AMR Corp., the parent company of American Airlines, said $2.9 billion in loans from General Electric Co. and Citigroup Inc. would help the company resist a slump in the air
-travel industry and boost up the confidence of its investors.

Citigroup Inc. paid $1 billion for frequent-flier miles, while GE Capital provided $1.6 billion in jet-financing commitments.

The funds will bolster liquidity for AMR.

AMR said it would increase flights from hubs at Chicago, New york, Dallas-Fort Worth and Miami.

Speaking on the topic, AMR Corp's CEO, Gerard Arpey said, "We're doing everything we can to manage our way through the current economic climate."

Improved cash position and positive outlook for growth of the carrier sent its shares up by 20 per cent to $8.80 on the NYSE.