American Airlines could cut down its losses in the final quarter, but increasing prices of fuel may keep the carrier based in Fort Worth in the red in this year.

AMR Corp. the parent firm of American Airlines showed a loss of ninety seven million dollars compared to the loss of three hundred and forty four million dollars in the corresponding quarter of the year 2009. Revenue, boosted by higher fares and bag fees, grew ten percent to hit $5.58 billion.

The company also declared that that it will be purchasing two long-range Boeing 777-300ERs which will be delivered in late 2012. American executives stated that the planes will be used to add capacity on international flights as well as at slot-constricted airports.

Gerard Arpey the CEO of AMR told analysts on a conference call that they are very much focused on improving their results while advancing and like what they always did they were keeping a close eye on fuel prices as well as the economy.

The loss in the fourth quarter was less than the prediction done by Wall Street analysts. Excluding a one-time charge of twenty eight million dollars for writing down the value of routes in Colombia, the company lost sixty nine million dollars or twenty one cents per share, in comparison of estimates given by analysts' consensus of thirty three cents per share.

Wall Street somehow did not seem impressed with AMR's financial improvement and remained worried about the company's plans to enhance capacity more than four percent even as fuel costs escalate. American's domestic network will grow one percent in this year, while international capacity will grow nearly eight percent with addition of new routes.