Pan Am news letter, Vol. 1, No. 9, November 1973

              Pan Am News Letter
VOL 1 NO. 9
MANILA PHILIPPINES
NOVEMBER, 1973
PAN AM INCREASES AGENTS'COMMISSIONS
THE NEW PAN AMERICAN WORLD AIRWAYS TERMINAL at John F. Kennedy International Airport, New York, is the largest in the world operated by a single air carrier. The $100 million terminal can accommodate 18 aircraft at one time including eight 71+7 super jets. The four-level structure provides 756,680 square feet of space. All Pan Am arrivals and departures are made at this building. The JFK Control Tower and International Arrivals Building are shown in the background.
PAN AM REPORTS FIRST NINE MONTHS PROFIT IN 5 YEARS
New York — Pan American World Airways has reported its first 9-months profit in five years.
Pan Am officials noted, however, that although the improvement trend continues, it will be extremely difficult to stay out of the red for the rest of 1973 because of the seasonability of Pan Am business plus poor traffic performance of the market in general.
The breakthrough into the black — even though temporarily — came on a net profit of $4,062,000 for September, compared with a profit of $3,871,000 last September, 1972.
It gave Pan Am a Third Quarter 1973 net profit of $23,320,000, compared with $20,231,000 in the 1972 Third Quarter — and a net profit of $1,325,-000 for the 9 months year-to-date com-
pared with a net loss of $14,001,000 in the same 9 months period last year.
Operating profit for the 9 months was $35,697,000, compared with $14,470,-000. Operating revenues for the period were $1,091,488,000 compared with $995,361,000 last year — an increase of 9.7 per cent.
Operating expenses for 9 months this year were $1,055,791,000, compared with $980,891,000 last year, an increase of 7.6 per cent.
Revenues from scheduled services totalled $985,274,000, up 6.5 per cent. Revenues from charter services, including military, were $87,396,000, up 34.7 per cent. Passenger revenue totalled $804,816,000 up 7.7 per cent during the months. Cargo revenue was $134,-738,000, up 5.9 per cent.
MOVE HAILED BY TRAVEL_AGENTS
William T. Sea-well, Chairman and Chief Executive Officer of Pan American World Airways has announced a two-part plan with immediate aspects that are possibly the best important travel agent profit building news in years.
Effective immediately, Seawell • said, Pan Am is adding one per cent to travel agent commissions for first class and regular economy travel on all of its domestic routes (Puerto Rico, Virgin Islands, Hawaii, Alaska, Pago Pago, Guam).
Seawell made this announcement at the annual congress of American Society of Travel Agents (ASTA) which was held recently in Acapulco, Mexico.
At the same time, Seawell pledged Pan Am would recommend at the next appropriate International Air Transport Association (IATA) meeting that the bonus commissions be paid for first class and regular economy fare transportation internationally to both domestic and overseas agents.
All U.S.-based travel agents are eligible to participate in the new bonus plan which has the immediate effect of increasing the travel agent's revenue by more than 14 per cent on first and economy traffic.
Seawell explained that the increased commissions on domestic routes will be paid by special monthly checks and must not be deducted from the sales reports.
Seawell also proposed a plan for sharing advertising costs with the travel agents. He said specifics of the advertising proposal will have to be negotiated in IATA meetings.
The Pan Am executive drew a standing ovation from some 4,000 travel agents and industry representatives at the Acapulco meeting, and observers there conceded that the Pan Am move Continued on page 3
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