Allegheny Airlines reported yesterday a surprising decline in fourth-quarter profits despite a substantial increase in earnings for the full year.
The Washington-based company, sixth largest among U.S. domestic airlines in terms of riders, said profits from operations in the last three months dipped to $3.7 million (46 cents a share) from $7 million (72 cents) in the 1977 period. Revenues increased to $146 million from $135 million.
For the year, operating profits jumped to $22.5 million ($2,82 a share) compared with $15.9 million ($1.72) in 1977 as revenues rose to $567 million from $493 million.
In 1978, an extraordinary credit of $9.9 million made final net income $32.3 million ($4.06 a share).The 1977 earnings included pre-tax income of $7.4 million in retroactive mail payments for the years 1973 through 1976.
A credit of $2.5 million in the final quarter of 1978 brought net income in that period to $6.2 million.
Sales of airplanes were a major factor in 1978 earnings, the airline said, bringing in a pre-tax gain of $17.4 million compared with $2.2 million of pre-tax sale proceeds in 1977.
MCI Communications Corp., of Washington, reported record revenues and profits from operations in the quarter ended Dec. 31.
Income from operations rose 26 percent to $8.3 million from $6.6 million while revenues were up 31 percent to $25 million. Net income was down to $2 million (7 cents a share) from $2.7 million (12 cents) a year earlier, because the 1977 period had included a $1.5 million one-time gain from a sale.
For the nine months ended Dec. 31, MCI earned $4.3 million (15 cents a share) compared with $4.6 million (20 cents) and revnues rose to $68 million from $55 million. Per-share earnings are lower in the recent period because of more common shares out-standing.
The Washington firm, which offers private intercity communications services, completed a public offering of preferred stock in the recent quarter.