Arpey Follows Southwest

[FWAAA]

Still, analysts have generally cheered American's overall job of reducing expenses, which are now lower than at Houston-based Continental Airlines Inc.

Then how is it that Continental is making a profit and we ain't?

For 4Q03, CO reported net income of $47 million. That INCLUDED additional net income of $85 million relating to special items, mostly from the sale of their interests in Orbitz and Hotwire.

Now, the soon-to-be-retired Uncle Gordy might call that profitable, but I wouldn't buy what he's sellin'.

You are correct. Excluding special items and the 2003 government handouts, CO would have lost $209 million in 2003. I hardly call that being profitable.

For Q4, excluding special items (like asset sales), CO would have lost about $38 million or so. That ain't profitable.

Details:

http://biz.yahoo.com/prnews/040120/datu030_1.html

Meanwhile, AA reduced its costs considerably since last year and has more cash on hand with which to pay its 2003 pension contribution obligations and its maturing debt. CO has a lot of debt maturing this year - I wonder if it will be able to refinance or pay it without incurring a cash crunch. We'll see.