"We have a lot of work to do to achieve sustained profitability at acceptable levels, but we are clearly on the right track." AMR shares were down 15 cents, or 1.01 per cent, at $US14.75 shortly after the announcement. American Airlines recorded an 8.1-per cent increase in mainline revenues and an 8.6-per cent drop in mainline unit costs, excluding special items, the group said. AMR said it had a "strong" cash and short-term balance of $US3.3 billion, more than double the precarious low of 1.6 billion dollars struck in April. In April, American Airlines reached belt-tightening agreements with three labour unions to avert a bankruptcy filing.