1
                                
                                
                         UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                                
                            FORM 10-Q



[]Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Period Ended March 31, 1995.


[  ]Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Transition Period From                      to
.


Commission file number 1-2691.



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

        Delaware                            13-1502798
    (State or other                      (I.R.S. Employer
      jurisdiction                      Identification No.)
   of incorporation or
     organization)
                                   
 4333 Amon Carter Blvd.                          
   Fort Worth, Texas                           76155
 (Address of principal                      (Zip Code)
   executive offices)
                                   
Registrant's telephone number,   (817) 963-1234
including area code             
                                   
                                   
                         Not Applicable
(Former name, former address and former fiscal year , if changed
                       since last report)


Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter periods that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes        No        .
                                
                                
              Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practical
date.


Common Stock, $1 par value - 1,000 as of May 8, 1995




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                              INDEX

                    AMERICAN AIRLINES , INC.
                                
                                


PART I:   FINANCIAL INFORMATION


Item 1. Financial Information

  Consolidated Statement of Operations -- the three months ended
  March 31, 1995 and 1994
  
  Condensed  Consolidated Balance Sheet -- March  31,  1995  and
  December 31, 1994
  
  Condensed Consolidated Statement of Cash Flows -- three months
  ended March 31, 1995 and 1994
  
  Notes  to Condensed Consolidated Financial Statements -- March
  31, 1995
  

Item  2.  Management's  Discussion  and  Analysis  of  Financial
Condition and Results of Operations


PART II:  OTHER INFORMATION


Item 1.  Legal Proceedings

Item 6.  Exhibits and Reports on Form 8-K


SIGNATURE

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PART 1. FINANCIAL INFORMATION

AMERICAN AIRLINES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In millions)


                                                 Three Months Ended
                                                     March 31,
                                                 1995          1994
                                                       
Revenues
  Airline Group:                                             
    Passenger                                  $3,143        $3,028
    Cargo                                         156           154
    Other                                         158           142
                                                3,457         3,324
                                                             
    Information Services Group                    364           333
    Less: Intergroup revenues                    (142)         (149)
      Total operating revenues                  3,679         3,508
                                                             
Expenses
  Wages, salaries and benefits                  1,263         1,241
  Aircraft fuel                                   365           382
  Commissions to agents                           307           311
  Depreciation and amortization                   287           289
  Other rentals and landing fees                  195           193
  Food service                                    158           161
  Aircraft rentals                                153           157
  Maintenance materials and repairs               118           114
  Other operating expenses                        582           556
    Total operating expenses                    3,428         3,404
Operating Income                                  251           104
                                                             
Other Income (Expense)                                       
  Interest income                                   5             1
  Interest expense                               (149)          (97)
  Interest capitalized                              4             6
  Miscellaneous - net                             (11)           (9)
                                                 (151)          (99)
Earnings Before Income Taxes                      100             5
Income tax provision                               44             8
Net Earnings (Loss)                            $   56        $   (3)

The accompanying notes are an integral part of these financial statements.
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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)


                                                March      December
                                                 31,          31,
                                                1995         1994
                                              (Unaudited)   (Note)
Assets                                                     
                                                     
Current Assets                                             
  Cash                                        $     55     $    13
  Short-term investments of affiliates             474         744
  Receivables, net                               1,136         877
  Receivables from affiliates                      304         493
  Inventories, net                                 532         590
  Other current assets                             425         385
    Total current assets                         2,926       3,102
                                                           
Equipment and Property                                     
  Flight equipment, net                          9,380       9,132
  Purchase deposits for flight equipment            46         105
                                                 9,426       9,237
  Other equipment and property, net              1,865       1,866
                                                11,291      11,103
Equipment and Property Under  Capital Leases               
  Flight equipment, net                          1,353       1,370
  Other equipment and property, net                169         172
                                                 1,522       1,542
                                                           
Route acquisition costs, net                     1,025       1,032
Other assets, net                                1,086       1,037
                                              $ 17,850    $ 17,816

Note:  The  balance sheet at December 31, 1994 has been  derived
from the audited financial statements at that date but does  not
include  all  of  the  information  and  footnotes  required  by
generally  accepted accounting principles for complete financial
statements.

The  accompanying notes are an integral part of these  financial
statements.
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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)


                                                March      December
                                                 31,          31,
                                                1995         1994
                                             (Unaudited)   (Note)
Liabilities and Stockholder's Equity                       
                                                     
Current Liabilities                                        
  Accounts payable                            $    840     $    831
  Payables to affiliates                           722          759
  Accrued liabilities                            1,432        1,434
  Air traffic liability                          1,577        1,473
  Current maturities of long-term debt              51           49
  Current obligations under capital leases         142          110
    Total current liabilities                    4,764        4,656
                                                           
Long-term debt, less current maturities          1,495        1,518
Long-term debt due to Parent                     3,023        3,196
Obligations   under  capital  leases, less       
current obligations                              1,942        1,964
Deferred income taxes                              313          268
Other liabilities, deferred gains, deferred                
  credits and postretirement benefits            3,023        2,981
                                                           
                                                           
Stockholder's Equity                                       
  Common stock                                       -          -
  Additional paid-in capital                     1,699        1,699
  Minimum pension liability adjustment           (199)         (199)
  Retained earnings                              1,790        1,733
                                                 3,290        3,233
                                              $ 17,850     $ 17,816
                                                           

Note:  The  balance sheet at December 31, 1994 has been  derived
from the audited financial statements at that date but does  not
include  all  of  the  information  and  footnotes  required  by
generally  accepted accounting principles for complete financial
statements.

The  accompanying notes are an integral part of these  financial
statements.
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AMERICAN AIRLINES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)


                                                 Three Months Ended
                                                     March 31,
                                               1995          1994
                                                       
Net Cash Provided by Operating Activities      $  650        $    199
                                                             
Cash Flow from Investing Activities:                         
  Capital expenditures                           (440)           (283)
  Net decrease (increase) in short-term                   
    investments                                   270            (146)
  Funds transferred from (to) affiliates for  
    investment, net                              (270)            146
  Other                                            57               3
        Net cash used for investing activities   (383)           (280)
                                                             
Cash Flow from Financing Activities:                         
  Proceeds from issuance of long-term debt          -              72
  Net short-term borrowings with maturities of  
    90 days or less                                 -             200
  Other short-term borrowings                       -             200
  Payments on long-term debt and capital lease   
    obligations                                   (52)            (43)
  Funds transferred to affiliates, net           (173)           (335)
        Net cash (used for) provided by      
          financing activities                   (225)             94
                                                             
Net increase in cash                               42              13
Cash at beginning of period                        13              55
                                                             
Cash at end of period                          $   55        $     68
                                                             
Cash Payments (Refunds) For:                                 
  Interest (net of amounts capitalized)        $  135        $     99
  Income taxes                                     17               1
                                                             
Financing Activities not Affecting Cash:                     
  Capital lease obligations incurred           $    -        $     72
                                                             

The  accompanying  notes  are an  integral  part  of  these
   financial statements.
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AMERICAN AIRLINES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.The  accompanying  unaudited condensed  consolidated  financial
  statements  have  been  prepared in accordance  with  generally
  accepted    accounting   principles   for   interim   financial
  information and with the instructions to Form 10-Q and  Article
  10  of Regulation S-X.  Accordingly, they do not include all of
  the  information  and footnotes required by generally  accepted
  accounting  principles for complete financial  statements.   In
  the  opinion of management, these financial statements  contain
  all  adjustments,  consisting  of  normal  recurring  accruals,
  necessary to present fairly the financial position, results  of
  operations  and  cash  flows for the  periods  indicated.   For
  further   information,  refer  to  the  consolidated  financial
  statements  and  footnotes  thereto included  in  the  American
  Airlines,  Inc. annual report on Form 10-K for the  year  ended
  December 31, 1994.

2.Certain  amounts  from 1994 have been reclassified  to  conform
  with the 1995 presentation.

3.In  July  1991,  American entered into  a  five-year  agreement
  whereby  American  transfers, on a continuing  basis  and  with
  recourse  to  the  receivables,  an  undivided  interest  in  a
  designated  pool  of receivables.  Undivided interests  in  new
  receivables   are  transferred  daily  as  collections   reduce
  previously  transferred receivables.   At  December  31,  1994,
  receivables are presented net of approximately $112 million  of
  such   transferred  receivables.   At  March   31,   1995,   no
  receivables were transferred under the terms of the agreement.

4.Accumulated  depreciation of owned equipment  and  property  at
  March  31,  1995  and December 31, 1994, was $5.3  billion  and
  $5.2   billion,  respectively.   Accumulated  amortization   of
  equipment and property under capital leases at March  31,  1995
  and  December  31,  1994, was $861 million  and  $823  million,
  respectively.

5.In  April 1995, American announced an agreement to sell  12  of
  its   McDonnell  Douglas  MD-11  aircraft  to  Federal  Express
  Corporation  (FedEx),  with delivery of  the  aircraft  between
  1996  and 1999.  In addition, American has the option  to  sell
  its  remaining  seven MD-11 aircraft to FedEx  with  deliveries
  between  2000  and  2002.  At the same time the  two  companies
  signed  a  separate  six-year maintenance  contract  under  the
  terms  of  which American will perform work on FedEx's aircraft
  fleet.





 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
  AND RESULTS OF OPERATIONS

Results of Operations


American recorded net earnings for the three months ended  March
31,  1995,  of $56 million.  This compares to a net loss  of  $3
million for first quarter 1994.  American's operating income was
$251  million for first quarter 1995 compared with $104  million
for first quarter 1994.

The  Airline  Group's  (formerly the Air  Transportation  Group)
revenues  increased  $133  million or 4.0  percent.   American's
passenger  revenues  increased by  3.8  percent,  $115  million.
American's yield (the average amount one passenger pays  to  fly
one  mile) of 13.19 cents decreased by 2.5 percent compared to the
same  period in 1994. Domestic yields decreased 4.7 percent from
first  quarter 1994.  International yields increased 3.2 percent
over  first  quarter 1994, due principally  to  a  13.0  percent
increase  in Europe, partially offset by a 3.7 percent  decrease
in Latin America.

American's  traffic or revenue passenger miles (RPMs)  increased
6.5  percent  to 23.8 billion miles for the quarter ended  March
31,  1995.   American's capacity or available seat miles  (ASMs)
increased 1.9 percent to 37.4 billion miles in the first quarter
of  1995 primarily as a result of increases in jet stage  length
and  aircraft  productivity.   Jet stage  length  increased  5.0
percent  and aircraft  productivity, as measured by miles  flown
per aircraft  per day, increased 8.2 percent compared with first
quarter  1994.   Year  over  year for the  first  quarter  1995,
American's  domestic traffic increased 5.8 percent  on  capacity
decreases  of  0.4  percent and international traffic  grew  8.2
percent  on  capacity increases of 8.0 percent.  The  change  in
international traffic was driven by a 12.8 percent  increase  in
traffic to Latin America on capacity growth of 10.6 percent, and
a  4.3  percent  increase in traffic to  Europe  on  a  capacity
increase of 5.8 percent.

Other  Airline  Group  revenues  increased  11.3  percent,   $16
million, primarily due to contract maintenance work performed by
American for other airlines.

Information  Services Group revenues increased 9.3 percent,  $31
million,  primarily due to increased booking fee  volume,  which
was  positively impacted by international expansion  in  Europe,
Latin  America and India, and increased sales of premium  priced
products.

American's   operating  expenses  increased  0.7  percent,   $24
million.   Passenger  Division cost per  ASM  decreased  by  1.6
percent to  8.52 cents. Wages, salaries  and  benefits  rose 1.8
percent,  $22  million, due primarily to salary adjustments  for
existing  employees, partially offset by a 3.0 percent reduction
in  the  average number of equivalent employees.  Aircraft  fuel
expense decreased 4.5 percent, $17 million, due to a 5.0 percent
decrease  in  American's  average price  per  gallon,  partially
offset  by  an  0.5  percent increase  in  gallons  consumed  by
American.   Commissions  to  agents decreased  1.3  percent,  $4
million,  due  principally  to  a lower  percentage  of  revenue
subject  to  agent  commissions combined  with  a  reduction  in
average rates paid to agents.

Other  Income  (Expense) increased 52.5 percent or $52  million.
Interest  expense  (net  of amounts capitalized)  increased  $52
million due primarily to the effect of rising interest rates  on
floating  rate  debt and interest rate swap transactions  and  a
change in the terms of the subordinated note agreement with AMR.
Effective  September 30, 1994, the subordinated promissory  note
bears interest based on the weighted average rate on AMR's long-
term  debt  and preferred stock.  Prior to September  30,  1994,
interest  on  the  subordinated note was  based  on  the  London
Interbank Offered Rate (LIBOR).

LIQUIDITY AND CAPITAL RESOURCES

Net  cash  provided by operating activities in the  three  month
period  ended March 31, 1995, was $650 million compared to  $199
million in 1994.  Capital expenditures for the first quarter  of
1995  were  $440 million and included the acquisition  of  three
Boeing  757-200  and four 767-300 aircraft by  American.   These
capital  expenditures, as well as expansion of  certain  airport
facilities, were financed with internally generated cash.
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                             PART II
                                
                                
Item 1.  Legal Proceedings

American  has been sued in two class action cases that have  been
consolidated  in the Circuit Court of Cook County,  Illinois,  in
connection  with  certain changes made to  American's  AAdvantage
frequent  flyer program in May, 1988. (Wolens, et al v.  American
Airlines,  Inc., No. 88 CH 7554, and Tucker v. American Airlines,
Inc.,  No.  89  CH 199.)  In both cases, the plaintiffs  seek  to
represent  all  persons who joined the AAdvantage program  before
May  1988.   The  complaints allege that, on that date,  American
implemented changes that limited the number of seats available to
participants traveling on certain awards and established  holiday
blackout  dates  during  which  no  AAdvantage  seats  would   be
available  for certain awards.  The plaintiffs allege that  these
changes breached American's contracts with AAdvantage members and
were  in  violation of the Illinois Consumer Fraud and  Deceptive
Business  Practice  Act  (Consumer Fraud Act).   Plaintiffs  seek
money  damages  of an unspecified sum, punitive  damages,  costs,
attorneys  fees  and an injunction preventing  the  Company  from
making  any  future  changes  that  would  reduce  the  value  of
AAdvantage  benefits.  American moved to dismiss both complaints,
asserting  that the claims are preempted by the Federal  Aviation
Act and barred by the Commerce Clause of the U.S. Constitution.

      The  trial court denied American's preemption motions,  but
certified  its  decision for interlocutory appeal.   In  December
1990,  the Illinois Appellate Court held that plaintiffs'  claims
for  an injunction are preempted by the Federal Aviation Act, but
that  plaintiffs'  claims for money damages  could  proceed.   On
March  12, 1992, the Illinois Supreme Court affirmed the decision
of  the  Appellate Court.  American sought a writ  of  certiorari
from  the U.S. Supreme Court; and on October 5, 1992, that  Court
vacated  the decision of the Illinois Supreme Court and  remanded
the  cases  for  reconsideration in light  of  the  U.S.  Supreme
Court's decision in Morales v. TWA, et al, which interpreted  the
preemption  provisions of the Federal Aviation Act very  broadly.
On  December  16, 1993, the Illinois Supreme Court  rendered  its
decision  on remand, holding that plaintiffs' claims  seeking  an
injunction   were  preempted,  but  that  identical  claims   for
compensatory  and  punitive  damages  were  not  preempted.    On
February  8,  1994,  American  filed  petition  for  a  writ   of
certiorari in the U.S. Supreme Court.  The Illinois Supreme Court
granted  American's  motion to stay the  state  court  proceeding
pending  disposition of American's petition in the  U.S.  Supreme
Court.   The matter was argued before the U.S. Supreme  Court  on
November 1, 1994, and on January 18, 1995, the U.S. Supreme Court
issued its opinion ending a portion of the suit against American.
The  U.S.  Supreme  Court  held that  a)  plaintiffs'  claim  for
violation  of  the Illinois Consumer Fraud Act was  preempted  by
federal  law  --  entirely  ending that  part  of  the  case  and
eliminating  plaintiffs'  claim  for  punitive  damages;  and  b)
certain  breach  of  contract claims would not  be  preempted  by
federal  law.  The Court did not determine, however, whether  the
contract  claims  asserted  by  the  plaintiffs  in  Wolens  were
preempted, and therefore remanded the case to the state court for
further proceedings.  In the event that the plaintiffs' breach of
contract  claim is eventually permitted to proceed in  the  state
court, American intends to vigorously defend the case.




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                             PART II

Item 6.  Exhibits and Reports on Form 8-K

The following exhibits are included herein:

10(ee) Amendment,   dated  as  April  18,  1995  to   Employment
       Agreement  among  AMR, American Airlines  and  Robert  L.
       Crandall.

The Company did not file any reports  on  Form  8-K  during  the
                               three  months  ended  March   31,
                               1995.





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Signatures

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 thereunto duly authorized.


                               AMERICAN AIRLINES, INC.




Date: May 12,1995           BY:
                               Gerard J. Arpey
                               Senior Vice President and  Chief
                               Financial Officer




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                                                 Exhibit 10 (ee)
 13
                                             Amendment B

             AMENDMENT FIVE TO EMPLOYMENT AGREEMENT
                                
                                
           This Amendment Five to Employment Agreement dated this
____  day of April 1995, by and among AMR Corporation ("AMR"),  a
Delaware  Corporation, American Airlines,  Inc.  ("American"),  a
Delaware  Corporation, each of which has its principal office  at
4333  Amon Carter Boulevard, Fort Worth, Texas, 76155 and  Robert
L.  Crandall,  who currently resides at 5243 Park  Lane,  Dallas,
Texas 75220-2145 (the "Executive").

           WHEREAS, AMR, American and the Executive have  entered
into an Employment Agreement effective as of January 1, 1988,  as
amended,  (the "Agreement"); and

            WHEREAS,   AMR,  American  and  the  Executive   have
determined  that  it is beneficial to the interests  of  each  to
amend the Agreement.

          NOW THEREFORE, in consideration of the promises and the
mutual  covenants and conditions set forth herein and  for  other
good  and valuable consideration, the receipt and sufficiency  of
which  are  hereby acknowledged, AMR, American and the  Executive
hereby agree as follows:

     1.   Paragraph 1 of the Agreement is deleted in its entirety
and in its place is substituted the following:

           "The  Company  hereby employs the Executive,  and
     Executive  hereby  accepts  such  employment   by   the
     Company,  in  the  positions and with  the  duties  and
     responsibilities set forth in Section 2 and  upon  such
     other  terms and conditions as are hereinafter  states,
     for  the  period  commencing on January  1,  1988,  and
     except  as  otherwise provided herein,  ending  on  the
     earlier to occur of (i) December 31, 1998, or (ii)  the
     termination of Executive's employment."
     
      2.    a)   Paragraphs 3.d (iii) and 3.d (iv) are renumbered
3.d  (iv) and 3.d (v), respectively, and a new paragraph,  to  be
numbered  3.d  (iii),  is  added to the  Agreement,  to  read  as
follows:

          "(iii) Executive shall receive additional years of
     credited  service under the terms of the Company's  tax
     qualified and supplemental pension plans (including any
     successors  thereto) in accordance with  the  following
     table:
     
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                                     Age at Retirement

                                   60   61   62   63

          Additional Years
          of Credited Service:      2    4    7   10"

      b)   Paragraphs 4(a)(v) and 4(b)(v) are amended by deleting
the  phrases  "actual period of employment with the Company"  and
substituting therefor "years of credited service (including  such
additional  years  of  credited service as provided  pursuant  to
paragraph  3(d)(iii)),  under  the Company's  tax  qualified  and
supplemental pension plans (including any successors thereto)".

           IN  WITNESS HEREOF, the undersigned have executed this
Amendment  to  Employment Agreement as of the date first  written
above.

AMERICAN AIRLINES, INC.            AMR CORPORATION



___________________________        __________________________
by Anne H. McNamara, its           by Anne H. McNamara, its
Senior Vice President and          Senior Vice President and
General Counsel                    General Counsel


EXECUTIVE



____________________________
Robert L. Crandall