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. Last Updated: 07/27/2016

American Posts Record Loss as United Struggles

LOS ANGELES -- Even though more people are flying again, the airline industry continues to reel, with American Airlines reporting a record loss and United Airlines' chairman facing calls for his ouster.

AMR Corp., which owns Trans World Airlines in addition to American, said Wednesday that in the three months ended Sept. 30 it lost $414 million, or $2.68 per diluted share, the worst quarterly loss in its history. A year ago, the carrier earned $313 million, or $1.91 a share.

The loss included various charges and gains, including severance costs related to job cuts announced late last month and the airline's portion of the $5 billion in cash aid included in the federal bailout. AMR's third-quarter revenue fell 8 percent to $4.8 billion from $5.3 billion.

AMR was forecast to have a third-quarter loss of $2.67 a share, the average estimate of analysts in a Thomson Financial/First Call poll. A loss was expected before the attacks as companies cut travel budgets.

United also is suffering enormous losses despite slashing its schedule by 26 percent and eliminating about 20,000 jobs.

And that prompted its chairman, James Goodwin, to write a letter to employees last week that said the airline "will perish" sometime next year if it doesn't quickly stem the losses.

The letter sparked an uproar among workers and their union leaders. Leaders of the unions representing United's mechanics and flight attendants called for Goodwin to be ousted.

UAL directors met throughout the day Wednesday in Chicago. United spokesman Joe Hopkins would not discuss the board's agenda and said there was no news from the meeting as of late Wednesday.