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Colonial Airlines, Inc. 
Statement of Income and Earned Surplus (Deficit)
For the Year Ended December 31, 1946
Operating Revenue:
Passenger                                                                        $2,677,969
U.S. mail (Note 1)                                                                  533,086                                              
Charter flights                                                                     113,734                                                    
Express and miscellaneous                                                            28,419
                                                                                 __________
        Total operating revenue                                                  $3,353,208

Operating Expenses:
Flying expense (Note 6)                                              $1,189,579
Ground expense                                                        1,137,486
Provision for obsolescence, depreciation, amortization                  386,795
Traffic and advertising expense                                         637,797
General and administrative expense                                      375,150
Amortization of preoperational expenses (Note 4)                         66,375
                                                                                 __________
             Total operating expenses                                             3,793,182
                                                                                 __________
Profit (Loss) From Operations                                                    $(439,974)

Other income:
      Net profit on office building acquired and resold during year     $24,887
      Adjustment of carrying value of Canadian net assets to parity on 
      July 5, 1946                                                       16,860      41,747
                                                                        _______     _______
                                                                                  $(398,227)

Other Deductions:
Expenditures on route applications denied                               $15,719
Amortization of extension and development expenses (Note 3)               3,832
Interest-net                                                             16,330
Miscellaneous-net                                                         5,953      41,834
                                                                         ______      ______    
Net income (loss) Before Federal Income Taxes                                     $(440,061)

Deduct:
 Estimated recovery of Federal taxes through carry-back (Note 2)                     64,600
                                                                                    _______
Net income (loss) for the year                                                    $(375,461)
Earned surplus since December 31, 1934, at beginning of the 
year                                                                                189,701
                                                                                   ________
Earned surplus (Deficit) since December 31, 1934, at end of 
the year                                                                          $(185,760)
                                                                                                                          
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