PSA and AirCal Post Deficits in 2nd Quarter

PSA Inc., the parent of Pacific Southwest Airlines, and AirCal Inc. posted second-quarter deficits, citing higher interest expense, foreign currency losses and continued fare wars.

Although Pacific Southwest Airlines reported $3.2 million in net income for the second quarter ended June 30, losses in other operations of the parent company caused a $6.9-million net loss for San Diego-based PSA Inc.

PSA Inc. reported an $18.7-million net loss for the first half, compared to $7.2 million in net income during the first half of 1985. Despite the gain in the second quarter, Pacific Southwest Airlines reported a $9.6-million net loss for the first half, compared to net income of $7.1 million during the same period a year ago.

PSA Inc. recorded a $2.1-million writedown on certain oil and gas properties.

The parent firm’s operating revenue rose 11% to $226 million for the second quarter. Airline operating revenue rose 1% to $194 million.

Newport Beach-based AirCal said it lost $2.9 million on revenue of $91.6 million for the three months ended June 30. In the year-earlier period, it earned $8.8 million on revenue of $97.2 million.

AirCal said it carried 6.6% more passengers in the second quarter than it did a year ago. But it said that continued fare wars decreased its earnings per passenger mile by more than 13%.