AMERICAN AIRLINES ANNOUNCES CHANGES IN TRAVEL AGENT COMMISSION CAPS

American Airlines announced today that it will reduce commission caps for tickets issued by travel agents in the United States and Canada for all domestic travel on American and TWA Airlines, LLC, an American Airlines company.

The changes, which do not apply to tickets for international travel, take effect at 12:01 a.m. (Central time) on Aug. 18, 2001. The base commission rate of 5 percent for domestic tickets in the United States and Canada remains unchanged.

Under the new cap structure, the maximum payment to travel agents for domestic tickets issued in the United States (including Puerto Rico and the U.S. Virgin Islands) for travel within the United States and between the United States and Canada will be $20 for round-trip travel and $10 for one-way travel. The caps today are $50 and $25, respectively.

For tickets issued in Canada for travel between the United States and Canada and within the United States, the new maximum payment to travel agents will be $28 (CAD) for round-trip travel and $14 (CAD) for one-way travel. The present maximums are $70 (CAD) and $35 (CAD), respectively.

American will have no further comment on this matter. Travel agents may obtain additional information by referring to the key word "commission" on the Direct Reference System (DRS) of their computer reservations system.