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

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

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

----

|                                                               |   |                    |   |   |                   |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                               |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                               |   | September      30,      |   |   | September      30,     |   |
|                                                               |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
| Revenues                                                           |   |                    |   |   |                   |   |   |   |   |   |   |   |
|     Passenger                                  |   | $                       | 4,946  |   |                   | $      | 4,598 |   |   | $ | 14,060 |   |   | $ | 13,299 |   |
|     Regional      Affiliates                   |   |                    | 668    |   |                   |   | 648 |   |   |   | 1,932 |   |   |   | 1,864 |   |
|     Cargo                                      |   |                    | 230    |   |                   |   | 196 |   |   |   | 678 |   |   |   | 597 |   |
|     Other      revenues                        |   |                    | 558    |   |                   |   | 480 |   |   |   | 1,559 |   |   |   | 1,417 |   |
|       Total      operating revenues  |   |                    | 6,402  |   |                   |   | 5,922 |   |   |   | 18,229 |   |   |   | 17,177 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                           |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Aircraft      fuel                                     |   |                    | 2,461  |   |                   |   | 1,570 |   |   |   | 6,501 |   |   |   | 4,324 |   |
|   Wages,      salaries and benefits                      |   |                    | 1,477  |   |                   |   | 1,561 |   |   |   | 4,461 |   |   |   | 4,568 |   |
|   Regional      payments to AMR Eagle                    |   |                    | 722    |   |                   |   | 572 |   |   |   | 2,072 |   |   |   | 1,695 |   |
|   Other      rentals and landing fees                    |   |                    | 313    |   |                   |   | 298 |   |   |   | 894 |   |   |   | 883 |   |
|   Commissions,      booking fees and credit card expense |   |                    | 264    |   |                   |   | 270 |   |   |   | 780 |   |   |   | 787 |   |
|   Depreciation      and amortization                     |   |                    | 245    |   |                   |   | 259 |   |   |   | 780 |   |   |   | 749 |   |
|   Maintenance,      materials and repairs                |   |                    | 240    |   |                   |   | 214 |   |   |   | 753 |   |   |   | 617 |   |
|   Aircraft      rentals                                  |   |                    | 120    |   |                   |   | 144 |   |   |   | 367 |   |   |   | 441 |   |
|   Food      service                                      |   |                    | 133    |   |                   |   | 137 |   |   |   | 388 |   |   |   | 392 |   |
|   Special      charges                                   |   |                    | 25     |   |                   |   | - |   |   |   | 1,188 |   |   |   | - |   |
|   Other      operating expenses                          |   |                    | 670    |   |                   |   | 632 |   |   |   | 1,886 |   |   |   | 1,879 |   |
|     Total      operating expenses              |   |                    | 6,670  |   |                   |   | 5,657 |   |   |   | 20,070 |   |   |   | 16,335 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss)                                       |   |                    | (268   | )      |                   |   | 265 |   |   |   | (1,841 | ) |   |   | 842 |   |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense)                                        |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest      income                                   |   |                    | 36     |   |                   |   | 88 |   |   |   | 134 |   |   |   | 248 |   |
|   Interest      expense                                  |   |                    | (143   | )      |                   |   | (177 | ) |   |   | (424 | ) |   |   | (546 | ) |
|   Interest      capitalized                              |   |                    | 10     |   |                   |   | 2 |   |   |   | 23 |   |   |   | 16 |   |
|   Related      party interest - net                      |   |                    | (12    | )      |                   |   | (23 | ) |   |   | (43 | ) |   |   | (64 | ) |
|   Miscellaneous      - net                               |   |                    | (19    | )      |                   |   | (9 | ) |   |   | (52 | ) |   |   | (28 | ) |
|                                                               |   |                    | (128   | )      |                   |   | (119 | ) |   |   | (362 | ) |   |   | (374 | ) |
|                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) Before Income Taxes                             |   |                    | (396   | )      |                   |   | 146 |   |   |   | (2,203 | ) |   |   | 468 |   |
| Income      tax                                                    |   |                    | -      |   |                   |   | - |   |   |   | - |   |   |   | - |   |
| Net      Earnings (Loss)                                           |   | $                       | (396   | )      |                   | $      | 146 |   |   | $ | (2,203 | ) |   | $ | 468 |   |

----

|                                                                                                |   |        |               |   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|
|                                                                                                |   |   | September      30, |   |   |   |   | December      31, |   |
|                                                                                                |   |   | 2008          |   |   |   |   | 2007  |   |
|     Assets                                                                      |   |   |               |   |   |   |   |   |   |
|          Current Assets                                                              |   |   |               |   |   |   |   |   |   |
|       Cash                                                            |   | $      | 268                |   |   |   | $ | 145 |   |
|   Short-term      investments                                                             |   |   | 4,344              |   |   |   |   | 4,286 |   |
|   Restricted      cash and short-term investments                                         |   |   | 456                |   |   |   |   | 428 |   |
|   Receivables,      net                                                                   |   |   | 1,085              |   |   |   |   | 1,003 |   |
|   Inventories,      net                                                                   |   |   | 617                |   |   |   |   | 544 |   |
|   Fuel      derivative contracts                                                          |   |   | 210                |   |   |   |   | 416 |   |
|   Other      current assets                                                               |   |   | 305                |   |   |   |   | 204 |   |
|     Total      current assets                                                   |   |   | 7,285              |   |   |   |   | 7,026 |   |
|                                                                                                |   |   |               |   |   |   |   |   |   |   |
| Equipment      and Property                                                                         |   |   |               |   |   |   |   |   |   |   |
|   Flight      equipment, net                                                              |   |   | 10,122             |   |   |   |   | 11,142 |   |
|   Other      equipment and property, net                                                  |   |   | 2,329              |   |   |   |   | 2,366 |   |
|   Purchase      deposits for flight equipment                                             |   |   | 603                |   |   |   |   | 239 |   |
|                                                                                                |   |   | 13,054             |   |   |   |   | 13,747 |   |
|                                                                                                |   |   |               |   |   |   |   |   |   |   |
| Equipment      and Property Under Capital Leases                                                    |   |   |               |   |   |   |   |   |   |   |
|   Flight      equipment, net                                                              |   |   | 277                |   |   |   |   | 686 |   |
|   Other      equipment and property, net                                                  |   |   | 62                 |   |   |   |   | 76 |   |
|                                                                                                |   |   | 339                |   |   |   |   | 762 |   |
|                                                                                                |   |   |               |   |   |   |   |   |   |   |
| Route      acquisition costs and airport operating and gate   lease      rights, net |   |   | 1,097              |   |   |   |   | 1,135 |   |
| Other      assets                                                                                   |   |   | 2,303              |   |   |   |   | 2,715 |   |
|                                                                                                |   | $      | 24,078             |   |   |   | $ | 25,385 |   |
| Liabilities      and Stockholder’s Equity (Deficit)                                           |   |   |               |   |   |   |   |   |   |   |
| Current      Liabilities                                                                            |   |   |               |   |   |   |   |   |   |   |
|   Accounts      payable                                                                   |   | $      | 1,090              |   |   |   | $ | 1,083 |   |
|   Accrued      liabilities                                                                |   |   | 2,208              |   |   |   |   | 2,128 |   |
|   Air      traffic liability                                                              |   |   | 4,405              |   |   |   |   | 3,986 |   |
|   Payable      to affiliates, net                                                         |   |   | 2,162              |   |   |   |   | 1,610 |   |
|   Current      maturities of long-term debt                                               |   |   | 919                |   |   |   |   | 382 |   |
|   Current      obligations under capital leases                                           |   |   | 121                |   |   |   |   | 147 |   |
|     Total      current liabilities                                              |   |   | 10,905             |   |   |   |   | 9,336 |   |
|                                                                                                |   |   |               |   |   |   |   |   |   |   |
| Long-term      debt, less current maturities                                                        |   |   | 6,637              |   |   |   |   | 6,600 |   |
| Obligations      under capital leases, less current obligations                                     |   |   | 590                |   |   |   |   | 680 |   |
| Pension      and postretirement benefits                                                            |   |   | 3,735              |   |   |   |   | 3,620 |   |
| Other      liabilities, deferred gains and deferred credits                                         |   |   | 3,255              |   |   |   |   | 3,705 |   |
|                                                                                                |   |   |               |   |   |   |   |   |   |   |
| Stockholder’s      Equity (Deficit)                                                           |   |   |               |   |   |   |   |   |   |   |
|   Common      stock                                                                       |   |   | -                  |   |   |   |   | - |   |
|   Additional      paid-in capital                                                         |   |   | 3,878              |   |   |   |   | 3,862 |   |
|   Accumulated      other comprehensive income                                             |   |   | 259                |   |   |   |   | 560 |   |
|   Accumulated      deficit                                                                |   |   | (5,181             | )      |   |   |   | (2,978 | ) |
|                                                                                                |   |   | (1,044             | )      |   |   |   | 1,444 |   |
|                                                                                                |   | $      | 24,078             |   |   |   | $ | 25,385 |   |

----

|                                                                                                  |   | Nine      Months Ended September 30, |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                                  |   | 2008                                 |   |   | 2007 |   |
|  Net      Cash Provided (used for) by Operating Activities                                       |   | $                                    | (163   | ) |   | $ | 1,663 |   |
|                                                                                                  |   |                                 |   |   |   |   |   |   |
| Cash      Flow from Investing Activities:                                                             |   |                                 |   |   |   |   |   |   |
|   Capital      expenditures                                                                 |   |                                 | (670   | ) |   |   | (480 | ) |
|   Net      decrease (increase) in short-term investments                                    |   |                                 | (58    | ) |   |   | (616 | ) |
|   Net      decrease (increase) in restricted cash and short-term      investments           |   |                                 | (28    | ) |   |   | 21 |   |
|   Proceeds      from sale of equipment and property                                         |   |                                 | 14     |   |   |   | 22 |   |
|   Other                                                                                     |   |                                 | 9      |   |   |   | 7 |   |
|         Net      cash used by investing activities            |   |                                 | (733   | ) |   |   | (1,046 | ) |
|                                                                                                  |   |                                 |   |   |   |   |   |   |
| Cash      Flow from Financing Activities:                                                             |   |                                 |   |   |   |   |   |   |
|   Payments      on long-term debt and capital lease obligations                             |   |                                 | (393   | ) |   |   | (1,069 | ) |
|   Reimbursement      from construction reserve account                                      |   |                                 | 1      |   |   |   | 61 |   |
|   Proceeds      from:                                                                       |   |                                 |   |   |   |   |   |   |
|     Issuance      of debt                                                         |   |                                 | 823    |   |   |   | - |   |
|     Sale      leaseback transactions                                              |   |                                 | 151    |   |   |   | - |   |
|   Funds      transferred from affiliates, net                                               |   |                                 | 437    |   |   |   | 427 |   |
|         Net      cash provided (used) by financing activities |   |                                 | 1,019  |   |   |   | (581 | ) |
|                                                                                                  |   |                                 |   |   |   |   |   |   |
| Net      increase (decrease) in cash                                                                  |   |                                 | 123    |   |   |   | 36 |   |
| Cash      at beginning of period                                                                      |   |                                 | 145    |   |   |   | 120 |   |
| Cash      at end of period                                                                            |   | $                                    | 268    |   |   | $ | 156 |   |
|                                                                                                  |   |                                 |   |   |   |   |   |   |

----

|   | NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------------|

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

| 2.   | Beginning      in the first quarter of 2008, American reclassified revenues associated      with the marketing component of AAdvantage program mileage sales from      Passenger revenue to Other revenue.  As a result of this change,      approximately $152 million and $450 million of revenue was reclassified      from Passenger revenue to Other revenue for the three and nine months      ended September 30, 2007, respectively, to conform to the current      presentation. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | During      the quarter ended September 30, 2008, the Company entered into amendments      to its 737-800 purchase agreement with the Boeing      Company.  Giving effect to the amendments, the Company is now      committed to take delivery of a total of 36 737-800 aircraft in 2009 and      40 737-800 aircraft in 2010.  In addition to these aircraft, the      Company has firm commitments for eleven 737-800 aircraft and seven Boeing      777 aircraft scheduled to be delivered in 2013 -  2016. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------------|

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

| 4.   | Accumulated      depreciation of owned equipment and property at September 30, 2008 and      December 31, 2007 was $8.8 billion and $10.5 billion,      respectively.  Accumulated amortization of equipment and      property under capital leases at September 30, 2008 and December 31, 2007      was $573 million and $1.2 billion, respectively.  During the      second quarter of 2008, the Company recorded an impairment charge to write      down its McDonnell Douglas MD80 fleet and certain related long-lived      assets to their estimated fair values.  As a result $2.7 billion      of accumulated depreciation and amortization was eliminated as a new cost      basis was established for these aircraft. See Note 9 to the condensed      consolidated financial statements for more information regarding the      impairment charges. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | As      discussed in Note 7 to the consolidated financial statements in the 2007      Form 10-K, the Company has a valuation allowance against the full amount      of its net deferred tax asset. The Company currently provides a valuation      allowance against deferred tax assets when it is more likely than not that      some portion, or all of its deferred tax assets, will not be realized. The      Company’s deferred tax asset valuation allowance increased approximately      $845 million during the nine months ended September 30, 2008 to $2.0      billion as of September 30, 2008, including the impact of comprehensive      loss for the nine months ended September 30, 2008 and changes from other      adjustments. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | As      of September 30, 2008, American had issued guarantees covering      approximately $750 million of AMR’s unsecured debt.  In      addition, as of September 30, 2008, AMR and American had issued guarantees      covering approximately $305 million of AMR Eagle’s secured      debt. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------------|

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

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

|           (in millions)                                |   | Fair Value Measurements as of September 30,      2008 |   |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|           Description                                  |   | Total                                                 |   |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |
|                                                                       |   |                                                  |   |   |   |   |   |   |   |   |   |   |
|           Short term investments 1                     |   | $                                                     | 4,344  |   |   | $ | 1,196 |   |   | $ | 3,148 |   |   | $ | - |   |
|           Restricted cash and short-term investments 1 |   |                                                  | 456    |   |   |   | 456 |   |   |   | - |   |   |   | - |   |
|           Fuel derivative contracts 1,      2          |   |                                                  | 165    |   |   |   | - |   |   |   | 165 |   |   |   | - |   |
|           Total                                        |   | $                                                     | 4,965  |   |   | $ | 1,652 |   |   | $ | 3,313 |   |   | $ | - |   |

----

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

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

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

|                                                                                                            |   | Pension      Benefits                     |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                            |   | Three      Months EndedSeptember      30, |   |   | Nine      Months EndedSeptember      30, |   |
|                                                                                                            |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                  Components of net periodic benefit cost |   |                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |
|              Service cost                                                    |   | $                                         | 81     |   |   | $ | 93 |   |   | $ | 243 |   |   | $ | 278 |   |
|              Interest cost                                                   |   |                                      | 171    |   |   |   | 168 |   |   |   | 513 |   |   |   | 504 |   |
|              Expected return on assets                                       |   |                                      | (197   | ) |   |   | (187 | ) |   |   | (592 | ) |   |   | (561 | ) |
|                 Amortization of:                              |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Prior service cost                                                                |   |                                      | 4      |   |   |   | 4 |   |   |   | 12 |   |   |   | 12 |   |
|           Unrecognized net loss                                                             |   |                                      | 1      |   |   |   | 6 |   |   |   | 2 |   |   |   | 19 |   |
|         Net      periodic benefit cost                                  |   | $                                         | 60     |   |   | $ | 84 |   |   | $ | 178 |   |   | $ | 252 |   |

|                                                                                                                  |   | Retiree      Medical and Other Benefits   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                                  |   | Three      Months EndedSeptember      30, |   |   | Nine      Months EndedSeptember      30, |   |
|                                                                                                                  |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                   Components of net periodic benefit cost |   |                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |                                      |   |   |   |   |   |   |   |   |   |   |
|               Service cost                                                    |   | $                                         | 14     |   |   | $ | 18 |   |   | $ | 41 |   |   | $ | 53 |   |
|          Interest      cost                                              |   |                                      | 43     |   |   |   | 49 |   |   |   | 129 |   |   |   | 145 |   |
|               Expected return on assets                                       |   |                                      | (5     | ) |   |   | (4 | ) |   |   | (15 | ) |   |   | (13 | ) |
|                  Amortization of:                              |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Prior      service cost                                                           |   |                                      | (3     | ) |   |   | (3 | ) |   |   | (10 | ) |   |   | (10 | ) |
|            Unrecognized net (gain) loss                                                      |   |                                      | (5     | ) |   |   | (1 | ) |   |   | (17 | ) |   |   | (5 | ) |
|               Net periodic benefit cost                                       |   | $                                         | 44     |   |   | $ | 59 |   |   | $ | 128 |   |   | $ | 170 |   |

| 9.          | As a result of the      revenue environment, high fuel prices and the Company’s restructuring      activities, the Company has recorded a number of charges during the last      few years.  In May 2008, the Company announced capacity      reductions due to unprecedented high fuel costs and the other challenges      facing the industry.  In connection with these capacity      reductions, the Company incurred special charges related to aircraft,      employee reductions and certain othercharges. |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

----

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

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

|                                                                                                                                                                                                       |   | Aircraft      Charges |      |   | Facility      Exit Costs |   |     | Employee      Charges |   |   | Capacity      Purchase Payment |   |   |       Other |    |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|--------|--------------------------|--------|----------|-----------------------|--------|--------|--------------------------------|--------|--------|-----------------------|---------|--------|--------|--------|
|               Remaining accrual at                  December 31, 2007                                       |   | $                     |  124 |   |                     | $      |  18 |                  |   | $      |  -                        |   |   | $                     |  - |   |   | $      |  - |   |   | $ |  142 |   |
|              Capacity reduction charges                                                                                                                                 |   |                  | 988       |   |                     |   | -        |                  |   |   | 61                             |   |   |                  | 115     |   |   |   | 25 |   |   |   | 1,189 |   |
|              Non-cash charges                                                                                                                                           |   |                  | (988      | )      |                     |   | -        |                  |   |   | -                              |   |   |                  | -       |   |   |   | (25 | ) |   |   | (1,013 | ) |
|              Adjustments                                                                                                                                                |   |                  | -         |   |                     |   | (5       | )                     |   |   | -                              |   |   |                  | -       |   |   |   | - |   |   |   | (5 | ) |
|              Payments                                                                                                                                                   |   |                  | (28       | )      |                     |   | -        |                  |   |   | -                              |   |   |                  | (115    | )      |   |   | - |   |   |   | (143 | ) |
|              Remaining accrual at                          June 30, 2008 |   | $                     | 96        |   |                     | $      | 13       |                  |   | $      | 61                             |   |   | $                     | -       |   |   | $      | - |   |   | $ | 170 |   |

| 10. | The      Company includes changes in the fair value of certain derivative financial      instruments that qualify for hedge accounting and unrealized gains and      losses on available-for-sale securities in comprehensive income. For the      three month periods ended September 30, 2008 and 2007, comprehensive      income (loss) was $(1.5) billion and $156 million, respectively, and for      the nine month periods ended September 30, 2008 and 2007, comprehensive      income (loss) was $(2.5) billion and $550 million, respectively. Total      comprehensive income for the year ended December 31, 2007 was $2.3      billion.  The difference between net earnings (loss) and      comprehensive income (loss) for the three and nine month periods ended      September 30, 2008 and 2007 is due primarily to the accounting for the      Company’s derivative financial instruments.  Due to the current      value of the Company’s derivative contracts, some agreements with      counterparties require collateral to be deposited with the      Company.  As of September 30, 2008 the collateral held in      Short-term investments by AMR from such counterparties was $239 million,      an increase of $75 million from December 31, 2007, which is included in      cash flows from operations.  Ineffectiveness is inherent in      hedging jet fuel with derivative positions based in crude oil or other      crude oil related commodities.  As required by Statement of      Financial Accounting Standard No. 133, “Accounting for Derivative      Instruments and Hedging Activities” (SFAS 133), the Company assesses, both      at the inception of each hedge and on an on-going basis, whether the      derivatives that are used in its hedging transactions are highly effective      in offsetting changes in cash flows of the hedged items.  In      doing so, the Company uses a regression model to determine the correlation      of the change in prices of the commodities used to hedge jet fuel (NYMEX      Heating oil) to the change in the price of jet fuel.  The      Company also monitors the actual dollar offset of the hedges’ market      values as compared to hypothetical jet fuel hedges.  The fuel      hedge contracts are generally deemed to be “highly effective” if the      R-squared is greater than 80 percent and the dollar offset correlation is      within 80 percent to 125 percent.  The Company discontinues      hedge accounting prospectively if it determines that a derivative is no      longer expected to be highly effective as a hedge or if it decides to      discontinue the hedgingrelationship. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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American’s Credit Facility, consists of a fully drawn $255million revolving credit facility, with a final maturity on June 17, 2009, and afully drawn $437 million term loan facility, with a final maturity on December17, 2010. In order to mitigate the impact of a potential credit card processingreserve, the Company drew down its $255 million revolving credit facility inSeptember 2008.  American’s obligations under the Credit Facility areguaranteed by AMR.

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|                                     |   | Nine      Months Ended September 30, 2008 |   |
|------------------------------------------|--------|-------------------------------------------|--------|
|                                     |   | RASM(cents)                               |   |   | Y-O-YChange |   |   | ASMs      (billions) |   |   | Y-O-YChange |   |
|                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| DOT      Domestic                        |   |                                      | 10.90  |   |   |   | 5.9 | % |   |   | 78.0 |   |   |   | (4.1 | )% |
| International                            |   |                                      | 11.90  |   |   |   | 11.7 |   |   |   | 46.7 |   |   |   | 0.9 |   |
|    DOT      Latin America |   |                                      | 12.59  |   |   |   | 13.8 |   |   |   | 22.9 |   |   |   | 2.7 |   |
|    DOT      Atlantic      |   |                                      | 11.26  |   |   |   | 8.1 |   |   |   | 18.7 |   |   |   | (0.9 | ) |
|    DOT      Pacific       |   |                                      | 11.15  |   |   |   | 14.5 |   |   |   | 5.0 |   |   |   | (0.5 | ) |

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| (in      millions) Operating      Expenses        |   | Nine      Months EndedSeptember      30, 2008 |      |   | Change      from      2007 |   |   | Percentage      Change |   |   |
|--------------------------------------------------------|--------|-----------------------------------------------|-----------|--------|----------------------------|--------|--------|------------------------|--------|--------|
|                                                   |   |                                          |      |   |                       |   |   |                   |   |   |
| Aircraft      Fuel                                     |   | $                                             | 6,501     |   |                       | $      | 2,177  |                   |   |   | 50.3 | % |  (a) |
| Wages,      salaries and benefits                      |   |                                          | 4,461     |   |                       |   | (107   | )                      |   |   | (2.3 | ) |   |
| Regional      payments to AMR Eagle                    |   |                                          | 2,072     |   |                       |   | 377    |                   |   |   | 22.2 |   |   |
| Other      rentals and landing fees                    |   |                                          | 894       |   |                       |   | 11     |                   |   |   | 1.2 |   |   |
| Depreciation      and amortization                     |   |                                          | 780       |   |                       |   | 31     |                   |   |   | 4.1 |   |   |
| Maintenance,      materials and repairs                |   |                                          | 753       |   |                       |   | 136    |                   |   |   | 22.0 |   |  (b) |
| Commissions,      booking fees and credit card expense |   |                                          |  780 |   |                       |   | (7     | )                      |   |   | (0.9 | ) |   |
| Aircraft      rentals                                  |   |                                          | 367       |   |                       |   | (74    | )                      |   |   | (16.8 | ) |   |
| Food      service                                      |   |                                          | 388       |   |                       |   | (4     | )                      |   |   | (1.0 | ) |   |
| Special      charges                                   |   |                                          | 1,188     |   |                       |   | 1,188  |                   |   |   | * |   |  (c) |
| Other      operating expenses                          |   |                                          | 1,886     |   |                       |   | 7      |                   |   |   | 0.4 |   |   |
| Total      operating expenses                          |   | $                                             | 20,070    |   |                       | $      | 3,735  |                   |   |   | 22.9 | % |   |

| (a)   | Aircraft      fuel expense increased primarily due to a 55.6 percent increase in the      Company’s price per gallon of fuel (net of the impact of fuel hedging)      offset by a 3.4 percent decrease in the Company’s fuel consumption,      primarily due to reductions in available seat  miles. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | Special      charges are related to a non-cash impairment charge of $1.0 billion to      write the McDonnell Douglas MD-80 fleet and certain related long-lived      assets down to their estimated fair values. This impairment charge was      triggered by the record increase in fuel prices over the last twelve      months.  In addition, the Company accrued $61 million for      severance costs and $19 million related to the grounding of leased Airbus      A300 aircraft prior to lease expiration related to the capacity      reductions. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|                                 |   | Nine      months endedSeptember      30, |   |
|--------------------------------------|--------|------------------------------------------|--------|
|                                 |   | 2008                                     |   |   | 2007 |   |
| Revenues:                            |   |                                     |   |   |   |   |
| Regional      Affiliates             |   | $                                        | 1,932  |   |   | $ | 1,864 |   |
| Other                                |   |                                     | 92     |   |   |   | 76 |   |
|                                 |   | $                                        | 2,024  |   |   | $ | 1,940 |   |
|                                 |   |                                     |   |   |   |   |   |   |
| Expenses:                            |   |                                     |   |   |   |   |   |   |
| Payments      to Regional Affiliates |   | $                                        | 2,072  |   |   | $ | 1,842 |   |
| Special      Charges                 |   |                                     | 113    |   |   |   | - |   |
| Other      incurred expenses         |   |                                     | 238    |   |   |   | 236 |   |
|                                 |   | $                                        | 2,423  |   |   | $ | 2,078 |   |

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

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|   | • |   | 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 environmentalmeasures;                                                                                                                                                                               |
|   |    |   |                                                                                                                                                                                                                                                 |
|   | • |   | outbreaks      of diseases that affect travel behavior; and                                                                                                                                                                                          |
|   |    |   |                                                                                                                                                                                                                                                 |
|   | • |   | weather      and natural disasters.                                                                                                                                                                                                                  |

|   | • |   | limit      our ability to obtain additional financing for working capital, capital      expenditures, acquisitions and general corporate purposes, and adversely      affect the terms on which such financing 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.                                                                           |

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|   | • |   | 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 previously held by      us; or            |
|   |    |   |                                                                                                                                                                                           |
|   | • |   | the      adoption of more restrictive locally imposed noise      restrictions.                                                                                                                 |

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|   | The      following exhibits are includedherein: |
|--------|-------------------------------------------------|

|   | 10.1   Purchase      Agreement No. 1977 Supplement No. 29 dated as of July 29,    2008 |
|--------|-------------------------------------------------------------------------------------------------------|

|   | 10.2   Purchase      Agreement No. 1977 Supplement No. 30 dated as of August 8,      2008 |
|--------|----------------------------------------------------------------------------------------------------------|

|   | 10.3        Purchase Agreement No. 1977 Supplement No. 31 dated as of September 15,      2008 |
|--------|---------------------------------------------------------------------------------------------------------|

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

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

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

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

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