Trans World Airlines expects to show a record operating profit in the third quarter and a substantial fourth-quarter profit, its chairman said.
Carl C. Icahn told a group of securities analysts in New York that TWA would show an operating profit in the range of $100 million and pretax income of about $70 million.
Icahn said his projections were based upon operating profits for July and August, when operating profits totaled $70.3 million and pretax income $55.7 million.
”For only the second time in TWA`s history will the fourth quarter show a profit and this time, unlike the only other profitable fourth quarter in 1966, our fourth-quarter profit will be substantial,” Icahn said.
In the 1985 third quarter, TWA reported a net noss of $13.5 million on revenues of $1.08 billion.
For the 1985 fourth quarter, the airline lost $123.4 million after a one- time credit of $526,000. Revenues totaled $839 million in the final 1985 quarter.
Despite the recent turnaround, TWA is expected to be unprofitable for the full year. Its projected profits in the second half wouldn`t be sufficient to overcome a $201.8 million operating deficit in the first six months.
TWA`s rapid recovery occurred despite a flight attendants strike earlier this year and plummeting overseas travel.
