America West Holdings reports quarterly loss on fuel, lower fares
Friday, Jan. 21, 2005 | 10:59 a.m.
America West Airlines' bid to solve some of its financial woes will include a plan to increase flights to Las Vegas.
Executives of the airline -- the No. 2 commercial passenger carrier at McCarran International Airport -- said during an earnings conference call today that it is partially withdrawing from the transcontinental market and will deploy some of those aircraft to Las Vegas flights.
In addition, the company is taking delivery of 11 new Airbus jets in 2005 and some of those would be used in Las Vegas.
Scott Kirby, vice president of sales and marketing, said during this morning's call that the airline would increase flight frequencies in existing Las Vegas markets in the fourth quarter. The airline also plans to beef up international flights to Canada and Mexico and is working to certify its Boeing 757 jets for flights over water, an indication the airline is looking to the Hawaii or Caribbean markets.
The plan is part of America West's efforts to return to profitability. The airline's holding company today reported the eighth-largest U.S. airline had a fourth-quarter loss of $49.7 million, blaming high fuel prices and declining fares.
The net loss was $1.38 a share, compared with net income of $6.8 million, 13 cents a share, a year ago. Revenue increased year over year for the quarter to $578.7 million from $563.2 million.
Ten analysts surveyed by Thomson Financial had forecast a loss of $1.50 a share.
America West Chief Executive Douglas Parker said the airline spent $50 million more for fuel than it had projected and had prices been more in line, the quarter would have been profitable.
"Other industries have fuel price issues, but our industry has not figured out a way to pass along fuel prices to our customers," he said in reference to market overcapacity that is keeping airlines from raising fares.
America West, which already has made five new service announcements for Las Vegas beginning this year and plans two more Monday, experimented with transcontinental flights linking Los Angeles and San Francisco with Boston, New York and Washington.
Kirby said today that competitors matched the airline's fares and in the high fuel price environment, it was no longer economically feasible to keep all the flights. The airline will keep its routes between Los Angeles and New York and Boston.
archive
- Most Read
- Discussed
- Most E-mailed
- Scientology foe’s arrest raises issue of rights
- ‘Stripper-mobile’ with live dancers raises safety, decency concerns
- Manny Pacquiao, Miguel Cotto arrive at MGM Grand
- Cada cherishes moment as poker’s youngest champ
- Miguel Cotto camp says big cut in June fight an asset now
- $5.1 million later, life goes on for Darvin Moon
- Vegas resorts get new places on Monopoly game board
- Fight snapshot: Arum takes a pot shot during Pacquiao training
- Rebels old and new celebrate anniversary of 1990 title
- Harrah’s launches program to focus on small group travel
Blogs
Shark Bytes
Players on championship team always worked hard (5 Comments)
Sports: Upon Further Review
Fight snapshot: Predictions for Pacquiao-Cotto (1 Comment)
The Kats Report
A lesson in information dissemination, with a little Twitter and a lot of Agassi
Now and Then
Ichabods were tougher than they sound
Politics: Ralston's Flash
I shudder to think what the “amazing door prize from the governor” might be (6 Comments)
Pew Center report finds what others have: Nevada's economy depressed, future in doubt (7 Comments)
Elsewhere
Kelly Pavlik to fight in hometown on Dec. 19 (1 Comment)
Calendar »
- 11 Wed
- 12 Thu
- 13 Fri
- 14 Sat
- 15 Sun
-
Foreigner at Star of the Desert Arena
Star of the Desert Arena
-
Days of the New at Wasted Space
Wasted Space | 10 p.m. to 11:59 p.m.
-
DJ Boris at Godskitchen
Body English | 10:30 p.m. to 11:30 p.m.
-
Holding on to Sound at Beauty Bar
Beauty Bar | 10 p.m. to 11:59 p.m.
-
Rockabilly Wednesay at Revolution Lounge
Beatles Revolution Lounge | 10 p.m. to 11:59 p.m.
The Sun
Locally owned and independent for more than 50 years.
Technorati












