TWA Reports a $4.4-Million Loss in Its Second Quarter

Trans World Airlines Inc. reported Friday a net loss of $4.4 million for the second quarter, which it attributed partly to expenses stemming from last year’s privatization of the carrier.

TWA, owned by takeover specialist Carl C. Icahn, said its second-quarter loss contrasted with a net profit of $97.2 million in the same period in 1988.

The year-earlier results include a one-time gain from litigation between TWA and the estate of the late Howard Hughes, a previous owner. The results for the latest quarter do not include about $87 million in unrealized gains from TWA’s investment portfolio, the company said.

The latest loss occurred despite a 5.7% increase in second-quarter revenue to $1.20 billion from $1.14 billion.

Late last week, TWA suspended contract talks with the machinists union because of the possibility of a merger or change in management at the airline, union officials said.