About American Airlines

Progress On Restructuring

During the last year, AMR completed the majority of its financial restructuring, including reducing debt, renegotiating aircraft leases and facilities agreements, grounding older airplanes, rationalizing the regional fleet and renegotiating supplier relationships. After much work and compromise, we also have Court approval to move forward with implementation plans for all of our employee groups. We have completed restructuring plans for our independent employees guided by their input, and redesigned our management team to significantly reduce costs. We expect all of these actions to continue to improve our cost structure in 2013.

2012 restructuring highlights

  • Achieved labor cost reductions across all workgroups, including management, independent employees and unionized workgroups, all of which ratified agreements for six-year terms. Progress was also made at American Eagle, which achieved costs savings and reached agreements with its unionized workgroups.
  • Made changes to organizational structure to reduce management positions, making the management workgroup the leanest among U.S. network carriers.
  • Renegotiated the financing terms for more than 400 mainline and regional aircraft. At the same time, we improved terms on these aircraft to significantly lower our aircraft ownership-related costs, while also harmonizing our aircraft retirement and new aircraft delivery schedules.
  • Negotiated more than 95 percent of American's 725 facility leases.
  • Evaluated and/or renegotiated over 9,000 vendor/supplier agreements.

We've seen strong evidence that our restructuring approach is working, as demonstrated by real improvements in our revenues and performance. Our focus now is to provide customers the industry's best fleet, strongest network and superior service—ambitious goals the people of American Airlines are prepared to meet.