Airlines Set Annual Fiscal Record

<B> Airlines Set Annual Fiscal Record</B>

By Jay Campbell

The major U.S. carriers combined for their highest-ever annual profit in 1997, nearly reaching $5 billion. They would have crossed that milestone were it not for TWA's $111 million loss, itself a 61 percent improvement over the carrier's loss of $285 in 1996. "Achieving industry-leading operational reliability sets the stage for TWA in 1998 to improve its share of the business travel market through an all-out marketing push featuring an exciting array of new products and services that give improved value to the buyers of premium full-fare tickets," said Gerald Gitner, TWA chairman and CEO.

Taking the top spot again this year in net earnings was AMR Corp., at $985 million, followed closely by United ($949) and Delta ($934). The biggest gainer was America West, upping its earnings by 782 percent.

The carriers attributed much of their success to demand that supported higher fares. "The strong economy, good demand, sensible pricing, lower fuel prices and the company's better operating performance have all contributed to our excellent results," said Robert Crandall, chairman and CEO of AMR. Delta chairman and CEO Leo Mullin said improved cost-containment and asset maximization plus "strong business demand and a favorable fare environment drove record operating and net earnings in calendar 1997.