In Line With Analysts' Expectations

American Airlines cut flights and unbundled services, and managed to eek out an increase in revenue per passenger seat-mile in 2008's fourth quarter. But it wasn't enough to prevent a $34 million quarterly loss.

The Fort Worth Star-Telegram reports parent company AMR Corporation Wednesday blamed a quarterly loss of $340 million on higher fuel prices. The company, which is based in Fort Worth, also reported special charges totalling $103 million related to a large number of its senior pilots retiring. Another $23 million hit was related to taking planes out of service to effect capacity cuts.

The $340 million loss is up sharply from 2007's fourth quarter, when AMR lost $69 million. Still, the 2008 number - which works out to 77 cents per share without the special charges -- is about what analysts had predicted. It's also well below the $1.3 billion fourth-quarter loss reported by competitor United Airlines.

AMR says it will cut capacity more aggressively than planned this year, but CEO Gerard Arpey said he nevertheless is, "guardedly optimistic for our prospects in 2009."

Investors, on the other hand, not so much. The stock lost about a third of its value after Wednesday's announcement, ending trading on Thursday at $7.73 per share on the New York Stock Exchange.

FMI: www.aa.com