Media Background Information for AMR’s Q3 2010 Results NOTE: AMR Chairman and Chief Executive Officer Gerard Arpey, President Tom Horton and Chief Financial Officer Bella Goren will make a presentation to analysts during a teleconference on Wednesday, Oct. 20, starting at 1 p.m. CT. Immediately after the analysts’ call, they will hold a questionand-answer conference call for media. The conference number is (612) 234-9960, the password is TransAtlantic. Note: This dial-in information is for media use only. AMR Reports $143 Million Quarterly Profit, Despite Higher Fuel Costs AMR reported third-quarter net profit of $143 million, or 39 cents per diluted share, an improvement of $408 million versus last year’s loss of $265 million, excluding non-recurring charges – marking the company’s first quarterly net profit since the third quarter in 2007, excluding special items. This result came despite fuel prices that drove $123 million more in jet fuel costs during the quarter than the company would have paid at prevailing prices in the same period last year. The Thomson Reuters First Call earnings consensus was a net profit of 32 cents a share. Notable results: Mainline unit revenue and other revenue rose 10.7 percent and 2.7 percent, respectively, compared to the same quarter last year, with international unit revenue increasing 11.9 percent. American’s yield rose 10.7 percent while load factor set a company record for any quarter – at 84 percent. Cash and short-term investments finished the quarter at $5 billion versus $4.6 billion at the end of the quarter last year. Enhancing the Network: Also, today AMR announced it is bolstering its “cornerstone” network strategy by expanding service from Los Angeles with 28 percent more departures – to 153 daily – from this strategic global market, adding 10 new domestic and international destinations from Los Angeles International Airport (LAX) [see separate news release]. In addition, American Eagle will invest nearly $20 million to expand its LAX terminal by four gates, bringing the total to 10 by end of 2011. Trans-Oceanic Ventures Make Progress: Earlier this month, American celebrated the launch of its joint business between North America and Europe with British Airways and Iberia, and also gained tentative approval of its antitrust immunity application for a joint business over the Pacific with Japan Airlines. Later today you’ll hear additional third-quarter highlights from AMR executives, including more on revenue and cost performance as well as network initiatives. Meantime, as you report on AMR’s results and prepare for the media call, below is relevant background information. Q3 2010 Highlights Revenue, Cost Performance Improve Mainline unit revenue, or revenue per available seat mile (RASM), rose 10.7 percent, driven by improving economic conditions and a record load factor. Consolidated unit revenue also grew 10.7 percent. Except for the 11.79-cent mainline RASM level in Q3 2008, this quarter’s 11.15 cents marks the highest Q3 amount since Mr. Arpey assumed leadership of the company in 2003. Consolidated revenue rose $715 million, or 14 percent, to more than $5.84 billion. Mainline yield, or average fares paid, rose 10.7 percent. Mainline unit costs decreased 0.7 percent versus last year’s quarter, excluding fuel costs and 2009 non-recurring charges. Other Revenue Continues Uptick AMR has continued to show improvement in generating ancillary revenue, a major focus of Mr. Arpey. Other revenue – from sources such as confirmed flight changes, purchased upgrades, Buy-on-Board food services and baggage service charges – continues to rise, as it has each year since 2002. The third-quarter 2010 rise was 2.7 percent to $602 million. 3/8/2016 page 1 Media Background Information for AMR’s Q3 2010 Results From 2003 through 2009, this revenue source has risen 57 percent and it has increased 6 percent through three quarters in 2010. International Revenue Rises Third-quarter international unit revenue grew 11.9 percent versus the same period last year, with increases in each region. RASM rose the most in the Pacific region – 21.1 percent compared to the year-ago period, followed by the Atlantic at 15.6 percent. The Pacific region also saw a 16.8 percent rise in yield, with international yield overall increasing 10.7 percent for the period. Load Factor Sets Record Mainline load factor, or percentage of seats filled, rose 0.1 point to 84 percent for the quarter, marking a record for any quarter and slightly eclipsing the 83.9 percent from Q3 in 2009 and 2007. Reinforced Cash Position AMR ended the third quarter with $5 billion in cash and short-term investments, including a restricted balance of $447 million, versus a balance of $4.6 billion in cash and short-term investments, including a restricted balance of $459 million, at the end of the quarter last year. Net Debt, which AMR defines as Total Debt less unrestricted cash and short-term investments, was $11.6 billion at the end of the third quarter, comparable the same level at the end of Q3 2009. Fuel Cost Still Historically High American’s average mainline fuel price per gallon for the quarter rose 8.3 percent versus last year, and this quarter’s cost of $2.24 per gallon is more than two-and-a-half times the 85 cents per gallon American paid for jet fuel in Q3 2003. In the third quarter of 2003, consolidated fuel expense represented 15.8 percent of total operating expenses. In contrast, in Q3 2010 it was nearly double at more than 29 percent. Fuel expense this quarter was $119 million shy of surpassing wages, salaries and benefits as the company’s largest cost. Including the impact of fuel hedging, AMR paid $123 million more for jet fuel in the third quarter, at an average of $2.24 per gallon, than it would have paid at prices prevailing during the third quarter of 2009, when it paid $2.07 per gallon. Fuel Smart Brings More Savings AMR continues its Fuel Smart program, resulting from employees who saw an opportunity to safely reduce fuel consumption, as a proactive step the company is taking to combat rising oil prices. In 2010, the program aims to reach an annual fuel savings of 120 million gallons and reduce carbon dioxide emissions by 2.5 billion pounds. At AMR’s projected average system price of $2.31 for 2010, that would represent savings of $277 million. 3/8/2016 page 2