VOLUME 51 NUMBER 8, AUG. 15, 1988

Record Profit In 2nd

TWA reported August 8 the highest dividend requirements, compared to the A great new program is coming to TWA . . . operating profits ever attained in the 1987 second quarter net income of $52. 8 history of the Company for a second million or $1.28 per common share. For quarter and for a first half based on its the first six months of 1988, TWA's net in­ preliminary results for those periods in come of $44. 7 million was equivalent to 1988. TWA's operating profit (before net earnings of $0.50 per common share after interest expense, other charges and deducting preferred stock dividend re­ credits, and a gain from the Howard quirements. During the comparable 1987 Hughes lawsuit) for the 1988 second period, TWA had a net loss of $2 .0 quarter was $106 .4 million, an increase of million, equivalent to a loss of $0.96 per 10 .6% over the operating profit of $96.2 common share after deducting preferred million for the second quarter of 1987. stock dividend requirements. The operating profit for the first six Results for the 1988 second quarter and months of 1988 was $98.6 million, an im­ the first six months of the year reflect an provement of 37.2% over the $71.9 increase in interest charges over the 1987 million operating profit for the first six comparable reporting periods of approx­ months of 1987. Operating profit and net imately $21 and $38 million, respective­ income figures do not reflect net unrealiz­ ly, primarily because of increased cash bor­ You'll have the oppor uni o submit your ideas to ed gains of approximately $360 million if rowings. The results also reflect a reduc­ TWA. . .and to earn fantastic merchandise awards such TWA securities holdings were marked to tion in the provision for depreciation of air­ market based on June 30, 1988 closing craft of $11.6 million and $22.0 million for as: prices. Of this unrealized gain, approx­ the second quarter and first half of 1988, imately $240 million was attributable to respectively, as compared to the same Televisions . Furniture ... gains during the first six months of 1988. periods of 1987. As of January 1, 1988,

Stereos ... Clothing .. . The 1988 second quarter net income of TWA changed the rate of depreciation ap­ $97.2 million (including a gain of $49.9 plied in order to more fully reflect the true Golf Clubs ... Appliances . . . million from a cash judgment received by useful life of its fleet. TWA indicated that the foregoing results and much more! TWA in the Howard Hughes lawsuit) was equivalent to earnings of $2.70 per com­ are preliminary, have not yet been finaliz­ ed and are subject to change. You'll find out all the details at an exciting announcement mon share after deducting preferred stock meeting coming soon!

A/C Talks Continue

TWA is negotiating to acquire new two­ Douglas MD-80 and MD-90 series aircraft. engine jet aircraft mainly for domestic The new aircraft would be used as routes in order to modernize its 219-jet replacements for older aircraft, primarily fleet. Early delivery of the new jets is an the three-engine 727s. important consideration. In the present fleet, there are 76 727s, Discussions are underway with , 18 747s, 11 767s, 46 DC-9s, 33 MD-80s and McDonnell Douglas, the three and 35 L- 10 11s. major aircraft manufacturers . Models TWA's Board of Directors has given under evaluation include the Airbus A320, senior management the authority to ne­ Boeing 737 and 757, and McDonnell gotiate for the acquisition.

FFB Tourney Held Nationwide

Over 120 FFB members get ready for 18 holes in the TWA FFB Golf Classic at Travel Academy Expands Lake Forest Country Club in St. Louis August 8. Tournaments also are being held at approximately 15 sites nationwide with the winners competing for the top prize in Nassau in November. Golf Digest operates the events at no expense to TWA. Many changes are taking place at Trans Maple Woods Communi