Carriers Expect Full-Year, Quarterly Losses

American and Continental airlines, in filings this week and last week with the Securities and Exchange Commission, both said they each expect first-quarter and full-year 2002 losses.

American said its first-quarter loss will be "sizable" and that a full-year loss is likely. Continental, which has not generated positive cash flow from operations since Sept. 11, also anticipates a "significant" first-quarter loss and losses for the fourth quarter and full year.

"Business traffic in most markets continues to be weak, and carriers continue to offer reduced fares to attract passengers, which lowers our passenger revenue and yields and raises our break-even load factor," the carrier said. "We cannot predict when business traffic or yields will increase." Analysts predict losses for most other major carriers.