Braniff Posts $13.6-Million Net, 2nd Straight Profit

Braniff said it earned $13.6 million in the second quarter of its fiscal year, the second consecutive quarter of profitability.

A year earlier, the airline had a $39.9-million loss.

Braniff President Ron Ridgeway credited the improved earnings to the 29-day strike by pilots against United Airlines, Braniff’s strong load factor of 77.5% and gains from the company’s cost-cutting program.

Braniff said its second-quarter profit was boosted by a one-time tax-related gain of $6 million.

Revenue totaled $73 million in the second quarter, up slightly from $70 million a year earlier. Operating expenses dropped to $60.2 million from $96.4 million last year.

By providing only one or two flights a day on each long-distance route, Braniff’s service is so limited that it is ignored by its competitors, industry analysts said.

The carrier resumed operations on March 1, 1984, after emerging from Chapter 11 reorganization proceedings in federal bankruptcy court. It lost $80 million in the first nine months, then adopted its streamlined philosophy.

After its first fiscal quarter ended April 30, Braniff made its first profit and held down its operating costs with compatible labor contracts, below-market lease payments on airplanes and in-house maintenance and ground servicing.

Load factors have climbed steadily since November and have been above 70% in each of the past five months, the company said.

For detailed data and results of other companies, please see tables, Page 4.