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American Airlines slips further into red

American Airlines slips further into red

American Airlines has reported a wider than expected loss during the third financial quarter as it struggles to regain profitability.

The only major US carrier to report a loss over the period, American reported a net loss of $162 million, compared with a profit of $143 million a year earlier.

Revenue was $6.4 billion over the period.

Blame was attributed to a 40 per cent increase in fuel costs during the third quarter when compared to a year earlier.

A September spike in the value of the dollar also eroded overseas sales and the value of repatriated funds.

Earlier this month, American said it would cut its fall and winter flying to reduce fourth-quarter capacity by about three per cent compared with its initial outlook in January.

The carrier expects full-year capacity to be up about 0.4 per cent from last year.