Oct. 21--American Airlines Inc.'s parent, AMR Corp., reported a net loss of $359 million, or $1.26 a share for the third quarter, blaming a drop in revenues and a poor economy.

Excluding special items largely related to the sale and retirement of aircraft, AMR said it lost $265 million or 93 cents a share. The analysts' consensus was for a 95-cent loss.

"A difficult revenue environment driven by the weakened global economy continues to overwhelm the benefit of significantly lower fuel prices," AMR chairman and chief executive Gerard Arpey said in the company's announcement, "but our third quarter accomplishments better position us to address these near-term challenges and be competitive and successful for the long haul."

AMR said it had $5.13 billion in operating revenues in the third quarter, down 20.2 percent and $1.30 billion from third quarter 2008. That drop in revenue cancelled an almost identical decline in fuel expenses, from $2.72 billion in third quarter 2008 to $1.45 billion in the most recent quarter.

A year earlier, AMR reported a $31 million profit, but that figured was boosted by a $432 million gain from its American Beacon Advisors sale. Excluding that and other special items, AMR lost $374 million, or $1.45 a share, in third quarter 2008.

The company touted the steps it had taken to increase its liquidity, finance aircraft and refinance outstanding debt in the third quarter. Its unrestricted cash and short-term investments sat at $4.1 billion on Sept. 30, up from $2.8 billion at the end of the second quarter.

"We believe the strong vote of confidence we received from our strategic partners and investors reflects our long track record of meeting our obligations and belief in our ability to address the many challenges our industry faces," Arpey said.

"But we must remain focused on returning to profitability, since profits are the only way to secure our long-term future," he said. "I want to thank our employees for their efforts during a tough period and am confident they will continue to rise to meet the challenges ahead."

Also Wednesday, AirTran Holdings Inc., parent of AirTran Airways Inc., reported that it earned $10.4 million, or 8 cents a share on revenues of $597.4 million. That compares to a loss of $94.6 million, or 81 cents a share, on revenues of $673.3 million in third quarter 2008.

Continental Airlines Inc. said it lost $18 million, or 14 cents a share, on revenues of $3.32 billion last quarter, compared to a $230 million loss, or $2.09 a share, on revenues of $4.16 billion a year earlier.

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