"3 major U.S. airlines report losses"

Thursday, October 21, 2004

3 major U.S. airlines report losses  
The Associated Press

 
Three U.S. airlines reported losses on Wednesday as higher jet-fuel prices
and stiff competition from low-cost rivals compounded their many
difficulties since the 2001 terror attacks. 

Delta Air Lines posted the largest loss for the July-September quarter, at
$646 million, or almost four times the $164 million loss of a year earlier.
Sales rose 5.9 percent to $3.87 billion. Delta shares were down 3 cents, or
1 percent, at $2.96 in afternoon trading.

The airline said that pilot costs added to its woes, and many analysts have
predicted that Delta has only a few weeks left to negotiate $1 billion in
concessions from pilots and restructure its heavy debt to avoid a Chapter 11
bankruptcy filing. 

American Airlines' parent company, AMR, posted a loss of $214 million,
against a $1 million profit a year earlier. Revenue inched up to $4.76
billion from $4.61 billion.

American forecast a worse result for the current quarter. AMR said it
expected high fuel prices to continue in the typically slow fourth quarter.

Gerard Arpey, the chief executive, promised steps to raise revenue and cut
costs, including job cuts, but he provided no details. But the company did
say that it would squeeze more passengers into many of its jets to increase
revenue. 

Several years ago, American heavily advertised a decision to provide more
room to economy passengers by removing seats from the MD-80 and Boeing 737,
767 and 777 fleets. Some of those seats will be replaced, it said.

"Times have changed," Arpey said, "and we must acknowledge that in today's
low-fare environment, having fewer seats on our aircraft has put us at a
real revenue disadvantage compared to other airlines."

AMR shares were down 16 cents, or 2.4 percent, at $6.53 in afternoon
trading.

Northwest Airlines reported a loss of $38 million, against a $42 million
profit a year earlier, as fuel costs increased 57 percent during the
quarter. Sales rose 13 percent to $3.05 billion.

Northwest also said Wednesday that it had received an informal request from
the U.S. Securities and Exchange Commission for information on the
accounting of its pension and post-retirement benefit plans.

Northwest shares were down 20 cents, or 2.5 percent, at $7.72 in afternoon
trading.


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