AMR to Make Early Debt Payment

AMR (AMR Quote) said its American Airlines unit plans to prepay $545 million in aircraft debt in the fourth quarter as part of the company's continuing attempt to improve its financial condition and strengthen its balance sheet.

The prepayment will probably take place toward the end of the quarter and is in addition to AMR's $1.3 billion in scheduled principal payments this year.

The payment is expected to initially eliminate around $25 million of annual net interest expenses and release 16 aircraft used to secure the loan, which has been outstanding since December 2002 and is scheduled to mature in December 2012. ...