Up, up and away.

• Author: Bauman, Margaret
• Position: Alaska's airlines - Industry Overview

Despite air-fare wars and increasing regulations, a growth in passengers and freight boosted 1994 profits for Alaska's airlines. The industry forecast for 1995 also looks like a high flyer.

Air passenger traffic, boosted by tourism and air-fare wars, plus cargo tonnage, swelled by new consolidation points, added up to a very good 1994 for commercial aviation in Alaska.

Profits came on all horizons, from employment to new expansion, for small and large carriers around the state.

Overall employment figures showed some 7,600 people working directly in the industry in 1994, up to 200 jobs from 1993, says state labor economist Neal Fried. "The increase in overall employment is a reflection of the economy and maybe a reflection of the economy and maybe a reflection of growth (too) in the visitor industry," Fried says.

Federal funds of $67.5 million, combined with 6.5 percent in state matching funds, gave Alaska a total of $71.7 million for new construction at airports in fiscal 1994, compared with $59 million the previous fiscal year, says Jeff Landes, state aviation development coordinator.

For the big carriers, Alaska Air Group Inc., parent company of Alaska Airlines, reported a 1994 net income of $22.5 million, compared to a net loss of $30.9 million in 1993.

MarkAir, the largest Alaska-based airline, ended 1994 with an operational profit of $3.4 million, its first since 1991, the result of a 38 percent increase in passenger revenues and an increase in its passenger load factor from 60.5 percent to 67 percent, according to preliminary figures.

The state's small carriers also benefited from a banner year in 1994. Era Aviation, for example, saw passenger traffic up 21.65 percent over 1993, freight rise 7.07 percent and mail by 34.38 percent, says James Vande Voorde, vice president.

Cornering Cargo

During 1994, Anchorage International Airport received 1.6 billion pounds of cargo on more than 82,000 commercial landings, compared with 1.3 billion pounds of cargo on 82,000 flights in 1993.

"Our cargo is up about 15 percent month over month, year over year," says Lowell Humphrey, airport director. "We've moved from 22nd in the world air-cargo airports to 13th in roughly one year. We're continuing to talk with airlines traveling through here about more routes, bigger fleets and expanding needs."

Alaska Airline's air-cargo division saw revenue rise 16 percent in 1994 over 1993, after dropping mail contracts from the Lower 48 to Alaska and replacing...