1985 earnings rise
To record $66,7 million
Piedmont reported net
earnings of $66.7 million for
the year ended December 31,
1985, the most of any year in
the company's history.
Earnings for the year rose
14,7 percent over the previous
record of $58,2 million set in
1984,
Per share earnings (fully
diluted) for 1985 increased
0,3 percent to $3,76 a share
compared with $3.75 per
share for the full year of 1984.
Operating revenues for
1985 grew to $1.53 billion, a
19 percent increase over the
$1.28 billion generated a year
earlier. Operating expenses
grew to 1.41 billion, a 23 per
cent increase over 1984. and
net operating income de
creased 13.7 percent to
$120.2 million from the
$139.3 million recorded a
year earlier.
"What this means is that
we made 13.7 percent less
money running the airline
than we did in 1984," Bill
Howard, president and chief
executive officer, explained.
"Our net profit rose pri
marily because of lower inter
est expenses and a reduction
in income taxes during the
year. Our operating profit
declined because, while we
added 23 percent more seats,
our operating expenses grew
at a faster rate, increasing our
unit costs. Putting it another
way, our yield — the amount of
money we receive for carrying
one passenger one mile—
decreased because of wide
spread fare discounting."
During the three months
ended December 31, 1985,
Piedmont had after-tax earn
ings of $16,05 million, a
decrease of 0.2 percent from
the $16.08 million reported in
the same three months of
1984. Per share earnings for
the final quarter of 1985 were
$0.88 (fully diluted), down
from $1,03 per share (fully
diluted) a year earlier.
Operating revenues for the
final three months of 1985
grew to $417.4 million, an
18.5 percent increase over the
$352.1 million reported for
the same period in 1984.
Operating expenses during
the period increased to
$384.4 million, up from
$312.7 million recorded in the
final quarter of 1984.
Howard noted that record
earnings for 1985 were
achieved despite significantly
reduced average ticket prices
and increased competition by
discount carriers and tradi
tional major airlines over
Piedmont's route system.
"The growing strength and
maturity of our hubs at
Charlotte, Dayton, and the
Baltimore/Washington Inter
national Airport enabled us to
expand our traffic rapidly
enough to offset the average
lower ticket price," he said.
"Our system of keeping
most Piedmont connecting
passengers on Piedmont
llights helps us offer highly
competitive services at a com
petitive price."
Thanks, Piedmont
Last fall. Piedmont surveyed a small sample of
Frequent Flyer Bonus Program members to prolile their
travel habits and to gauge the program's success to date.
The response was overwhelming.
Almost 45 percent of the 8,000 flyers selected
answered our questionnaire, and two out of every three
who answered returned the questionnaires along with
comments in praise and support of Piedmont. Following
are just a few of those comments:
• / enjoy flying PI and think it's got all the others beat
when it comes to service and style.
• I fly PI because I have more confidence in that
airline than any other.
• PI has been a good people-oriented airline. I've
watched the "up-and-coming airline" mature to what it
is now and PI has never lost its people-caring attitude.
• I personally believe PI is the best #1 airline for (I)
on-tim.e, (2) schedule to various destinations.
(3) personnel. (4) cleanliness of planes. (5) food.
• Personally delighted with your successful growth.
• PI is a great airline. It's service-oriented and has
proven time and time again that customers are
important.
• I really fly PI because of great service and
convenience.
• Your airline is terrific—particularly the people.
• Your employees appear to enjoy their work and are
always very helpful.
• Friendly, competent servicefron^ reservations,
ticketing, and gate personnel to in-flight personnel is a
pleasant plus.
• It's easy to see how you became the NUMBER ONE
AIRLINE in 84-85. Everyone who works for PI has the
number one spirit.
• The PI personnel are among the nwst courteous
and friendly I encounter.
• The best part about flying PI is the employee
attitude.
• I enjoy flying PI. It seems a truly caring airline.
• Keep the big boys Jumping with your North
Carolina charm.
• Don't be like other airlines and lose that personal
touch. j
January
passengers* 1,499,722 -t-29.3%
revenue passenger miles* 695.8 million -t-30.5%
available seat miles* 1.4 billion -t-21.3%
load factor 50.62% -(- 3.58 pts.
’record for January
January
U.S. Mail 1,803,503 -f-31.1%
Air Freight 1,571,506 7,7%
Air Express 45,745 - 1.2%
total 3,420,754 -t-18.7%
On March 15, our Heel will number 131. We will have
63 737-200S. 11 737-300s, 20 F28-1000s. three
F28-4000S, and 34 727-200s, Empire will have 16
F28-4000S on that dale with an additional delivery
scheduled for this spring. The Piedmont identity will
appear in 120 airports by March 15,
The concourse expansion work will be completed at
MIA by March 15. Maintenance, avionics, catering, and
llight crew facilities will soon be ready for occupancy.
At MCO, expansion plans are underway. I'he Con
course will be widened from 60 to 85 feet, the holdroom
will be enlarged, and a Presidential Suite will be
available. When the work is completed in 1987 we will
liave six gates.
Plans are also on the drawing boards at TPA for
additional facilities on both the concourse and airside
buildings.
Work has begun at DCA on a new Presidential Suite
and administrative area, located adjacent to Gate 39 in
the north end of the terminal. The new facilities will be
ready in the second quarter of 1986.
We are now the largest carrier at JAX with 22 daily
departures. In December, we boarded over 26,500 pas
sengers, more than any other airline, and on December
20, we had a record day.
♦ ♦ ★
CMI Station Agent Kiithryn Thomas has received a
'roPS (Total Outstanding Passenger Services) Award for
escorting a child from CMI to TPA.
A seven-year-old boy became ill while visiting his
father and was hospitalized. When he was released from
the hospital, his mother wanted him to come home to
TPA but she couldn't afford to fly to CMI to bring the
boy back and he could not travel by car because of his
condition. 'I'he boy arrived at the airport, but the note
from his doctor said he should not lly alone. When
advised of the situation, Thomas, who was just getting
off duty, volunteered to escort the child home.
The boy arrived safely, thanks to 'I'homas, and was
met by a very relieved and happy mother. Because of
Thomas' efforts, she received five shares of Piedmont
stock and an engraved plaque.
* * *
Captain Cheryl Peters, a 737 pilot based at CLT, was
one of ten women honored recently at a National Avia
tion Club luncheon for Women in Aviation.
The honorees included "women who arc currently
making aviation history and arc helping maintain our
nation’s lead in this most critical profession." Senator
Barry Goldwater, who has over 50 years of Hying
experience, spoke at the luncheon.
Peters became the first female to lly for Piedmont
when she joined the Company in May 1974. She was
upgraded to captain in 1979 on the YS-11.
« >ti >K
Howard Mackinnon, senior vice president-finance and
treasurer, has been selected to serve on the Chamber of
Commerce of the United State's Economic Policy
Committee. The committee, which includes 45 mem
bers representing a variety of companies from around
the United States, helps develop U,S. Chamber policy
positions on items such as the federal budget, the
deficit, monetary matters, international trade, and
financial regulation.
Mackinnon has also been elected to a three-year term
on the board of directors of the Forsyth County United
Way.
♦ * ♦
Tfed Celentino, vice president-computer and com
munications services, has been elected to the boards of
directors of Arinc Inc. He is one of 14 air transport
industry executives on the boards of Arinc Inc. and its
wholly-owned subsidiaries. Aeronautical Radio, Inc.
(ARINC) which operates five air transport communica
tion centers and 13 communications equipment main
tenance centers around the country and in San Juan,
and ARINC Research Corporation, an engineering and
management consulting firm.