Southland

Profit Airball? The nation’s most ferocious airline price war, which is occurring over California’s skies, will be the focus of investors’ attention this week when the two combatants--Southwest Airlines and UAL Inc.--release their fourth-quarter financial results. UAL had expected its Shuttle by United, which took on Southwest in the West beginning in late 1994, to turn a profit for 1995, especially after it earned about $5 million in the third quarter. But those hopes began fading in September when Southwest launched a new round of price cuts, slashing one-way fares to as little as $19. Shuttle by United matched the cuts to protect its market share, but the action “probably” erased any profit for the Shuttle in the quarter ended Dec. 31, said United spokesman Tony Molinaro. As for the Shuttle’s full-year results, “we’ll have to see,” he said. Southwest’s profit will also be shaved by the California fare cuts, analysts said.