 |   |   |   | - |   |   |   | - |   |
| Fuel derivative contracts 1                  |   |                                         | 149    |   |   |   | - |   |   |   | 149 |   |   |   | - |   |
| Fuel derivative liability 1                  |   |                                         | (45    | ) |   |   | - |   |   |   | (45 | ) |   |   | - |   |
|                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                        |   | $                                            | 4,916  |   |   | $ | 673 |   |   | $ | 4,243 |   |   | $ | - |   |

----

| AMERICAN AIRLINES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) |
|----------------------------------------------------------------------------------------|

|   |                                         |   | March 31, 2010 |   |   | December 31, 2009 |   |
|--------|----------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|   |                                         |   | Carrying Value |   |   | FairValue         |   |   | Carrying Value |   |   | FairValue |   |
|   | Secured variable and fixed rate indebtedness |   | $              | 3,460  |   |              | $      | 3,052 |   |   | $ | 3,578 |   |   | $ | 3,091 |   |
|   | Enhanced equipment trust certificates        |   |           | 2,146  |   |              |   | 2,190 |   |   |   | 2,022 |   |   |   | 1,999 |   |
|   | 6.0% - 8.5% special facility revenue bonds   |   |           | 1,659  |   |              |   | 1,648 |   |   |   | 1,658 |   |   |   | 1,600 |   |
|   | AAdvantage Miles advance purchase            |   |           | 890    |   |              |   | 897 |   |   |   | 890 |   |   |   | 893 |   |
|   | Credit facility agreement                    |   |           | -      |   |              |   | - |   |   |   | - |   |   |   | - |   |
|   | Other                                        |   |           | 28     |   |              |   | 28 |   |   |   | 28 |   |   |   | 28 |   |
|   |                                         |   | $              | 8,183  |   |              | $      | 7,815 |   |   | $ | 8,176 |   |   | $ | 7,611 |   |

| 7. | The following table provides the components of net periodic benefit cost for the three months ended March 31, 2010 and 2009 (in millions): |
|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                    |   | Pension Benefits |   |   | Retiree Medical and Other Benefits |   |
|--------|-----------------------------------------|--------|------------------|--------|--------|------------------------------------|--------|
|   |                                    |   | 2010             |   |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|   |                                    |   |             |   |   |                               |   |   |   |   |   |   |   |
|   | Components of net periodic benefit cost |   |             |   |   |                               |   |   |   |   |   |   |   |
|   |                                    |   |             |   |   |                               |   |   |   |   |   |   |   |
|   | Service cost                            |   | $                | 93     |   |                               | $      | 84 |   |   | $ | 15 |   |   | $ | 14 |   |
|   | Interest cost                           |   |             | 185    |   |                               |   | 178 |   |   |   | 42 |   |   |   | 44 |   |
|   | Expected return on assets               |   |             | (149   | )      |                               |   | (143 | ) |   |   | (4 | ) |   |   | (3 | ) |
|   | Amortization of:                        |   |             |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|   | Prior service cost                      |   |             | 4      |   |                               |   | 4 |   |   |   | (5 | ) |   |   | (2 | ) |
|   | Unrecognized net (gain) loss            |   |             | 37     |   |                               |   | 37 |   |   |   | (2 | ) |   |   | (3 | ) |
|   | Net periodic benefit cost               |   | $                | 170    |   |                               | $      | 160 |   |   | $ | 46 |   |   | $ | 50 |   |

----

| AMERICAN AIRLINES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) |
|----------------------------------------------------------------------------------------|

| 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.  In 2008 and 2009, the Company announced capacity reductions due to unprecedented high fuel costs at that time and the otherchallenges facing the industry.  In connection with these capacity reductions, the Company incurred special charges related to aircraft and certain other charges. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                         |   | Aircraft Charges |      |   | Facility Exit Costs |   |     | Total  |   |
|--------|----------------------------------------------|--------|------------------|-----------|--------|---------------------|--------|----------|--------|--------|
|   |  Remaining accrual at December 31, 2009 |   | $                |  153 |   |                | $      |  20 |   |   | $ |  173 |   |
|   | Capacity reduction charges                   |   |             | -         |   |                |   | -        |   |   |   | - |   |
|   | Non-cash charges                             |   |             | -         |   |                |   | -        |   |   |   | - |   |
|   | Adjustments                                  |   |             | (6        | )      |                |   | 1        |   |   |   | (5 | ) |
|   | Payments                                     |   |             | (27       | )      |                |   | (1       | )      |   |   | (28 | ) |
|   | Remaining accrual at March 31, 2010          |   | $                | 120       |   |                | $      | 20       |   |   | $ | 140 |   |

| 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 March 31, 2010, the Company had fuel derivative contracts outstanding covering 27 million barrels ofjet 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. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| AMERICAN AIRLINES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) |
|----------------------------------------------------------------------------------------|

|   | Fair Value of Aircraft Fuel Derivative Instruments (all cash flow hedges) |   |
|--------|---------------------------------------------------------------------------|--------|
|   | Asset Derivatives as of                                                   |   | Liability Derivatives as of |   |
|   | March 31, 2010                                                            |   | December 31, 2009 |   | March 31, 2010 |   | December 31, 2009 |   |
|   | Balance Sheet Location                                                    |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
|   | Fuel derivative contracts                                                 |   | $ | 149 |   | Fuel derivative contracts |   | $ | 126 |   | Fuel derivative liability |   | $ | 45 |   | Fuel derivative liability |   | $ | 71 |       |

|   | 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 March 31,                               |   | Location of Gain (Loss) Reclassified from Accumulated OCI into Income 1, 3 |   | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income 1, 3 as of March 31, |   | Location of Gain (Loss) Recognized in Income on Derivative 2, 3 |   | Amount of Gain (Loss) Recognized in Income on Derivative 2, 3 as of March 31, |   |
|   | 2010                                                                                                 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|   | $                                                                                                    | 4      |   |   | $ | (127 | ) | Aircraft Fuel |   | $ | (46 | ) |   | $ | (245 | ) | Aircraft Fuel |   | $ | 1 |   |   | $ | 2 |       |
|   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | 1 Effective portion of gain (loss)                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | 2 Ineffective portion of gain (loss)3 Does not include expense allocated to AMR Eagle |   |   |   |   |   |

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|   |                                |   | Three Months Ended March 31, 2010 |   |
|--------|-------------------------------------|--------|-----------------------------------|--------|
|   |                                |   | RASM(cents)                       |   |   | Y-O-YChange |   |   | ASMs (billions) |   |   | Y-O-YChange |   |
|   |                                |   |                              |   |   |   |   |   |   |   |   |   |   |
|   | DOT Domestic                        |   |                              | 10.24  |   |   |   | 5.8 | % |   |   | 22.8 |   |   |   | (0.9 | )% |
|   | International                       |   |                              | 10.65  |   |   |   | 8.4 |   |   |   | 14.0 |   |   |   | (4.9 | ) |
|   |    DOT Latin America |   |                              | 11.90  |   |   |   | 6.0 |   |   |   | 7.3 |   |   |   | (5.1 | ) |
|   |    DOT Atlantic      |   |                              | 9.29   |   |   |   | 16.8 |   |   |   | 5.0 |   |   |   | (5.5 | ) |
|   |    DOT Pacific       |   |                              | 9.19   |   |   |   | (0.9 | ) |   |   | 1.6 |   |   |   | (1.9 | ) |

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|   | (in millions) Operating Expenses             |   | Three Months EndedMarch 31, 2010 |   |   | Change from 2009 |   |     | Percentage Change |   |   |
|--------|---------------------------------------------------|--------|----------------------------------|--------|--------|------------------|--------|----------|-------------------|--------|--------|
|   |                                              |   |                             |   |   |             |   |     |              |   |   |
|   | Wages, salaries and benefits                      |   | $                                | 1,550  |   |             | $      | 12       |              |   |   | 0.8 | % |   |
|   | Aircraft fuel                                     |   |                             | 1,330  |   |             |   | 151      |              |   |   | 12.8 |   | (a) |
|   | Regional payments to AMR Eagle                    |   |                             | 516    |   |             |   | 42       |              |   |   | 8.9 |   | (b) |
|   | Other rentals and landing fees                    |   |                             | 320    |   |             |   | 25       |              |   |   | 8.5 |   |   |
|   | Maintenance, materials and repairs                |   |                             | 284    |   |             |   | 41       |              |   |   | 16.9 |   | (c) |
|   | Commissions, booking fees and credit card expense |   |                             | 234    |   |             |   |  17 |              |   |   |  7.8 |   |   |
|   | Depreciation and amortization                     |   |                             | 230    |   |             |   | (5       | )                 |   |   | (2.1 | ) |   |
|   | Aircraft rentals                                  |   |                             | 132    |   |             |   | 5        |              |   |   | 3.9 |   |   |
|   | Food service                                      |   |                             | 115    |   |             |   | 1        |              |   |   | 0.9 |   |   |
|   | Special charges                                   |   |                             | -      |   |             |   | (14      | )                 |   |   | (100.0 | ) |   |
|   | Other operating expenses                          |   |                             | 674    |   |             |   | 49       |              |   |   | 7.8 |   | (d) |
|   | Total operating expenses                          |   | $                                | 5,385  |   |             | $      | 324      |              |   |   | 6.4 | % |   |

| (a)   | Aircraft fuel expense increased primarily due to a 16.3 percent increase in the Company’s price per gallon of fuel (net of the impact of fuel hedging). The Company recorded $45 million and $243 million in net losses on its fuel hedging contracts for the three months ended March 31, 2010 and March 31, 2009, respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Regional payments to AMR Eagle expense increased in conjunction with the 9.0 percent increase in Regional Affiliates’ passenger revenue. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Maintenance, materials and repairs increased due to the timing of materials and repairs expenses. |
|-----------------|---------------------------------------------------------------------------------------------------|

| (d)   | In January 2010, the Venezuelan Government devalued its currency from 2.15 bolivars per U.S. dollar to 4.30 bolivars per U.S. dollar and the Venezuelan economy was designated as highly inflationary.  As a result, the Company recognized a loss of $53 million related to the currency remeasurement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   |                    |   | Three Months Ended March 31, |   |
|--------|-------------------------|--------|------------------------------|--------|
|   |                    |   | 2010                         |   |   | 2009 |   |
|   | Revenues:               |   |                         |   |   |   |   |
|   | Regional Affiliates     |   | $                            | 498    |   |   | $ | 457 |   |
|   | Other                   |   |                         | 34     |   |   |   | 31 |   |
|   |                    |   | $                            | 532    |   |   | $ | 488 |   |
|   | Expenses:               |   |                         |   |   |   |   |   |   |
|   | Regional payments       |   | $                            | 541    |   |   | $ | 511 |   |
|   | Other incurred expenses |   |                         | 88     |   |   |   | 85 |   |
|   |                    |   | $                            | 629    |   |   | $ | 596 |   |

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

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

| 12   | Computation of ratio of earnings to fixed charges for the three months ended March 31, 2010 and 2009. |
|----------------|-------------------------------------------------------------------------------------------------------|

| 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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