Air Transport World

U.S. nationals. (airline industry report)

AirCal: A$37.9-million turnaround in operating results, from a loss of $20.7 million in 1982 to a profit of $17.2 million in 1983, was chalked up by AirCal as the result of a program of route realignment, cost management and aggressive marketing.

The carrier pulled out of Las Vegas, Phoenix, Fresno and Monterey at the outset of 1983 and redeployed its fleet into the north-south corridor of California, increasing schedules in those markets by 35%. As a consequence, it set a new record in passenger boardings, enplaning 3,566,153 during the year. RPKs were up 5.8% to 2.2 billion, and load factor improved to 58.2% from 51.4% in 1982.

Revenues also set a record, rising 11.3% to $239 million while operating expense fell 5.8%. AirCal had a net loss for the year of just under $3 million, a sharp improvement from its $35.6-million net loss of a year earlier. In the 1983 fourth quarter it posted a net profit of $3.3 million in contrast to a loss of $17.4 million in the 1982 quarter, and its profitability continued in the first quarter of 1984.

At the end of 1983, AirCal was serving 13 cities in California, Nevada, Oregon and Washington with a fleet of seven McDonnell Douglas MD-80s, 14 Boeing 737-200s and two 737-100s. It launched service to Los Angeles International Airport, where it is operating from the new Terminal One.

Air Florida: The struggling national carrier managed to cut its financial losses substantially in 1983, and by year's end it was reporting month-over-month traffic increases as the full effects of its 1982 downsizing began to be felt.

The Miami-based carrier ended the year with an operating loss of $11.3 million and a net loss of $39.2 million, with both numberes representing a considerable improvement over the $33.5-million operating loss and $93.4-million net loss of 1982. REvenues last year were down 22.6% to $218 million.

Passenger boardings for the year were off 22.2% to 1,854,279, but route realignments held the RPK decline to 14.5% or 2.9 billion RPKs.

A redesigned schedule placed greater emphasis on the Miami hub, leading to a significant gain in beyond traffic. …

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