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Thursday, January 20, 2011

American Airlines parent AMR loses 1.97 m $ in the fourth quarter (AP)

DALLAS - American Airlines is much better than last year, thanks to higher rates and money, extra cost, but it is still losing money.

Third airline nation is pinning hopes for a turnaround put high-dollar business travelers more flights and travel between some major American cities.

Although this strategy works - and some analysts such as he - American still faces enormous challenges ranging from rising fuel costs a fight ugly with travel agencies which makes it harder to find American flights online.

U.S. parent AMR Corp. said Wednesday that it lost $ 97 million in the fourth quarter, or 29 cents per share. It is smaller than AMR posted a year ago, and he beats forecasts of analysts who expected a loss of 36 cents per share, according to FactSet.

Revenue jumped 10.3%, 5.59 billion — better than analysts expected. Air tickets increased as airlines flights limited and filled more passenger aircraft. The average American flight in 2010 was 81.9% of filled seats - is a record.

Airlines also raised money by imposing a variety of fees. AMR, category Tote with "other income," which includes baggage and food, sales increased 2.9% in the fourth quarter to $ 599 million.

But the coup de pouce of income was not enough to offset the costs of fuel. AMR, which also holds regional carrier American Eagle, paid 1.66 billion for fuel in the fourth quarter, an increase of 12.9% in one year.

Even more troubling, the company expects prices of fuel to raise at least $ 1 billion this year. CEO Gerard Arpey named "the threat more disturbing that we see."

AMR shares fell 38 cents, or 4.6%, $7.91 in afternoon trading.

Texas-based AMR lost 471 million for all of 2010. When the major airlines of U.S. finished results next week, AMR should only show a loss for the year complete.

There are several reasons why AMR lags competitors. It faces more stringent governmental restrictions on international service, Delta and trails the US in the important market of trans-Pacific, is facing higher labour and pension costs and operates older aircraft.

Plan of Arpey to turn things includes stimulate circulation in the Pacific and Atlantic dealt with British Airways and Japan Airlines partners. American finally won an antitrust immunity for these companies. In the United States, he focused carefully on five major cities, including New York and Los Angeles while minimizing others.

The two movements are designed to attract business travellers who typically pay higher than leisure travellers rates.

"This is a great network," said Michael Derchin, an analyst at CRT Capital Group. "This is a directory of places where business people reside or want to travel."

American announced Wednesday that he will order two new aircraft from Boeing 777 - 300 long-range for use on international flights. Terms were not disclosed. Boeing Co. lists aircraft 284 million each, but regularly, though customers get discounts.

American also said that he speaks with Expedia and Orbitz get listed flights again on Web sites of online travel agencies. American wants to reduce the costs of distribution of tickets, bypassing intermediaries such as Sabre Holdings, who charge airlines for their service. But for the moment, the conflict has claimed Americans harder to find online flights.

This week agreed Priceline.com obtain details of the flight directly from American. Ray Neidl, Maxim, Group analyst said that the Priceline deal could be the model American uses to resolve disputes with Expedia and Orbitz.

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