National Airlines posts loss for May

Thursday, July 18, 2002 | 11:09 a.m.

Las Vegas-based National Airlines reported a loss of $6 million in May, according to financial reports filed in U.S. Bankruptcy Court.

The company, which filed for Chapter 11 bankruptcy protection in December 2000, said that under new lease agreements and rental contracts that take effect with the approval of the airline's reorganization plan, the company would have lost $1.7 million for the period.

Approval of the reorganization plan is dependent on the approval of a $60 million federal government-backed loan guarantee pending before the Air Transportation Stabilization Board.

National reported revenue of $24.3 million for the period and operating expenses of $29.6 million for the month as well as $572,829 in reorganization costs. Among expenses were $5.7 million in aircraft rental expenses, which would have been cut to $2.2 million under revised contracts. Other expenses include $5 million for employee wages and $4.8 million for fuel, which were in line with expectations.

National reported a loss of $4.6 million -- $116,355 under the revised contract arrangement -- in April. Since the company filed for bankruptcy protection, it has lost $77.5 million, including $7.6 million in reorganization plan expenses.