AMR On Point But Hold Remains For Now

AMR Corp.

posted lower than expected losses ($11M) than was anticipated by Dahlman Rose ($30M). Dahlman expects AMR to return to a net profit in the 3Q, estimating $71M over last year's loss of $265M. On the upside, in early July the US Department of Transportation and the European Union approved an anti-trust immunity for American Airlines, British Airways and Iberia, with a potential $500M revenue benefit by year-end 2012, according to Dahlman. Dahlman expects a full year 2010 loss and maintains its "hold" rating. AMR Corp. closed yesterday at $6.62.