Carriers Trim 50% Of Losses in 2003

While the airline industry still has a way to go before declaring a total recovery, some positive signs are on the horizon.

The 10 US major passenger airlines collectively lost $5.49 billion last year, or half the $10.99 billion lost in 2002, while the industry operating loss declined to $2.73 billion from $9.94 billion over the same period. Results are net of special items, including $2.11 billion in federal security fees and taxes rebated to the industry during the second quarter.

Also, for the first time since 2000, annual revenues actually rose year-over-year: 2003 revenues for the 10 totaled $81.8 billion, up 1.1 percent over 2002. However, sales remained severely depressed compared to 2000, when the airlines generated $97.7 billion in revenue. Operating expenses declined 7 percent in 2003 to $84.6 billion.

For the fourth quarter, industry net loss after special items totaled $575.2 million, reduced from $3.87 billion in the 2002 period. Revenues rose 5.7% to $20.88 billion while operating expenses fell 6.7 percent to $21.58 billion. As a result, operating loss was narrowed to $705.5 million from $3.37 billion in the fourth quarter of 2002.

All in all, the industry's storm clouds appear to be dissapaiting...at least until the next system comes through.

FMI:  www.air-transport.org