4515--2/24/2006--AMERICAN_AIRLINES_INC

related topics
{product, market, service}
{operation, natural, condition}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{personnel, key, retain}
{cost, operation, labor}
{loss, insurance, financial}
{system, service, information}
{capital, credit, financial}
{acquisition, growth, future}
Our indebtedness and other obligations are substantial and could adversely affect our business and liquidity. We may be unable to comply with our financial covenants. We are being adversely affected by increases in fuel prices, and we would be adversely affected by disruptions in the supply of fuel. The airline industry is fiercely competitive and fares are at historically low levels. We compete with reorganized and reorganizing carriers, which may result in competitive disadvantages for us or fare discounting. Our reduced pricing power adversely affects our ability to achieve adequate pricing, especially with respect to business travel. We need to raise additional funds to maintain sufficient liquidity, but we may be unable to do so on acceptable terms. Our business strategy may change. Our business is subject to extensive government regulation, which can result in increases in our costs, limits on our operating flexibility and competitive disadvantages. We could be adversely affected by conflicts overseas or terrorist attacks. Our international operations could be adversely affected by numerous events, circumstances or government actions beyond our control. We could be adversely affected by an outbreak of a disease that affects travel behavior. We could be adversely affected if we are unable to maintain satisfactory relations with any unionized or other employee work group. Our insurance costs have increased substantially and further increases in insurance costs or reductions in coverage could have an adverse impact on us. We may be unable to retain key management personnel. We could be adversely affected by a failure or disruption of our computer, communications or other technology systems.

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