AMR Sees Revenue Declining In First Quarter

AMR said on Wednesday that revenue for its American Airlines unit is expected to decrease 9.6 percent to 10.6 percent in the first quarter from a year earlier, while consolidated unit revenue is expected to decline between 10.2 percent and 11.2 percent.

The company said in a filing with the US Securities and Exchange Commission that cargo and other revenue is expected to decline between 5.6 percent and 6.6 percent compared with the year ago period.

Airlines are grappling with weaker travel demand as economies sag around the world and businesses trim costs. The tough times are leading carriers to slash their seat capacity.

AMR said it expects to end the first quarter with about USD$3.1 billion in cash and short-term investments.

In January, the company said it had USD$3.6 billion in cash and short-term investments as of the end of the 2008 fourth quarter.