American Eagle To Stop Flying Out Of Love Field Until 2013

   DOW JONES NEWSWIRES 
 

AMR Corp.'s (AMR) American Eagle regional carrier will stop flying out of Dallas' Love Field for four years while the terminal there undergoes major reconstruction.

The airline only flies to Chicago's O'Hare from Love Field, which is the home base for discount carrier Southwest Airlines Inc. (LUV). American Airlines' main hub is nearly Dallas-Fort Worth International.

American Eagle, which has seven daily flights from Love Field, will fly out of the airport through 2028 part of a 17-year lease announced Thursday. The flight suspensions will begin June 11, and affected employees will be helped finding other jobs in the company.

The curtailment was due to both the terminal construction and "difficult economic times." Carriers continue to cut back on capacity as travelers pare back further on discretionary spending.

The reconstruction is part of eased flying rules at Love Field. Previously, flights from the airport were only allowed to go to states bordering Texas. The rule's elimination is expected to result in surging flight levels at Love Field.

Shares of AMR were recently down 3.7% at $3.13. The stock has slumped 71% this year.

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; [e-mail]