World Air Holdings’ 1st quarter profits down 64%
World Air Holdings Inc., parent company of World Airways and North American Airlines, today reported its delayed first quarter 2006 results, which showed a 64 percent drop in net income to $3.5 million, compared to $9.9 million posted in the same quarter 2005.
Operating income was down 45 percent to $9.4 million, compared to $17.2 million last year. Consolidated revenue rose 35.5 percent to $216.3 million from $159.5 million.
The company said the decreases were “principally due to an estimated $7 million to $8 million in lost contribution and expense related to the World Airways pilot strike and settlement, and $3 million of incremental professional fees related to various audit and accounting matters.”
“Overall, we were pleased with the performance in the first three months of this year, given the challenges we faced,” said Randy Martinez, World Air Holdings’ chief executive officer.
The NASDAQ Stock Exchange has upheld its decision in May to delist World Air Holdings following a series of delayed financial reports. “The company will seek to have its common stock relisted on NASDAQ or listed on another stock exchange,” World Air Holdings said.