National reports loss for June

Monday, Aug. 6, 2001 | 10:54 a.m.

National Airlines is still operating at a loss, U.S. Bankruptcy Court filings show, as the Las Vegas-based airline continues to shop for a buyer.

Dik Shimizu, a spokesman for National, said negotiations are continuing with prospective buyers. Citing confidentiality agreements, the company still isn't commenting on what companies are involved in talks.

National reported a $2.6 million loss for June. That includes payment of $413,837 in reorganization fees. During the course of the Chapter 11 bankruptcy proceeding, which began in December, the company has paid $2.3 million in reorganization fees.

The company reported revenues of $27.5 million for the month, including $26.6 million in ticket sales. But the airline spent $29.5 million in operational expenses, another $93,000 in interest payments and the reorganization fees.

Of the operational expenses, National paid $5.9 million for fuel and was contracted to pay $6 million in aircraft rental costs. The airline has negotiated reduced payments with its eight lessors, which would reduce its net loss to $458,724 for the month.

The company also paid $4.8 million in wages, $2.1 million in rents and landing fees and $1.4 million in travel agency commissions.

Since the bankruptcy filing, the company has posted a loss of $28.4 million.

National's next court date is scheduled later this month. The company is scheduled to report to Judge Linda Riegle on its progress in finding a buyer on Aug. 28.