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AMR reports loss, Southwest misses expectations
[size=-1]09:43 AM CST on Wednesday, January 19, 2005 [/size]
[size=-1]By ERIC TORBENSON / The Dallas Morning News [/size]
American Airlines Inc. parent AMR Corp. Wednesday reported a $387 million loss for the fourth quarter and a $761 million loss for all of 2004. Meanwhile, Dallas-based Southwest Airlines Co. said it earned $56 million, or 7 cents a share, for the fourth quarter of 2004, slightly below Wall Street’s expectation of an 8 cent per share gain.
AMR's fourth quarter numbers include gains from the sale of AMR’s assets and from other restructuring charges. Without the one-time gains, AMR lost $473 million, or $2.94 per share, and that compared to a Wall Street estimate of a loss of $3.10 per share.
“"AMR's results for the fourth quarter of 2004 reflect the economic woes that plagued the airline industry throughout 2004 - in particular, high fuel prices and a tough revenue environment,” said Gerard Arpey, the carrier’s chairman and chief executive officer.
The results compare to a fourth quarter 2003 loss of $111 million, which included several one-time charges. That total didn’t include a one-time charge that cost American $16 million.
American’s total revenue for the fourth quarter rose 3.4 percent, but was offset by total operating expenses rising 6 percent based on high fuel prices. American spent $493 million more on fuel in the quarter compared with the fourth quarter of 2003.
Southwest's profit compares to a fourth quarter 2003 net income of $66 million, or 8 cents per share. For all of 2004, Southwest earned $313 million, its 32nd consecutive annual profit, and that compares to a 2003 net income of $442, numbers inflated in that year by a government grant.
Southwest’s costs rose slightly because of very high fuel prices that the carrier’s fuel hedging program couldn’t overcome and because the carrier faces increased pressures on its average airfares.
Southwest’s revenue increased 9.1 percent in the fourth quarter to $1.66 billion despite the pressure on prices. But costs rose 9.2 percent in the quarter because of jet fuel. For the year, Southwest spent $1 billion on jet fuel, equal to all its profits from 1978 to 1994.
The industry revenue environment continues to be a challenge due to the glut of airline seats,” said Gary Kelly, chief executive officer, in a press release. “On balance, our fourth quarter revenue challenges are continuing into 2005. March 2005 results should benefit, however, from the timing of the Easter holiday, which fell in April last year.
http://biz.yahoo.com/ap/050119/earns_southwest_8.html
http://biz.yahoo.com/ap/050119/earns_amr_1.html
[size=-1]09:43 AM CST on Wednesday, January 19, 2005 [/size]
[size=-1]By ERIC TORBENSON / The Dallas Morning News [/size]
American Airlines Inc. parent AMR Corp. Wednesday reported a $387 million loss for the fourth quarter and a $761 million loss for all of 2004. Meanwhile, Dallas-based Southwest Airlines Co. said it earned $56 million, or 7 cents a share, for the fourth quarter of 2004, slightly below Wall Street’s expectation of an 8 cent per share gain.
AMR's fourth quarter numbers include gains from the sale of AMR’s assets and from other restructuring charges. Without the one-time gains, AMR lost $473 million, or $2.94 per share, and that compared to a Wall Street estimate of a loss of $3.10 per share.
“"AMR's results for the fourth quarter of 2004 reflect the economic woes that plagued the airline industry throughout 2004 - in particular, high fuel prices and a tough revenue environment,” said Gerard Arpey, the carrier’s chairman and chief executive officer.
The results compare to a fourth quarter 2003 loss of $111 million, which included several one-time charges. That total didn’t include a one-time charge that cost American $16 million.
American’s total revenue for the fourth quarter rose 3.4 percent, but was offset by total operating expenses rising 6 percent based on high fuel prices. American spent $493 million more on fuel in the quarter compared with the fourth quarter of 2003.
Southwest's profit compares to a fourth quarter 2003 net income of $66 million, or 8 cents per share. For all of 2004, Southwest earned $313 million, its 32nd consecutive annual profit, and that compares to a 2003 net income of $442, numbers inflated in that year by a government grant.
Southwest’s costs rose slightly because of very high fuel prices that the carrier’s fuel hedging program couldn’t overcome and because the carrier faces increased pressures on its average airfares.
Southwest’s revenue increased 9.1 percent in the fourth quarter to $1.66 billion despite the pressure on prices. But costs rose 9.2 percent in the quarter because of jet fuel. For the year, Southwest spent $1 billion on jet fuel, equal to all its profits from 1978 to 1994.
The industry revenue environment continues to be a challenge due to the glut of airline seats,” said Gary Kelly, chief executive officer, in a press release. “On balance, our fourth quarter revenue challenges are continuing into 2005. March 2005 results should benefit, however, from the timing of the Easter holiday, which fell in April last year.
http://biz.yahoo.com/ap/050119/earns_southwest_8.html
http://biz.yahoo.com/ap/050119/earns_amr_1.html
