American Airlines and American Eagle detail further flight reductions

Airline Industry Information, June 26, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

American Airlines and regional carrier American Eagle, both owned by AMR Corporation (NYSE: AMR), have released additional details of flight reductions to be made from the fourth quarter.

They said the reductions are in line with the earlier-announced plans to cut fourth quarter domestic capacity by 11-12% and regional affiliate capacity by 10-11% compared with the fourth quarter of 2007.

In May the airlines announced schedule changes that will take effect in September. The latest reductions will start in November.

American Airlines is to reduce flights at most of its principal operations and will withdraw from Oakland, California; London Stansted in the UK; and Barranquilla, Colombia.

American Eagle will cease its flight operations at Albany, New York; Providence, Rhode Island; Harrisburg, Pennsylvania; Samana, Dominican Republic; and San Luis Obispo, California. American Eagle will also close its maintenance base in San Luis Obispo, the company said.

In addition American Airlines will cut 28 flights from its Chicago schedule and American Eagle will cut 34. Reductions will also be made in St. Louis, where American will reduce its departures by eight flights and American Eagle and AmericanConnection will eliminate 35 departures. At Dallas/Fort Worth American will cut 19 flights and American Eagle will cut 23, and at New York's LaGuardia Airport American will cut five flights from its schedule and American Eagle will cut 37.

The company noted that the service reduction at LaGuardia would help to ease congestion there, in addition to cutting the airlines' costs.

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