The Up-And-Coming Airline
7
1984 earnings rise to record $58.2 million
Piedmont reported net earnings
of $58.2 million for the year ended
December 31,1984, the most of any
year in our histoiy.
The previous best year in Pied
mont's history was in 1981 when
the Company reported a net profit
of $32.6 million.
Revenues for the year 1984 grew
to $1.28 billion, the first time
Piedmont has ever exceeded one
billion dollars revenue in a single
year, up from $942.4 million in
1983 when the Company had earn
ings of $25.5 million.
“These earnings figures confirm
that our strategies and policies
have been on target, and that we
need to continue them into the
future," Bill Howard, president and
chief executive officer, explained.
“They also demonstrate that the
people of Piedmont can continue
to deliver an outstanding, cost-
efficient product in a free market
environment," Howard said.
For 1985, we have even greater
challenges ahead. Discount airline
service has made its initial entry
into the heart of Piedmont's system
at the Greensboro/High Point/
Winston-Salem Regional Airport,
and, with the arrival of American
Airlines in the Spring, all of the
nation's major airlines will have a
presence — to one degree or
another — in Piedmont's core
system.
“This means that pressures on
us to keep our costs down will
increase. That presssure is simply
not going to go away, no matter
how much we wish it would," How
ard said. “The traveling public will
tend to compare fares and, if the
service is close to comparable,
choose the lowest price ticket, just
as each of us does when shoppirrg
for an item worth more than $100.
We must remain aware that few
tickets on our system cost less than
$100, particularly on a round-trip
basis."
Piedmont's expenses rose in
1984 to $ 1.14 billion, a 30 percent
increase over the $880.1 million in
1983. Revenues grew 36 percent
during the same period.
Per share eartrings, adjusted to
rellect the 20 percent stock divi
dend Piedmont declared in Janu
ary, were $3.75 per share for the
year 1984, up from $ 1.82 in 1983.
These figures assume (till dilution.
In the Iburth quarter of 1984,
Piedmont earned $16.1 million on
revenues of $352.1 million, com
pared to earnings of $ 11.9 million
in lire same period of 1983 on
revenues of $279,0 million.
Revenues during the period grew
26.2 percent while operating
expenses grew 26.1 percent. Earn
ings per share for the last three
months of 1984 were $1.14, up
from 86 cents during the same
period ol 1983.
1984 Financial Resuits of major carriers
carrier
net profit
operating profit
operating ma
American
$233.9 million
$368.5 million
6.88%
Delta
$258.6 million
$291.5 million
6.53%
Eastern
($37.9 million)**
$189.6 million
4.34%
Piedmont
$58.2 million
$139.3 million
10.86%
IW/A
$29.9 million
$77.1 nrillion
2.1 1%
United
$258.9 million
$564.1 million
9.07%
USAir
$121.6 million
$191.9 million
1 1.77%
Western
($29.2 million)**
$1 1.4 million
.96%
*Operating margin is operating profit as a percentage of operating
revenues. At Piedmont, for example. 10.86% of our operating reuerute
is operating profit. This percentage is the second highest among major
carriers.
**Figures in parenthesis reflect lossesj'or the year.
'84 goes down os year of achievements
Piedmont excelled in virtually
every category in 1984. The Com
pany experienced phenomenal
growth last year just as we have
done every year since deregulation
of the industry in 1978.
One of the major highlights of
1984 occurred April 1 when we
became a transcontinental airline
with our service to Los Angeles.
During the year we also put Albany,
Savannah, Kalamazoo, San Fran
cisco, Evansville, and Rochester on
our map. By year's end our system
had expanded to include 65 air
ports or more than 92 cities in 24
states and the District of Columbia.
With our transcontinental serv
ice came new seat corrfigurations
for our long-range 727-200s so that
we could add first class sections.
Also by mid-November our sales
had topped $1 billion annually and
we became a “major" success. In
addition, we moved to 9th place
among U.S. carriers based on the
number of passengers boarded.
In 1984 we announced plans
to purchase 18 737-300s with
options on 15 more. The first air
craft is scheduled for delivery in
April. By year's end our fleet had
grown to include 63 737-200s,
34 727-200s, and 11 F28s.
Last year our agents began using
a new Automated Seat Selection
and Boarding Control System, and
our Marketing Department intro
duced our Frequent Flyer Bonus
1984 at a glance
• ASMs: up 24.3% to 11.8 billion
• RPMs; up 21.4% to 6.2 billion
• passengers boarded: up 22% to 14,273,887
• load factor: 52.57%, down 1.25 points
• total cargo ton miles: up 38.4% to 39.2 million
• service inaugurated: LAX, ALB, AZO, SFO, EW, ROC, SAV
• airports/cities served: 65 airports/92 cities in 24 states and the
District of Columbia (including Henson, we serve 74 airports in
110 cities)
• reservations calls: 19,811,598, up 16.5%
• Ticket-By-Mail sales: $135,804,757, up 35%
• meals and snacks served: 6.9 million, up 25%, 1.9 million liciuor
miniatures, 358,000 glasses of wine, and 777,000 cans of beer
• number ofemployees at year's end: 12,340 compared to 10,184
at the end of 1983
• stock high: $39
• fleet size at year's end: 63 737-200s, 34 727-200s, 11 F^8s
• on-time performance: 88% originating, 64% terminating
• total departures: 269,820, up 19%
Program with outstandirrg
resporrse from the public.
Iir 1984 we saw major const rue
tion projects get underway. At
Charlotte, four more gates have
been added and our conc:ourse has
doubled irr size. A $6 million
expansion at our maintenance
facility at GSO will be completed
this year. Construction was begun
on a $ 1.9 million hangar/office
complex in Wiirston-Salem for the
General Aviation Group which
will open this summer. We also
anrrounced plans for a $3.3 million
reservations facility at DAY which
will initially employ 210 people
when it operrs next month.
Over $ 1 million has been spent to
rerrovate the reservations office in
Winston Salem, and in 1984, con
struction was begun on our new
multimillion dollar computer cen
ter at Madison Park which, when
it oj^ens in the fall, will house our
own reservations system.
And 1984 proved to be our best
year ever financially. Our earnings
soared to a record $58,2 million.
For Piedmont, 1984 was a year
filled with many success stories.