UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION

                   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: June 27, 2007


                         AMR CORPORATION
   (Exact name of registrant as specified in its charter)


          Delaware               1-8400               75-1825172
 (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)



   (Former name or former address, if changed since last report.)



Check  the  appropriate box below if the Form 8-K filing  is
intended to simultaneously satisfy the filing obligation  of
the registrant under any of the following provisions:

[ ]  Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-
2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-
4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01  Other Events

AMR  Corporation  (AMR) is filing herewith a  press  release
issued  on June 27, 2007 as Exhibit 99.1, which is  included
herein.  This press release was issued to provide an  update
on  actions taken in the second quarter of 2007 as  part  of
AMR's efforts to strengthen its balance sheet.




                          SIGNATURE



     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.


                                        AMR CORPORATION



                                        /s/ Kenneth W. Wimberly
                                        Kenneth W. Wimberly
                                        Corporate Secretary



Dated:  June 27, 2007

                        EXHIBIT INDEX


Exhibit        Description

99.1      Press Release


                                        Exhibit 99.1

                         CONTACT:       Andy Backover
                                        Corporate Communications
                                        Fort Worth, Texas
                                        817-967-1577

corp.comm@aa.com

FOR RELEASE:  Wednesday, June 27, 2007

            AMR CORPORATION CONTINUES EFFORTS TO
                STRENGTHEN ITS BALANCE SHEET

  COMPANY REDUCES INTEREST RATE ON $442 MILLION TERM LOAN,
    REFINANCES $236 MILLION IN AIRPORT FACILITY BONDS AND
            PREPAYS $48 MILLION OF AIRCRAFT DEBT

        ACTIONS TO YIELD APPROXIMATELY $12 MILLION OF
                 ANNUAL NET INTEREST SAVINGS


     FORT WORTH, Texas - AMR Corp., the parent company of
American Airlines, Inc., today provided an update on actions
taken in the second quarter of 2007 as part of its ongoing
efforts to strengthen its balance sheet and build a stronger
financial foundation. The Company said that these actions
are expected to eliminate approximately $12 million in
annual net interest expense.
     "We  continue  to  make progress in  strengthening  our
balance sheet, which gives us greater flexibility and builds
our  foundation  for  the future," said  Thomas  W.  Horton,
Executive  Vice President of Finance and Planning and  Chief
Financial Officer of AMR. "We have more work ahead of us  to
reduce  debt and improve our overall cost structure, but  we
believe  that  we  are  on the right path  to  position  the
Company for long-term success."
     Actions in the second quarter include:
  .  American amended the $442 million floating rate term
     loan portion of its credit facility, which has been
     outstanding since December 2004, lowering the interest rate
     from 3.25 percent over LIBOR to 2.00 percent over LIBOR.
  .  AMR's wholly-owned subsidiary, American Eagle Airlines,
     Inc., prepaid $48.2 million in principal amount of aircraft
     debt. The debt prepayment is in addition to AMR's $1.3
     billion in scheduled principal payments in 2007.
  .  American refinanced $127.7 million of bonds that were
     originally issued to fund facilities expansion and
     renovation at Dallas/Fort Worth International Airport,
     reducing the interest rate by 1.75 percentage points to 5.50
     percent.
  .  American refinanced $108.7 million in bonds that were
     originally issued to fund expansion and improvements at
     O'Hare International Airport in Chicago, reducing the
     interest rate by 2.70 percentage points to 5.50 percent.

     These efforts by AMR to improve its balance sheet
follow similar actions taken by the Company earlier in 2007,
which resulted in the elimination of more than $15 million
in annual net interest expense.
     AMR anticipates ending the second quarter of 2007 with
approximately $6.2 billion in cash and short-term
investments, including a restricted balance of approximately
$500 million, compared to a cash and short-term investment
balance of $5.7 billion, including a restricted balance of
$525 million, at the end of the second quarter of 2006.
     The Company expects to end the second quarter of 2007
with Total Debt, which the Company defines as the aggregate
of its long-term debt, capital lease obligations, the
principal amount of airport facility tax-exempt bonds and
the present value of aircraft operating lease obligations,
of approximately $17.3 billion. AMR's Total Debt was
approximately $19.4 billion at the end of the second quarter
of 2006 and approximately $20.1 billion at the end of 2005.
     The Company expects to end the second quarter of 2007
with Net Debt, which the Company defines as Total Debt less
unrestricted cash and short-term investments, of
approximately $11.6 billion, compared to Net Debt of
approximately $14.2 billion at the end of the second quarter
of 2006 and approximately $16.3 billion at end of 2005.









Statements  in  this release 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 release, the  words  "expects",
"plans," "anticipates," "indicates," "believes," "forecast,"
"guidance,"  "outlook", "may," "will," "should" 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  plans  and  needs;
overall   economic  and  industry  conditions;   plans   and
objectives  for  future operations; and the  impact  on  the
Company of its results of operations in recent 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 release are based  on
information  available to the Company on the  date  of  this
release.   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
release  includes forecasts of total debt and net debt,  and
statements regarding the Company's liquidity, 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:   the  materially
weakened financial condition of the Company, resulting  from
its  significant losses in recent years; the ability of  the
Company  to  generate additional revenues and  significantly
reduce  its  costs; changes in economic and other conditions
beyond  the  Company's control, and the volatile results  of
the   Company's   operations;  the   Company's   substantial
indebtedness  and  other obligations;  the  ability  of  the
Company to satisfy existing financial or other covenants  in
certain of its credit agreements; continued high fuel prices
and  further  increases  in  the  price  of  fuel,  and  the
availability  of  fuel;  the fiercely  competitive  business
environment faced by the Company, and historically low  fare
levels;   competition  with  reorganized  and   reorganizing
carriers; the Company's reduced pricing power; the Company's
likely need to raise additional funds and its ability to  do
so  on  acceptable terms; changes in the Company's  business
strategy;  government regulation of the Company's  business;
conflicts overseas or terrorist attacks; uncertainties  with
respect to the Company's international operations; outbreaks
of a disease (such as SARS or avian flu) that affects travel
behavior;   uncertainties  with  respect  to  the  Company's
relationships with unionized and other employee work groups;
increased  insurance  costs  and  potential  reductions   of
available  insurance  coverage;  the  Company's  ability  to
retain  key  management  personnel;  potential  failures  or
disruptions  of  the Company's computer,  communications  or
other  technology  systems; changes  in  the  price  of  the
Company's  common stock; and the ability of the  Company  to
reach  acceptable agreements with third parties.  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, 2006.








                            AMR CORPORATION
                  NON-GAAP AND OTHER RECONCILIATIONS
                              (Unaudited)


AMR Corporation               Estimate as of      As of          As of
Calculation of Net Debt       June 30, 2007*  June 30, 2006  Dec. 31, 2005


Current and long-term debt        $11,700         $13,148         $13,607
Current and long-term
capital lease obligations             900             972           1,088
Principal amount of
certain airport facility
tax-exempt bonds and the
present value of aircraft
operating lease obligations         4,700           5,257           5,435
                                   17,300          19,377          20,130
Less:  Unrestricted cash
and short-term investments          5,700           5,154           3,814

Net Debt                          $11,600         $14,223         $16,316

Note:  The Company believes the Net Debt metric assists
investors in understanding changes in the Company's
liquidity and its progress in building a financial
foundation under the Company's Turnaround Plan.

* The Company's estimates could differ from actual results.

   Current AMR Corp. news releases can be accessed on the
                          Internet.
             The address is:  http://www.aa.com