( Reuters ) - AMR Corp shares fell more than 12 percent on Monday, its biggest one-day loss in more than four years, after the parent of American Airlines issued a disappointing revenue forecast amid concerns of slowing demand and rising costs.
In a regulatory filing after the market close on Friday, AMR said it expects passenger revenue from its mainline and regional operations to rise 3.7 percent to 4.7 percent in the third quarter.
The pace of growth is slower than its rivals, according to recent data. Continental Airlines Inc earlier this month said passenger revenue per available seat mile, or unit revenue, rose 6.5 percent to 7.5 percent in August.
"Against this backdrop, AMR's result is disappointing. Perhaps more so, given a likely boost from lapping an easy comp in third quarter 2006, when the liquid ban hurt U.S. short-haul and London traffic," said Goldman Sachs analyst Robert Barry.
He had expected AMR to post third-quarter unit revenue growth of 5.2 percent.
UBS analyst Kevin Crissey said in a note" "These (unit revenue) figures are in line with our forecast but are disappointing relative to recent competitor results."
The weak figures, which come amid concerns that American consumers will rein in spending as the U.S. economy slows, dragged down other airline shares. The Amex airline index was down 2.9 percent.
On top of the prospects for softer demand, oil prices, which affect the costs of jet fuel, have recently reached record levels.
Amid rising fuel costs and fears of sluggish demand, some investors were positioning themselves for further weakness in AMR by buying put options.