Despite posting another year-end loss, Trans World Airlines ended 1997 optimistic that its turnaround is finally beginning to gather momentum.
As expected, the carrier ended the year with a net loss, but had managed to cut the deficit to $90 million (before a tax writedown), compared with the $275 million loss posted in 1996. Cash reserves also ended the year higher, at $238 million, having stood at only $182 million a year ago.
Chairman Gerald Gitner says that the airline's fortunes improved over the second half of the year, pointing to the fact that it made a small operating profit in the December quarter for only the second time in a decade.
He notes that load factor and yield have shown gains this year. On-time performance improved dramatically last year, supporting the push for more business travellers. Also supporting a turnaround is TWA's fleet renewal programme. In 1997, TWA took delivery of 26 aircraft, including a dozen Boeing 757s. It retired its last Lockheed L-1011 in September last year and will withdraw from service its remaining Boeing 747 later this month.
Source: Flight International
