FORT WORTH, Texas (AP) -- The parent of American Airlines said Thursday it has has obtained $2.9 billion in new financing and is making changes in its flight schedule to help cope with weak demand and declining revenue in the airline industry.
AMR Corp. said the extra funding includes $1 billion in cash from an advance sale of frequent flyer miles.
The carrier said it sold the frequent flyer miles to Citigroup and received an additional $280 million in cash in a loan from GE Capital Aviation Services.
The Fort Worth, Texas, company said it also received $1.6 billion in sale-leaseback financing commitments from GE Capital Aviation Services, a unit of General Electric Co., for Boeing 737s previously ordered.
AMR said it plans to strengthen its flight network by increasing capacity at hubs in Dallas/Fort Worth, Chicago, Miami and New York while cutting operations at St. Louis and Raleigh/Durham.
It said its capacity for 2010 is expected to increase by about 1 percent over this year.
Chairman and Chief Executive Gerald Arpey said Thursday that AMR expects its mainline capacity to rise about 1% next year, with the figure flat in the U.S. That comes as American and its regional carrier will cut daily departures from St. Louis to 36 from 82 while making smaller cuts at Raleigh/Durham in North Carolina. Flights will be added at Miami, Dallas/Fort Worth and Chicago's O'Hare International, with smaller increases at Los Angeles International and JFK International in New York.