amid fears Bermuda could suffer.

Tourism officials fear the airline will slash its daily Raleigh-Durham flights as it tightens purse strings.

But yesterday American's local manager Mrs. Carol DeCouto sought to soothe concern.

She said the airline's three flights to Bermuda, including the two out of New York, last year had proved successful.

"I'm fairly optimistic Bermuda won't be affected,'' she added.

Meanwhile, USAir has cancelled its Bermuda service out of Charlotte, North Carolina.

But the gap has been plugged by a service out of Hartford, Connecticut, over Philadelphia.

And Bermuda's Tourism Ministry has also acted after United Airlines cancelled its Dulles service.

Officials have approved charter services from this gateway, and from Providence, Rhode Island.

American's review of its routes has, however, sparked anxiety.

The airline, one of the largest carriers to Bermuda, has suffered a series of cash setbacks.

AMR Corp., American's corporate parent, ended 1992 by reporting a fourth quarter loss of $200 million.

It brought AMR's full-year loss to $935 million -- or $12.49 per share -- although the results were affected by accounting changes.

Without these, AMR's 1992 net loss would have been $416 million.

Last April American reformed its fare structure, cutting the cost of full-price tickets and wiping out dozens of categories, in the fierce competition for the skies.

Fares between Bermuda and New York dropped on average five percent.

And fares within the US fell ever more, with first class tickets dropping 20-50 percent.

American's review is aimed at improving the airline's position for the remainder of the '90s and beyond.