American ( AMR), the only one of the big three carriers not to make a deal recently, is plagued by relatively high labor costs and was the only major carrier to lose money in the second quarter. It is, however, expected to show a third-quarter profit. Its shares are down about 17% this year. Nevertheless, JPMorgan analyst Jamie Baker has a $12.50 price target and an overweight ranking on the shares. Responding to recent revenue per available seat mile guidance that was below expectations , Baker said he expects "gradual strengthening" because American expects a $500 million increase in annual income from joint ventures across the Atlantic and, pending approval, the Pacific.