=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/05/07/f= inancial1202EDT0102.DTL --------------------------------------------------------------------- Friday, May 7, 2004 (AP) ATA posts $65 million loss, postpones pay increases MARK JEWELL, AP Business Writer (05-07) 09:02 PDT INDIANAPOLIS (AP) -- The parent company of ATA Airlines Inc. on Friday reported its loss widened to nearly $65 million in the first quarter and said it would expand a cost-cutting campaign by postponing pay increases this year and next year for pilots and cabin crew. The loss was driven by a $27 million charge from bond debt restructuring in a January agreement that helped the nation's 10th-largest carrier avoid a possible bankruptcy filing. The Indianapolis-based low-fare carrier also was hurt by high fuel prices and pricing wars on east-west routes. ATA Holdings Corp. reported a loss in the January-March period of $64.7 million, or $5.47 per share, compared with a loss of $11.4 million, or 97 cents a share, a year earlier. Revenue rose almost 4 percent to $387 million from nearly $374 million. In midday trading, ATA shares were down 8 cents at $7.80 on the Nasdaq Stock Market. Dave Wing, executive vice president and chief financial officer, said steps to restructure ATA's short-term financial burden from bond payments and aircraft leases has improved its position, but more cost-cutting is needed. "We have asked our cockpit and cabin crews to assist the company in these difficult times by postponing pay increases scheduled for 2004 and 2005," Wing said. George Mikelsons, ATA's chairman, chief executive and president, said he was "deeply disappointed" with the loss but expected a turnaround. "Improvements made to our product, efficiency and cost structure in 2003 have created a strong airline, and we have made changes to our routes and schedule that should improve earnings going forward," he said. ATA said on April 29 it was exploring buying 100-seat aircraft such as t= he Boeing 717 or Embraer 190 to fill a niche in a fleet heavy on bigger jets and smaller turboprops. ATA said it was discussing the changes with unions representing its pilots and flight attendants, and the company's news release included statements of support for the move from representatives of both unions. ATA is North America's largest operator of charter flights, including those for the military. The 31-year-old carrier has about 7,200 employees, with many of its scheduled flights operated through Chicago's Midway Airport and Indianapolis International Airport. On the Net: www.ata.com ---------------------------------------------------------------------- Copyright 2004 AP