Eastern Airlines Reports $110.6-Million Net Loss
Eastern Airlines announced a $110.6-million loss for the first quarter, blaming the drop on fare wars and uncertainty over a labor crisis.
Eastern, which agreed to be acquired by Houston-based Texas Air Corp. as it faced deadlines from creditors and labor unions in February, suffered its second straight losing quarter after five profitable quarters.
This quarter’s losses compared to a profit of $24.3 million in the first quarter of 1985. Revenue in the latest quarter was $1.13 billion, down from $1.2 billion.
“Sharply lower revenue yield per passenger brought about by industrywide fare discounting, and consumer uncertainty over union strike threats, contributed to a disappointing first quarter,†Frank Borman, Eastern’s chairman and chief executive, said in a statement.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
