DALLAS (AP) — American Airlines is losing less money these days, but it's still on a losing streak that's approaching two years. Parent AMR Corp. said yesterday it lost $10.7 million in the second quarter.

That's a big improvement for American, the nation's second-largest airline, from last year's loss of $390 million. Still, American's loss stands out against big profits reported this week at rivals Delta and United.

American blamed the loss on a 24 percent jump in spending on jet fuel but rivals are contending with high fuel costs as well. American is also devoting a greater percentage of its revenue towards labour than Delta and United while playing catch-up with those rivals on international revenue.

The airline was able to partly offset the fuel bill with higher prices — the average fare rose 14 percent from a year ago. American is pinning its hopes for recovery on a strategy of focusing flights at a handful of big hub airports and boosting revenue by working more closely with international partners. On Tuesday, US antitrust regulators gave the company permission to cooperate with British Airways and others in setting fares and schedules on flights between the US and Europe.

American also said Wednesday it ordered 35 more Boeing 737-800 jets as it upgrades its fleet and phases out gas-guzzling older McDonnell Douglas planes. The airline had already ordered 84 737s, which it started receiving in April 2009. The company didn't disclose price or financing details.

And the company promoted chief financial officer Thomas Horton to president, where he will also oversee sales and marketing. AMR's top sales and marketing executive was recently assigned to oversee the possible sale of regional flying subsidiary American Eagle.

AMR said Bella Goren, a marketing senior vice-president, would replace Horton as CFO.