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:  August 26, 2004

                     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 8.01 Other Events

American  Airlines,  Inc.,  a  wholly  owned  subsidiary  of  AMR
Corporation, is filing herewith actual fuel cost, unit  cost  and
capacity and traffic information for July as well as current fuel
cost,  unit  cost and capacity and traffic forecasts for  August,
September, the third quarter and the full year 2004.


     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:  August 26, 2004


                                                  August 26, 2004

     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  the  words  "expects",  "plans,"  "anticipates,"
"indicates," "believes," "forecast," and similar expressions  are
intended to identify forward-looking statements.  Forward-looking
statements    include,   without   limitation,   the    Company's
expectations  concerning  operations  and  financial  conditions,
including  changes  in  capacity,  revenues,  and  costs,  future
financing   needs,   overall  economic  conditions,   plans   and
objectives  for future operations, the impact on the  Company  of
its  results  of  operations for the past  three  years  and  the
sufficiency  of  its financial resources to absorb  that  impact.
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 on 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.  This
document includes forecasts of unit cost and revenue performance,
fuel  prices, capacity estimates and liquidity expectations, each
of   which   is  a  forward-looking  statement.   Forward-looking
statements  are subject to a number of factors that  could  cause
the  Company's  actual  results to  differ  materially  from  the
Company's  expectations.  The following factors, in  addition  to
other  possible  factors not listed, could  cause  the  Company's
actual  results  to  differ materially from  those  expressed  in
forward-looking  statements:  changes in economic,  business  and
financial  conditions;  the  Company's substantial  indebtedness;
continued  high  fuel prices and the availability  of  fuel;  the
residual effects of the war in Iraq; conflicts in the Middle East
or  elsewhere; the highly competitive business environment  faced
by  the  Company,  with  increasing  competition  from  low  cost
carriers and historically low fare levels (which could result  in
a  deterioration of the revenue environment); the ability of  the
Company to implement its restructuring program and the effect  of
the  program  on  operational  performance  and  service  levels;
uncertainties   with  respect  to  the  Company's   international
operations;  changes in the Company's business strategy;  actions
by  U.S.  or foreign government agencies; the possible occurrence
of  additional terrorist attacks; another outbreak of  a  disease
(such  as SARS) that affects travel behavior; uncertainties  with
respect  to the Company's relationships with unionized and  other
employee  work  groups; the inability of the Company  to  satisfy
existing  financial or other covenants in certain of  its  credit
agreements;  the availability of future financing; and  increased
insurance  costs and potential reductions of available  insurance
coverage.   Additional  information concerning  these  and  other
factors  is  contained in the Company's Securities  and  Exchange
Commission  filings, including but not limited to  the  Company's
Annual Report on Form 10-K for the year ended December 31, 2003.

Given the continued escalation in this year's fuel prices, we now
anticipate spending over $300 million dollars more for fuel
during the third quarter than we would with last year's prices.
For the full year, the additional expense associated with these
record high fuel prices is approximately $1.0 billion dollars.
As a result of soaring fuel prices, our outlook for the third
quarter and the rest of the year has worsened and accordingly we
are providing an update to our cost guidance.

Performance Update

Costs:  Third quarter 2004 fuel price guidance changes from
$1.20/gallon to $1.25/gallon.  Full year 2004 fuel price
guidance changes from $1.13/gallon to $1.17/gallon.

Revenue:  Relatively strong third quarter passenger unit revenue
performance in 2003 will make favorable year-over-year unit
revenue comparisons difficult for the 2004 third quarter.  Early
results indicate a modest year-over-year decline in American's
mainline passenger unit revenue performance for the third
quarter.  On a consolidated basis, AMR passenger unit revenue for
the third quarter is expected to be only slightly below last
year's levels.

Liquidity:  We expect to end the third quarter with a total cash
and short-term investment balance of approximately $3.6 billion,
including about $500 million in restricted cash and short-term

                                        Kathy Bonanno
                                        Director Investor Relations


Fuel Forecast

Fuel Hedge Position:
     3Q04: Hedged on 9% of consumption at $32/bbl WTI Crude

AMR Fuel Price (Including Hedges and Taxes) and Consumption
                                Actual               Forecast
                                  Jul        Aug    Sep    3Q04    2004
     Fuel Price (dollars/gal)    1.18       1.27   1.31    1.25    1.17
     Fuel Consumption (MM gals) 293.2      287.7  258.8   839.8  3273.5

Unit Cost Forecast

AMR Consolidated Cost per ASM
                                Actual               Forecast
                                  Jul        Aug    Sep    3Q04    2004*
     AMR Cost per ASM (cents)    9.83       9.95  10.61   10.11   10.07

American Mainline Operations Cost per ASM
                                Actual               Forecast
                                  Jul        Aug    Sep    3Q04    2004*
     AA Cost per ASM (cents)     9.42       9.52  10.17    9.68    9.64

Capacity and Traffic Forecast

AA Mainline Operations
                                Actual               Forecast
                                  Jul        Aug    Sep    3Q04    2004
     ASMs (millions)           15,543     15,590 13,840  44,973 174,903
       Domestic                10,265     10,395  9,149  29,809 118,410
       International            5,278      5,195  4,691  15,164  56,493

     Traffic                   12,604     12,216  9,539  34,359 128,970

Regional Affiliate Operations
                                Actual               Forecast
                                  Jul        Aug    Sep    3Q04    2004
     ASMs (millions)              951        966    942   2,858  10,883

     Traffic                      694        686    590   1,970   7,223

Below the Line Income/Expenses

      Total Other Income/(Expense) is estimated at ($190) million
      during each of the third and fourth quarters of 2004.

* 1Q04 and 2Q04 as reported