Pan Am Posts Loss of $72 Million in Quarter

Pan Am Corp., citing the lingering effects of a strike against its airline unit, said Friday that its second-quarter loss widened to $72 million from a loss of $49.8 million a year earlier.

The holding company said that, even though the 28-day strike by the Transport Workers Union against Pan American World Airways ended on March 27, five days before the second quarter began, it severely affected results in April.

Pan Am Corp.’s operating revenue fell 5.4% to $868.1 million for the quarter, while operating expenses fell 3.2% to $900.2 million. Its operating loss was $32.1 million, compared to an operating loss of $12.1 million a year ago.

The second-quarter results include a charge of $23.7 million for severance and benefit costs related to the contract settlement with the transport workers and an $8-million provision for Pan Am’s share of costs in a tentative settlement of a lawsuit filed by the liquidator of defunct Laker Airways. The suit alleged that Pan Am and other carriers tried to drive Laker out of business.

Pan Am’s airline subsidiary had an operating loss of $36.4 million in the second quarter, compared to an operating loss of $15 million a year earlier. Its operating revenue fell 7.9% to $762 million.