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STATESWEST AIRLINES ANNOUNCES PRELIMINARY YEAR-END OPERATING RESULTS

 PHOENIX, Dec. 29 /PRNewswire/ -- StatesWest Airlines Inc. today announced its unaudited results of operations for the year ended Sept. 30, 1992. Total operating revenues for the fiscal year were $23,432,000, compared to $20,151,000 for fiscal 1991. The company reported an operating loss of $1,672,000, compared to 1991 operating loss of $5,226,000. The company recorded a net loss of $3,676,000, or $.56 per share for fiscal 1992 on weighted shares outstanding of 7,038,914, compared to 1991 net loss of $3,451,000, or $.83 on weighted shares outstanding of 4,354,909. Results of operations for fiscal 1991 included a $3,623,000 non-operating gain on aircraft lease terminations. The company has filed for a 15-day extension with the Securities and Exchange Commission for filing audited financial statements because of the company's Dec. 15 filing for Chapter 11 bankruptcy protection.
 Rudy R. Miller, StatesWest's chairman, president, and chief executive officer, stated, "The company was making solid improvement in its overall operation and financial aspects the first nine months of fiscal 1992. The June 5th fare wars launched by American Airlines affected the airline's cash flow with a decrease in fares for the company's fourth quarter. The company also encountered an unusually high number of aircraft engine problems in the fourth quarter which resulted from defective parts supplied by third parties. These engine problems have continued into the first quarter of the new fiscal year." He continued, "The company booked expenses of approximately $1.6 million in the fourth quarter for costs associated with warrant conversions, inventory and other year-end adjustment items. Depreciation for 1992, a non-cash item, was approximately $500,000 greater than 1991, due in part to conversion of a number of operating leases to owned aircraft in the third quarter ending June 30, 1992.
 "The fare wars in the fourth quarter, coupled with the machinist strike against USAir in October, the soft California economy, USAir's decreasing presence on the west coast and our unique engine problems, had a tremendous effect on our cash position. Add to these problems the failure to convert warrants into new equity by Dec. 11, were the major events causing the company to file for Chapter 11 bankruptcy protection," Miller concluded.
 StatesWest presently operates under code-share agreements with both USAir and Northwest Airlines feeding flights for the total travel network for USAir, and flights to the Pacific Rim system for Northwest Airlines. Traffic flows through the hub cities of Los Angeles and San Francisco. The airline operates approximately 4,000 monthly departures serving passengers in 13 western cities.
 Below are the company's unaudited financial results for 1992 and audited results for 1991.
 STATESWEST AIRLINES INC.
 Financial Summary
 Sept. 30,
 1992 1991
 (unaudited) (audited)
 Operating revenues $23,432,030 $20,150,811
 Operating expenses 25,103,888 25,376,500
 Net loss 3,675,424 3,450,553
 Net loss per common share $.56 $.83
 Weighted average shares 7,038,914 4,354,909
 Sept. 30, Percent
 1992 1991 Change
 (unaudited)
 Passenger enplanements 347,371 283,777 +22.4 pct
 Available seat miles 121,524,558 133,150,155 -8.7 pct
 Revenue passenger miles 52,394,434 50,671,484 +3.4 pct
 Load factor (percent) 43.1 38.1 +5.0 pts
 Average passenger revenue
 per passenger mile (yield)
 (cents) 44.1 39.3 +4.8
 Operating cost per available
 seat mile (cents) 20.7 19.1 +1.6
 Weighted average number of
 aircraft in fleet 14.8 12.9 +1.9
 Cities served 13 14
 -0- 12/29/92
 /CONTACT: Rudy R. Miller, chairman, president and CEO, or Mary A. Nance of StatesWest Airlines, 602-225-0504/


CO: StatesWest Airlines Inc. ST: Arizona IN: AIR SU: ERN

BP-KJ -- LA017 -- 0387 12/29/92 15:38 EST
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Date:Dec 29, 1992
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