Republic Airways Holdings swings to the red in the fourth quarter and 2010

Republic Airways Holdings Inc. (Indianapolis) reported operating revenues of $649.8 million for the quarter ended December 31, 2010, a 2.0% increase, compared to $637.3 million for the same period last year. The increase in revenues is the result of higher unit revenues from the Company’s Frontier operations.

On a GAAP basis, the holding company reported a net loss of $1.3 million, or $0.03 per diluted share, for the fourth quarter ended December 31, 2010, compared to $20.1 million of net income, or $0.55 per diluted share, for the same period last year.

During the fourth quarter of 2010, the Company’s pre-tax loss of $3.0 million was negatively impacted by a total of $15.1 million of items: $14.5 million of fleet transition costs for A318 and Q400 aircraft, $2.5 million of expenses related to the integration of the branded business, offset by $1.9 million in benefits for fuel hedges.

Excluding the negative impact of the items during the quarter, the Company is reporting net income of $7.4 million and earnings per diluted share of $0.18 for the fourth quarter of 2010. Comparatively, the Company reported ex-item net income for the fourth quarter of 2009 of $2.1 million, or $0.06 per diluted share.

For the full year 2010, the holding company reported revenues of $2.7 billion compared to $1.6 billion for 2009. On a GAAP basis, the Company reported a net loss for 2010 of $13.8 million, or $0.38 per diluted share compared to net income of $39.7 million, or $1.13 per diluted share for the full year 2009.

Frontier Airways Holdings joins AMR Corporation as the only two large airline groups to lose money in the United States in 2010.

The operational fleet decreased from September 30, 2010 by two aircraft to 275 aircraft as of December 31, 2010. During the quarter, the Company removed one Airbus A318 aircraft and one Q400 aircraft from the fleet.

The total operational fleet as of December 31, 2010 was 275 aircraft, a reduction of 15 aircraft, compared to the 290 aircraft operated as of December 31, 2009.

The Company removed eight Q400 aircraft from its Frontier operations. Five were returned to the lessor, two were classified as held for sale as of December 31, 2010, and one has been subleased. Seven CRJ200 aircraft were returned to the lessor from the fixed-fee service with Continental Airlines. Four A318 aircraft were removed from our Frontier operation and sold or returned to the lessor. Two ERJ 145 aircraft were subleased offshore and one ERJ 170 was sold. Four Embraer ERJ 190 aircraft and three Airbus A320 aircraft were placed into our Frontier operation during the year.

Copyright Photo: Bruce Drum. Please click on the photo for background information on the holding company and aircraft operated.

Republic Airways Holdings’ Fixed-Fee Route Map (not including Frontier Airlines branded operations):