Western Air Reports Sharp Profit Increase

Western Airlines, which began pulling out of its financial tailspin in the second half of last year, posted its fifth consecutive profitable quarter.

For the third quarter ended Sept. 30, the Los Angeles-based carrier earned $29.6 million on revenue of $353.2 million.

The earnings were the highest ever third-quarter profit for the company and an increase of 128% from a year ago, when Western netted $13 million on revenue of $322.3 million.

Figures for the most recent period included $9.9 million from the sale of equipment, compared to a $2.2-million gain on the sale of property a year earlier.

In addition, most of the company’s third-quarter tax liability of $15.2 million was offset by carrying forward an operating-loss credit of $14.5 million.

For the nine months, Western earned $74.6 million on revenue of $1.01 billion, more than a fourfold increase from a year earlier, when it lost $23.7 million on revenue of $903.5 million.

Separately, Western announced that it has registered $100 million in new convertible subordinated debentures with the Securities and Exchange Commission. The notes are to be underwritten by Drexel Burnham Lambert.