=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/04/19/f= inancial1337EDT0141.DTL ---------------------------------------------------------------------- Friday, April 19, 2002 (AP) Airline losses mount as America West and Alaska Air have disappointing quar= ter (04-19) 10:37 PDT (AP) -- The airline industry's losses mounted on Friday, as Alaska Air, America West and United Airlines each reported disappointing results for the first three months of 2002. The carriers blamed their poor performance on the decline in business travel and the impact of Sept. 11, while pointing out that passenger traffic continues to improve on a month-to-month basis. Wall Street analysts expect the industry's cumulative losses for the fir= st quarter to total $2 billion. ^America West Holdings Corp. The Tempe, Ariz.-based company reported a net loss of $358 million, or $10.62 per share, for the first three months of 2002, compared with a loss of $13 million, or 38 cents a share, a year earlier. Excluding a $272 million write-down related to a change in accounting standards and a one-time charge of $60 million, America West lost $47.6 million, or $1.41 per share. Analysts surveyed by Thomson Financial/First Call expected the company to lose $1.50 per share. Shares of America West rose 9 cents to $5.35 on the New York Stock Exchange in early afternoon trading. The company's quarterly revenue fell to $460 million, down from $587 million the year before. "America West's first quarter results reflect the severe economic downtu= rn facing the airline industry," said America West Chairman and Chief Executive Douglas Parker. The parent company's holdings include a tour package operator, The Leisure Company. Pushed to the brink of bankruptcy shortly after Sept. 11, America West secured a $429 million loan guarantee from the federal government, which made the assistance available as part of its $15 billion industry bailout. In exchange, the government was given the opportunity to purchase nearly 19 million America West shares -- about a third of the entire company -- at a price of $3 each. America West also agreed to hold down labor costs. America West is so far the only major airline to have asked the governme= nt to back its loans, although US Airways said Thursday that it would "likely" seek government help before the June 28 deadline. America West had $421 million in cash at the end of the quarter, $390 million of which came from loans. ^Alaska Air Group Inc. The Seattle-based carrier reported a first-quarter net loss of $34.4 million, or $1.30 per share, compared with a loss of $33 million, or $1.25 per share, a year earlier. The results beat Wall Street's expectations. Analysts surveyed by Thomson Financial/First Call predicted losses of 98 cents to $1.80 per share, with a mean of $1.53 per share. Revenue for the quarter was $496.9 million, compared to $516 million in the same period last year. "We've seen a surprisingly quick recovery that has really exceeded expectations," said Alaska Air Group Chairman and Chief Executive John F. Kelly. "Of course, we still had a significant loss, which in absolute terms is obviously disappointing, but in relative terms we're doing exceptionally well compared to the rest of the industry." Alaska Airlines' passenger traffic increased 2.8 percent in the first quarter, on a capacity increase of 0.9 percent. It attributed the increase to its decision to add flights to Washington, D.C., and Mexico. At Horizon Air, the company's commuter airline, passenger traffic dropped 2 percent on a capacity decrease of 2.2 percent. Alaska shares were trading up 27 cents Friday at $31.17 on the New York Stock Exchange. ^UAL Corp. United Airlines parent company reported a $510 million first-quarter los= s, its second-biggest setback ever, reflecting its continued struggles to lure back business travelers in a skittish economy. The quarterly loss was the seventh in a row for the nation's second-biggest carrier, exceeded only by the $1.16 billion loss in last year's third quarter, when the terrorist attacks threw the airline industry into crisis. Passenger revenues tumbled 28 percent, largely due to schedule cutbacks made last fall. But results showed some signs of improvement. The operating loss was significantly smaller than expected, more seats were filled than in the fourth quarter and the airline burned through cash at about $5 million a day -- about half its rate in the previous quarter. The net loss amounted to $9.22 a share, compared with a loss a year earlier of $313 million, or $5.97 a share. Excluding special items, United said the operating loss was $487 million or $8.81 per share, beating the $10.24 consensus estimate by analysts surveyed by Thomson Financial/First Call. UAL shares rose 19 cents to $15.03 in morning trading on the New York Stock Exchange, though they retain only half their value from before the Sept. 11 attacks. Operating revenues were $3.3 billion, down 26 percent from $4.4 billion a year ago. Chief executive officer Jack Creighton said the Elk Grove Village, Ill.-based airline was making progress in its recovery, although he acknowledged that complications with labor contract negotiations have blocked efforts to cut salary and further reduce high operating costs. On the Net: America West Airlines: www.americawest.com www.alaska-air.com/ =20 ---------------------------------------------------------------------- Copyright 2002 AP