AMR Posts Profit for 2nd Straight Quarter; USAir Reports Loss

American Airlines’ corporate parent reported its second quarterly profit in a row Wednesday, and its flight attendants used the occasion to announce a strike deadline. USAir, meanwhile, increased its loss in the quarter.

USAir’s loss, which the company warned of a month ago, was expected to be the only bleak spot in an otherwise profitable quarter at the country’s major airlines.

In 1992’s summer quarter, usually the best for airlines, a half-off fare sale devastated profits and brought some of the biggest losses ever for the industry.

This year, cost-cutting efforts are showing results, fares are higher and jet fuel is more than 10% cheaper. But for some airlines, the profits aren’t expected to make up for money lost in the first three months of the year and expected losses in the final three months, traditionally the two weakest periods.

AMR earned $118 million, or $1.33 per share, in the third quarter. A year ago, the company lost $100 million, or $1.32 per share. The latest quarter included a onetime charge of $7 million, or 10 cents a share, to pay debt off early.

Revenue in the quarter was $4.2 billion, up 13% from $3.73 billion.

AMR’s stock finished $1 a share higher on Wednesday on the New York Stock Exchange at $68.

AMR Corp.’s profit, which came after nearly two years of quarterly losses, was seized upon by the company’s flight attendants union, now in contract negotiations with American.

The Assn. of Professional Flight Attendants plans to walk off the job on or before Nov. 22 if the two sides can’t agree to contract terms, said Denise Hedges, the union’s president. The all-out strike would fall on the Monday three days before Thanksgiving, one of the year’s heaviest travel periods.

The carrier is now in a 30-day cooling-off period in federally mediated negotiations. When the clock runs out next weekend, the union can legally strike and the company can lock out employees.

Arlington, Va.-based USAir lost $177.6 million in the July-September quarter, slightly less than the company said it would lose as the quarter ended.

USAir’s loss came to $3.33 per share and included a onetime charge of $67.2 million to pay for 2,500 layoffs. A year ago, the company lost $105.5 million, or $2.51 per share, inflated by a $10.3-million gain from asset sales.

Revenue in the quarter rose 2.8% to $1.75 billion from $1.70 billion a year earlier.

USAir’s stock finished unchanged Wednesday on the NYSE at $13.75 per share.