American Airlines parent AMR Corp lost $414 million in the third quarter, a period when two of its jets were hijacked and crashed in last month's terror attacks.
The world's biggest airline company said high fuel prices and weakness in the travel industry even before the September 11th attacks also contributed to its largest quarterly loss.
AMR had earned $322 million for the same period a year ago.
Revenue fell to $4.82 billion from $5.26 billion a year earlier.
Since the attacks on the World Trade Center and Pentagon the airline has eliminated the equivalent of 20,000 jobs throughout its system.
"With the economy weak and fuel prices still relatively high, we and the rest of the industry were experiencing a very difficult financial quarter even before the September 11th attacks," said Mr Don Carty, AMR chairman and chief executive.
As air travel shriveled up following the nationwide airport shutdowns and has been slow to revive, Mr Carty said he and the entire AMR board of directors executives would take no compensation for the rest of 2001, and that every senior officer and officer of the company had taken voluntary pay cuts.
AP