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CERTIFICATE OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Stockholders of
Colonial Airlines, Inc.:

We have examined the balance sheet of Colonial Airlines, Inc. at December 31, 1947 and the statements of income and earned surplus (deficit) and capital surplus for the year then ended, have reviewed the system of internal control and the accounting procedures of the Company and, without making a detailed audit of the transactions, have examined or tested accounting records of the Company and other supporting evidence, by methods and to the extend we deemed appropriate. Our examination was made in accordance with generally accepted auditing standards and included all procedures which we considered necessary in the circumstances. 
In our opinion, subject to the retroactive adjustment (which is not now determinable - see Note 1) in compensation for mail carried, the accompanying balance sheet and statements of income and earned surplus (deficit) and capital surplus present fairly the position of Colonial Airlines, Inc. at December 31, 1947 and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basic consistent with that of the preceding year, except for the changes set forth in Notes 4 and 5, to which changes we take no exception.

ARTHUR YOUNG & COMPANY
New York, N. Y
March 11, 1948

[[3 Stars separating this section]]
COMPARATIVE STATEMENT OF TRAFFIC, REVENUE AND EXPENSE STATISTICS
1944 - 1947

1947 1946 1945 1944

Revenue Passengers Carried…………………………   139,871 154,971   93,252   56,032

Revenue Passenger Miles Flown………………………… 41,189,846   45,592,520   29,333,179   17,387,268

Mail Pounds Carried…………………………   568,529   624,039   424,974   349,022   

Mail Pound Miles Flown………………………   159,726,000   175,796,595   124,700,516   99,434,121

Express and Freight Pounds Carried…………………………   610,067   480,426   228,508   252,362

Express and Freight Pound Miles Flown…………………………   144,952,730   111,205,950   68,279,265   78,227,042



Passenger Revenue…………………………   $2,572,845   $2,677,969   $1,606,361   $  950,548

Mail Revenue…………………………   810,929   533,086   132,247   136,395

Other Revenue…………………………   73,561   142,153   41,448   49,615

[[Four dashed lines to indicate addition for each of the years]]

   [[Bolded]] TOTAL OPERATING REVENUES………………………… $3,457,335   $3,353,208   $1,780,056   $1,136,558
   [[Bolded]] TOTAL OPERATING EXPENSES…………………………   4,328,973   3,793,182   1,582,050   1,151,770

[[Four dashed lines to indicate subtraction for each of the years]]

PROFIT (Loss) FROM OPERATIONS…………………………   (871,638)   (439,974)   (198,006)   (15,212)

Other Deductions Net………………………… 
(202,703)   (87)   (24,677)   (24,530)

[[Four dashed lines to indicate addition for each of the years]]

$(1,074,341)   $  (440,061)   $  173,329   $  (39,742)

Provision for Federal Income Taxes………………………… 
                                 (64,600)

Recovery of Federal Taxes through Carry-back…………………………     64,6000

[[Four dashed lines to indicate addition for each of the years]]

NET INCOME (Loss) For Year…………………………   $(1,074,341)   $  (375,461)   $  108,729   $(39,742)

Transcription Notes:
"extent" has a typo