Correction: Fitch Places Lambert-St. Louis International Airport Ratings on Rating Watch Negative.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 18, 2003

(This is a revised version of a press release issued earlier today, containing amended dollar amount information on the $922 million, not $533.2 million, bonds listed in paragraph 1.)

Fitch Ratings places the 'A-' rating for the City of St. Louis, Missouri's approximately $922 million of outstanding airport revenue bonds issued for Lambert - St. Louis International Airport (the airport) on Rating Watch Negative. This action reflects American Airline's (American or the airline) announcement on July 16 that it will reduce the scope of its operations at the airport effective Nov. 1, 2003. Fitch has maintained a Negative Rating Outlook for the airport since Oct. 15, 2001, due to the financial difficulties of American and the potential for operational changes at the airline.

The 'A-' rating reflects the airport's central location in the national hub and spoke aviation system, its competitive cost structure and control over gate assignments, its diversified regional economic base, and management's proactive response to the financial impact of the airline industry's downturn. Credit concerns center on the dominant position of American (senior unsecured debt rated 'CCC+', outlook negative, by Fitch Ratings), which utilizes Lambert to compliment its larger hubs at Dallas-Fort Worth International and Chicago-O'Hare International airports and served 77% of total enplanements at the airport in 2002.

American's planned operational changes at St. Louis include a reduction flights to 207 daily departures from 417. The airline intends to reduce mainline flights to 53 daily departures from 213 at present, with the remaining activity assigned to its American Eagle and American Connection regional affiliates. While these schedule adjustments represent slightly more that half of American's current operations, the airline's overall capacity at the airport will decline by a greater percentage as smaller regional jets provide an increasing proportion of service.

The operational changes are likely to result in diminished financial flexibility at the airport resulting from lower landing fee collections as the fleet changes from mainline jets to lighter regional aircraft and reduced concession receipts as passenger volume declines. Fitch intends to meet with airport management within the next few weeks to determine how they plan to adjust to the service reductions and what budget actions they intend to implement in order to maintain the airport's financial position.