SF Gate: America West reports second quarter loss of $8.5 million

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Friday, July 19, 2002 (AP)
America West reports second quarter loss of $8.5 million
JACQUES BILLEAUD, AP Business Writer


   (07-19) 09:01 PDT PHOENIX (AP) --
   America West Holdings Corp. on Friday reported a net loss of $8.5 million
for the second quarter of 2002, compared to a loss of $42.5 million during
the same period last year.
   America West Holdings, the parent company of America West Airlines and T=
he
Leisure Company, a tour packager, lost 25 cents a share for the quarter,
compared to $1.26 per share during the same quarter in 2001. Analysts
surveyed by Thomson Financial/First Call estimated the Tempe-based company
would lose 58 cents per share.
   America West said it produced a nominal net profit in June, typically one
of its strongest months.
   "While America West's second-quarter net loss reflects the continued
economic challenges facing the airline industry, we are encouraged to be
the only major airline to report a year-over-year improvement in
earnings," said Douglas Parker, America West's chairman and chief
executive.
   He said the improvement was driven by a new fare structure, improved
operations and cost reductions during recent restructuring.
   America West shares rose 5 cents to $2.42 in early trading Friday on the
New York Stock Exchange.
   America West officials say the airline keeps improving on getting
passengers to their destinations on time, but is still dogged by its past
as a carrier that delayed flights, lost luggage and left customers
waiting.
   The company says it now ranks among the industry's best in on-time
arrivals and it will change the perception that it's unreliable.
   Like much of the industry, the company faces financial hurdles.
   America West posted losses in seven straight quarters. It got approval f=
or
a loan guarantee as part of the government's industry bailout.
   Pushed to the brink of bankruptcy shortly after the Sept. 11 terrorist
attacks, America West secured a $429 million loan guarantee from the
federal government.
   After the attacks, the airline eliminated jobs and trimmed its flight
schedule by 20 percent.
   More than 1,500 employees of the airline have returned to work, including
all the pilots, flight attendants, customer service representatives and
reservation agents who were laid off.
   The airline also said its flight schedule has returned to what it was
before the attacks.
   The company decided in March to target more business travelers by cutting
the Saturday night stay and advance purchase requirements.
   Rivals responded by slashing some coast-to-coast fares, but America West
said it will stick to its plan.
   America West is the country's eighth-largest airline, serving destinatio=
ns
in the United States, Canada and Mexico. It has hubs in Phoenix, Columbus,
Ohio, and Las Vegas.

On the Net:
   America West Airlines: www.americawest.com

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Copyright 2002 AP

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