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JOHN H LEWIS & CO.
MEMBERS NEW YORK STOCK EXCHANGE
NEW YORK CURB EXCHANGE (ASSOCIATE)
63 WALL STREET
NEW YORK 5, N. Y.
TELEPHONE WHitehall 3-6686
TELETYPE New York 1-89

January 30, 1954

AVIATION BULLETIN

SPECIAL REVIEW OF NEW YORK AIRWAYS, INC. ........... Page 4

SUMMARY
Operations of the domestic trunk lines reporting for November showed a drastic drop in net operating income as the result of an increase in operating expense disproportionate with the increase in gross revenue. From December 18, 1953 to January 25, 1954, as measured by the Lewis Indices, aircraft manufacturing stocks advanced sharply while airline stocks in the Dow-Jones Industrial average showed little change. Our Special Review discusses New York airways as a special situation to be followed. It is not recommended by us at this time.

EARNINGS
Reports for the twelve domestic trunk lines thus far reporting showed the following results for November:

[[6 column table]]
|   | Nov. 1953 | Oct. | Nov. 1952 | Percent Change From Oct. 1953 | Percent Change From Nov. 1952
|---|---|---|---|---|---|
Gross Revenue (000) | $70,244 | $80,211 | $65,269 | -12.4 | +7.6
Operating Income (000) | d 1,996 | 5,896 | 3,701 | – | –
Passenger Miles (000,000) | 1124.4 | 1293.0 | 1027.4 | -13.1 | +9.4
Seat Miles (000,000) | 1931.9 | 2099.8 | 1623.1 | -7.9 | +19.0
Load Factor, % | 58.2 | 61.5 | 63.3 | -5.3 | -8.2
[[/6 column table]]

PRICES
The action of the Lewis Indices of Aviation Securities during the past month is compared with the Dow-Jones Industrial Average and the 1952 – 53 range:
[[7 column table]]
|   | 1953 Range High | 1953 Range Low | Dec. Close | Dec. 18 | Jan. 25 | Percent Change December 18 to January 25
|---|---|---|---|---|---|---|
Airlines | 43.0 | 30.7 | 31.6 | 33.0 | 32.1 | -2.7
Aircrafts | 32.2 | 21.7 | 29.3 | 30.3 | 33.8 | +11.5
Dow-Jones | 293.8 | 255.5 | 280.9 | 283.5 | 290.4 | +2.5
[[/7 column table]]

In December, 1953, American Airlines showed an approximate increase in revenue passenger miles of 15% over December, 1952; Northwest Airlines, 14%; United Airl ines, 19%. Approximate passenger load factors in December, 1953 are believed to have been: American Airlines, 63%; Northwest Airlines, 52.8%; United Air Lines, 62%. The load factors for American, Northwest, and United in December, 1953 were respectively 71.1%; 53.6%; and 66.5%

NEW ORDERS
Lockheed Aircraft Corp. has just received an order for military versions of Super Constellations sufficiently large to carry work on that plane into 1956. It is reported that Lockheed has received an order for 25 P2V-7 patrol bombers from the R.C.A.F. The Columbus plant of North American Aviation has received a contract from the Navy to build FJ4's; the amount is undisclosed but is sufficient to carry work at that plant into 1956. Ryan Aeronautical Co. has been awarded a contract totalling over $1 million to produce rocket engines for missiles for the Firestone Tire & Rubber Co.

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