Following is a chart showing the financial results for
the second quarter and first six months of 1988 for major
first six months
$ 28.4 million
($ 15.1 million)
1 1.91 cents
($ 5.0 million)
($ 88.4 million)
S 59.9 million
1 7.69 cents
$ 72.1 million
] 7.69 cents
$ 15.0 million
$ 15.3 million
$ 97.2 million
$ 44.7 million
$ 43.5 million
$ 41.2 million
* * *
America West had a
net profit of $2.6 million for the
second quarter compared to a loss of $8.9 million in the
second quarter of 1987. Yield for the same period rose
from 9.89 cents in 1987 to 10.29 during the same period
♦ * ♦
American has purchased as much as $23 million of
Braniffs assets, primarily gates and slots at DFW, ORD,
and LGA, and the airline has agreed to loan Braniff up
to $21 million as part of the deal. Braniff has also an
nounced the sale-leaseback of 12 BAG-Ills and spare
engines it acquired when the airline purchased Florida
Express and an order for 12 new Fokker 100s.
Braniff plans to expand its Kansas City hub operation
by more than 50 percent on September 12. The airline
will offer 76 daily flights, up 26 from the current 50.
Braniff will offer new service from Kansas City to Boston,
Houston, Philadelphia and Oklahoma City and increase
its frequency of nonstop flights in 14 other markets. At
the same time, the airline will reduce the number of daily
flights it operates at DFW to nine from the current 20.
* * *
Eastern will cut its daily flights 11.5 percent on August
31 to 1,085 from a current 1,225. Service will be com
pletely suspended to 14 cities. Eastern is abandoning its
Kansas City hub and eliminating about 4,000 employee
})! :fe *
Continental is expanding its service in the Northeast-
Florida markets. Effective September 12, Texas Air will
add daily nonstop service from Tkmpa to Hartford, Buf
falo, and Boston, and both Ft. Lauderdale and Orlando
will gain new service to Hartford and Boston. In addition,
the airline will inaugurate daily service between Provi
dence and Orlando. In the Newark-Boston market. Con
tinental will increase the number of daily flights to 18,
and the airline will open a SuperShuttle operation be
tween Newark and Buffalo with 14 daily flights.
* * *
American recently opened an Admiral’s Club at Paris
Orly increasing the total number of clubs worldwide
United Airlines, a unit of Chicago-based UAL Corp.,
hopes to increase service to CLT in late 1989 or early
1990 as well as Denver and Washington-Dulles. United,
which did not disclose how many flights the airline might
add to CLT, currently has four daily flights from CLT, in
cluding three to Chicago and one to Columbia. However
the airline recently dropped its CLT to Charleston service
and plans to end its CLT to Columbia flight September 7.
* ★ *
American Airlines recently announced plans to estab
lish its 11th and 12th crew bases in Miami and Nashville.
Scheduled to open in January, the Miami crew base will
initially involve about 160 pilots and flight attendants
but is expected to expand to 700. American has in
creased its number of Florida destinations from seven to
11 cities in the past two years. The airline currently has
78 flights a day in Florida and boarded 995,000 passen
gers there during the first six months of 1988. American
occupies four gates in Concourse H at Miami.
At its Nashville hub, American initially plans to base
75 flight attendants but is expected to grow to as many
as 600 within a few years. The Nashville base is sched
uled to open in October. American estimates that the
overall economic impact of the bases on the local econo
mies of Miami and Nashville will be $70 million and $28
Net, operating income set records
USAir Group reported that net and operat
ing income for the second quarter of 1988
set new records for a single quarter.
Second quarter net income was $92.5 mil
lion, which compares with $72.7 million for
the second quarter of 1987. Operating in
come for the second quarter was $183.7 mil
lion, up from $99.1 million for the same
period of last year.
For the first six months of 1988, USAir
Group had net income of $73.7 million, com
pared with net income of $96.2 million for
the same period of 1987. First-half operating
income was $187.8 million versus $127.7
million for the comparable period of 1987.
USAir Group Chairman and President Ed
Colodny said, “Second quarter results are in
dicators of trends that began in March and
have continued to date. I am also pleased
that all subsidiaries of USAir Group con
tributed to the record profitability of the sec
USAir Group operating revenue for the sec
ond quarter was $1.5 billion compared with
$619.6 million for the same period of 1987.
For the first six months, operating revenue
totaled $2.7 billion, up from $1.1 billion for
the first half of 1987.
USAir Group's fully diluted earnings per
share for the second quarter were $2.14 on
43,310,000 shares, compared with $2.32 on
25.8 percent fewer shares (32,128,000) for
the same quarter of last year. For the first six
months, fully diluted earnings per share
were $1.70 on 43,295,000 shares, compared
with $3.13 on 31.986,000 shares for the first
half of 1987.
Included in the consolidated results are the
operations of USAir, Piedmont Aviation, four
wholly-owned commuter airline subsidiaries,
and a leasing and servicing subsidiary.
USAir reported net and operating income
for the second quarter of $43.5 million and
$65.5 million, respectively, which compare
with net and operating income of $53.9 mil
lion and $87.5 million for the same period of
1987. Operating revenue for the second quar
ter was $778.0 million, up from $529.2 mil
lion for the second quarter of 1987. For the
first six months of 1988 USAir had net in
come of $41.2 million and operating income
of $64.3 million on revenue of $1.3 billion.
During the first half of 1987 USAir net and
operating income were $72.8 million and
$115.6 million, respectively. Operating reve
nue was $979.1 million.
Piedmont reported net and operating in
come for the second quarter of $59.9 million
and $115.9 million, respectively. Operating
revenue for the second quarter was $695.4
million. For the first six months of 1988
Piedmont had net income of $72.1 million
and operating income of $142.5 million on
revenue of $1.3 billion. Financial information
for pre-acquisition and post-acquisition peri
ods reflect different bases of accounting.
- 0.85 pts.
- 1.12 pts.
* All-time record for passengers, ASMs. and RPMs.
*The following 16 stations set record enplanements for the month of July: BWI, CLT. EVV, IND.
ISP. LAX. MSP MYR, NAS, PNS, PVD, SAN, SFO, SEA, STL, and ILM.
*Our seven reservations centers answered 3,068,329 calls in July 1988.
- 7.0 pts.
- 3.5 pts.
*USAir's July traffic results include those of PSA which was merged into USAir on April 9.
Service increases to Phoenix
Strong demand for more service to Phoe
nix has led Piedmont to start a second daily
nonstop, round-trip flight to that city from
Charlotte-Douglas International Airport on
September 7. The company has been serving
Phoenix since December 1987 and connects
to more than 30 cities with the destination
through Charlotte. The new round trip will
add Macon, GA, to the list.
The new flight to Phoenix will leave at
5:54 p.m. and arrive at 7:35 p.m. (MST). The
return flight will leave at 11:59 p.m. (MST)
and arrive in Charlotte at 7:04 a.m.
A second daily nonstop round-trip from
Phoenix to San Diego is also being added to
Piedmont will also increase round-trip ser
vice between Charlotte and Charlottesville,
Indianapolis, and Philadelphia.
In other additions to the schedule on Sep
tember 7, Piedmont will add service from
Baltimore/Washington International Airport
to four cities including a fourth daily round-
trip flight to Detroit, a second round-trip to
Utica-Rome, an eighth flight to Boston, and
a second daily flight to Fayetteville/Ft.
Piedmont will increase nonstop flights
from Syracuse to Newark International Air
port from four to six daily and add an eighth
daily return trip. A second daily nonstop
one-way flight from Kennedy International
Airport to Syracuse will also be added.
Additional one-way service to be added to
the schedule on September 7 includes BOS-
CLT, CLT-CLE, CLE-BWI, DAY-TPA, DCA-
GSO, GSO-PHL, ORF-CLT, PHL-BWI, and
USAir's September 7 schedule inaugurates
daily nonstop service between Phoenix Sky
Harbor Airport and Philadelphia and ex
pands its nonstop service from one to two
daily round-trips between PHX and Indi
anapolis and PHX and San Jose.
or^ September 7
number of departures: 1,379
miles flown daily: 521,317
number of aircraft in fleet: 189
average aircraft hop: 378.0 miles
daily block time flown: 1,729 hours
next schedule change: October 1
Piedmonitor • August 1988