UAL Tops Fortune’s List of Biggest Airlines
UAL Corp., the parent company of United Airlines with annual revenue of more than $9 billion, tops the list of the world’s 50 largest airline companies, Fortune magazine said Tuesday.
Fortune, in its January issue to be available on newsstands today, said six U.S. airline companies are among the 10 leaders listed by revenues, and Japan Air Lines ranks fourth worldwide and first among foreign carriers, with revenue of $7.25 billion.
Fortune’s January issue includes a survey of the industry, with major airlines ranked according to their 1988 revenues, and a forecast on the changing outlook for air carriers in 1990s, following the turmoil triggered by a tidal wave of takeover attempts.
“The airlines are in a state of continuous turmoil. . . . Each day brings another slash and thrust as raiders and managers struggle for control,” Fortune said.
Ranking second among the main carriers is AMR Corp. of Dallas-Ft. Worth, the parent of American Airlines, with 1988 revenue of $8.8 billion and 64.8 billion passenger-miles carried, compared to 69.1 billion passenger-miles for UAL of Chicago. A passenger-mile is one passenger carried one mile. Fortune said American Airlines is on the verge of overtaking United Airlines as the largest U.S. carrier.
Airlines use passenger-mile statistics to evaluate the number of miles traveled on their flights on a passenger pro-rata basis.
Texas Air Corp. is third, following its acquisition of Continental and Eastern Airlines, with revenue of $8.57 billion and 69 billion passenger-miles.
Delta Air Lines Inc. ranks fifth, with $7.25 billion in revenue and 49.1 billion passenger-miles. Other leading U.S. airlines include USAIR Group, which acquired PSA and Piedmont in the past two years, and ranks ninth, with $5.7 billion and 30.4 billion passenger-miles; and Northwest Airlines, Inc., which owns Northwest, the largest U.S. Pacific airline, ranked 10th, with revenue of $5.65 billion and 40.1 billion passenger-miles.
There are 11 U.S. airline companies ranked in the top 50.
Japan Air Lines reported a comparatively lower number of passenger-miles, 28.3 billion, but ranked fourth because of higher per-passenger revenue.
