NYTimes.com Article: Gains in Profit and Passengers for Three Discount Air Carriers

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Gains in Profit and Passengers for Three Discount Air Carriers

January 23, 2004
 By BLOOMBERG NEWS





By Bloomberg News

The Southwest Airlines Company, the America West Airlines
Holdings Corporation and AirTran Holdings Inc. posted
profits in the fourth quarter, as the discount carriers
added flights and won passengers from larger competitors.

Southwest's net income climbed 57 percent, to $66 million,
or 8 cents a share, from $43 million, or 5 cents. Revenue
rose 8.3 percent, to $1.52 billion.

Expenses at Southwest climbed 7.1 percent, to $1.4 billion,
and the carrier said it expected costs this quarter to be
higher than a year ago.

Southwest is closing three reservations centers and it
expects to save more than $20 million a year from the
change. Southwest also stopped paying commissions to travel
agents last month, which will eliminate $40 million in
annual expenses.

Shares of Southwest rose 39 cents, or 2.6 percent, to
$15.49 in New York Stock Exchange trading.

Profit at America West Holdings, the owner of America West
Airlines, was $6.8 million, or 13 cents a share, in
contrast to a loss of $52 million, or $1.54 a share.
Revenue climbed 7.8 percent, to $563.2 million.

America West dropped some travel restrictions in March
2003, lowering costs for business travelers and attracting
more last-minute leisure passengers. The carrier's traffic
increased 4.3 percent, to a fourth-quarter record.

Analysts had expected the company to have a loss of 7 cents
a share in the latest quarter, excluding certain costs and
gains, according to a survey by Thomson Financial. On that
basis, the company said it had profit of $10.6 million, or
20 cents a share.

America West shares rose 3 cents, to $12.69.

AirTran
Holdings, which owns AirTran Airways, almost tripled
earnings, to $21.7 million, or 24 cents, from $7.5 million,
or 10 cents. Revenue increased 19 percent, to $238.8
million.

AirTran Holdings said profit rose as it expanded flight
capacity by 21 percent and carried 20 percent more
passengers, a record 3 million.

AirTran shares rose 50 cents, to $13.53.


http://www.nytimes.com/2004/01/23/business/23air.html?ex=1075868834&ei=1&en=629dcbb17b2309c9


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