NYTimes.com Article: Some Grim Numbers for the Airlines

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Some Grim Numbers for the Airlines

March 4, 2003
By JOE SHARKEY








How bad are things in the airline business? Consider some
numbers.

A new Boeing 737, the single-aisle, medium-size airliner
that's a domestic workhorse for most carriers, costs about
$50 million. Yesterday, United Airlines had a market
capitalization - the current value of all outstanding stock
- of about $71 million, or enough to buy a single new 737
and just about enough left over to buy and outfit a new
Cessna Citation X business jet.

The market capitalization of US Airways yesterday was $11.6
million, barely enough to buy a small corporate jet.
Yesterday's market capitalization for the other major
carriers: Delta Air Lines, $1.1 billion; Northwest
Airlines, $533.6 million; American Airlines, $410.3
million; and Continental Airlines, $352.2 million.

Different Directions on Flight Changes>

Effective this
week, it costs $25 to change a flight on Delta Air Lines on
the same day of travel for most restricted fares. Delta
says the extra fee provides confirmed seats and eliminates
the uncertainty of standby travel - which did not incur a
charge - in the same situations.

Virgin Atlantic, though, has gone in the other direction,
introducing a temporary new policy allowing passengers on
certain international flights to cancel an existing booking
and rebook later with no penalty.

The policy applies to bookings through March 17, for travel
between the United States and Britain and between Britain
and Hong Kong, Shanghai, and Tokyo.

Virgin cites the "current uncertainty in the international
marketplace" for the relaxation of the penalty fees.

New Fares Help United; American Offers Bonus

United
Airlines said yesterday that it was making an extra $20
million to $25 million a month in revenue thanks to
increased travel on the discounted, no-advance-purchase
business fares it introduced in January on flights to, from
and through its Chicago and Denver hubs.

American Airlines passengers who check in for flights on
the airline Web site (www.aa.com/checkin) get a one-time
bonus of 500 frequent-flier miles through June 30. The
flight check-in feature is available starting 12 hours
before departure, and allows passengers to print out their
own boarding passes.

Southwest Airlines said it flew 6.6 percent more revenue
passenger miles - the number of paying passengers carried
one mile - and increased capacity 4.4 percent in February
from February 2002.

http://www.nytimes.com/2003/03/04/business/04MEMO.html?ex=1047786799&ei=1&en=6ccd80aaa6f90be5



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