AMR reports big third-quarter loss

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AMR reports big third-quarter loss

DALLAS (AP) =97 The parent company of American Airlines lost $924 million in=
=20
the third quarter and announced it would mothball some aircraft and delay=20
delivery of new planes. AMR blamed the weak results during what is normally=
=20
the peak summer travel season on the sluggish economy, low fares, security=
=20
costs and the prospect of war against Iraq. "Any way you look at them,=20
these are terrible financial results," said chairman and chief executive=20
Donald J. Carty. "We could not overcome the cumulative weight of the=20
economic challenges, and the environment shows little sign of improving."=20
The company said it expects to post an even larger loss in the fourth=20
quarter unless air fares rise. In the third quarter, AMR said it lost $5.93=
=20
per share. Excluding certain items that it considered one-time costs, AMR=20
said it would have lost $475 million, or $3.05 per share. On that basis,=20
analysts surveyed by Thomson First Call had expected a loss of $3.06 per=20
share. Revenue was $4.49 billion. That was below the levels of last year's=
=20
third quarter, which was marred by the Sept. 11 terror attacks, and far=20
short of the $4.81 billion expected by analysts.

AMR's results were announced one day after Delta Air Lines, the=20
third-largest U.S. carrier, reported a wider loss of $326 million in the=20
July-September quarter and said it would cut more jobs. The poor reports=20
dragged down the entire sector on Wall Street, where stocks fell sharply=20
across the board after four days of solid gains. In afternoon trading on=20
the New York Stock Exchange, shares of AMR fell 57 cents to $3.91, Delta=20
shares fell 81 cents to $8.28, United Airlines shares fell 25 cents to=20
$1.78, and Continental Airlines shares fell 43 cents to $4.81. On the=20
Nasdaq Stock Market, shares of Northwest Airlines fell 79 cents to $6.08=20
and Southwest Airlines shares fell 45 cents to $13.25. Fort Worth-based AMR=
=20
said Wednesday would mothball 42 airplanes beginning early next year to=20
save more than $100 million on maintenance over the next two years. The=20
company said it doesn't expect to need the planes until at least 2005. AMR=
=20
also it has reached agreement with Boeing to delay delivery of 34 airplanes=
=20
through 2005. American will take only 11 airplanes next year instead of the=
=20
planned 19, and it won't take any new aircraft in 2004 and 2005. The=20
company said it has cut planned capital spending by more than $1.5 billion=
=20
through 2005.



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