AMR shares slip 7.45% following $162M quarterly loss

Shares in American Airlines' parent company AMR Corp. slipped 7.45 per cent, or 21 cents, to $2.61-a-share on Wednesday, following the announcement of quarterly loss.

ARM suffered a loss of $162 million, or 48 cents-a-share, during the third quarter of this year. The loss contrasts stridently with the company's profit of $143 million in the third quarter of last year.

The company blamed high fuel costs and unfavorable foreign exchange rates for the recent quarter loss. It said revenue per available seat mile climbed 8.1 per cent during the third quarter but increase of 41 per cent in fuel costs darkened the higher revenues.

However, the company is struggling to resolve its labor problems, and bring costs under control.

AMR CEO Gerard Arpey said they hoped that new labor agreement and use of more fuel-efficient planes would allow the company to hack costs and return to profits.

Speaking at a recent conference call, Arpey said, "The goal is to become more competitive. It's now become our No. 1 priority."

ARM stock has already declined 66 per cent so far this year, which led many to believe that the company is nearing bankruptcy. But, AMR has around $5 billion in cash, which is sufficient to keep the company away from bankruptcy any time soon.