AMR Corporation completes offerings of common stock and convertible notes

Expects to End Third Quarter with Approximately $4.4 Billion in Cash; Additional Proceeds from $450 Million Private Debt Sale Expected to be Received in October

AMR Corporation (NYSE: AMR), the parent company of American Airlines and American Eagle Airlines, announced the completion of its offerings of 48,484,849 shares of its common stock and $460,000,000 principal amount of its 6.25% convertible senior notes due 2014. Completion of the offerings, which closed yesterday, together with a number of other recent transactions, has improved the company's liquidity position as it seeks to weather the current global financial downturn and build a financial foundation for the future. The aggregate net proceeds from the offerings, after underwriting discounts and expenses, were approximately $830 million.

All told, AMR and American have announced approximately $4.2 billion in additional liquidity and new aircraft financing in September. All of this financing is in addition to the more than $1.2 billion the Company raised earlier this year through both private and public financings of owned aircraft and the financing of new 737s to be delivered through 2011.

"We believe AMR has been able to secure these strong votes of confidence from our strategic partners and the investment community by honoring our financial obligations in the past and looking out for the long-term interests of our stakeholders - and we believe these recent financings reflect that history," said Gerard Arpey, AMR's Chairman and CEO. "As we strive for sustained profitability, the new liquidity and long-term financing we were able to obtain amid challenging credit markets have buttressed our financial foundation and added flexibility to our near-term and future plans."

AMR also announced that American has repaid in full American's $432 million secured bank term loan facility, which will be refinanced using the proceeds of American's private sale of $450 million principal amount of senior secured notes, the pricing of which was announced Sept. 25. This transaction is expected to be completed on Oct. 9, 2009.

The September financing and liquidity announcements consist of:

 -- $1 billion in cash from the advance sale of AAdvantage(TM) frequent flyer miles to Citi -- $281.5 million loan facility from GE Capital Aviation Services (GECAS) secured by owned aircraft (all but $55 million will be included in the Company's third quarter 2009 cash and short-term investment balance) -- $1.6 billion in sale-leaseback financing commitments from GECAS for Boeing 737s previously ordered by the Company and to be delivered in 2010 and 2011 -- $830 million in cash from the sale of AMR common stock and its 6.25% convertible senior notes -- $450 million principal amount of senior secured notes (expected to be completed Oct. 9, 2009)

AMR also announced that the full amount of the reserve previously held by American's credit card processor has been released to American today. Giving effect to the release of this money, the repayment of American's bank term loan facility, and cash received from the financing transactions referred to above, the company expects to end the third quarter with approximately $4.4 billion in cash and short-term investments, including approximately $460 million in restricted cash. The $450 million associated with the senior secured notes is expected to be received in October and reflected in the company's year-end cash balance.

AMR expects third quarter average shares outstanding to total approximately 285 million shares, and a full year average share count for 2009 of approximately 293 million shares.