AMR's Quarterly Loss Narrows

Updated from 2:31 p.m. EDT

American Airlines parent AMR (AMR Quote) said its first-quarter loss narrowed by $70 million, and the carrier signaled that it will reduce summer capacity by placing 27 of its 327 inefficient MD-80s in storage by July.

The world's largest airline also said Tuesday that it has boosted round-trip domestic fares by $10 to partially compensate for higher fuel costs.

"Strong demand and reduced capacity have allowed us to raise fares several times during the past year," CEO Gerard Arpey told reporters and analysts on a conference call, noting that bookings are ahead of last year's pace. "The fare increases we have taken have not driven away passengers." ...