http://yahoo.reuters.com/news/articl...mktNews&rpc=44

CHICAGO, Feb 23 (Reuters) - AMR Corp., parent of American Airlines, on Friday said it may need to raise additional funds as it considers replacing some of its older aircraft.

While AMR said it should have sufficient liquidity to fund operations for the foreseeable future, the parent of the world's largest airline said it may require more cash to manage its debt and pension obligations in the next several years.

[...]

AMR identified several possible sources of new funding, including issuing shares, selling and leasing back some of its aircraft, and issuing bonds or debt backed by new aircraft deliveries.

But the company said the availability of financing is jeopardized by its level of indebtedness -- it had $16.3 billion in net debt at the end of 2006 -- and by historically weak revenues, high fuel prices and low credit ratings.

[...]

AMR, which intends to trim costs by $300 million in 2007, has said it needs to replace its fuel-guzzling Boeing MD-80 airplanes.

The carrier, which has been Boeing Co.'s largest customer historically, said in its filing that it is evaluating the benefits of replacing some of its older aircraft before 2013.

[...]