Flight 800 Explosion Haunts Twa Airline Lowers Expectations For Third-Quarter Earnings

In the first sign of the Flight 800 explosion’s impact on its finances, Trans World Airlines said Wednesday it expects to report lower earnings from this summer.

In part, the airline blames slackening ticket sales, particularly on the high-priced international routes.

“Operationally and emotionally this has been an extremely difficult summer for the people of TWA,” said Jeffrey Erickson, the airline’s president and chief executive. “While we are disappointed by this, we continue to have faith in the future of TWA.”

Erickson tried to focus on the airline’s gains before the July 17 explosion that downed a Paris-bound flight and claimed 230 lives. He noted that prior to this quarter, TWA had posted six straight quarters of improved results. He also said the airline was in the midst of upgrading and expanding its fleet to improve efficiencies.

“We are taking the steps necessary to keep TWA’s recovery on track,” he said.

After years of economic trouble and two trips to bankruptcy court, TWA had been showing clear signs of a comeback. Just hours before the crash off New York’s Long Island, the airline reported earnings for the second quarter of $25.3 million, the best showing in years.

The airline said that despite higher traffic and revenue for the quarter that ends Sept. 30, results from July and August were below last year’s levels. The airline blamed that in part to a loss of premium fare international bookings after the crash, as well as lower prices and increased traffic on routes with lower fares.

The airline said advance bookings after the crash also fell, resulting in fewer travelers in September.

Both international and domestic bookings are expected to be back to normal next month, said TWA spokesman John McDonald.