U.S. airline execs not seeing sunny skies yet CHICAGO (Reuters) =97 Although the dark clouds that have hung over the U.S.= =20 airline industry since the Sept. 11 attacks are starting to fade, airline=20 executives are not yet seeing sunny skies ahead. Speaking at an analyst=20 conference in New York Tuesday, several airline executives said they were=20 still hesitant to predict that the industry, which spiraled into an=20 unprecedented financial crisis after Sept. 11, 2001, has turned a corner.=20 "Things have stabilized. Things are not getting worse," Southwest Airlines= =20 CEO Jim Parker said. "In my opinion, it is too early for me to stand here=20 and tell you that things are getting better." Southwest is the only major=20 carrier that has been consistently profitable since the Sept. 11 attacks=20 devastated the industry. Its rivals have shed billions of dollars in losses= =20 as they seek to rev up demand for air travel, which is stuck at its lowest= =20 level in decades. But the end of the Iraq war and abating fears about=20 Severe Acute Respiratory Syndrome (SARS) are good signs for airlines. Many= =20 have said they are starting to see a pick-up in traffic, except on Pacific= =20 routes where SARS is still denting demand. Carriers are hoping that the start of the summer travel season will help=20 drive revenue higher. The injection of cash from a federal government aid=20 package to help airlines offset security costs could also help limit=20 airline losses. Relatively lower fuel prices also bode well for airlines,=20 whose second largest expense behind labor is jet fuel. Still, the leaders=20 of other carriers expressed similar caution in painting a picture of their= =20 future business. "We believe that any recovery in the next 12 to 18 months= =20 is going to be modest," US Airways Chief Executive David Siegel said. "We=20 believe it's 2005 before we can hope for any kind of meaningful, measurable= =20 recovery." US Airways emerged from bankruptcy at the end of March. UAL's=20 United Airlines has been operating under Chapter 11 protection from=20 creditors since December after filing the largest bankruptcy in U.S.=20 airline history. DRUMMING UP BUSINESS Most carriers have embarked on steep cost-cutting efforts to offset the=20 slump in revenue. Continental Airlines Chief Executive Gordon Bethune,=20 speaking about his company's effort to slash costs by $500 million in 2004,= =20 said the goals are ambitious but achievable. "We have to run this business= =20 to break even," he said. "Losses are not sustainable." Banc of America=20 analysts raised their rating on aerospace giant Boeing Co. to "buy" from=20 "neutral" Tuesday, saying airlines were turning the corner and noting=20 optimism among aircraft leasing companies as well as improving traffic in=20 May. Boeing shares closed 3.4% higher. Other analysts remain skeptical,=20 however, including Jefferies & Co.'s Sam Pearlstein, who initiated Boeing=20 coverage with a "hold" rating Tuesday. Drumming up demand =97 especially= from=20 the lucrative business travel segment =97 still remains critical to= recovery.=20 Several carriers launched promotions last week aimed at enticing business=20 travelers. Last week, Delta CEO Leo Mullin said the industry faces another= =20 tough year. "I think the very worst is over," Mullin said. "But I would not= =20 suggest anybody should presume that anything like a true uplift is on the=20 way. There is still some time left." *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.natalielaughlin.com/ TnT Webdirectory: http://search.co.tt *********************************************************