TWA REPORTS RESULTS FOR THE 1991 THIRD QUARTER
TWA REPORTS RESULTS FOR THE 1991 THIRD QUARTER MT. KISCO, N.Y., Nov. 8 /PRNewswire/ -- TWA today announced a net
loss of $51.3 million for the third quarter and net income of $197.5 million for the nine months ended Sept. 30, 1991 compared to net losses of $14.7 million and $54.3 million for the 1990 third quarter and nine months, respectively. Net results include gains from the disposition of assets: $37.3 million in the third quarter and $676.6 million in the nine months ended Sept. 30, 1991, relating principally to the sale of TWA's Heathrow Route Authorities to American Airlines. Also contributing to net income are extraordinary items representing gains from the early extinguishment of certain portions of debt, net of allocable income taxes, together with an extraordinary income tax credit arising from carryforward of net operating losses for financial reporting purposes.
Operating losses for the third quarter of $60.3 million and $257.7 million for the nine months ended Sept. 30, 1991 compared to operating profits of $58.8 million and $1.9 million for comparable 1990 periods. The deterioration in operating results are due primarily to the unprecedented reduction in airline traffic and related passenger yield arising from the effect of the Persian Gulf War and the economic recession along with the short term impact of reallocating TWA's fleet from the London routes to other markets as a result of the sale of the Heathrow routes. In discussing the results, TWA's Chairman, Carl Icahn, indicated, "TWA has taken a number of actions to improve its revenue performance. In particular, its new business flyer fares have had extremely positive results which are beginning to be realized in October. With our initiatives to attract the price sensitive business flyer, we have positioned TWA to benefit substantially as traffic picks up with the level of economic activity. The combination of revenue enhancement programs, the dramatic reductions in debt service which will result from our 1992 restructuring and the new and more cost-effective leases that we have been negotiating during 1991, should position TWA as a formidable competitor in 1992 and beyond." -0- 11/8/91 /CONTACT: Donald Fleming of TWA, 914-242-3760/ CO: Trans World Airlines ST: New York IN: AIR SU: ERN JT -- NY071 -- 2772 11/08/91 18:06 EST
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|Date:||Nov 8, 1991|
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