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AMR Expects Revenue Hit Due to Terror Plot

September 26, 2006 By: Dan Butcher Travel Agent

American Airlines parent AMR Corp. said the thwarted terrorist plot in London last month is expected to hurt its mainline operations revenue by more than $50 million for August and September, the Wall Street Journal reports. The disclosure is the latest sign that the foiled plan harmed the recovering airline industry. Industry officials are watching for longer-term effects, particularly in bookings of flights. Some airlines reported lower year-over-year revenue growth per each seat flown one mile than expected last month, though it is unclear whether the phenomenon will last or whether economic softness or higher fares might be to blame. The revenue hit was felt primarily in the company's trans-Atlantic routes, AMR spokesman Andy Backover said. AMR's mainline operations exclude operations of regional affiliates, subsidiaries and its independent, affiliated carriers.

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