Reno Air rebounding, shows profit in second quarter

"It's good news," said Connie Huff, head of Reno Air Corporate Communications.

The $1.04 million in net income is to be announced on Thursday for the three months ending June 30.

It represents earnings of 10 cents per share of common stock, compared with 2 cents per share and $200,000 in net income for the same period a year ago.

It marks the first full quarter for Reno Air since Joe O'Gorman took over as chief executive officer in February under a restructuring move that has seen Reno Air cutback on flights and trim its workforce by 15 percent.

"The second quarter earnings - almost five times that of last year, and a significant turnaround from the $8.6 million loss in the first quarter - is a tribute to the hard work and dedication of the almost 2,000 Reno Air employees," O'Gorman said in a statement.

"These results do not indicate that our problems are solved, but we are moving in the right direction and things are looking better," he said.

The low-fare airline lost $12.3 million in 1997 but O'Gorman says it is on track to finish in the black by the end of this year.

Operating revenues increased 1.4 percent to $98.8 million during the second quarter of 1998 compared with $97.4 million during the same period last year.

Operating expenses decreased to $95.7 million in the second period compared with $96.5 million for the second quarter of 1997.

Beginning Sept. 15, the low-fare airline will cut one flight a day between Reno and Seattle, Los Angeles, San Diego, Las Vegas, Chicago, Orange County, Calif. and Portland, Ore.

A seasonal, nonstop flight to Anchorage also will be discontinued, but it will continue a flight to that city with a stop in Seattle.

Also in September, the airline will add two new daily nonstop flights between Seattle and Orange County, and one nonstop flight between Los Angeles and Colorado Springs, Colo.

Four daily flights between Burbank, California and San Jose will be added in October.

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