Washington, D. C. 20549


                            FORM 8-K

                         CURRENT REPORT

             Pursuant to Section 13 or 15(d) of the

                 Securities Exchange Act of 1934

Date of earliest event
  reported:  March 31, 2003

                     American Airlines, Inc.
     (Exact name of registrant as specified in its charter)

        Delaware                  1-2691                13-1502798
(State of Incorporation) ( Commission File Number)     (IRS Employer
                                                     Identification No.)

4333 Amon Carter Blvd.      Fort Worth, Texas            76155
 (Address of principal executive offices)             (Zip Code)

                           (817) 963-1234
                   (Registrant's telephone number)


Item 5.  Other Events

American Airlines, Inc. (American or the Company, a wholly  owned
subsidiary of AMR Corporation) is filing herewith a press release
issued  on  March 31, 2003 by American as Exhibit 99.1  which  is
included  herein.   This  press release was  issued  to  announce
"ground breaking accords" with the leadership of the three  major
unions representing American Airlines employees.

Item 7.  Financial Statements and Exhibits

The following exhibits are included herein:

99.1 Press Release



     Pursuant to the requirements of the Securities Exchange  Act
of  1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

                                        American Airlines, Inc.

                                        /s/ Charles D. MarLett
                                        Charles D. MarLett
                                        Corporate Secretary

Dated: April 1, 2003

                          EXHIBIT INDEX

Exhibit        Description

99.1      Press Release

                                                Exhibit 99.1

                              Contact:  Corporate Communications
                                        Fort Worth, Texas

               FOR RELEASE: Monday, March 31, 2003

                     EMPLOYEES TO CUT COSTS

     FORT WORTH, Texas -  AMR Chairman Don Carty today heralded

"ground breaking accords" with the leadership of the three major

unions representing American Airlines employees as he announced

changes in pay plans for management and non-union employees to

achieve $1.8 billion in employee cost savings.

     "Today's unprecedented action by the unions, our employees

and the company represent another first at American and in our

industry," Carty said.

     "By taking these decisive actions, the union leadership and

our employees have demonstrated an unwavering commitment to the

future of the company, and have enabled us to avoid an immediate

filing with the bankruptcy court. The speed with which these

comprehensive and complex agreements was reached is a testament

to our people."

                         -    more    -

           American Gets Consensual Deals with Unions
March 31, 2003
Page 2

     The accords with the three unions are far reaching and touch

on nearly every aspect of pay, benefits and work rules.

     As part of this effort, the company will also announce

changes to pay, benefits and work rules for all non-union

employees, including agents, representatives, planners, support

staff and management.

     Labor leaders worked with the company to determine how best

to meet their targets, while over 10,000 non-union employees

actively participated through surveys, focus groups and

InterAction sessions to help determine theirs.

     The cost savings will be divided by work group as follows:

-    Pilots: $660 million

-    Flight attendants: $340 million

-    TWU Represented employees: $620 million

-    Agents, representatives and planners: $80 million

-    Management and support staff: $100 million

     In addition, the company announced that Carty will take a 33

percent base pay cut; decline a bonus for the third consecutive

year; and will ask the AMR Board of Directors to make further

changes that significantly reduce the value of his and his senior

officers' compensation packages.

     In announcing the agreements, Carty also reported that

American employees will have access to a new stock option and

profit sharing program.

                         -    more    -

           American Gets Consensual Deals with Unions
March 31, 2003
Page 3

     Carty cautioned, however, that while these agreements are a

"critical step in our resolute march toward survival," he said

that the agreements must still be ratified by the unions'

memberships and the company must, among other factors, secure

"meaningful concessions" from its vendors, lessors and suppliers.

The company, in communications to its employees, stressed that

"the financial condition of American is weak and its prospects

remain uncertain. Particularly given the impact of the continuing

war in Iraq and the different general economic conditions that

are negatively impacting the industry, the days ahead will be

difficult and the success of our joint efforts is not yet


      "I would not ask for these sacrifices if I weren't

convinced that they were absolutely necessary to achieve our

restructuring goals," Carty said. He committed to building upon

the "culture of cooperation and collaboration that produced

today's agreements and that is essential to our future.   My

commitment to fostering this new culture will not change," he

said. "Our employees are key to our success."

                           -  more  -


           American Gets Consensual Deals with Unions
March 31, 2003
Page 4

Statements in this report contain various forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, which represent the Company's
expectations or beliefs concerning future events.  When used in
this document and in documents incorporated herein by reference,
the words "expects," "plans," "anticipates," "believes," and
similar expressions are intended to identify forward-looking
statements.  Other forward-looking statements include statements
which do not relate solely to historical facts, such as, without
limitation, statements which discuss the possible future effects
of current known trends or uncertainties, or which indicate that
the future effects of known trends or uncertainties cannot be
predicted, guaranteed or assured.  All forward-looking statements
in this report are based upon information available to the
Company on the date of this report.  The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events
or otherwise.  Forward-looking statements are subject to a number
of factors that could cause actual results to differ materially
from our expectations.  Additional information concerning these
and other factors is contained in the Company's Securities and
Exchange Commission filings, including but not limited to the
Form 10-K for the year ended Dec. 31, 2001[2002].


 Current AMR Corp. press releases can be found on the Internet.
              The address is http://www.amrcorp.com