Air Canada's growth, opening 10 new routes and introducing seven new jets, caused the net loss. Passenger traffic and capacity rose 14%.

Yields decreased 8.1% at Alaska Airlines and 8.3% at Horizon Air. Load factors fell 1.1 points at Alaska and 4.2 points at Horizon.

A 56.7% profit increase reflected 11.8% RPK growth, more than double the 5.4% capacity growth. Load factors jumped 4.2 points to 73.5%.

Despite the Kobe earthquake affecting the first quarter, profits rose 22.4%, due in part to strong cargo traffic, with revenues up 39.2%.

Two pilot strikes cost KLM $76.7m and a strong Dutch guilder affected profits, but the 11% traffic increase outstripped capacity growth of 10%.

Lufthansa had to combat a strengthening Deutsche mark, group restructuring costs and yields falling 5%, but load factors rose to 69.8%.

Pilot strike action depressed traffic 15% in June, costing SAS $41m. The weak krona also affected the result. Traffic fell 2% but yield improved 7%.

The net loss was $18.3m less than forecast, and TAP expects to make a profit by 1997. Costs fell by $13.5 million to $654.9m.

Despite the promising third quarter, personnel costs in the nine months rose 24.5%, and the strong yen pushed forex losses to $81.1m.

The strong yen cost $79.8m, but operating costs fell 17% and Varig made a $165.1m operating profit against a $115m operating loss last year.

BAA made $9.6m from property sales. Traffic increased 8% and airport charge income rose 6.4% to $198.4m.

The dollar exchange rate dropped from DFl1.74 to DFl1.55 in the first half, and Fokker made a provision of $108m for redundancies.

H = Half year. Q = Quarter. * = Pre-tax result. Currencies are converted into US dollars at average exchange rates during the reporting period. Per cent changes in local currencies.

Source: Airline Business