Financial Times FT.com

American grounds aircraft as losses hit $604m

By Doug Cameron in Chicago

Published: January 18 2006 15:36 | Last updated: January 18 2006 23:41

American Airlines on Wednesday said it had permanently grounded 27 aircraft, highlighting the strategic gulf between the network carriers and the rapid growth of low-fare rivals.

The parking of aircraft by bankrupt carriers last year helped fuel a recovery in revenue across the industry, and prospects for a return to profitability after five years of losses hinge on how much capacity is added in 2006.

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