Concerns over swine flu cost American Airlines up to $80 million in the second quarter, contributing to an overall loss of $390 million. Passenger revenue dropped 22.7% at American and its regional affiliates, while cargo revenue plunged 42.6%. "With ongoing global economic weakness and the resulting effect on travel demand, revenues are down sharply from a year ago," said CEO Gerard Arpey. While the company's losses were narrower than expected, thanks to cost-cutting measures and ancillary revenue, Arpey noted that volatile oil prices are adding to the industry's uncertainty. "The spot price of oil, while much lower than this time last year, has risen since early this year and remains volatile," he said.