About American Airlines

Performance And Goals

Corporate responsibility performance

Corporate responsibility is a term that is often used to cover a broad range of issues—from safety performance to customer service, from community engagement to governance and ethics. Over the past few years, we have worked to refine our understanding of the key issues that are of the highest importance to our stakeholders and our company. These issues include our short- and long-term financial viability; customer safety, service and satisfaction; employee and labor relations, including diversity; our climate impacts as related to energy use and greenhouse gas emissions; and our impact on the communities where we live, work and play. We focus on these issues in setting goals and targets and in determining what topics to include in our reports.

Goals and progress

We are pleased to present the progress we've made toward meeting our 2012 goals for customer service and safety, environmental performance, and employee and community engagement.

2012 goals

Goals Progress
Customers - We seek to earn customer loyalty by consistently exceeding our customers' expectations.

Advance beyond level 2 in 2012 for all departments associated with our Safety Management System (SMS)

All departments associated with SMS have advanced to Level 4

Focus investments in maintenance, airport resources and technology to improve on-time arrival and baggage handling

We improved baggage handling rates at American by 18 percent and by 21 percent at American Eagle

We increased American Eagle dependability by 5.2 percentage points, while dependability at American decreased by 0.9 percentage points.

Continue to develop and deploy customer travel innovations

We launched new pricing options that package popular services into three simple packages

We began rollout of Self-Tag baggage options at select domestic airports

We launched new mobile apps

Provide additional options to allow for customization of the travel experience for our Main Cabin customers

We continued to use "Choice Bundles" to offer customers clearly priced travel options

Focus investments to target Premium Customers

We introduced inflight amenities such as fully lie-flat seats and a walk-up bar in First and Business Class cabins on the new Boeing 777-300ER aircraft

We refreshed menu selection and updated amenities for First and Business Class customers on international flights

Continue to strengthen our global network to serve customers' travel and connectivity needs

We announced new or expanded alliances with 13 airlines

We maintained our joint businesses with British Airways, Iberia, JAL and Qantas

We coordinated more than 20 network announcements including American's expanded international service to Latin American, Mexico, Europe and Asia

Add airberlin to the oneworld® alliance in 2012

airberlin joined the oneworld alliance

Improve the Customer Experience as demonstrated by key metrics resulting in greater financial rewards for employees

Although the Customer Experience Rewards program was discontinued as part of the restructuring process, we have continued our Customer Cup and quarterly recognition events, and we will continue to explore other creative ways to recognize and reward our employees for improving the travel experience of our customers

Environment - We act as good environmental stewards and implement innovative ideas and wise investments to minimize our environmental footprint.

Enhance our reputation as an industry leader in environmental performance

AMR was the top ranked airline in Newsweek's 2012 ranking of top 500 companies for third year in a row. We ranked second in the Transportation & Logistics sector and 88th overall

We partnered with Boeing to successfully pilot the 737-800 eco-Demonstrator program for reduced fuel consumption and noise

Achieve a 146 million gallon annual rate of fuel savings through our Fuel Smart program

Fuel Smart ended the year with an annual run-rate of 147 million gallons for fuel savings

Increase Utility Management Council energy savings to $13 million annually

We increased energy savings to $13 million annually by continuing to implement energy efficiency projects and programs including upgrading the chiller at our headquarters

Implement data collection systems to better track waste minimization efforts

We captured the results from recycling efforts at our international stations, which totaled more than 2 million pounds

Achieve an Annualized Waste Minimization Rate of two million pounds

We achieved an Annualized Waste Minimization Rate of 2,036,965 pounds by the end of 2012

Continue improving CO2 efficiency of aircraft by 30 percent between 2005 and 2025

Our progress lags 2.6 points behind our long-term goal; however, as we introduce new aircraft and replace older, less efficient aircraft, our performance should improve. Lower cargo traffic also hurt 2012 performance (see full explanation in environmental section)

We took delivery of 30 new aircraft in 2012 (28 737-800s and two 777-300ERs), putting American on track to have the youngest, most fuel-efficient fleet among U.S. network carriers by 2017

Reduce water consumption by 30 million gallons

We reduced water consumption by 21.8 million gallons, but a five percent increase in consumption at the Tulsa base offset gains in conservation at other facilities

Our People - We strive to make our company a good place for good people to work and build a career by creating and maintaining a safe, collaborative, inclusive and respectful work environment.

Continue investing in enhancing workforce diversity

We held our fourth annual Business of Diversity conference with the theme "My American - Creating Our Future through Inclusion."

We rolled out the Value of Respect Training (Version 3) to most domestic employees.

We maintained our strong diverse representation among all levels of management despite a difficult restructuring process

Reach 40 percent employee participation rate in wellness programs, including health assessment and screenings

Our overall participation was below 40 percent, although participation by some workgroups exceeded this level

Implement an integrated safety refresher training for all management employees

We extended the safety refresher to 100 percent of front-line managers, with Web-based training for all people.

Reduce Lost Work Case injuries by five percent year-over-year

Although the vast majority of our workgroups met this goal, two did not. We expect to meet this goal moving forward

Receive no OSHA repeat citations in 2012

We received no OSHA repeat citations in 2012

Redouble efforts toward goal of zero fatalities

American and American Eagle experienced no fatalities in 2012

Maintain quality leadership training that is valued by employees. Achieve at least 75 percent of students rating leadership learning experience as excellent or very good

We provided "Making the transition" four-part training course for newly promoted managers

Over 90 percent of students rated the leadership learning experience as excellent or very good

Progress on our business plan to restore American to industry leadership, profitability and growth and create the best outcome for the greatest possible number of people

We successfully renegotiated labor contracts

We retained a workforce of nearly 81,000 people, while positioning our company more competitively in the airline industry

We realized improved revenues and efficiencies

Communities - We are a part of the communities we serve and are deeply committed to supporting important causes and local economic development.

Continue investing in new infrastructure projects and upgrades to existing facilities

We invested nearly $70 million in 48 locations in the U.S. and abroad

Expand and strengthen the Diversified Supplier Program in cornerstone markets

We expanded our presence in hub market by joining local Minority/Women Business Enterprise groups

We strengthened our presence in hub markets by attending local business expos to encourage suppliers to connect with American via our Supplier Diversity program

Reach $1 million in donations through American Giving

We received $733,000 in donations through the American Giving workplace portal

Increase reported volunteer hours to 50,000

Our employees logged 38,000 volunteer hours

Increase by 10 percent overall participation in both employee giving and volunteering

We did not achieve this goal

Continue support for American's four primary giving focus areas

We continue to organize our engagements into four key categories

Expand Kids in NeedSM program to include all children's charities under the Kids in Need umbrella

We consolidated our children's initiatives, both corporate- and employee-led, under the Kids In NeedSM program to maximize efficiency and impact

Continue customer messaging, promotions and general awareness campaigns

Our JoinUs website on AA.com received half a million pages page views

Approximately 60,000 customers participated in one of our donation programs

Promote customer giving through social media channels

Select campaigns were featured in social media channels, including a USO fundraising campaign that reached 117,000 followers via Facebook and 2.2 million impressions on Twitter

Engage communities to help them better prepare for disaster relief efforts

We trained 69 employees as first responders through the Mass Care Task Force, a joint venture of the Volunteer Center of North Texas, United Way, the American Red Cross and the Salvation Army

2013 goals

Customers - We seek to earn customer loyalty by consistently exceeding our customers' expectations.

Safety
Continue to improve our Safety Management System to meet any updates to federal requirements

Customer Service
Maintain progress in renewing our fleet with modern aircraft that offer customers an enhanced inflight experience

Improve on-time arrivals and baggage delivery so that dependability rates are the best in 10 years

Refresh and harmonize the training of front-line people that interact with customers, such as flight attendants and agents

Equip flight attendants with technology to enable them to provide real-time customer-specific information

Incorporate flexibility in our procedures so that employees have more latitude to resolve customer issues

Offer customers greater access to international destinations around the globe by expanding our network and our oneworld partnerships

Environment - We act as good environmental stewards and implement innovative ideas and wise investments to minimize our environmental footprint.

Climate and Energy
Continue progress in our goal to improve CO2 efficiency of aircraft by 30 percent between 2005 and 2025

Increase the Fuel Smart run rate to 154 million gallons annually

Waste Minimization
Increase our Waste Minimization run-rate to 2.5 million pounds—an increase of almost 500,000 pounds

Expand onboard recycling of paper and plastic to all domestic stations with recycling programs

Transition the Wheel and Brake Shop at our Tulsa maintenance base to zero waste

Utilities Management
Increase annual savings of Utility Management Council projects to $13.5 million

Complete Tulsa lighting replacement project

Continue to evaluate new energy efficient and environmentally preferable technology as it becomes available

Reduce annual water consumption at our major facilities to under 500 million gallons

Our People - We strive to make our company a good place for good people to work and build a career by creating and maintaining a safe, collaborative, inclusive and respectful work environment.

Training and Development
Improve the training and development of our people through better coordination and sharing of best practices among training departments

Update our company-wide learning management system and integrate the Maintenance and Engineering group into the new system

Health and Safety:
Reduce Lost Work Case injuries by five percent year-over-year

Wellness
Increase the Healthmatters Rewards earned by employees for participating in program options, such as health assessments and screenings

Diversity and Inclusion
Create a positive, inclusive work environment where our employees can thrive and develop — both professionally and personally – in the new American

Communities - We are a part of the communities we serve and are deeply committed to supporting important causes and local economic development.

Continue support for American's primary giving focus areas

Engage customers and build loyalty through affinity messaging, promotions, social media and general awareness campaigns

Develop cross-focus area campaigns to build awareness of multiple corporate citizenship goals

Increase engagement, reporting and visibility of our community efforts at international locations for a true global perspective on our community relations efforts outside the United States

Enhance the workplace giving and corporate volunteering technology user experience to increase reporting of community engagement activities

Our Performance

Financial performance

AMR corporation revenue (in $MMs)*201220112010
Passenger (total)21,65720,67119,087
- American Airlines18,74317,94716,760
- Regional Affiliates2,9142,7242,327
Cargo669703672
Other**2,4992,6052,411
Total operating revenue24,82523,97922,170
Net loss***(1,926)(1,979)(471)

*For additional financial information, please see our Form 8-K.

**"Other" includes revenue derived from Admirals Club lounges, sale of miles to partners in the AAdvantage® program, service charges, sales of food and other items on our planes and American Way magazine advertising, among other revenue streams.

***Excluding reorganization and special items, the full-year net loss was $130 million, a $932 million improvement over 2011.

Environmental performance

201220112010
Jet fuel consumption (millions of gallons)2,7232,7562,764
Fuel savings through Fuel Smart (millions of gallons)147141123
Direct energy from Jet Fuel (millions of gigajoules)387392393
Indirect energy from electricity (millions of gigajoules)2.72.72.7
Greenhouse gas emissions (thousands of metric tons CO2e)
- Scope 1 (direct)*26,71527,07027,256
- Scope 2 (indirect)462463486
- Scope 3 (employee commuting & aircraft delivery)175123-
Nitrous oxide (metrics tons from landing/take-off cycle)6,4276,4846,627
Sulfur oxide (metric tons)4,4674,5254,557
Ozone-Depleting Substances (metric tons)29.322.029.3
Recycled materials (tons)**6,6545,0304,280
Waste
- Regulated waste, including hazardous waste and universal waste (tons)1,2261,1851,338
- Non-regulated waste for hubs, maintenance and HDQ facilities only (tons)***14,879--
Water consumption for AA major facilities excluding airports (millions of gallons; from municipal water supplies)511.4533.2546.2
Noise (cumulative margin below Chapter 3 noise limit)-3.92-3.97-3.93
Environmental fines and penalties (amount in thousands of dollars)$4.500

*Scope 1 GHG emissions have been restated for 2011 and 2010 to reflect updated jet fuel factors, as published on the EPA Climate Leaders website. 2012 emissions figures incorporate the new jet fuel factors.

**Increase in recycling reported can be partially attributed to better tracking of data

**Non-regulated waste from hubs was reported in 2012 for the first time as part of the total non-regulated waste figure. The majority of non-hazardous waste is land-filled.

Our people and community service

201220112010
Global workforce (as of December 31 of each year)80,98787,89787,002
Attrition rate (percent)
AMR total exits 15.57.5-
- Voluntary9.05.1-
- Involuntary6.52.4-
American Airlines total exits14.35.1-
- Voluntary8.13.6-
- Involuntary6.21.5-
American Eagle total exits18.315.3-
- Voluntary11.49.7-
- Involuntary6.95.6-
Safety data
- AA Injury Rate (Total recordable cases per 200,000 man hours)7.57.17.9
- Eagle Injury Rate (Total recordable cases per 200,000 man hours)7.86.3*5.6
- AA Lost Day Rate4.84.55.2
- Eagle Lost Day Rate3.23.2*2.2
- Fatalities010
Global Giving
- Giving by Our People and Our Customers$10.6 million--
- Volunteer Hours38,097--

*Some safety figures for American Eagle are restated from the previous year to correct a calculation error