Corrected: AMR sees 2nd-qtr mainline unit revenue up 6-7 percent

An American airlines plane lands at the Calgary International Airport in Calgary, Alberta, June 17, 2008.

(Corrects mainline cost per available seat mile to cents from dollars in paragraph 6)

CHICAGO (Reuters) - AMR Corp AMR.N on Wednesday estimated that the revenue it derives from flying one seat one mile increased between 6 percent and 7 percent in the second quarter while its costs were expected to rise as oil prices continue to batter the industry.

In a filing with the U.S. Securities and Exchange Commission, the parent of American Airlines also said it had hedged about 33 percent of its projected fuel consumption for 2008 with an average cap of $70 per barrel of crude oil.

U.S. crude traded at more than $132 a barrel on Wednesday.

"Net, net there is no material change to our outlook for large losses," UBS airline analyst Kevin Crissey wrote in a research note.

The carrier said it had hedged 36 percent of its projected second-quarter fuel consumption with an average cap of $78 per barrel of crude.

AMR estimated its mainline cost per available seat mile was 13.36 cents in the second quarter, or 8.09 cents excluding fuel and special items.

The airline industry has been hit by soaring fuel costs this year, and carriers have been hunting for ways to boost fares, cut costs and generate revenue.

AMR said it expected to end the second quarter with cash and short-term investments of $5 billion, of which $426 million is restricted.

Shares of AMR were down 9 cents at $5.61 on the New York Stock Exchange.

(Reporting by Kyle Peterson; Editing by Lisa Von Ahn)