AMR Corp., the parent company of American Airlines, posted a $162 million net loss for the third-quarter despite revenue increases, as the company battled high fuel costs.
The Fort Worth, Texas-based company reported revenue of $6.4 billion, up 9.1 percent from a year ago. Passenger revenue per available seat mile for the company grew 8.7 percent compared to the previous year.
Passenger yield, which represents the average fare price paid by consumers, rose at American Airlines by seven percent. The company cited improving economic conditions as the reason for increased revenue.
In total, American Airlines posted an 8.1 percent increase in total revenue, while regional affiliates posted an 18.9 percent increase. Cargo revenue was up 4.8 percent.
However, the company was hit hard by a 41 percent surge in fuel prices compared to 2010, leading the company to pay an additional $653 million.
While the third quarter was challenging for American Airlines, we are taking aggressive actions to improve the company's performance and strengthen its foundation for long-term success, AMR Chairman and CEO Gerard Arpey said in a statement.
Actions taken will include reducing mainline capacity during the fourth quarter by three percent from the prior year, which will be accomplished by adjusting the fall and winter schedule for American Airlines. American also plans to retire 11 Boeing 757s in 2012, which the company said will result in maintenance and fuel cost reductions.
Shares of AMR are down 7.62 percent to $2.60 at early morning trading.
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