Oct. 12--In the five years since its near-bankruptcy, AMR Corp., the parent of American Airlines, has wrung more than $4 billion a year in costs from its operations.

However, as its second-quarter loss of $1.4 billion demonstrated, those reductions haven't been enough in the face of a 53 percent increase in jet fuel prices compared with those of a year ago.

So AMR executives have instituted a series of revenue-enhancing measures in the last few months to offset the high costs of fuel -- raising fares, restricting low-fare seats and introducing fees on everything from checked baggage to blankets.

Bumping the enhanced revenue ceiling, American is taking one more whack at its cost structure by starting to retire its fleet of 300 McDonnell Douglas MD-80s, which are 20 years old, and replacing them with Boeing 737-800s, which are 35 percent more fuel-efficient.

The MD-80s are the equivalent of the old dependable family car: It's not flashy or the most economical to operate, but it always runs, company executives say.

Think of the 737-800s as flying Honda Civics.

State banks strong and healthy

Oklahoma banks are strong,

they're well capitalized and they're making loans, industry officials say.

"Nothing is safer than money in the bank" has become an oft-repeated motto, especially in recent days, of Roger Beverage, president of the Oklahoma Bankers Association, who stopped by the Tulsa World newsroom Tuesday to emphasize the strength of the state's banks and their deposit safety.

Joining him were Jim Huntzinger of BOK Financial Corp; Marty Hansen with First State Bank in Fairfax; and Jan Miller, president of Bank of Commerce in Catoosa.

People keep hearing about a crisis in the banking industry, and naturally they want to know how that affects them, their savings and money, Beverage said.

"The answer is that it doesn't. It's a psychological hurdle that a lot of people have to overcome," Beverage said.

"If you look at the history of the FDIC and what it has meant since it was created and how it's structured and how it works and banks work, then it all starts to come into focus. Nobody has ever lost a dime in an FDIC-insured account."

The massive financial rescue plan signed into law last week raises the $100,000 cap on Federal Deposit Insurance Corp. insurance on individual bank accounts to $250,000.

Energy sector drag on Tulsa Index

The Tulsa Index, succumbing to growing pressures on the U.S. economy and fallout in the energy markets, turned in "horrible results" for the third quarter, a local investment professional said.