America West posts $358 million loss

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PHOENIX, April 19 (Reuters) - America West Airlines on Friday reported a
$358.3 million first-quarter net loss mainly on accounting changes, joining
other carriers in reporting huge losses made worse by weak demand and cheap
fares following the Sept. 11 attacks.

The unit of America West Holdings (AWA), the No. 8 U.S. carrier, said the
loss amounted to $10.62 per share, as it took a $272 million write-down in
adopting new goodwill accounting rules and $60 million pretax charges mainly
for its fleet.

"America West's first-quarter results reflect the severe economic downturn
facing the airline industry," Chief Executive Douglas Parker said in a
statement.

Parker said the carrier has had an encouraging gradual month-to-month
revenue improvement considering the industry environment. The carrier had a
positive cash flow in March, typically one of its strongest cash flow
months.


America West, the only major carrier to apply for and accept federal loan
guarantees, said total operating revenue fell 21.6 percent to $460 million
in the first quarter.

Excluding special charges, America West lost $47.6 million, or $1.41 per
share. The carrier reported a net loss of $12.8 million, or 38 cents per
share, a year ago.

Analysts' loss estimates ranged from $1.40 to $1.60 per share for a mean of
$1.50, according to research firm Thomson Financial/First Call.

Shares of America West Holdings rose 4 cents to $5.30 Friday morning. The
shares have risen about 50 percent since the start of the year and have
outperformed the American Stock Exchange airline index (XAL) by about 32
percent since then.

Pretax special charges included $39 million of value impairment for owned
aircraft and engines, $10 million of fleet restructuring, $6 million of
losses on aircraft sales and $5 million of restructuring-related fees.

Unit revenue, a widely watched industry figure measured by passenger revenue
per available seat mile, fell 8.2 percent in the quarter, the carrier said.
Unit revenue fell 13.3 percent in the third quarter and 17.7 percent in the
fourth quarter last year.

Unit costs, measured by operating cost per available seat mile excluding
special charges, fell 0.8 percent mainly on a steep drop in fuel prices,
America West said. Unit costs rose 4.4 percent holding fuel prices constant.

The carrier had a record quarter-end cash balance of $421 million and
received about $390 million of net proceeds in January from a
government-backed loan. America West also received a $34 million federal tax
refund in February.

America West cut business fares as much as 60 percent in late March, but
does not rely on business travelers as a major source of revenue. America
West said the new business fare structure had no material effect on
first-quarter revenue.


©2002 Reuters Limited.

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