For American Airlines, International Service Continues to Be Major Focus of Expansion, Strength

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1 For American Airlines, International Service Continues to Be Major Focus of Expansion, Strength Overview American Airlines, the world's largest airline, offers nonstop flights each day to financial capitals and the most important cities across the globe. In recent years, American and its partner American Eagle, have dramatically bolstered a vast international network by adding new routes into Asia, including nonstop service from Chicago to Shanghai, China, and Delhi, India; significantly increasing service from New York, one of the major gateways in the United States; and reinforcing the airline s commitment to London by expanding service to the financial capital of Europe and connection points to the rest of the world. In addition, American has boosted its international footprint, enabling travelers to reach far into Asia and Europe, by adding new routes and partners via the growing oneworld Alliance, all the while further strengthening its position as the leading airline serving Latin America. At the same time, American, the only U.S. network airline to have avoided declaring bankruptcy and fresh off its first yearly profit in six years in 2006, has continued its focus on reinvesting in its products and services with enhanced international inflight service, food and entertainment offerings while upgrading terminals at its major gateways. American s international network gives customers what they value a broad offering of more than 800 destinations for AAdvantage Program frequent flyer members to earn and redeem miles for travel. The successful launch of service to China and India, the continued international growth and the investments in its products and services are key elements of an international strategy that continues to solidify American's position as the world s largest airline. Here s a closer look at each area that reflects American s international expansion. International Operations Grow American provides nonstop service to the Caribbean, Canada, Mexico, Latin America, Europe, Japan and Asia. Driven by greater business demand, American has increased its international capacity from 27.5 percent of available seat miles in 2002 to 35.7 percent in In 2006, American derived approximately 36 percent of its passenger revenue from international operations. Second-quarter 2007 international unit revenue increased 6.2 percent versus the same period last year. The second-quarter improvement follows increases of international unit revenue of 11.3 percent in the first quarter of 2007, 7.8 percent in 2006, and 6.6 percent in Financial analysts have noted that American has a more extensive international route system than most other network airlines and is always looking to expand international routes where markets and margins are strong. American, American Eagle and AmericanConnection now operate more than 4,000 daily departures to 250 cities in more than 40 countries, with a combined network fleet of more than 1,000 aircraft. Growth thus far in 2007 has been aided by the relocation of American s operations at Tokyo Narita to Terminal 2 on Jan. 17. The relocation reduced connection time by nearly half to its fellow oneworld partners including Japan Airlines, which joined the alliance on April 1. Asian Expansion: American Airlines launched its first flight to Shanghai, China, on April 2, The flight to the center of business and finance in the world s most populated country came nearly 80 years after a then littleknown aviator, Charles Lindbergh, flew mail in a bi-plane from Chicago to St. Louis for an outfit that grew to become American Airlines. On June 28, 2007, American continued its effort to expand its Asian presence by seeking authority from the U.S. Department of Transportation to begin nonstop service between Chicago O Hare International Airport and Beijing, China, effective March 25, 2009.

2 Page 2 Latin American Stronghold: Latin America continues to be a stronghold for American, offering more flights to more destinations than any other airline in the region, where it carries more than 18.5 million passengers a year. American continues to invest in resources, routes and most importantly its people. Miami is American s third largest hub and its gateway to the Southern Hemisphere, with the Latin America/Mexico route system encompassing 39 destinations in 18 countries. Much of American s success in Latin America can be attributed to its employees almost all of whom are nationals of the countries where they work. They are responsible for developing ties to the local communities, governments and business leaders, and for opening the marketplace to American. Bolstering London: American is reinforcing its commitment to London by upgrading and increasing service in the coming months. American will move some of its London Gatwick flights to London Heathrow Airport, a major connection point with oneworld partner British Airways, and will add a new route between New York JFK and London s Stansted Airport, effective Oct. 28, 2007, which will have significant benefits for many of American s premium business customers. As a result, American will fly as many as 20 roundtrips a day between the United States and London, with more transatlantic service to Heathrow than any other U.S. airline, once all the changes are in place. On May 21, 2007, American marked the 25th anniversary of its first nonstop U.S.-London flight. New York Initiative: In February 2007, American launched an initiative to become the clear-cut airline of choice for passengers in the New York market. American's ability to invest in new service from New York is a direct result of the success of the airline s Turnaround Plan, launched in For more than 80 years, American has offered service from New York to locations throughout the United States and the world. American is the largest U.S. airline flying out of New York to London and the Caribbean, as well as from JFK and LaGuardia to Canada. American is the only U.S. airline to fly nonstop from JFK Airport to both London s Heathrow Airport and Tokyo. New York is also an important market for the oneworld Alliance, with all 10 member airlines serving the city. American is continuing to expand service and add new routes from JFK, with a second route to London Stansted, new service from New York to Spain with a Barcelona route and a second destination in Italy (besides Rome) with a new route to Milan. These enhancements will be effective in spring AA in Chicago A Gateway to the World: Chicago's O'Hare International Airport is American's second largest hub. From Chicago, American and its regional partner, American Eagle, offer 500 daily departures to more than 120 destinations. From O Hare, passengers can fly nonstop to Shanghai, Tokyo, Delhi, London, Paris, Rome, Frankfurt, Dublin, Brussels, five cities in Mexico, four cities in Canada, and to Nassau, Bahamas. American s nonstop flight to Shanghai is in addition to its four routes between the United States and Tokyo, flown from Chicago, Dallas/Fort Worth, New York's JFK and Los Angeles, American also has a codeshare relationship with China Eastern Airlines that offers extensive connecting service to points within China. Additionally, American offers a daily Chicago-Dublin flight and is seeking DOT authority to fly a new nonstop route between O'Hare and Beijing, effective March American last week was granted authority to operate a daily nonstop flight between O'Hare and Buenos Aires, Argentina, starting Dec This will be the 21st nonstop international destination served from O'Hare by American and American Eagle. Dallas/Fort Worth Adds Routes: Terminal D, an impressive facility at Dallas/Fort Worth, is also seeing international expansion. American added nonstop routes to Leon, Mexico, and Montego Bay, Jamaica, in 2006 and offers nonstop service from the airport to key international cities such as London, Paris, Frankfurt, Sao Paulo, Santiago, Buenos Aires, Mexico City, Montreal and Tokyo. Terminal D serves more than 30 international destinations. South Florida Demand Increases: American continues to see increased demand for service from South Florida to Latin America and the Caribbean. To meet this need, on March 2, 2007, American Eagle began nonstop service between Miami International Airport and Cozumel International Airport and American will bolster its Fort Lauderdale schedule on Dec. 13, when it adds new service to San Jose, Costa Rica, and Santo Domingo, Dominican Republic. American will also add service from Miami to Barranquilla, Colombia, on Dec. 13. Miami is American s top international gateway, with American and its regional partner, American Eagle, operating the airport s largest flight schedule at nearly 250 flights a day to more than 90 destinations in the United States, Canada, the Caribbean, Bahamas and Latin America.

3 Page 3 New Infrastructure American continues to strike the right balance between reinvesting in the business with infrastructure improvements and continuing to build a strong financial foundation with balance sheet improvement. Here are some of the airline s major enhancements. JFK Terminal Shows Commitment: Despite difficult industry conditions post 9/11, American maintained its commitment to continue investing in its business, as well as its commitment to customers and the communities it serves. One of the most significant examples is American s $1.3 billion investment in its new terminal at John F. Kennedy Airport in New York. The terminal, which partially opened in July 2005, includes two new Admirals Clubs and a Flagship Lounge and creates new standards for financial, architectural and customer-friendly standards at JFK, the top port of entry for international visitors in the United States. The investment demonstrates American s commitment to New York and its customers. The new JFK terminal is more modern and less congested than other terminals. Not only does American s new terminal accommodate more customers than any other JFK airline terminal, but the 10 security positions at American s new terminal make getting through security quicker and easier. Its new customs and immigration facility can also process about twice as many passengers as before, making it easier than ever for international arriving passengers. The first phase of American Airlines new Terminal 9 at JFK Airport opened in 2005, and the second phase is due for completion by late summer This facility, with more than 1.5 million square feet includes 36 gates 27 for jet operations, 19 of which can support international flights and nine for regional jets; 84 ticketing positions, each designed with its own automated baggage takeaway belts that transport baggage directly to the state-of-the-art, inline security baggage system to expedite passenger processing times; a new U.S. Customs and Immigration facility with 36 immigrations positions and 10 customs positions capable of processing more than 1,600 passengers per hour. This is compared to the previous 19 immigration and eight customs positions, capable of processing 855 passengers per hour. Dallas/Fort Worth Benefits From International Terminal: American is the largest airline flying into the airport s Terminal D, which opened in late The $1.2 billion terminal includes 99 ticketing positions with two major ticketing and check-in areas that are able to handle 32,000 passengers daily. The facility also includes an immigration and naturalization processing area capable of accommodating up to 2,800 passengers per hour, ranking it among the largest in the world. To aid millions of connecting passengers, Dallas/Fort Worth (DFW) built Skylink, the largest airport automated people mover in the world. Together, AA and Eagle operate approximately 150 daily departures each day from the terminal, including all international departures and arrivals. A new 21,000 square foot, 340-seat Admirals Club opened in D the fourth club at DFW. The terminal also includes 100,000 square feet of concession areas that offer an extensive array of dining, entertainment and shopping options. Central Location Aids Los Angeles Travelers: American s operations at Los Angeles International Airport (LAX), the most popular and centrally located airport in the Los Angeles area, are in the same facility rather than split across multiple terminals, as is the case with other airlines allowing for more convenient connections for customers. American is situated in the newest terminal at LAX and features a popular Admirals Club that is newer and larger than other airline lounges. United was the biggest carrier at LAX for many years but there has been a steady shift, with American now close behind, according to Los Angeles World Airports. American has the leading domestic schedule and is growing internationally, especially to Latin America. By connecting at American hubs in Dallas/Fort Worth, Miami and JFK, Los Angeles travelers can fly to anywhere they want to go in Latin America, Asia and Europe. This is all the more notable when it s factored in that American began adding international service from LAX, to destinations such as Tokyo, Costa Rica and El Salvador only three years ago. New Services, Features During the past four years, American Airlines has transformed itself into a much different airline. After avoiding a bankruptcy filing in spring 2003 remaining the only network airline not to file for bankruptcy American has dramatically simplified operations, reduced costs and discovered innovative ways to generate revenue while investing in products and services that international travelers value. Its efforts and, significantly, its stability in a rapidly changing industry resonate with customers around the world.

4 Page 4 At the same time, American has continued its focus on investing in inflight services such as dining, beverages, entertainment and premium-class cabins and seats for international travelers many of whom are frequent travelers on American. Next Generation Business Class cabins, featuring new lie-flat seats, are being installed in American s fleet of 58 Boeing airplanes, for completion by the end of The first Business Class cabin enhancements on its fleet of 47 Boeing 777 aircraft will begin in fall and Upgrades: American Airlines officially unveiled the new lie-flat seats for the 777 fleet at the National Business Travel Association (NBTA) Convention and Exposition on July 23, 2007, in Boston. The centerpiece of the new Business Class enhancements are new, fully adjustable lie-flat seats with five independent motors that offer extensive flexibility. In the new seats, passengers can individually adjust any component of the seat, including the seat bottom, seat back, head rest, leg rest and leg-rest extension. In addition, two features unique to American include seats that track forward for added privacy and interlocking tray tables for added work and dining space. The Business Class enhancements for the 777 and 767 aircraft also include personal inflight entertainment that provides a wide selection of feature movies, current news, music, games and television shows; and an upgraded interior, including sleek, ergonomically designed overhead bins that provide more storage space. The new lie-flat Business Class seats are manufactured by Recaro Aircraft Seating Inc., a leading specialist in aviation. Premium-class customers on the 777 and the also receive Bose QuietComfort 3 Acoustic Noise Cancelling headphones to complete their sound experience while onboard the aircraft. First Class Luxury on 777s: American is making the investment to extend its popular First Class Flagship Suite to 20 additional Boeing 777 aircraft, creating a superior product across the fleet. Each Flagship Suite transforms into a fully flat six-foot, six-inch bed with drop-down armrests that allow for easier access and more sleeping space. Additionally, each suite features privacy dividers, power ports, leather headrests, two large tray tables, a swivel seat for face-to-face meetings or dining together, power ports, in-flight entertainment with audio and video on-demand and a host of other comforts designed to enhance the travel experience. American s Boeing 777 fleet primarily serves routes between the United States and locations in the United Kingdom, Japan, China, India, Germany and Latin America. Food and Beverage Enhancements: In an increasingly competitive business traveler environment, American continues to raise the bar with its latest installments of international cuisine and wine offerings. The menu enhancements continue a series of moves by American to invest in its premium-cabin products to continue its competitive advantage over low-cost carriers, as well as enable it to compete effectively with international airlines. American has expanded culinary options and overall service in First and Business Class cabins. Transcontinental flight upgrades include a marinated cheese antipasto snack as an alternative to warm mixed nuts in First Class. In addition to silverware, warm cloth towels and individual salt and pepper shakers, First and Business cabins now feature a baked-on-board cookie service, artisan breads, gourmet chocolates and prelanding sparkling water service. New First and Business Class Menus: American introduced new First and Business Class menus on all transcontinental flights, as well at select flights to and from Brazil, in January Developed by Conclave Chef Nancy Brussat-Barocci of Convito Italiano & Betise in Wilmette, Ill., the new transcontinental menu options are offered for breakfast, lunch and dinner, as well as the midnight snack service on overnight flights. In October 2005, American introduced new First Class and Business Class menus on flights between the United States and Europe. In the United States, acclaimed Chef Stephan Pyles of Dallas designed the new menu for flights to Europe. In addition, American reviewed proposals for the new menu on U.S.-bound flights submitted by European chefs. From these imaginative offerings, the airline selected appetizers, salads, main courses and desserts with European flair. American also introduced new menus between the United States and Japan in fall First and Business Class passengers traveling between the countries can pre-select Japanese-style entrées before their flight. The pre-order option, which is free, provides added confidence and convenience to customers.

5 Page 5 Employees Provide Expertise on Delhi, Shanghai Flights: On the Chicago to Delhi flight launched in November 2005, passengers are enjoying American's award-winning International Flagship Service, featuring a selection of dining, beverage and entertainment options. With assistance from the American Airlines Indian Employee Resource Group and employees across the system, and in conjunction with Indian chefs based in the United States and India, American structured a special menu for the Delhi flights that features Indian, Indianinspired vegetarian and Western meal selections. Similarly, on the Chicago-Shanghai flight, American, with assistance from American s Asian/Pacific Islander Employee Resource Group and in conjunction with Chinese chefs based in the United States, created a special menu for the Shanghai flights that features Chinese- and Western-inspired selections. American s Fine Wines: Fine wine is at the center of American s Business Class international service and has repeatedly won critical acclaim. Many top-grade wines provisioned in First Class are also offered in Business Class, a practice that sets American apart from other major international carriers. At any given time, American has more than 60 fine wines available on varying flights selected from the major wine growing regions of the world. As of July 1, 2007, on American transcontinental flights, First and Business Class customers are able to savor specific wine recommendations offered by American s new wine consultant Diane Teitelbaum with select premium-cabin menu entrées. While the pairing of certain foods and wines helps educate customers on the variety of wines American offers, it also demonstrates that the airline continues to enhance the onboard dining experience. American's award-winning Business Class wines earned accolades again in Global Traveler magazine s annual Wines on the Wing International Business Class Airline Wine Competition. Announced in the August 2007 issue of the magazine, American received honors in two categories first place in the Best International Business Class White Wine category and second place as Best International Business Class Red Wine. The oneworld Alliance The oneworld Alliance, of which American is a founding member, paralleled American s international expansion efforts by announcing growth plans of its own. Japan Airlines (JAL), Royal Jordanian Airlines and Hungary s Malév joined oneworld in April 2007, along with five of JAL s affiliates and LAN affiliates LAN Argentina and LAN Ecuador. They join existing members British Airways, Cathay Pacific Airways, Qantas, Iberia, LAN and Finnair and nearly 20 affiliate airlines. oneworld will gain access to more points in China and other points in Asia when Dragonair, an affiliate of Cathay Pacific, joins the alliance on Nov. 1, In addition, American has made a substantial investment in 2007 by moving its operations to Terminal 2 at Tokyo s Narita International Airport. The move provides greater convenience for American Airlines passengers in Tokyo, with closer proximity for customers to check in for flights, go through immigration, and enter the new Admirals Club lounge or access American's gates. The move co-locates American with four of its fellow oneworld partner airlines, a major convenience for passengers connecting to other destinations within Asia. The oneworld Alliance links the networks of 10 of the world's biggest and best airlines and 20 affiliates, providing its customers smooth connections to the destinations served by the alliance, including linking the carriers frequent flyer programs and access to nearly 500 their airport lounge facilities around the world. The alliance is the only global alliance with interline electronic ticketing in place between all partners. oneworld member airlines serve nearly 700 destinations in almost 150 countries and territories and operate more than 9,000 flights a day. oneworld member airlines serve nearly 700 destinations in almost 150 countries and territories and operate more than 9,000 flights a day. In 2006, oneworld member airlines carried approximately 320 million passengers, equivalent to around 1 in 30 of the world population, on a fleet of almost 2,500 aircraft. oneworld airlines operate almost 3.5 million flights annually an average of one oneworld airline departure or arrival occurs somewhere around the world every five seconds. It s worth noting that oneworld is the only alliance without a member that has been in bankruptcy court protection. In 2006 the alliance earned revenues totaling $675 million for its member airlines through its fare and sales products, up 10 percent year over year, as oneworld maintained its position as the most profitable airline alliance. And since 2004, the combined net profit of oneworld member airlines has totaled $5.4 billion, while SkyTeam members have lost $18.6 billion and Star Alliance partners have reported losses of $20.8 billion.

6 Page 6 In August 2006, oneworld unveiled a more user-friendly web site ( making it easier to check flight schedules across its global network and see where its member airlines fly, including an interactive map showing each destination and airport as well as a lounge database listing the location and hours of the nearly 500 lounges worldwide. Codesharing American has bolstered international service by adding new routes and new partners via the growing oneworld Alliance, and by expanding codesharing and ticketing agreements with other airlines. American Airlines has codeshare agreements with selected airlines and rail systems around the world. When traveling on an American Airlines codeshare flight operated by any of American's partners, travelers earn AAdvantage miles. Eligible miles earned on American s codeshare flights will also count toward qualifying for AAdvantage Executive Platinum, AAdvantage Platinum, and AAdvantage Gold status. Through its codeshare agreements, American Airlines markets selected partner flights as American Airlines flights. If travelers purchase seats on these flights, their ticket will show AA flight numbers. American has codeshare relationships with Aer Lingus, Air Pacific, Alaska Airlines/Horizon Air, British Airways, Brussels Airlines, Cathay Pacific, China Eastern Airlines, Deutsche Bahn German Rail, EVA Air, Finnair, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines, LAN (includes LAN Argentina, LAN Ecuador and LAN Peru), Malév Hungarian Airlines, Mexicana, Qantas Airways, Royal Jordanian Airlines, SNCF French Rail, TAM, Turkish Airlines and Vietnam Airlines. On Feb. 27, 2006, American announced that via its long-standing partnership with China Eastern Airlines, it has obtained the requisite governmental authorities to offer convenient connecting service to nearly 40 cities within China including code-share arrangements at the outset to seven cities, providing more options to travelers who want to go beyond Shanghai on the route from Chicago. Notably, American customers are greatly benefiting from American s relationship with China Eastern, which is based in Shanghai and is the city s largest airline. These codeshare flights began April 26, Ticket Arrangements In addition to oneworld, American has established a broad network of airline and rail partners around the world, integrating services to offer convenience of a single ticket, pre-reserved seats, connecting boarding passes, reliable baggage transfers and coordinated connections wherever possible. American has 20 codeshare partners offering more than 1,500 daily American Airlines code-share flights to 69 different countries. American now has interline electronic ticketing (IET) agreements with 78 domestic and international airlines. Customers can use a single electronic ticket (e-ticket) when their itineraries include travel on American and these airlines, including all of American s oneworld partners. The list also includes bilateral partners Mexicana, Brussels Airlines, LAN Peru, LAN Argentina, LAN Ecuador, Gulf Air, Air Tahiti Nui, Turkish Airlines and El Al. In 2004, oneworld became the first global alliance to offer the convenience of interline e-ticketing among all member airlines. More than 97 percent of all American customers today travel on electronic tickets, moving quickly and easily through busy airports. E-tickets are the key to using American s growing array of automated services, including the Flight Check-In feature on its award-winning web site, AA.com, along with AA Curbside Check-In and the more than 700 AA Self-Service Check-In machines provided at more than 85 airports. # # #