NYTimes.com Article: 2 Airlines See Damage From Fuel Costs

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



The article below from NYTimes.com
has been sent to you by psa188@xxxxxxxxx



/--------- E-mail Sponsored by Fox Searchlight ------------\

THE CLEARING - IN THEATERS JULY 2 - WATCH THE TRAILER NOW

An official selection of the 2004 Sundance Film Festival, THE CLEARING
stars ROBERT REDFORD and HELEN MIRREN as Wayne and Eileen Hayes - a
husband and wife living the American Dream. Together they've raised two
children and struggled to build a successful business from the ground
up. But there have been sacrifices along the way. When Wayne is
kidnapped by an ordinary man, Arnold Mack (WILLEM DAFOE), and held for
ransom in a remote forest, the couple's world is turned inside out.
Watch the trailer at: http://www.foxsearchlight.com/theclearing/index_nyt.html

\----------------------------------------------------------/


2 Airlines See Damage From Fuel Costs

May 20, 2004
 By REUTERS





The chief executives of the parent companies of United
Airlines and American Airlines said yesterday that record
high oil prices were hurting the carriers, two of the
world's largest.

Glenn F. Tilton, head of UAL, the parent company of United
Airlines, said, "If not for fuel prices, I'd be able to say
we'd be profitable this quarter."

Mr. Tilton also said that United, which is operating under
Chapter 11 bankruptcy protection, was matching fare
increases announced on Tuesday by Continental Airlines. The
increases, if not rescinded for competitive reasons, will
add $10 each way to flights up to 1,000 miles and $20 each
way to flights of 1,000 miles and longer.

Several other carriers also matched Continental's fare
increases yesterday. American said it was matching the
increase in European markets, but was still evaluating
domestic fares. Delta Air Lines, the No. 3 U.S. carrier,
said it had matched Continental's increases. Northwest
Airlines said it has selectively matched the increase.

The largest discounter, Southwest Airlines, said it was
considering fare increases. Another big discounter, JetBlue
Airways, said it did not plan to raise prices.

In Fort Worth, Gerard J. Arpey, chief executive of American
Airlines' parent, the AMR Corporation, lamented the effect
of higher fuel prices.

Mr. Arpey, who was named to the additional post of chairman
at the annual shareholders' meeting there, said American
had achieved a degree of financial stability compared with
a year ago when it teetered on the brink of a bankruptcy
filing. But he said that its fuel prices were expected to
increase by $600 million to $700 million from last year's
levels.

"If not for fuel, we would have been building a lot more
momentum," Mr. Arpey said at a news conference after the
shareholders' meeting. He said he did not see the airline
turning away from a cost-cutting plan announced a year ago.


Early in April, the chief financial officer of AMR, James
Beer, said he saw an extra $400 million in additional fuel
costs for the year. Since then, crude oil prices have risen
further, to a 21-year high. American has said that each
penny rise in the price of a gallon of jet fuel adds more
than $30 million to its annual costs.

Many airlines have been saying for months that soaring jet
fuel prices were eroding their bottom lines. Securities
analysts say this threatens the chance of an industrywide
profit in 2004.

In trading yesterday, shares of AMR fell 29 cents, to
$10.54. Continental Airlines stock closed down 32 cents, at
$10.48. Delta edged up 2 cents, to $5.17. Southwest dropped
12 cents, to $14.77. JetBlue rose 23 cents, closing at
$27.21.

Mr. Arpey will replace Edward A. Brennan as AMR's chairman.
Mr. Brennan will remain on the board.

http://www.nytimes.com/2004/05/20/business/20fuel.html?ex=1086058291&ei=1&en=85b1327d165b9236


---------------------------------

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://homedelivery.nytimes.com/HDS/SubscriptionT1.do?mode=SubscriptionT1&ExternalMediaCode=W24AF



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 2004 The New York Times Company

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]