Pan American World Airways, Inc

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the Atlantic, Latin America, Domestic, and systemwide.

Eventhough revenue was strong in 1988, labor and other costs increased
at a higher rate as a consequence of efforts to improve service and
effectiveness of the operation. Labor costs were higher in 1988 due to the
result of an increase in the number of employees during the year. Also the
addition of increased fuel prices, commissions, purchased services,
aircraft rentals, and a $24.0 million foreign exchange loss had a negative
impact on the corporation.

1987 expenses were effected by increases in expenses for fuel,
commissions, maintenance materials and other operating costs which exceeded
expectations. Labor cost reductions were not achieved in 1987. Other losses
which occurred was the settlement of an $18 million provision for the
proposed settlement of an age discrimination suit, and as well as $42.0
million for increased allowances for inventory obsolescence, uncollected
receivables and costs associated ...

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and south america. The company strives to
provide the best service to all it's destinations than all the other
carriers in general. Presently the airline is trying to achieve a
"Corporate Image" to attract more business people thus increasing passenger
revenues.

ASSESSMENT OF COMPANY'S PERFORMANCE AND FINANCIAL CONDITION

Overall, the short term liquidity of Pan Am seems to have a stable
trend but is very poor compared to the average industry's ratios. Through
the past two years very little changes can be seen in the short-term
liquidity ratios. The firm acid test ratio puts it in the lower quartile.

As for capital structure and long-term solvency we can only say that
the ...

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