Texas Air Manages a Turnaround in Quarter

Texas Air Corp., the nation’s biggest airline company, reported a fourth-quarter profit of $21.7 million, compared to a $31.6-million loss in the year-ago period.

Fourth-quarter revenue more than tripled to $1.63 billion from $497 million a year earlier.

The Houston-based company owns Continental Airlines and New York Air and recently acquired Eastern Airlines and People Express.

On Feb. 1, Texas Air merged New York Air and People Express into Continental.

For the full year, Texas Air said its net income fell 20% to $72.7 million from $91 million in 1985.

Revenue for the year more than doubled to $4.41 billion from $1.94 billion in 1985.

The airline company said full-year results included $17.9 million in net income from Continental, a gain of more than $50 million realized by New York Air on the sale of assets to Pan Am and a portion of losses incurred at Eastern and People Express in 1986.

Continental, reporting separately, said fourth-quarter profit amounted to $23.3 million, compared to a $30.9-million loss the year before.

The latest results included a $15.3-million gain on sale of aircraft and termination of a pension plan. The 1985 fourth-quarter results included a $17.8-million charge for severance pay for former striking pilots.

Continental’s full-year earnings of $17.9 million were down 71% from a year earlier.

Also reporting separately, Eastern Airlines said it earned $6 million in the fourth quarter, compared to a $67.4-million loss a year ago.

For the year, Eastern reported a $130.8-million loss, compared to a profit of $6.3 million in 1985.