JP Morgan sees wider airline losses

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JP Morgan sees wider airline losses=20

=09

Tuesday September 10, 12:01 PM EDT=20


CHICAGO (Reuters) - JP Morgan analyst Jamie Baker Tuesday widened his
estimate for the airline industry's 2002 net loss to $6.8 billion, the
largest net loss ever.

Baker had previously forecast a net loss of $5.4 billion in 2002 after
an industry net loss of $6.2 billion in 2001. In a research note, he
also increased his forecast for the industry's 2003 net loss to $3.3
billion from $1.6 billion.

He also widened his 2002 net loss forecast for UAL Corp.'s United
Airlines to $31.65 per share from $26.15 per share. AMR Corp. , parent
of the world's largest air carrier American Airlines, is now estimated
to incur a loss of $12.85 per share in fiscal 2002, wider than the
previous loss estimate of $11.70 per share."

"Our revised estimates fall well below consensus, and in most instances
establish new Street lows," Baker wrote in the research note. "Our
earlier assessment of 2004 profits looks increasingly improbable, with
break-even likely the best-case scenario."

The consensus forecast among Wall Street analysts is for an industry
loss of $5.7 billion in 2002 and an industry loss of $1.4 billion in
2003, Baker said.=20


=A92002 Reuters Limited.=20

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