Full-year operating losses reported by US airlines have topped $4 billion, with America West and United Airlines - both expected to make big losses - yet to publish results. Even Southwest Airlines reported much lower earnings.
Wall Street reacted cautiously, as the losses were within expectations. The question is how quickly the airlines can return to profitability. The first quarter is usually difficult, and airlines continue to lose millions of dollars a day. Loads are up, but yields down as fares are discounted to stimulate traffic.
As expected, US Airways reported the highest losses at $1.97 billion including unusual items, such as federal aid and special charges. Chief executive Steven Wolf believes accelerated aircraft retirements and job cuts covered by the charges mean the airline could soon return to profitability.
Hard hit by the 11 September attacks, American Airlines reported a net loss for the year of $1.8 billion including similar special items. Chairman and chief executive Don Carty says the last three months of 2001 "were incredibly difficult", with revenue per available seat kilometre down by just over 21% compared to a year earlier.
Northwest Airlines reported a net loss of $423 million, including non-recurring items, while Continental Airlines kept net 2001 losses down to $95 million.
Northwest chief executive Richard Anderson says it is hard to predict when the airline will return to profit, but Continental chairman Gordon Bethune expects small profits by June.
Consistently profitable Southwest reported net income of $511 million, down from $625 million a year earlier, and would have been comfortably in the black even without government aid. Net income excluding $235 million in federal aid and $48 million in special charges was a still-respectable $413 million.
Source: Flight International
