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Southwest profits from cuts at rivals

DALLAS >> Southwest Airlines Co., the largest low-fare carrier, said first-quarter profit rose 14 percent as it picked up travelers in markets such as California and Florida, where rivals have reduced or canceled service.

In its 48th consecutive profitable quarter , net income increased to $24 million, or 3 cents a share, from $21.4 million, also 3 cents, in the same period of 2002, the Dallas-based company said in a statement. Sales rose 7.5 percent to $1.35 billion.

Southwest is the only major U.S.-based airline to remain profitable since war in Iraq and severe acute respiratory syndrome added to an air-travel slump already deepened by the September 2001 terrorist attacks. The airline holds down costs by making direct, high-frequency flights between cities, using one type of plane and not offering extras such as onboard meals.

Southwest has increased its market share in some cities as other airlines cut flights. Southwest's market share inside California has increased to about 70 percent from 55 percent five years ago and it now is the leader in Baltimore with a nearly 40 percent share, Chief Financial Officer Gary Kelly said on a call with analysts. The carrier holds a 70 percent market share inside Texas and 40 percent to 45 percent inside Florida.

Delta Air Lines Inc., Continental Airlines Inc. and Northwest Airlines Corp. all reported wider first-quarter losses as the Iraq war discouraged international flying.

AMR shares fall on labor trouble

FORT WORTH, Texas >> Shares of American Airlines parent AMR Corp. fell as much as 24 percent after flight attendants said they'll vote whether to take back concessions that have kept the carrier out of bankruptcy.

The employees decided to hold another vote after AMR disclosed in government filings last week that it planned bonuses for six top executives equal to twice their base salary if they stayed through January 2005. The world's largest airline has withdrawn the bonuses.

AMR shares closed down $1.15 to $3.85 on the New York Stock Exchange after earlier touching $3.81. They have fallen 83 percent in the past year.

Tax refunds may provide stimulus

There has been abundant debate about whether the economy needs a short-term stimulus. A monthly consumer poll suggests it is about to get one as the government sends income tax refund checks.

Fifty-nine percent of Americans getting money back plan to spend it on bills or consumer goods, according to the latest Cambridge Consumer Credit Index. The index survey was conducted by random telephone dialing to more than 1,000 households.

Youth cynical on Social Security

The young don't have much faith in the prospects for Social Security.

Only 44 percent of teens ages 13 to 18 believe Social Security will exist when they turn 65, according to an annual poll of students in middle and high school.

Meanwhile, teens apparently are down on the stock market right now as well. Their stock ownership continues to fall, with only 15 percent saying they hold any shares, down from 21 percent last year and 25 percent in the 2000 and 2001 polls. The online survey was conducted by Colorado-based Junior Achievement Inc., with data gathered in October and November.

Apartment rents drop in most Western areas

SAN FRANCISCO >> The economic malaise is driving down apartment rents in most Western markets outside Southern California, according to a quarterly survey released today.

The study by the Novato, Calif., research firm RealFacts found the biggest discounts continued to occur in the Silicon Valley and the San Francisco metropolitan area, where rents have been shriveling since the dot-com bust.

But there are signs the feeble economy is starting to depress rents in major Western markets outside Northern California. As of March, the average rents in Seattle, Denver and Salt Lake City had fallen by 1 percent to 2 percent from the previous year.

Rents in other places, such as Portland, Ore. and Phoenix, edged up by less than 1 percent, RealFacts said.

Southern California represented a significant exception to the trend. Rents in all the region's major markets continued their steady ascent of the past few years.

Taxes to fight terrorism popular

Polling consistently finds that a majority of Americans believe their income taxes are too high. But one new online survey indicates we might be willing to pay more for greater security against terrorism.

The number of taxpayers willing to pay higher taxes to combat terrorism rose by nearly a fifth during the last year to 48 percent, according to a survey of 500 people earlier this month conducted by InsightExpress, an online research firm based in Stamford, Conn.

A third said they'd pay more taxes to support the war in Iraq, but only 14 percent said they would pay more to help rebuild the country.

Across the range of queries, Republicans were more willing than Democrats to pay higher taxes. The sharpest division came for war costs -- 49 percent of Republicans supported more taxes, compared to fewer than one in five Democrats.

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[Hawaii Inc.]

PROMOTIONS

>> Gentry Homes Ltd. has promoted Doreen Takabayashi to controller. She has been with Gentry Home since 1988 and previously served as the accounting manager. Vicki Slovak has been named the company's treasurer. She will be responsible for the company's corporate accounting office and staff. And Quentin Machida was promoted to the new position of assistant vice president. His responsibilities include review and recommendations of the company's financial planning and market analysis. Previously, Machida served as the company's senior financial analyst.

>> Trilogy Excursions has promoted Mike Johnston to food and beverage director. He came on board in June 2002, when Trilogy's former food and beverage director, Werner Boettner, announced his retirement. Johnston was previously general manager for Chart House Restaurants in Hawaii. Trilogy operates sailing excursions on Maui.

ON THE BOARD

>> Honolulu executives Janis Koh and Bernice Bowers have been appointed to Korea's National Institute for Disaster Prevention's new disaster mitigation program. Koh and Bowers will assess all international contracts and agreements and develop overseas training courses for Korea's national flood insurance program and bioterrorism preparedness. In 1999, they assisted the first formal agreement between the U.S. Federal Emergency Management Administration and Korea's Ministry of Government Administration and Home Affairs.

>> Alan S.U. Lum of Waialae Country Club was elected to the board of directors of Club Managers Association of America at its World Conference on Club Management in Miami Beach in early February. Lum has been general manager at Waialae Country Club since 1981. Prior to this he was its clubhouse manager. Lum joined the CMAA in 1980, was certified in 1984 and has been re-certified five times. He is also a member of CMAA's Honor Society and is eligible to petition for his Master Club Manager designation.