TWA Posts $14-Million Loss in 2nd Quarter

Trans World Airlines Inc. on Wednesday said it lost $14.4 million in the second quarter, making it the only major airline to continue losing money.

The St. Louis-based airline lost 31 cents per share for the quarter ended June 30. A year ago, TWA earned $25.3 million, or 46 cents per share, in the second quarter--only its second quarterly profit since 1990.

TWA was expected to have a loss of 23 cents a share. Shares fell 31 cents to close at $6.31 on the American Stock Exchange.

While TWA struggles, other major airlines are making money. Continental on Wednesday announced a $128-million profit, which was down 23% from a year earlier. US Airways announced a 2.4% profit increase to $205.6 million.

TWA Chief Executive Gerald L. Gitner said he was disappointed, particularly in the airline’s failure to lure additional business travelers.

Gitner said the airline had anticipated bringing in more money for each mile a passenger flies. Instead, the airline’s yield fell about 3%.

TWA has pushed hard to lure business travelers, who typically fly at the last minute, paying top-dollar fares. The airline is increasing first-class seating by 60%, and Gitner said the airline will soon announce improvements in its frequent-flyer program.

Continental and US Airways attributed their better-than-expected results to a surprising increase in passengers.

The pilot unions at both airlines issued statements saying the profits justified their demands for better-paying contracts. Continental and its pilots have been negotiating for months without success. US Airways is asking its pilots to take a pay cut so it can better compete in the East Coast market.

US Airways, which recently changed its name from USAir, earned $205.59 million, or $2.46 per share, on revenue of $2.12 billion. A year earlier, the airline earned $200.77 million, or $2.71 per share, on revenue of $2.15 billion. The per-share results fell because the company had more outstanding shares in the latest quarter.

US Airways stock was off 75 cents to close at $38.13 on the New York Stock Exchange.

Houston-based Continental Airlines reported second-quarter earnings declined 23%, reflecting in part the reimposition of a federal ticket tax on domestic flights.

The carrier, the nation’s fifth largest, said net income was $128 million, or $2.01 per share, compared with $167 million, or $2.53 per share, a year ago.

Continental shares fell 38 cents to close at $36 on the New York Stock Exchange.