Oct. 22--AMR Corp., the parent of American Airlines, reported a third-quarter loss Wednesday of $359 million, or a loss of $1.26 per share, as a weak economy and travel market overwhelmed dramatically lower fuel prices. In 2008's third quarter, traditionally the strongest months for travel, AMR had net income of $31 million, or 12 cents per share.

AMR's third-quarter revenue was $5.12 billion, down 20.2 percent from $6.42 billion in last year's third quarter.

"These are obviously disappointing results reflecting challenges in the industry we're facing on a number of fronts," Chairman and CEO Gerard Arpey said in a conference call with industry analysts and the media.

"The positive news is that fuel prices declined 42 percent," he said. "Combined with the reduction in capacity, the company spent $1.3 billion less in fuel expenses in the third quarter compared with last year."

AMR's loss was reflective of results elsewhere in the industry.

Houston-based Continental Airlines Inc. reported a third-quarter loss of $18 million, or 14 cents a share, on Wednesday.

UAL Corp., the Chicago-based holding company of United Airlines, posted a third-quarter net loss of $63 million, or 43 cents a share, while AirTran Holdings Inc., the parent of AirTran Airways, had third-quarter net income of $10.4 million, or 8 cents a share.

Last week, Southwest Airlines, the nation's leading discount carrier, reported a third-quarter loss of $16 million, or 2 cents per share.

AMR's third-quarter results include the impact of $94 million in one-time charges related to the sale of aircraft and the grounding of leased Airbus A300 aircraft before the expiration of their leases. Excluding those charges, the loss was $265 million, or 93 cents per share.

Arpey said the Fort Worth-based airline strengthened its financial position by obtaining about $5 billion in additional liquidity and new aircraft financing in the third quarter. The additional liquidity ensures the company will weather the usual travel slump in the fourth quarter and first quarter of 2010, Arpey said.

"We're under no illusions this will drive long-term success for our business," Arpey said. "A difficult revenue environment driven by the weakened global economy continues to overwhelm the benefit of significantly lower fuel prices, but our third-quarter accomplishments better position us to address these near-term challenges and be competitive and successful for the long haul.