=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/2004/10/27/s= tate1202EDT7210.DTL --------------------------------------------------------------------- Wednesday, October 27, 2004 (AP) America West reports loss, reduces outlook (10-27) 15:40 PDT PHOENIX (AP) -- Hit hard by rapidly rising fuel costs, the parent company of America West Airlines Inc. reported a third-quarter loss of $47.1 million on Wednesday. The airline also reduced its fourth quarter and full year results, and said it will scale back its 2005 expansion plans -- despite ongoing interest in acquiring part of bankrupt ATA Airlines Inc. For the three months ending Sept. 30, America West Holdings Corp. lost $1.30 per share, its first quarterly shortfall in more than a year for the company that was just rebounding after the Sept. 11 attacks. A year ago, the company had reported a profit of $32.9 million, or 60 cents per share. Analysts surveyed by Thomson First Call had projected a loss of about 63 cents per share for the quarter. "When you look at the situation they were facing, it's pretty outstanding results," said Michael Boyd, president of airline consulting firm The Boyd Group in Evergreen, Colo. "It's real clear that if fuel had stayed where it was supposed to, they would have made some money -- even in this rough environment. So you've got to give them credit for doing a tremendous job." In trading Wednesday, America West shares closed down 6 cents, or 1 percent, at $4.37 on the New York Stock Exchange. The stock has fallen more than 60 percent since the beginning of the year. Quarterly revenue was down 2.3 percent to $578.5 million. America West Holdings Chairman and Chief Executive Doug Parker said he w= as disappointed to see the company's string of profitable quarters end. He said the losses were the result of "an extraordinary increase" in fuel prices and too much capacity in the domestic market, which drives down revenues per flight. Fuel expenses were up 48.8 percent during the third quarter, which ended Sept. 30. Parker said the company expects the losses to continue this quarter and expects them to result in a net loss for the year. Before Wednesday's announcement, analysts had forecast a fourth-quarter loss of 97 cents per share and a $1.39 per share loss for the year. Because of fuel prices and continued excess capacity, Parker said the company plans to slow its growth plans in 2005. Instead of the planned 8 percent to 10 percent growth in miles flown, America West will instead grow just 3 percent to 5 percent. Parker said the airline is still interested in acquiring part of ATA, the nation's 10th-largest carrier, which filed for bankruptcy Tuesday, as part of plans to position America West for the future, but hasn't come up with a sensible proposal. He stressed that any eventual offer would not involve a cash bid but likely a debt assumption for assets, because his airline has worked too hard in recovering from its own bankruptcy and aligning itself as a low-cost carrier to take a cash risk to acquire assets. "We are still looking at it and we will end up doing what's best for us," Parker said. Parker said that if America West chooses not to make an offer for part of ATA, "we would be happy with low-cost seats going away." ATA's filing followed similar moves by US Airways Group Inc., the nation= 's seventh-largest airline, and United Airlines, part of UAL Corp. Delta Air Lines Inc., the nation's third-largest airline, was expected to make its own bankruptcy decision Wednesday. Year-to-date, America West has lost $40.2 million, or $1.12 per share, on revenues of $1.76 billion, compared with a gain of $50.6 million, or $1.18 per share, on revenues of $1.69 billion. On the Net: America West: www.americawest.com ---------------------------------------------------------------------- Copyright 2004 AP