1
 The airline industry's fortunes, in dazzling shape for most of the year, have taken a sudden turn for the worse in the past few weeks.
5002
span

2
 Citing rising fuel costs, promotional fare cuts and a general slowdown in travel,
3
circumstance

3
 several major carriers have posted or are expected to post relatively poor third-quarter results.
5001
span

4
 Yesterday, USAir Group Inc., recently one of the industry's stellar performers, posted a worse-than-expected $77.7 million net loss for the period.
5001
example

5
 So far, the industry's fourth quarter isn't looking too strong either,
5004
span

6
 prompting many analysts to slash earning projections for the rest of the year by as much as one-fourth.
5
consequence-s

7
 And they say 
8
attribution

8
the outlook for 1990 is nearly as bad.
5005
span

9
 Airlines in 1989 came in like a bang
5007
Sequence

10
 and are going out like a whimper,
5007
Sequence

11
 said Kevin Murphy, an airline analyst at Morgan Stanley & Co.
5007
attribution

12
 This turn of events has put a big damper on an industry 
5011
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13
that seemed almost invincible last spring,
5012
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14
 when fares were rising at double-digit rates 
5010
List

15
and many carriers seemed to be growing fat on near-monopolies in certain markets.
5010
List

16
 Now, many airline companies might become a lot less attractive as takeover targets on Wall Street.
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List

17
 The downturn also raises questions about the carriers' ambitious orders for new airplanes,
5015
span

18
 which currently total $32.5 billion over the next three years.
17
elaboration-additional-e

19
 For travelers, though, the industry's problems have had some positive effects.
5024
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20
 In recent weeks, airlines have cut numerous fares in leisure markets 
5018
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21
to try to win back customers.
20
purpose

22
 Others have tried to spruce up frequent-flier programs.
5020
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23
 Previously, airlines were limiting the programs 
5019
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24
because they were becoming too expensive.
23
reason

25
 Just last week, for example, Trans World Airlines and Pan Am Corp. 's Pan American World Airways went so far as to offer cash rebates or gift checks of $200 to $1,000 to certain frequent-flier members
5021
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26
 making trans-Atlantic flights in business class or first class.
25
elaboration-object-attribute-e

27
 The industry's slowdown became apparent this month 
5027
span

28
when AMR Corp., parent of American Airlines, reported an 8.8% drop in third-quarter net income 
5028
List

29
and said 
30
attribution

30
its fourth quarter would be disappointing.
5026
span

31
 Shortly before that, USAir had said 
32
attribution

32
its third-quarter results would be significantly lower than a year earlier.
5029
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33
 Yesterday, it provided the details:
5030
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34
 Its loss of $77.7 million, or $1.86 a share, contrasted with net of $68.5 million, or $1.58 a share, in the 1988 third quarter.
5031
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35
 Revenue rose only 3.3% in the latest period, to $1.53 billion from $1.48 billion.
34
elaboration-additional

36
 For the nine months, the Arlington, Va., company's net plunged 73% to $38.5 million, or 76 cents a share, from $142.2 million, or $3.28 a share. 
5032
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37
Revenue rose 12% to $4.75 billion from $4.22 billion.
36
elaboration-additional

38
 The results surprised many analysts,
5037
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39
 because USAir has almost no competition in its Pittsburgh hub 
5036
List

40
and has expanded operations
5035
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41
 by completing its acquisition of Piedmont Airlines.
40
means

42
 Shortly after announcing its quarterly loss,
43
consequence-n

43
 USAir's stock tumbled $3 a share.
5039
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44
 It ended at $40.125, down $2.375, in New York Stock Exchange composite trading.
5039
elaboration-additional

45
 Nobody was expecting this size of a loss, 
5043
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46
said Paul Karos, an analyst with First Boston Corp.
45
attribution

47
 One airline executive,
5041
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48
 who declined to be identified,
47
elaboration-additional-e

49
 called the loss amazing.
5042
Same-Unit

50
 In announcing the results,
5047
circumstance

51
 USAir cited many of the same problems 
5047
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52
that several other industry officials have named recently.
51
elaboration-object-attribute-e

53
 It said 
54
attribution

54
the industry's domestic traffic was flat in the third quarter;
5050
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55
 analysts say 
56
attribution

56
this was because hefty fare increases earlier in the year scared off many leisure travelers this summer.
5049
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57
 To try to combat the traffic slowdown,
58
purpose

58
 airlines started reducing fares;
5056
span

59
 average fares rose only 1.7% in August, in contrast to increases of 16% each in February and March.
5056
consequence-s

60
 But so far, the effort has failed,
5058
Cause-Result

61
 and traffic is still slow.
5058
Cause-Result

62
 Some other fare promotions have backfired.
5074
span

63
 This summer, the industry introduced a kids fly free program,
5062
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64
 in which children were allowed to fly free 
5061
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65
if they were traveling with an adult.
64
condition

66
 Airlines tried to restrict the program substantially 
5064
span

67
by limiting the offer to certain days of the week,
66
means

68
 but it still was apparently used far more heavily 
5063
span

69
than the airlines expected.
68
comparison

70
 Airlines also say 
5069
attribution

71
their frequent-flier programs are squeezing profits 
5069
span

72
because awards are being redeemed at a heavier-than-normal rate.
71
explanation-argumentative

73
 One airline official said 
74
attribution

74
about three times as many free-travel coupons are being turned in as in previous years 
5071
span

75
-- not surprisingly, as the airlines last year allowed many travelers to build up mileage at triple the normal rate.
74
explanation-argumentative

76
 Rising operating expenses are another problem.
5080
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77
 Fuel costs were up 10% in the third quarter.
5079
List

78
 Labor costs,
5077
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79
 which leveled off in the past few years
5076
span

80
 because of lower pay scales for newer employees,
79
explanation-argumentative

81
 are on the upswing again at many carriers.
5078
Same-Unit

82
 And some carriers are facing other unexpected headaches:
5085
span

83
 USAir, for example, blamed some of its loss on merger expenses and on disruptions
5082
span

84
 caused by Hurricane Hugo last month.
83
elaboration-object-attribute-e

85
 We cannot quantify the total adverse effects of Hugo,
5083
span

86
 said Edwin Colodny, chairman and president of USAir Group.
85
attribution

87
 Whatever the cause for the downturn, few people are predicting any sudden improvement.
5090
span

88
 Airline Economics Inc., an aviation consulting firm, is projecting an industrywide operating profit of $2.5 billion for 1989,
5087
span

89
 compared with earlier forecasts of $3 billion to $3.5 billion.
88
comparison

90
 As for 1990, the firm predicts 
91
attribution

91
that profit will slip to between $1 billion and $1.5 billion.
5088
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circumstance

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concession

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elaboration-additional

