AMR Turns Profit Again

For the fourth quarter, Arpey said he is "cautiously optimistic" because of the recent drop in fuel prices, 7.7% growth in mainline revenue per available seat mile and bookings that are trending about 1% ahead of last year.

"Fuel remains a wild card, and we continue to watch for the continued effect of the London security event," he said, referring to the August disruption of a terror plot aimed at airlines.

American filled a record 81.7% of its seats during the quarter. Mainline cost per available seat mile, excluding fuel and special items, rose 1% to 7.43 cents. Although the company reduced its projected fuel cost for the second half of the year by $528 million, third-quarter fuel expenses still rose 11.9% to $1.8 billion. AMR's cash and short-term investment balance was $5.5 billion at the end of the quarter.

Asked whether American might follow Delta Air Lines(DALRQ Quote) in its course of rapid international expansion, Arpey said the risk of those routes is a sharp dropoff in traffic after the summer.

"The airline business would be a great business if you just operated in June, July and August," he said.