USAir Group reports $433.6 million
operating income for 1988
USAir Group has reported record op
erating income of $433 million for
1988 and net income of $165 million,
its second best year ever, on revenues
of $5.7 billion. Earnings per share
were $3.81 on 43.3 million fully-diluted
shares.
Operating and net income for 1988
were adversely affected by $37.1
million in nonrecurring merger-
related expenses, the after-tax effect
of which is $23.6 million, or $0.54 per
USAir has been engaged in negotia
tions with Eastern Air Lines concern
ing the purchase by USAir from
Eastern of certain gates at the Phila
delphia International Airport.
According to Randall Malln, execu
tive vice president-marketing, the
recent negotiations also have included
the Philadelphia-Toronto and Philadel-
phia-Montreal routes currently flown
by Eastern.
fully-diluted share. Net income was
also adversely affected by establish
ment of a $33 million reserve to
reduce the company’s investment in
its BAG 1-11 aircraft and related
spares to estimated net realizable
values. The after-tax effect of the write
down is approximately $21 million, or
$0.48 per fully-diluted share. In 1987,
USAir Group had operating income of
$319.2 million and net income of
$194.6 million on operating revenue of
No agreement has been reached
and USAir is not yet able to say if or
when an agreement will be reached,
he said.
USAir and Piedmont combined cur
rently operate 121 daily jet departures
and an additional 133 daily commuter
departures from Philadelphia. _£
Hooray for Hollywood
Last month, when USAir signed on as
the official aiiline of Universal
Studios, employees at LAX gathered
with some of Universal’s characters to
show their enthusiasm for the new
agreement Universal Studios
Hollywood is now offering all USAir
Group employees free admission to
their Hollywood site during February,
Jime, and September 1989.
Coupons for free admission to both
attraction sites were recently sent to
each employee. Contact your depart
ment head if you have not yet received
your coupon.
$3.0 billion. Earnings per share for
1987 were $5.27 on a fully-diluted
basis on 12.7 percent fewer shares
(37.8 million).
For the fourth quarter of 1988,
USAir Group had operating and net
income of $109.2 million and $22.8
million, respectively, on revenue of
$1.5 billion. Fully-diluted earnings per
share for the fourth quarter were
Cont. on page 6
USAirNews/Piedmonitor
Published biweekly by
the USAir corporate communications department
Editor
Bill Kress
Washington National Airport
Washington, D.C. 20001
(703) 892-7115
USAirNews/Piedmonitor is
pubiishedforand about the
employees of USAir Group,
such as Mary A. Sheit
Piedmont fiightattendant-CLT.
USAir negotiates witli Eastern
for PHL gates, routes
TWO