3 Major Air Carriers Report Mixed Results

Eastern Airlines reported that the sale of some ground facilities saved the ailing carrier from a $6.9-million third-quarter loss, and historically strong Delta Air Lines reported a 79% earnings jump, largely because of accounting changes and sharply lower fuel bills.

Western Airlines, Delta’s prospective partner in an $860-million merger announced last month, said third-quarter earnings were down 13%.

Miami-based Eastern said earnings in the July-August quarter totaled $17.9 million, a 25% decline from the $23.9 million earned in the same quarter last year. Revenue totaled $1.14 billion, down 4.3% from $1.19 billion.

Without the $24.8-million sale of assets, primarily airport properties in Charlotte, N.C., the carrier would have suffered a net loss.

Atlanta-based Delta, which has been one of the industry’s most profitable airlines, said third-quarter earnings totaled $53 million, compared to $29.5 million in the 1985 third quarter. Revenue totaled $1.10 billion, down 2% from $1.12 billion.

Robert Oppenlander, chief financial officer, said in a statement that the main reason for the large gain was a 45% decline in fuel prices and a change in Delta’s aircraft depreciation policy that saved $34.5 million in expenses.

Los Angeles-based Western said third-quarter earnings totaled $25.8 million, down from $29.6 million in 1985. Revenue totaled $346.3 million, compared to $353.2 million, down 2%.