AIRNET SYSTEMS REPORTS FOURTH-QUARTER LOSS

AIRNET SYSTEMS REPORTS FOURTH-QUARTER LOSS

   AirNet Systems Inc., which provides specialized air courier and express services, reported a net loss of $300,000 for the fourth quarter, compared to a net profit of $2.1 million for the year-earlier period.

   The Columbus, Ohio-based delivery company said operating income declined 53 percent to 7.3 million last year, down from $13.4 million in 2001. Higher labor, fuel, maintenance and other costs, combined with reduced revenue from bank services, contributed to the drop in performance, the company said.

   AirNet, which is in the process of converting from primarily a bank airline to a blended carrier, said bank revenue declined $3.8 million to $101 million. The company said electronic commerce has reduced the amount of cancelled checks transported between banks and AirNet lost a $700,000 contract with the Federal Reserve in the fourth quarter.

   For the year, net income was $1.5 million, compared to $5.2 million for 2001. Total revenues were $149 million, up from $140 million in 2001 on the strength of the company's express services, which grew almost $9 million to $42.5 million. The company also operates on on-demand passenger and cargo charter service that increased revenues to $5.3 million from $1.8 million.

   Fourth quarter revenue rose 5.6 percent to $37.5 million for the fourth quarter ended Dec. 31 from $35.5 million for the same period in 2001. The company had a $300,00 net loss in the fourth quarter.

      Seven of the company's 18 Piper Chieftain aircraft have been grounded by the U.S. Federal Aviation Administration since August because of engine concerns. The grounding has forced the company to pay more to sublease aircraft from other providers.