This article from NYTimes.com has been sent to you by psa188@juno.com. AMR Posts a $495 Million Quarterly Loss July 17, 2002 By REUTERS Filed at 7:59 a.m. ET FORT WORTH, Texas (Reuters) - AMR Corp. (AMR.N), parent of American Airlines, on Wednesday posted a quarterly loss of $495 million as the world's largest air carrier said diminished business traffic walloped its bottom line. Fort Worth, Texas-based AMR reported a second-quarter net loss of $495 million, or $3.19 a share, compared with a loss of $507 million, or $3.29 a share, in the year-ago quarter. AMR also said it expects to post a sizable operating loss in the third quarter. ``We continued to see a very weak revenue environment in the second quarter,'' said Donald Carty, AMR's chairman and chief executive. ``Although traffic has rebounded nicely since last fall, average fares are at 15-year lows, sharply depressing yields.'' Carty has said that the airline has suffered from fewer business travelers, who usually pay higher fares. Before a special item, AMR posted a quarterly loss of $465 million, or $3.00 per share, compared with a loss of $105 million, or 68 cents a share before special items, a year earlier. AMR's second-quarter results include a $30 million or 19 cents per share after-tax special charge, which stems from a provision of Congress' economic stimulus package that changes the period for carrybacks of net operating losses. Analysts on average were expecting AMR to report a loss of $2.99 a share, according to market research firm Thomson First Call. The range of estimates was for a loss of $2.75 to $3.30 a share. AMR has been saddled with a net loss of about $2 billion in the four quarters since the Sept. 11 attacks on the United States, which led to a steep drop in air traffic. AMR shares fell about 34 percent in the second quarter, slightly more than the 31.7 percent drop in the American Stock Exchange airline index.Carty said earlier this month that job cuts will unfold as the airline tries to figure out what travelers want and how much they will pay to fly in the post-Sept. 11 world. Carty has said all items are on the table as American tries to cut costs to compete with Southwest Airlines (LUV.N) and smaller no-frills competitors, acknowledging cost-conscious consumers are forcing changes in the way American does business. AMR cut capacity by about 20 percent after the Sept. 11 attacks and also laid off about 20,000 workers. On Tuesday, Continental Airlines Inc. (CAL.N) posted a $139 million quarterly loss. With the usual exception of low-cost Southwest Airlines, the nation's top carriers are expected to post the worst second quarter ever, with losses totaling $1.4 billion. http://www.nytimes.com/reuters/business/business-airlines-american-earns.html?ex=1027909629&ei=1&en=2e0228e6edcf6111 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company