AMR Loses $390 Million

On the cost side, mainline cost per available seat mile excluding fuel increased by 5%, driven largely by costs related to reduced capacity, pension expense, and investment in dependability initiatives. Fuel costs were $910 million lower than they would have been at prevailing prices a year earlier.

American said it will take delivery of eight additional 737s, bringing total 737 firm orders to 84 during 2009 through 2011, including aircraft already delivered this year. The carrier said that all the orders through 2011 are, subject to certain terms and conditions, covered by committed financing arrangements.

The carrier ended the quarter with $3.3 billion in cash and short-term investments, down from $5.5 billion a year earlier, which included more than $800 million in collateral from hedge counterparties. As of July 7, American said it had $3.7 billion in unencumbered assets and other sources of liquidity.

In midmorning trading, American shares were up 1.67% to $4.25.