John,
Sorry I could not send via the pm, would not go through for some reason. The following is some of the information, you can read it in full text on the site. TJ is at ATA not AWA..
America West Reports Fourth Quarter and 2003 Results
Highlights include:
* Net income for the Company's fourth quarter 2003 was $6.8 million
or $0.13 diluted earnings per share vs. a net loss of $52.0 million
or $1.54 per share in the same quarter in 2002. Excluding special
items, the Company's fourth quarter 2003 net income was $10.6 million
or $0.20 diluted earnings per share.
* For the full year 2003, the Company reported net income of
$57.4 million or $1.29 diluted earnings per share vs. a net loss of
$387.9 million or $11.50 per share for the prior year. Excluding
special items, the Company reported a net loss for 2003 of
$10.1 million or $0.29 per share vs. a net loss of $206.4 million
or $6.13 per share during 2002.
* Operating costs per available seat mile (CASM) declined 2.5 percent
from the airline's fourth quarter 2002 despite an 8.5 percent increase
in average fuel price. Excluding fuel and special items, CASM declined
by 8.8 percent from the airline's fourth quarter 2002.
* The Company reported record total cash and investments of
$629.5 million, of which $516.7 million was unrestricted, at the end of
the 2003. This is the highest cash balance in the Company's history.
PHOENIX, Jan. 22 /PRNewswire-FirstCall/ -- America West Holdings Corporation (NYSE: AWA), parent company of America West Airlines, Inc., today reported fourth quarter 2003 net income of $6.8 million or $0.13 per diluted earnings per share. This compares to a net loss of $52.0 million or $1.54 per share for the same period last year. Excluding special items, the Company reported net income of $10.6 million or $0.20 per diluted earnings per share during its fourth quarter 2003. The special items for the fourth quarter 2003 include a charge related to a new labor agreement between the airline and the Air Line Pilots Association, offset by gains on the sale of two investments, and a credit related to the settlement of disputed billings under the Company's frequent flyer program. See the accompanying notes in the Financial Tables section of this press release for a reconciliation of the pro forma results excluding the special items to Generally Accepted Accounting Principles (GAAP) results.
For the full year 2003, the Company reported net income of $57.4 million or $1.29 per diluted earnings per share, as compared to a net loss of $387.9 million or $11.50 per share for 2002. Excluding special items, the Company reported a net loss of $10.1 million or $0.29 per share for 2003, which compares to a net loss of $206.4 million or $6.13 per share during 2002. In addition to the special items for the fourth quarter, special items for full year 2003 included $81.3 million of security fee reimbursement from the federal government.
"Our fourth quarter earnings are the result of 13,000 outstanding people working together to transform America West into a successful, low fare carrier of choice for our customers," said Chairman and Chief Executive Officer Doug Parker. "As one of a very select group of airlines to be profitable for each of the last three quarters, we enter 2004 with tremendous momentum and enthusiasm and believe we are properly positioned for success in a rapidly evolving industry. We plan to expand our capacity in 2004 by eight to 10 percent and expect to report a profit for the year."
America West Airlines' Fourth Quarter and 2003 Revenue and Cost Performance
Operating revenues for the fourth quarter 2003 increased 7.7 percent to $554.3 million from $514.5 million for 2002. The airline's revenue passenger miles (RPMs) during its fourth quarter 2003 increased 4.3 percent to 5.3 billion on a one percent increase in capacity. This resulted in a record fourth quarter 2003 load factor of 75.5 percent, an increase of 2.3 points over the airline's fourth quarter 2002 load factor of 73.2 percent.
Operating revenues for the full year 2003 increased 10.1 percent to $2.2 billion from $2.0 billion during 2002. The airline's full year 2003 RPMs increased 7.1 percent to 21.3 billion on increased capacity of 3.3 percent. The airline generated a record load factor of 76.4 percent during 2003, 2.8 points above the load factor generated during 2002.
Passenger revenue per available seat mile (RASM) during the fourth quarter 2003 increased 4.3 percent to 7.46 cents despite a 7.4 percent increase in average stage length. Passenger yields during the same period increased one percent to 9.88 cents. For the airline's full-year 2003, RASM increased 6.2 percent to 7.58 cents, despite a 5.9 percent increase in average stage length, while yields improved 2.3 percent to 9.93 cents.
The airline's operating expenses in the fourth quarter 2003 decreased 1.5 percent to $544.6 million. Continued cost diligence and increased capacity resulted in a 2.5 percent decrease in the airline's cost per available seat mile (CASM) in the fourth quarter 2003. On a fuel exclusive basis, the airline's CASM in the fourth quarter 2003 declined 4.3 percent to 6.44 cents. Excluding fuel and special items, the airline's CASM decreased 8.8 percent to 6.20 cents in the fourth quarter 2003.
Operating expenses for the full year 2003 were up slightly to $2.2 billion, while on a unit basis the airline's CASM decreased 2.4 percent to 7.86 cents. Excluding fuel and special items, the airline's CASM for 2003 decreased 6.4 percent to 6.45 cents.
Senior Vice President and Chief Financial Officer Derek Kerr said, "Our increase in average stage length and increased aircraft utilization, combined with other cost saving initiatives, drove unit costs, exclusive of fuel and special items, down by nearly nine percent in our fourth quarter. At the same time, our consumer-friendly pricing structure drove our unit revenue up over four percent despite the longer stage length."
Operational Achievements
For the full year 2003, as reported to the Department of Transportation (DOT), 82.0 percent of the airline's flights arrived within 15 minutes of scheduled arrival time, and 99.0 percent of its flights were completed. America West employees received four monthly performance incentive payments of $50 each during 2003 (through November 2003 as DOT has not issued December 2003 results at this time). The airline's performance incentive program benchmarks certain operational and customer service statistics, as reported to DOT, against competing airlines.
Liquidity
On Dec. 31, 2003, the Company had a record $629.5 million in cash and investments, of which $516.7 million was unrestricted. This compares to $406.5 million in cash on Dec. 31, 2002, of which $360.5 million was unrestricted. The airline's restricted cash includes $42.9 million in a cash collateral account that secures one of the scheduled principal payments under its Air Transportation Stabilization Board (ATSB) loan. During the fourth quarter 2003, the Company maintained a strong cash balance, which positions the airline to meet its first quarter 2004 cash obligations. These obligations include an Enhanced Equipment Trust Certificate (EETC) payment, a guarantee fee, the first principal payment of the airline's ATSB loan and payments due under the airline's new three-year contract with its pilots.
Additional Business Developments
During 2003, America West accomplished several key initiatives, including:
-- Improved profitability by divesting its hub operation in Columbus,
Ohio;
-- Inaugurated service between Phoenix and Memphis, Tenn.; Edmonton,
Canada; Cancun and Monterey, Mexico; and San Jose, Costa Rica;
-- Became the first low-fare airline to win the prestigious "Freddie
Award" for best Elite-Level Program in the United States, Canada and
Latin America;
-- Began its first point-to-point operations by starting nonstop
transcontinental flights between Los Angeles and New York/JFK and
Boston, and between San Francisco and New York/JFK;
-- Enhanced its incremental revenue stream by implementing programs such
as tray table advertising and Web site advertising;
-- Received ratification from the airline's 1,700 pilots for a new
three-year contract that went into effect Dec. 30, 2003;
-- Announced growth plans for 2004, which call for an eight to 10 percent
capacity increase, and to support that growth, the airline plans to
hire approximately 1,000 additional employees and has lease agreements
or letters of intent to acquire four additional Airbus A320 aircraft
to support this growth.
3 5 0
