American & Boeing Reach Agreement to Defer Delivery

American Airlines
and The Boeing Company announced today that American will defer 54 of 56
aircraft originally scheduled for delivery between 2006 and 2010. The
delivery of 47 Boeing 737-800 aircraft and seven Boeing 777 aircraft will
be deferred by seven years and six years, respectively, beyond their
originally scheduled delivery dates. The arrangement allows American to
postpone $1.4 billion of capital spending previously planned for 2005
through 2007 and a total of $2.7 billion in capital spending through 2010. American will take delivery of two Boeing 777 aircraft in 2006, including
one aircraft originally scheduled for delivery in 2007, to support its
previously announced international growth.

“Deferring the delivery of 54 aircraft and the related capital spending
for up to seven years is a very important milestone in American’s
Turnaround Plan. It will substantially enhance our ability to restructure
our finances,” said James Beer, American’s Senior Vice President-Finance
and Chief Financial Officer. “We very much appreciate the support shown to
us by our partners at Boeing and look forward to a continuing robust
relationship between our two companies,” Beer said.

A Boeing spokesperson said that Boeing already has factored these changes
into Boeing’s financial guidance.

American Airlines’ active fleet consists of over 730 aircraft, including
700 Boeing and McDonnell Douglas aircraft.
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