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Mon, Feb 17, 2003

American Airlines Cargo: Fuel Surcharge Increase

Effective Next Monday

American Airlines Cargo division announced Friday an increase in its fuel surcharge to $0.15/kg for most U.S.-origin international shipments and $0.06/lb for U.S. domestic shipments, effective Feb. 24, 2003. The fuel surcharge will also be adjusted, in local currency, for most non-U.S.-origin shipments. Due to government regulations, the surcharge to and from Brazil, Canada and Japan will not be affected at this time.

The American Airlines Cargo fuel index reached 100.07 for the week ending Feb. 7, 2003, exceeding the 89.00 trigger point for the second consecutive week. The American Airlines Cargo fuel index is based on an average of the five U.S. jet fuel spot markets. American Airlines Cargo established this index in September 2002 to assist our customers in projecting their costs in light of changes in jet fuel prices.

The American Airlines Cargo Fuel Index is based on the weekly average spot price of kerosene-type jet fuel as reported by the United States Department of Energy in the Weekly Petroleum Status Report.

The index is calculated by averaging the five current spot prices in the New York Harbor, U.S. Gulf Coast, Los Angeles, Rotterdam (ARA) and Singapore markets.

FMI: www.AACargo.com

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