S&P: AMR, American Airlines unchanged

Standard & Poor's said that a tentative agreement among AMR Corp. (B/stable/B-2) unit American Airlines Inc. (B/stable), Southwest Airlines Co. and the cities of Dallas and Fort Worth, Texas, to recommend that Congress revise the Wright Amendment carries some revenue risk for American, but does not affect the agency's ratings or outlooks on AMR or American.

According to the agency, the Wright Amendment, which limits flights from Dallas' Love Field airport to certain states, has heretofore been supported by Fort Worth and American, whose main hub is at Dallas-Fort Worth International Airport.

If Congress revises the Amendment, as now seems likely, Southwest will be able to extend its flights from Love Field to major metropolitan areas, such as Chicago, Los Angeles and New York, currently served by American from Dallas-Fort Worth Airport, S&P said, adding that this is likely to erode pricing on those profitable routes for American.

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