Tiger International Manages Turnaround

Tiger International reported its first quarterly profit in two years, thanks to savings achieved through massive employee wage and benefits concessions at its financially troubled Flying Tiger air cargo unit.

The Los Angeles-based company said it earned $4.8 million in the first quarter, compared to a $34.2-million loss in the same period a year earlier. The company said the turnaround was also due to reduced jet fuel prices and growth in Flying Tiger’s lucrative transpacific air freight business.

Flying Tiger’s operating earnings soared. The unit had operating earnings of $13 million for the first quarter, compared to a $27.9-million loss a year earlier. Flying Tiger’s operating revenue for the first quarter was $256.2 million, compared to $254.3 million.

Flying Tiger, the world’s largest air cargo line, obtained more than $50 million in annual wage and benefit concessions from its employees late last year that the company’s chairman, Stephen M. Wolf, said were vital to trim losses that had averaged $74,600 a day since 1981. Since last winter, the company has refinanced a portion of its debt and streamlined its route structure.