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Airline earnings up and down
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April 20, 1999: 11:05 a.m. ET
Southwest, America West post gains; UAL slips, and NWA lands in the red
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NEW YORK (CNNfn) - U.S. airlines' earnings flew different routes Tuesday as Northwest, United, Southwest and America West all announced quarterly results.
United Airlines found the first-quarter skies to be a little less friendly as earnings at its parent company, UAL Corp. (UAL), fell 14 percent.
United, the world's biggest airline, reported net earnings of $187 million, or $1.54 per share, down from $218 million, or $1.68 per share, a year ago.
United's results still managed to rise over Wall Street estimates of $1.50 per share, however.
UAL Chairman Gerald Greenwald said the company's weak performance in January was a factor but said trends in United's Pacific Rim routes, along with a strong showing in March in the United States, were positive signs.
Northwest Airlines Corp., based in Minneapolis, had a net loss of $29 million, or 36 cents per diluted share, during the first quarter, compared with a profit of $71 million, or 66 cents per share, a year ago.
First Call's consensus of analysts' estimates predicted a net loss of 75 cents per share.
When an after-tax, non-recurring gain of $18 million from the sale of some of Northwest's securities is taken out, the net losses increased to $46 million, or 58 cents per share.
Northwest cited a $90 million hit it took as a result of labor disputes as part of the quarter's problems, but said better times are ahead.
"While we are dissatisfied with any loss, we are pleased with the pace of our recovery from last year's disruptions," said John Dasburg, CEO of Northwest (NWAC).
"As a result, we expect to be profitable in the remaining three quarters of the year and for the full year of 1999."
Southwest Airlines found first-quarter flying much smoother. The Dallas-based carrier said net income increased 36 percent to $95 million, or 27 cents per share, just over the 26 cents per share predictions on Wall Street.
A year ago, Southwest (LUV) earned $70 million, or 20 cents per share.
Revenue increased 14 percent to $1.08 billion, from $942 million a year earlier.
Southwest Chairman Herbert Kelleher said the company was helped along by lower jet fuel prices and is seeing strong bookings for the remainder of the current second quarter.
America West had clear skies during the first quarter as well. Its parent company, America West Holdings Corp. (AWA), reported record first-quarter earnings of $26 million, or 63 cents per share, beating First Call estimates by 2 cents per share.
A year ago, America West earned $25.1 million, or 53 cents per share.
America West Chairman and CEO William Franke said a reorganization of the company's management structure, along with a tentative agreement with its flight attendants, will leave the ninth-largest U.S. air carrier positioned for growth during the rest of 1999. 
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