Republic Airways Holdings loses $14.9 million in the second quarter
Republic Airways Holdings (Indianapolis) reported operating revenues of $739.7 million for the quarter ended June 30, 2011, an increase of 8.3%, compared to $683.3 million for the same period last year. The increase in revenues is primarily due to a 10.6% increase in Frontier Airlines’ unit revenues. On a GAAP basis, the Company reported a net loss of $14.9 million, or $0.31 per diluted share, for the quarter ended June 30, 2011, compared to net income of $2.6 million, or $0.08 per diluted share, for the same period last year.
The total operational fleet of all subsidiary airlines increased from March 31, 2011, by two aircraft to 282 aircraft as of June 30, 2011. The Company increased its Frontier Airbus fleet by leasing five additional A320 aircraft during the quarter. Also, the Company returned two Embraer ERJ 145 aircraft to the lessor and sold one Airbus A318 aircraft.
By the end of September 2011, the Company expects to have transitioned all 14 Republic Airlines (2nd) Embraer ERJ 170 aircraft from its Frontier operation into fixed-fee service on behalf of Delta Air Lines. In order to backfill a portion of the capacity vacated by these aircraft, the Company expects to place into service for Frontier five of the seven Chautauqua Airlines ERJ 145 aircraft being removed from the Continental Express fixed-fee service during 2011. The other two ERJ 145 aircraft removed from Continental were returned to the lessor in the second quarter. The Company also expects to take delivery of six Embraer ERJ 190 aircraft beginning in September. Those aircraft are expected to be placed into the Frontier operation by January 2012.
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