PSA, Parent Group Report Net Loss During 1st Quarter

Pacific Southwest Airlines on Thursday reported a $6.5-million net loss and PS Group, PSA’s parent company, reported a $7.3-million net loss for the first quarter of 1987. During the same quarter a year ago, the San Diego-based airline reported a $10.9-million net loss, and its parent reported a $9.9-million net loss.

PSA reported that revenue rose 5% to $183.8 million. PS Group said first-quarter revenue rose 10% to $234 million.

However, lower fuel costs and increased passenger traffic created by discount fare programs and Easter holiday travel failed to offset increased operating costs during the “traditionally weak” first quarter, PSA said. The airline reported a $2.6-million operating loss during the quarter, contrasted with a $10.1-million operating loss a year earlier.

Airframe and engine repair expenses increased by 37% to $4.7 million during the quarter, which ended March 28. PSA anticipated higher engine repair costs for its MD-80 and BAe-146 aircraft, according to documents filed earlier this month with the Securities & Exchange Commission.

PS Group, which owns 83% of PSA, reported a $5.3-million operating profit contrasted with a $4.2-million operating loss a year ago. Income generated by a “higher number of aircraft on lease to PSA” was offset by losses in PS Group’s depressed petroleum exploration and production businesses.