USAir Group reports net loss of $168.7 million in first quarter

April 24, 1991|By Maria Mallory

Extending its string of money-losing quarters to seven, USAir Group Inc. reported yesterday a net loss of $168.7 million for the first quarter of this year.

The loss, which is more than four times larger than the loss of 1990's first quarter, is further evidence of the damage resulting from an industrywide slump in air travel demand and sky-high fuel prices associated with the recession and the Persian Gulf war.

"Everybody did poorly in the first quarter of the year," said Thomas Longman, an analyst with Bearn Stearns & Co. in New York.

Because airlines are "very economically sensitive," Mr. Longman said he had expected the Arlington, Va., airline's income to fall short about $3.80 a share. USAir's per-share loss for the quarter was $3.88.

Last year, the air carrier lost $1.05 a share, or $38 million, in the first quarter.

In March, USAir estimated in SEC documents that its first-quarter performance would be worse than its fourth-quarter operating loss of $168 million, special charges notwithstanding.

Despite the loss, USAir Group Chairman and President Edwin I. Colodny said that he was "encouraged" by the 2.9 percent rise in operating revenue for the airline.

"We are also pleased with the continued high ranking of USAir's operating performance compared with the other major airlines," Mr. Colodny said in a statement.

Earlier this month, the U.S. Department of Transportation ranked USAir third of the top 12 carriers in on-time arrivals.

Three months ended 3/31/91

.. .. .. .. .. .. ..Revenue .. .. .. .. .. .Net .. .. .Share

'91.. .. .. ..1,581,571,000 .. .. (168,692,000) .. .. (3.88)

'90.. .. .. ..1,537,334,000 .. .. .(37,965,000) .. .. (1.05)

% change .. .. .. .. ..+2.9 .. .. .. .. .. ..-- .. .. .. .--

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.