Unexpected losses attributable to the "hardest winter" the company has ever faced will necessarily have an impact on 1977 earnings, Allegheny Airlines president Edwin I. Colodny told stockholders at the company's annual meeting here yesterday.
He said losses totaled almost $10 million during the first four months of the year, but added that traffic has picked up and it appears that more passengers will board Allegheny planes this month than during any previous May.
Citing anticipated increases in operating costs, such as fuel, Colondy said future. Civil Aeronautics Board approval of fare increases will have "a major bearing on 1977 result." The CAB recently turned down a request from the domestic carriers for a 2 per cent fare rise.
In 1976, Allegheny's net earnings totaled $13.8 million ($2.19 a share) compared with a loss of $9.9 million ($1.64) in 1975.
Colondy also told the shareholders that CAB approval of some of Allegheny's applications for new route authority is necessary for the carrier to make "the transition from a local service carrier to a regional trunk carrier."
Allegheny's new service, the "Metro Express," between Harrisburg and New York's LaGuardia Airport using the 25-passenger M-298, looks like it will be "well received," Colodny said. In its first four weeks of operation, load factors exceeded 70 per cent. The service will be expanded to other cities late this year.