trims labor costs

DALLAS – The parent of American Airlines is reporting a smaller loss for the first quarter than a year ago on slightly higher revenue and much lower labor costs.

AMR Corp. said Thursday that it lost $341 million, compared with a loss of $1.66 billion a year earlier.

The nation’s third-largest airline said that it would’ve earned $8 million excluding costs of its bankruptcy restructuring.

Revenue rose 1 percent to $6.1 billion. Labor costs declined 17 percent.

AMR is in the process of merging with US Airways and emerging from bankruptcy protection. If antitrust regulators approve the merger, the combined airline will be the biggest in the world.