This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ FOR YOUR CONSIDERATION: IN AMERICA - IN THEATRES NOVEMBER 26 Fox Searchlight Pictures proudly presents IN AMERICA directed by Academy Award(R) Nominee Jim Sheridan (My Left Foot and In The Name of the Father). IN AMERICA stars Samantha Morton, Paddy Considine and Djimon Hounsou. For more info: http://www.foxsearchlight.com/inamerica \----------------------------------------------------------/ Three Airlines Show Improved 3Q Earnings October 21, 2003 By THE ASSOCIATED PRESS Filed at 3:25 p.m. ET Three major U.S. airlines on Tuesday reported better third quarter results, as the industry benefited this summer from pent-up travel demand and cost-cutting programs. America West Holdings Corp. and Alaska Air Group Inc. reported profits in the July-September period, while US Airways Group Inc., the largest carrier of the three, remained unable to surmount the industry's financial challenges more than six months after emerging from Chapter 11. Based on comments executives made Tuesday, carriers are not expected to perform as well as they did this summer over the next six months. ^US Airways Group Inc. The Arlington, Va.-based carrier reported a narrower third-quarter loss of $90 million. The loss at the nation's seventh-largest airline equaled $1.69 per share, compared with a loss of $335 million, or $4.92 a share, in the comparable period in 2002. Quarterly revenue rose about 1 percent to $1.77 billion in the quarter from $1.75 billion a year earlier. ``While we continue to make significant progress in an industry that is showing some signs of recovery, we simply cannot be satisfied with losing less money than before, when the goal is to be profitable and successful,'' said David N. Siegel, US Airways president and chief executive. Siegel said the airline faces strong competition from low-cost competitors and must adapt to dramatic changes in corporate travel practices. Although leisure travel has improved, US Airways and other carriers have struggled to attract business fliers who pay the highest ticket prices. That's because companies have whittled travel budgets, asking employees to cut back on trips and to book well in advance to avoid pricier tickets. Its short-haul trips and concentration on the East Cost make US Airways particularly vulnerable to this trend. One concern is that corporate travel may be improving but that companies will never again pay the old business fares desired by big airlines. On a pre-tax basis, US Airways lost $91 million in the third quarter. That's down from a pre-tax loss of $373 million in the 2002 quarter, which included unusual items related to the company's bankruptcy. Excluding those items, which included professional fees and a loss on aircraft abandonment, the pre-tax loss for the prior year's quarter was $262 million. US Airways ended the third quarter with $1.94 billion in cash, $1.38 billion of it unrestricted. The company's shares began trading Tuesday on the Nasdaq Stock Market under the symbol UAIR. ^America West Holdings Corp. The Phoenix-based parent company of America West Airlines swung to profitability in the third quarter, with earnings of $32.9 million. It was the second straight quarterly profit for the nation's eighth largest carrier. The earnings amounted to 60 cents per share for the quarter that ended Sept. 30. In the same period last year, the company lost $49.6 million or $1.47 per share. Revenue for the third quarter was up 14 percent from the third quarter 2002 to $581.6 million. America West's results beat the projections of analysts surveyed by Thomson First Call, who expected earnings of 28 cents per share. The airline had been on the brink of bankruptcy shortly after the Sept. 11 attacks. A $429 million loan guarantee from the federal government helped save the company from bankruptcy. The airline still has an ongoing labor deadlock with its pilots' union, however. Since last month, the airline and the union have been negotiating under the National Mediation Board. The company had $584.5 million in cash at the end of the quarter, of which $471.2 million was unrestricted. Shares of America West were up $1.54 in afternoon trading Tuesday to $12.69 on the New York Stock Exchange. ^Alaska Air Group Inc. The Seattle-based airline's third-quarter net income more than tripled, boosted by higher passenger loads, continued cost cutting and a temporary waiver of security fees. The parent of Alaska Airlines and Horizon Air Industries reported net income of $40.7 million, or $1.52 a share, up from $12.5 million, or 47 cents a share, in last year's third quarter. Analysts surveyed by Thomson First Call had forecast third-quarter earnings of about $1.15 per share. Revenue rose 13 percent to $702.2 million from $620.6 million. ``Our results were positively affected by stronger loads at both Alaska and Horizon, continued focus on our cost management efforts, and the government's temporary waiver of security fees,'' said Bill Ayer, chairman and chief executive, in a prepared statement. Alaska Air increased its cash position to approximately $749 million at the end of September, up from $636 million at the beginning of the year. Shares of Alaska Air were at $30.95 Tuesday afternoon, up 5 cents on the NYSE. ^------ On the Net: www.ata.com www.americawest.com www.usairways.com http://www.nytimes.com/aponline/business/AP-Earns-Airlines.html?ex=1067766090&ei=1&en=c29accd47f801e80 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company