Bosses take cut at sliding AMR

AMERICAN Airlines parent AMR Corp has posted a record third-quarter loss of $922m (£646m) as a result of the September 11 attacks, prompting directors to take no pay for the rest of the year and voluntary pay cuts to be accepted by every senior officer.

Part of the loss was offset by a $508m Government aid package. But this was not enough to stop AMR slashing about 20,000 jobs and cutting its daily flight schedule by 20%.

AMR has also created an 'American heroes' programme under which employees can take voluntary pay cuts to help the company.

'We are in the midst of the worst financial crisis in the history of the industry,' said chairman Don Carty. The attacks and their aftermath further weakened traffic and had a staggering effect on our overall financial performance'.

The operating loss came in at $525m for the three months compared with a $322m profit for the same time last year.

AMR took additional charges of $311m relating to 'aircraft impairment and groundings' and further charges amounting to $86m. The efforts of the group to cut costs include the retirement of older aircraft, deferred delivery of new planes and reduced food service.