Profit falls 94 percent for big Vegas airline

Wednesday, Oct. 18, 2000 | 11:21 a.m.

America West Holdings Corp. of Phoenix, parent of America West Airlines, today said its third quarter profit fell 94 percent as the carrier struggled with high fuel prices and flight delays.

America West is the second-busiest carrier in Las Vegas at McCarran International Airport, where it operates a hub.

Its net income fell to $1.4 million or 4 cents a share, from $22.2 million or 57 cents in the year-ago quarter. Revenue rose 6.8 percent to $590.5 million from $552.8 million.

Delays and canceled flights are starting to drive high fare-paying business travelers from America West to other carriers, analysts said.

"I think that's clear, given that (Southwest Airlines) talked about the strength in their high-end business travel, and they directly overlap with America West in Phoenix and Las Vegas," said James Higgins, a Credit Suisse First Boston analyst.

Dallas-based Southwest, the busiest carrier at McCarran in Las Vegas, on Tuesday reported that its quarterly profit soared 45 percent -- thanks in part due to flight delays, canceled flights and other difficulties at competitors like United Airlines and America West.