AMERICAN AIRLINES TO RETIRE FIVE ADDITIONAL BOEING 727s

American Airlines today announced that it would advance the retirement of five additional Boeing 727s from its fleet. The five aircraft, originally scheduled to leave the fleet in 2003, will be grounded by year’s end.

"In this economic climate, it’s only prudent that we adjust capacity to better match the reduced demand," said Tom Horton, American’s senior vice president and chief financial officer. "Unfortunately, we see no upturn in our business in the near term. "

The five aircraft will be either returned to lessors or sold. With this reduction, the combined American/TWA LLC entity will likely show a modest capacity reduction next year and near flat capacity this year.

American announced in June that it would advance the retirement of 22 aircraft, including TWA LLC’s entire fleet of 19 DC-9s, it would not renew short term leases on two Boeing 727s and it would ground one F-100. In July, American also arranged not to take delivery of five used MD80s, which were scheduled to join the fleet this year as part of the TWA asset acquisition.

This brings the total number of American’s aircraft to be retired in 2001 to 58, including 21 B-727s, 18 MD-80/90s, 11 DC-9s, seven MD-11s and one Fokker 100.