-T / T / +T | Comment(s)

Thursday, September 6, 2007

Profits Elude NY Helo Airline

Jim McKenna

US Helicopter has made headway in metropolitan New York travel markets, but not in financial ones. The helicopter airline, which serves John F. Kennedy and Newark international airports from Manhattan, has code-sharing arrangements with Continental Airlines and Delta Air Lines and listing agreements with the online reservation services Amadeus, Galileo, and Sabre. But the company has "incurred substantial net operating losses and used substantial amounts of cash in our operating activities," it said in one of its latest financial filings. It had a net loss of $9.26 million for 2006 and $7.308 million through June of this year. "The expansion and development of our business will likely require additional capital," which "raises substantial doubt about our ability to continue as a going concern." US Helicopter expects "cash flows from operating activities to improve" through increased revenue, "although there can be no assurance thereof." The company on Aug. 27 did say it had sold $800,000 in convertible debentures to YA Global Investments "to provide working capital to us pending completion of a larger financing." It also has launched a $99 fare sale. For related news
[X] Dismiss Ad