Several people have said that CAI and RUH were profitable, where do you get this information? Not to debunk anyone here, but I am very suspicious of the rumor mill at airlines.
It is also worth mentioning that TWA has flown to CAI for at least 50 years. Traditionally, in the old days of TW, the set up these spheres of power in each station. The old Rome, Athens, and Paris station managers and sales managers lived like kings. Just look at the old TLV route, something like 50 people for one flight a day. AA is doing a very smart thing, they are breaking the mini-empires in order to gain the leverage back again. I wouldn't doubt that in 2-5 years that AA rebuilds all the old route authorities again and starts CAI, TLV, and RUH once the old TWA is long gone.
Cairo was only 4 times a week and they have a large sales office in Tahir Square so I doubt there was much need for that type of operation. TW couldn't break it up on their own, and AA wants to get rid of the corruption that was rappant in the TW overseas stations.
Growth comes at a price. In this case the price of the employees at TW. If the market justifies it, AA will be back.