Air Transport World

Canadian Airlines.

Canadian Airlines shocked investors with a fourth-quarter loss of C$ 149.7 million that pushed it into the red for the year to the tune of C$137.6 million ($92.2 million). Canadian had a loss of C$33.8 million in the 1997 fourth quarter but still managed to eke out a small annual profit of C$5 million (table).

Canadian attributed the performance to a number of problems including loss of the AA designator code on transborder flights owing to a dispute between AA and its pilots; ATC charges that now are charged directly to airlines; the weaker Canadian dollar vis a-vis the U.S. dollar, which cost "tens of millions of dollars;" and falling yields, particularly in West Coast transborder markets where Alaska Airlines has been competing aggressively. …

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