American understands the critical importance of protecting and funding employee pensions as part of their total compensation package. Beginning in 2005 and continuing through 2007, American employees demonstrated a unified front and collaborative spirit in asking Congress to pass legislation that would provide airlines with much-needed relief from the near immediate and massive funding requirements. The legislation passed, improving the Company’s ability to meet funding obligations while giving it added flexibility to run the business and better position it for continued financial improvement.

AMR contributed $25 million to employees’ defined benefit pension plans in the first quarter of 2008 and made an additional contribution of $50 million on April 15 for a total of $75 million. The Company has contributed more than $2 billion to these plans since the start of 2002, underscoring AMR’s commitment to its employees and standing in stark contrast to U.S. network airline competitors that have terminated or frozen pensions in bankruptcy court, significantly reducing retirement income for many employees.

American's contributions, along with strong investment returns and the new pension legislation, have:

• Improved our ability to safeguard the pension plans for the future,
• Allowed us to continue to meet our funding commitments to these plans and
• Helped American earn PLANSPONSOR's Corporate Plan Sponsor of the Year in March 2007.

American's consistent approach to investing, as well as its relentless focus on its pension commitment, has also allowed it to maintain the defined benefit pension plans for its 127,000 participants when other competitors have frozen or eliminated this benefit. American is encouraged by the progress it has made in boosting funding. The Company’s goal continues to be to avoid the adverse pension outcomes suffered by other network carriers by securing its financial future.

Key Defined Benefit Pension Plan Facts

Today, American collectively funds its defined benefit pension plans at approximately 96 percent. In contrast, Continental – the only remaining competitor with defined benefit pension plans – funds its plans at approximately 77 percent.

Even in the quarters during which American did not earn a profit, American continued to fund its pension plans.

• Since 2002, American has contributed over $2 billion to its pension plans.

• Competitors, such as United, Delta, Northwest and US Airways, have terminated or frozen their defined benefit plans.

• Low cost carriers, such as jetBlue and ATA, do not offer defined benefit plans to their employees.