PAN AM REPORTS THIRD QUARTER RESULTS
PAN AM REPORTS THIRD QUARTER RESULTS MIAMI, Nov. 21 /PRNewswire/ -- Pan Am Corporation today reported
a net loss of $160.0 million in the third quarter of 1991 compared with last year's third quarter loss from continuing operations of $29.1 million.
The corporation's consolidated operating loss for the third quarter this year was $128.0 million, compared with last year's third quarter operating profit of $19.5 million. Operating revenues decreased 38.4 percent, from $1.154 billion to $711.0 million, while operating expenses decreased 25.9 percent, from $1.134 billion to $840.0 million. Pan American World Airways, the principal subsidiary of the corporation, reported a $150.3 million net loss in the third quarter of 1991 compared with a $29.2 million net loss reported in the third quarter last year. On Nov. 1, Pan Am completed the transfer of its TransAtlantic routes to Delta Air Lines. This followed the Sept. 1 transfer of Pan Am's Northeast corridor Shuttle to Delta. The results of these transactions will be recorded in the fourth quarter. A hearing is set for Dec. 3 in the United States Bankruptcy Court in New York at which time Pan Am will be seeking confirmation of its Plan of Reorganization which will enable the carrier to continue as a Miami-based airline operating primarily between the United States and Latin America and from Miami to Paris. The airline reported an operating loss of $119.2 million, compared with an operating profit of $16.5 million in the third quarter last year. Operating revenues for the airline were off 38.6 percent, from $1.080 billion to $663.4 million, while operating expenses were down 26.4 percent, from $1.063 billion to $782.6 million. Compared with last year's third quarter, scheduled passenger traffic was down 32.4 percent, from 9.415 billion revenue passenger miles to 6.361 billion, load factor decreased 6.4 points, from 73.4 percent to 67.0 percent and revenue passenger yield decreased 8.4 percent, from 10.30 cents to 9.43 cents. Pan Am noted that revenue passenger miles in its Atlantic Division decreased 48.9 percent principally as a result of the sale of five of its TransAtlantic routes from the United States to London-Heathrow to United Airlines in April of this year. In addition, the airline noted that weak economic conditions in all areas of its operations diminished air travel demand. In an attempt to stimulate travel, the industry offered widespread fare discounting which also eroded yield, or the average amount of revenue per passenger mile flown. The corporation's two other airline subsidiaries, Pan Am Express and Pan Am Shuttle, together reported an operating loss of $8.6 million, compared with an operating profit of $3.7 million in the third quarter last year. FIRST NINE MONTHS For the first nine months of 1991, Pan American Corporation reported a net loss of $309.2 million, compared with a $268.8 net million loss from continuing operations in 1990. Operating revenues for the first nine months of the year were down 29.7 percent, from $3.020 billion to $2.122 billion, while operating expenses were down 18.0 percent, from $3.159 billion to $2.592 billion. The corporation's operating loss increased from a loss last year of $139.2 million to a loss this year of $469.8 million. Pan American World Airways reported a 30.7 percent decrease in operating revenues, from $2.806 billion to $1.945 billion, while operating expenses were down 18.7 percent, from $2.949 billion to $2.398 billion. The corporation's two other airline subsidiaries, Pan Am Express and Pan Am Shuttle, together reported a $16.0 million operating loss, compared with a $4.7 million operating profit last year. Compared with last year's first nine months, scheduled passenger traffic was down 31.0 percent, from 24,134 billion revenue passenger miles to 16,659 billion, load factor decreased 3.6 points from 66.7 percent to 63.1 percent, and revenue passenger yield decreased 5.4 percent, from 10.29 cents to 9.73 cents. -0- 11/21/91 /CONTACT: Jeff Kriendler of Pan American World Airways, 305-874-2383/ CO: Pan American World Airways ST: Florida IN: AIR SU: ERN SS-AW -- FL017 -- 6077 11/21/91 16:45 EST
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|Date:||Nov 21, 1991|
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