USAir Group’s Income in 2nd Quarter Up Eightfold

USAir Group Inc. said Friday that its second-quarter earnings were eight times higher than last year, boosted by improved industry conditions and cost reductions by the airline.

The carrier earned $112.8 million for the quarter ended June 30, compared to $13.8 million a year ago. Profit per share was $1.47, contrasted with a loss of 9 cents a share in the second quarter of 1994.

Revenue was $1.98 billion, up from $1.88 billion a year ago.

The company attributed the recovery to improved industry conditions and financial and cost-saving measures adopted by the airline.

USAir said it will cut almost $400 million from its cost structure this year and more than $400 million by the end of next year. The airline has said it needs to save $1 billion a year in operating costs over a five-year period.

In addition, the company is looking for $500 million in concessions from employees. Tentative agreements on wage and other concessions were reached earlier this year with the International Assn. of Machinists and the Air Line Pilots Assn.

The Assn. of Flight Attendants also reached a tentative agreement on concessions, but it voted earlier this month to reject the deal.

The airline’s earnings were also boosted by reduced competition on short-haul flights. In April, Continental Airlines scrapped its no-frills Lite division and its accompanying “Peanuts” fares.

The second quarter traditionally is the carrier’s strongest, given the airline’s particular combination of business traffic and north-south leisure traffic, the company said.

For the six months ended June 30, the airline earned $15 million, contrasted with a loss of $182.8 million the year before. It lost 41 cents a share for the quarter, contrasted with a loss of $3.72 a share last year.

Revenue was $3.74 billion, up from $3.56 billion in 1994.

On the New York Stock Exchange, USAir shares closed at $12, up 50 cents.