Air Transport World

U.S. nationals. (air lines) (1984 Market Development Report)

U.S. Nationals

AirCal: In a continuation of its dramatic turnaround, the Western regional carrier set new records in traffic and revenues in 1984 and posted an $8.5-million net profit for the year in contrast to a $2.9-million loss in 1983.

Setting a monthly boarding record each month, AirCal carried 3,989,867 passengers during the year, an 11.9% increase over 1983. RPKs were up 12.7% to 2.5 billion, but ASKs rose at a faster 18.9% pace to drive load factor down three points to 55.1%.

Revenues topped $300 million for the first time, rising 27.2% to $304 million as yield improved to 17.7 cents from 1983's 15.5 cents. Expenses were up 26% to $279.5 million to produce an operating profit of $24.5 million, up from $17.2 million a year earlier.

AirCal chairman, president and CEO William Lyon attributed much of 1984's success to AirCal's "aggressive marketing program.' AirCal serves 13 cities in California, Nevada, Oregon and Washington.

Air Florida: Its financial problems proved too much for Air Florida to handle, and it declared bankruptcy in mid-1984. Its assets, which consisted primarily of its operating authority, later were acquired by Midway, and the carrier resumed operations in October under the name Midway Express. In spring 1985 Midway got Department of Transportation approval to complete the purchase of Air Florida assets. Bankruptcy court deadline for completion of the transaction was July 1.

Alaska: The Seattle-based carrier posted its 12th consecutive profitable year in 1984, reporting record net earnings of $25.9 million compared to $15.7 million in 1983. Operating revenues jumped 30.9% to $370.5 million while expenses climbed 32.8% to $342 million, producing an operating profit of $28.4 million, up from $25.4 million in 1983.

A significant contributor to the increases in Alaska Airlines' revenues and traffic was the suspension of service by Wien Air Alaska in the fourth quarter. Passenger boardings soared 29.6% to 2.55 million for the year while RPKs rose 19% to 2.97 billion and freight climbed 25.6% to 38.9 million FTKs.

This year will see the addition to Alaska's fleet of the first of nine McDonnell Douglas MD-83s that it has on order. It has options on three others. The first MD-83 went into service in March. Last year, the carrier purchased two Boeing 737-200s from Wien.

Service was launched to Boise at the end of 1984, and Phoenix was added to the route system last month.

Aloha: Discontinuance on Jan. 12, 1985, of its McDonnell Douglas DC-10 operations to Guam and Taipei was given the bulk of the blame by Aloha for a 1984 net loss of $1.86 million despite an 8.8% increase to $88 million in operating revenues and a significant jump to $9.9 million from just under $3 million in operating income. "Aside from the international service, which was subjected to heavy schedule and fare competition, 1984 was a good year for Aloha,' said CEO Joseph O'Gorman. "Earnings from the interisland service, aircraft leasing and contract servicing for other carriers were solid.'

Traffic showed good growth during the year, with increases of 7% to 2.3 million in passenger boardings, 2.4% to just under 500 million in RPKs and 41.8% to 1.4 million in FTKs.

America West: The Phoenix-based carrier, which launched service in August 1983, flew 2,397,953 passengers and just over two billion RPKs in its first full year of operation in 1984 and achieved a load factor of 52.5%.

The financial ledger for the year showed an operating loss of $8.6 million and a net loss of $15.4 million on revenues of $122.6 million. However, America West posted a net profit of more than $1 million in December and is anticipating a major improvement in both its traffic and its profits this year, largely as a result of a significant reduction in Phoenix service by Republic Airlines. …

Log in to your account to read this article – and millions more.