AIR REVENUE FALLS

Press, Volume LXXXIII, Issue 25080, 11 January 1947, Page 7

AIR REVENUE FALLS

RETURNS ON U.S. LINES COST INCREASES AND FEWER MAILS (N.Z. Press Association—Copyright) (Rec. 11.15 p.m.) WASHINGTON, January 10. From a total of 42.398,000 dollars in the year ended September. 1945, the net revenue of America’s 20 domestic commercial airlines declined in the year ended September, 1946, to 4,788.000 dollars. The decreased revenue in 1946 was attributable largely to wage increases, the cost of neyv aircraft, and other equipment and other rising operating costs, and also to a 51 per cent, decline in air mail after demobilisation. The ebb of war-time profits left several major companies facing heavy losses. The Trans-Continental and Eastern Air Line, Incorporated, in the year ended last September, suffered a loss of 6,318,000 dollars, compared with a profit of 5,577,000 dollars in the previous year. Although profits fell steeply, there was a fast expansion by airlines with a marked increase in air travel. In the first three-quarters of 1946, paying passengers exceeded 13,000,000. which was a 78 per cent, increase on the previous year. Express and freight shipments rose by 50 per cent, to 37,000,000 ton miles. Fatal accidents among passengers on the regular air routes were 1.24 per 100,000,000 passenger miles, compared with 2.14 in 1945. A Civil Aeronautics Board survey states that although the “rush of dollars” is over the leaders of the industry agree that reasonable returns on capital can be maintained if realistic economics are applied and a fourfold goal kept in view—larger and faster aircraft, reliability of schedules, their expansion, and making more popular commercial flying generally.