Alaska Air widens fourth-quarter loss

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Alaska Air widens fourth-quarter loss

SEATTLE (AP) =97 Seattle-based Alaska Air Group on Thursday reported deeper=
=20
fourth-quarter losses, missing analysts expectations as the airline=20
industry as a whole struggles to survive the prolonged downturn in=20
commercial aviation.
For the October-December quarter, the parent company for Alaska Airlines=20
and regional carrier Horizon Air reported a net loss of $43.1 million, or=20
$1.62 a share, compared with a net loss of $37.4 million, or $1.41 a share,=
=20
for the same period a year ago. Excluding one-time items, including federal=
=20
compensation following the Sept. 11, 2001, terrorist attacks, the company's=
=20
fourth-quarter net loss in 2001 would have been $63.9 million, or $2.41 a=20
share. Alaska Air revenues rose by 13%, from $466.1 million to $527.7=20
million in the fourth quarter. Analysts polled by Thomson First Call were=20
projecting a loss of $1.46 a share on revenue of $559 million for the=
 quarter.

Shares of Alaska Air were down 9 cents a share to $19.86 in late trading on=
=20
the New York Stock Exchange. "As expected, it was a difficult quarter,=20
ending yet another difficult year for both the industry and Alaska Air=20
Group," said John F. Kelly, Alaska Air chief executive. "We expect that=20
further changes in our industry will occur, but feel that we're well=20
positioned to deal with the challenges and opportunities that lie ahead."=20
Alaska Air reported increases in its fourth-quarter passenger traffic for=20
both its Alaska Airlines and regional Horizon Air carriers. The company=20
cited the popularity of its new routes to Boston, Miami, Washington, D.C.,=
=20
and other locations for helping drive in revenue.  Expenses for major=20
maintenance checks increased over the previous quarter, but there were no=20
glaring factors that caused Alaska Air to miss projections, noted Jamelah=20
Leddy, a vice president with McAdams Wright Ragen, a Seattle-based=20
investment firm. "The company continues to do a lot of really positive=20
things =97 entering new markets, expanding market share," Leddy said,=20
singling out such moves as the carrier's new direct service between Seattle=
=20
and Miami. "They're certainly in a stronger financial position than a lot=20
of the other airlines."

As United Airlines and US Airways struggle in Chapter 11 bankruptcies, and=
=20
other major airlines collectively reported billions in losses in 2002,=20
Alaska Air's losses have not been as deep. The company has benefited from=20
its dominance in carrying traffic to and from Alaska, Kelly said in a=20
conference call with analysts. But the company also announced its=20
"aggressive goal" to cut costs on Alaska Airlines' to 7.85 cents per air=20
seat mile in 2005, down from 8.52 cents per air seat mile. It's "doable,"=20
said Ray Neidl, an analyst with Blaylock and Partners LP. "They know=20
they've got to remain cost-competitive." For 2002, Alaska Air reported a=20
loss of $118.6 million, or $4.47 a share compared with $43.4 million, or=20
$1.64 a share in 2001.


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