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PSA's Parent in Red for Quarter, '86

February 25, 1987

PS Group Inc., the parent of Pacific Southwest Airlines, on Tuesday posted losses for the fourth quarter and the year, primarily because of high interest expenses and fluctuations in foreign currencies.

The company, which agreed in December to be acquired by Washington-based USAir Group for $400 million, reported a deficit of $4.9 million on revenue of $213.3 million for the three months ended Dec. 31.

In the final period of 1985, the company earned $10.5 million on revenue of $202.3 million.

For the full year, the company showed a loss of $13.9 million, compared to a year earlier when it earned $26.8 million. Revenue for the 12 months totaled $895.4 million, compared to $780 million.

The company has hit hard by non-operating costs. Its interest expense rose 29% to $18 million in the fourth quarter and by 46% to $70.8 million for the year.

In foreign currency transactions, primarily the Japanese yen, it posted a gain of $691,000 for the fourth period but a loss of $9.7 million for the year.

The company's plans to be acquired by USAir last month received tentative approval of the Transportation Department, and a shareholders meeting to vote on the deal is scheduled for March 17.

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