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STATESWEST AIRLINES ANNOUNCED YEAR-END RESULTS AND CAPITAL PROGRAM

STATESWEST AIRLINES ANNOUNCED YEAR-END RESULTS AND CAPITAL PROGRAM
 PHOENIX, Dec. 23 /PRNewswire/ -- StatesWest Airlines Inc. (NASDAQ: SWAL-SWALP) today announced its unaudited results of operations for the year ended Sept. 30, 1991. Total operating revenues for the fiscal year were $20,151,000, compared to $8,479,000 for fiscal 1990. The company recorded a net loss of $3,451,000 or $.79 per share for fiscal 1991, on weighted average shares of 4,354,909 compared to a net loss of $3,956,000 or $.91 per share for fiscal 1990, on weighted average shares of 4,350,586. Results of operations for fiscal 1991 included a $3,623,000 non-operating gain on aircraft lease terminations. The company expects its audited figures to be released by Dec. 30, 1991.
 "Fiscal 1991 was a year of significant expansion for StatesWest, with the full implementation of our USAir Express program and the beginning of our new Northwest code-sharing agreement," said Rudy R. Miller, chairman and president of StatesWest. "Despite our operating losses, we feel confident that the recent positive trends in passenger enplanements, load factors, and fares, together with stringent cost control efforts undertaken during 1991, will yield improved results in fiscal 1992."
 As a result of the reported losses, StatesWest had a working capital deficit of approximately $1.89 million at Sept. 30, 1991 and positive shareholder equity at year end of $408,000. The company has commenced a program to strengthen its equity and cash positions. In this connection, the company announced that it will redeem, at a price of $.02 per Warrant, any of its Class B Common Stock Purchase Warrants (CUSIP No. 857657 15 9) which the holders have not exercised by Feb. 15, 1992. Formal notice of redemption will be made in accordance with the terms of the Series B Warrants. The 1,904,955 Class B Warrants outstanding are exercisable at a price of $.75 per share. If all of the Class B Warrants were exercised, the proceeds to the company would be approximately $1,430,000. In addition, the company is attempting to arrange for the conversion of approximately $1,250,000 of convertible subordinated debt to equity, in connection with which the company would receive cash in the approximate amount of $1,250,000 in repayment of amounts owed to the company by the current convertible debt holder. Finally, the company announced that it has reset the exercise price of its 1987 Series A Warrants (CUSIP No. 857657 11 8) at $.75 per share and the termination date of such Warrants is March 31, 1992. If exercised in full prior to termination, the 1987 Series A Warrants would provide approximately $270,000 of additional cash to the company.
 StatesWest, operating under a code-share agreement with both USAir and Northwest Airlines, has one of the most fuel efficient fleets of prop-jet aircraft in the United States. The airline operates over 4,000 monthly departures serving passengers in 14 cities in California, Arizona, and Nevada.
 Below are the company's unaudited financial results for 1991 and audited results for 1990.
 STATESWEST AIRLINES INC.
 Financial Results for 1991 (unaudited) and 1990 (audited)
 Sept. 30,
 (Unaudited) (Audited)
 1991 1990
 Operating revenues $20,150,811 $8,478,463
 Operating expenses 25,376,500 11,135,004
 Net loss 3,450,552 3,956,355
 Net loss per common share $.79 $.91
 Weighted average shares 4,354,909 4,350,586
 Percent
 Unaudited change
 Passenger enplanements 283,777 134,564 +110.9 pct
 Available seat miles 133,150,155 63,635,425 +109.2 pct.
 Revenue passenger miles 50,671,484 26,051,683 +94.5 pct.
 Load factor (percent) 38.1 40.9 -2.8 pts
 Average passenger revenue per
 passenger mile (yield) (cents) 39.3 31.7 +7.6
 Operating cost per available
 seat mile (cents) 19.1 17.5 +1.6
 Weighted average number of
 aircraft in fleet 12.9 5 +7.9
 Cities served 14 14 ---
 -0- 12/23/91
 /CONTACT: Rudy R. Miller or Mary A. Nance, both of Stateswest Airlines Inc., 602-225-0504/
 (SWAL-SWALP) CO: StatesWest Airlines Inc. ST: Arizona IN: AIR SU: ERN


DM-EH -- SD002 -- 5057 12/23/91 19:42 EST
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Date:Dec 23, 1991
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