Tag Archives: N821MD

Republic Airways Holdings’ second quarter net income increases 23% to $24.6 million, Frontier Airlines reports pre-tax 2Q income of $13.7 million

Republic Airways Holdings Inc. (Republic Airlines 2nd) (Indianapolis) reported diluted earnings per share of $0.46, which is a 15.0% increase from the $0.40 per diluted share result in the second quarter of 2012. Net income increased 23.0% to $24.6 million for the quarter ended June 30, 2013, compared to net income of $20.0 million for the same period last year. Operating revenues totaled $664.4 million, a decrease of 8.7%, compared to $728.1 million for the second quarter of 2012.

“We are pleased to report improved financial results for the second quarter, driven primarily by the year over year improvement in our small regional jet operations at Chautauqua,” said Republic Chairman, President and CEO Bryan Bedford. “Our process to sell Frontier continues and I am very pleased that we were able to reach tentative labor agreements with both our Flight Dispatchers and Flight Attendants, which remain subject to membership ratification. I am thankful for the continued professionalism and dedication of my 10,000 co-workers on behalf of our passengers.”

Republic Segment Summary

Republic’s pre-tax income improved 45.8% to $27.7 million from $19.0 million in the prior year’s second quarter, due mainly to the redeployment of idled 50-seat aircraft and the successful completion of our Chautauqua restructuring efforts in late 2012.

Total Republic revenues decreased $20.6 million, or 5.8%, from the second quarter of 2012 to $336.8 million in the second quarter of 2013. Fixed-fee service revenue increased $34.9 million, or 12.4%, to $316.9 million, despite the removal of fuel expense and related reimbursement on our United E170 fixed-fee agreement, which accounted for $25.1 million of revenues in the prior year’s second quarter. The majority of the increase in fixed-fee revenues relates to Republic’s Q400 agreement with United that began in the second half of 2012 and Republic’s E190 charter agreement, which began in January 2013. Republic passenger service revenue decreased $56.1 million due to a reduction of pro-rate operations with Frontier, as aircraft previously operating in pro-rate service were either transitioned to other fixed-fee agreements or sold.

Fuel costs for Republic decreased $42.3 million to $12.1 million for the quarter, due mainly to the removal of fuel expense on our United agreement as noted above. The fuel cost per gallon, including into-plane taxes and fees, increased to $3.34 per gallon in the second quarter of 2013, compared to $3.26 per gallon in the prior year’s second quarter. The fuel cost per gallon related to our fixed-fee charter agreement is generally higher than our pro-rate operations with Frontier and is treated as a pass through cost under the agreement.

As of June 30, 2013, Republic operated a fleet of 232 aircraft. Within our fixed-fee commercial and charter agreements, Republic operated 70 aircraft with 44-50 seats and 157 aircraft with 69-99 seats. In addition, Republic operated five 99-seat aircraft under the pro-rate agreement with Frontier, down from seventeen, 99-seat aircraft operated in pro-rate service during the second quarter of 2012.

The Company expects to take delivery of 18 Embraer ERJ 175 aircraft to operate under its American capacity purchase agreement by the end of 2013. Additionally, the Company expects to place into service the final six Q400 aircraft under its United capacity purchase agreement over the next two quarters.

Frontier Segment Summary

For the quarter ended June 30, 2013, Frontier Airlines (2nd) (Denver) posted pre-tax income of $13.7 million, which is down slightly from $14.1 million of pre-tax income for the quarter ended June 30, 2012.

Frontier’s capacity, as measured by available seat miles (ASMs), was down 10.1% from the prior year’s second quarter, as a result of operating fewer Airbus aircraft. Frontier’s total revenues decreased 11.6% to $327.6 million for the quarter, compared to $370.7 million for the same period in 2012. Total revenue per ASM (TRASM) decreased 1.6% to 11.98 cents in the second quarter of 2013 from 12.18 cents in the second quarter of 2012.

Fuel costs decreased from the prior year’s second quarter by $22.6 million to $114.2 million for the quarter. The fuel cost per gallon, including into-plane taxes and fees, decreased to $3.14 per gallon in the second quarter of 2013, compared to $3.35 per gallon in the prior year’s second quarter. The second quarter of 2013 results included a loss on fuel hedges of $1.7 million, or $0.05 per gallon.

The operating unit cost for Frontier, excluding fuel, was 7.27 cents per ASM for the second quarter of 2013, a 1.3% increase compared to 7.18 cents per ASM for the same quarter of 2012.

As of June 30, 2013, Frontier operated 52 Airbus aircraft, compared to 58 Airbus aircraft as of June 30, 2012. All six aircraft removed were returned to lessors.

Recent Business Developments

On June 17, 2013, the Company announced it had reached a tentative agreement (TA) on a new five-year contract with the Transportation Workers Union (TWU) Local 540 Dispatchers. This TA is currently being voted on by union membership and we expect the voting results on August 1, 2013.

On June 24, 2013, the Company announced it had reached a TA on a new five-year contract with the International Brotherhood of Teamsters (IBT) Local 135 Flight Attendants. This TA is currently being voted on by union membership and we expect the voting results on July 29, 2013.

On July 15, 2013, the Company announced that it had entered into an agreement with an affiliate of the Brazilian Development Bank (BNDES) for the financing of 47 Embraer E175 aircraft. These aircraft will provide service under the terms of the capacity purchase agreement with American Airlines announced in January. The first aircraft was delivered on July 15, 2013, and is scheduled to go into service with American on August 1, 2013.

Balance Sheet and Liquidity

The Company’s total cash balance increased $44.8 million to $439.1 million as of June 30, 2013, compared to December 31, 2012. Restricted cash increased $53.2 million, to $200.3 million, from December 31, 2012. The Company’s unrestricted cash balance decreased $8.4 million, to $238.8 million, from December 31, 2012. A condensed consolidated balance sheet and cash flow statement have been included in the tables section of this release.

The Company’s debt decreased to $1.98 billion as of June 30, 2013, compared to $2.12 billion at December 31, 2012. As of June 30, 2013, approximately 90% of the debt is at a fixed interest rate. The Company has significant long-term lease obligations for aircraft that are classified as operating leases and are not reflected as liabilities on the Company’s consolidated balance sheet. At a 6% discount factor, the present value of these lease obligations was approximately $0.9 billion and $1.0 billion as of June 30, 2013, and December 31, 2012, respectively.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Republic Airways (Republic Airlines 2nd) Embraer ERJ 170-100SU N821MD (msn 17000042) departs from Fort Lauderdale-Hollywood International Airport.

Frontier Airlines (2nd): AG Slide Show

Republic Airways (Republic Airlines 2nd):

AG Slide Show

Republic Airways Holdings hopes to increase its flying for American Airlines

Republic Airways Holdings (Indianapolis) is betting the AMR Corporation (Dallas/Fort Worth) will want to downsize the flying currently being performed by its subsidiary American Eagle Airlines (Dallas/Fort Worth). Republic hopes to expand its now small regional fleet flying for American Airlines (Dallas/Fort Worth) (currently by Chautauqua Airlines as American Connection) according to this article by Bloomberg Businessweek.

Read the full article: CLICK HERE

Copyright Photo: Stephen Tornblom. Although the titles say “Republic Airways” (after the holding company), this Embraer ERJ 170-100SU N821MD (msn 17000042) is actually operated by subsidiary Republic Airlines (2nd) (Indianapolis).

Republic Airways: 

Republic Airways Holdings reports net income of $2.6 million in 2Q

Republic Airways Holdings Inc. (Indianapolis) reported operating revenues of $683.3 million for the quarter ended June 30, 2010, a 113.6% increase, compared to $320.0 million for the same period last year. The increase in revenues is primarily due to the acquisition of Frontier Airlines and Midwest Airlines during 2009. The Company also reported net income of $2.6 million, or $0.08 per diluted share, for the quarter ended June 30, 2010, compared to $14.1 million of net income, or $0.41 per diluted share, for the same period last year.

During the second quarter of 2010, the Company’s pre-tax income of $4.8 million was negatively impacted by a total of $19.7 million of items: $18.5 million of expenses related to the integration of the branded business and accruals for the lease return costs of two A318 and five Q400 aircraft; $6.4 million in negative adjustments for fuel hedges and prior period fuel excise taxes; and a $5.2 million positive adjustment due to a reduction in lease obligations for Midwest aircraft and office facilities.

During the quarter the Company took delivery of two Airbus A320 aircraft and the final two Embraer ERJ 190 aircraft previously purchased from US Airways and removed six Bombardier DHC-8-402 (Q400) aircraft from service. The Company also placed back into service two Embraer ERJ 145 aircraft that were previously removed to be returned to the lessors. The total operational fleet remains unchanged from March 31, 2010 at 282 aircraft as of June 30, 2010.

On April 13, 2010, the Company announced the selection of the Frontier Airlines name for its consolidated branded network.

As a reminder, Midwest and Frontier Airlines were acquired on July 31, 2009 and October 1, 2009, respectively.

On July 1, 2010, the Company announced that it will remove four 120-seat Airbus A318s and one 76-seat Embraer ERJ 170 aircraft from scheduled service for Frontier in September 2010. Three of these aircraft will be sold to third parties and two will be returned to their lessors. Beginning in January 2011, Frontier will accept the first of six new 162-seat A320 aircraft. All six aircraft have firm lease financing arranged and will be arriving during the first two quarters of 2011.

On July 21, 2010, the Company announced a letter of intent with Embraer to acquire 24 Embraer ERJ 190 or ERJ 195 aircraft with deliveries beginning in the mid 2011. The Embraer 190 would offer 99 seats, while the ERJ 195 would be configured with 116 seats if the Company chose to convert any of the orders. Both aircraft types would be configured with STRETCH seating. The aircraft would be used to replace smaller regional jets in the Company as well as create growth for Frontier into 2012.

Copyright Photo: Bruce Drum. Republic Airlines’ (2nd) Embraer ERJ 170-100SU N821MD (msn 17000042) is painted in the house colors of its parent Republic Airways Holdings. The regional jet is pictured departing from runway 27R at Fort Lauderdale/Hollywood.

Republic Airways Holdings reports 4Q and 2009 financial results

Republic Airways Holdings Inc. (Indianapolis) yesterday (February 24) reported net income of $20.1 million for the quarter ended December 31, 2009, compared to $19.0 million of net income, for the same period last year. The fourth quarter results for 2009 include $109.2 million of goodwill and other impairment charges and a $203.7 million gain on bargain purchase related to the acquisition of Frontier Airlines. These two non-recurring items increased pre-tax income by $94.5 million and net income by $17.1 million for the quarter. Additionally, the Company recorded a year-end tax adjustment, which increased net income by $2.1 million for the quarter. Excluding these non-recurring items, income before taxes was $1.5 million and net income was $0.9 million.

For the full year ended December 31, 2009, net income for the year was $39.7 million, compared to $84.6 million of net income.

During the quarter the Company acquired Frontier Airlines and its 62 operational aircraft. The Company also took delivery of six of the ten Embraer ERJ 190 aircraft purchased from US Airways during the quarter and removed the final six Boeing 717-200 aircraft from its fleet, bringing the total operational fleet from 228 aircraft at September 30, 2009 to 290 aircraft at December 31, 2009.

Copyright Photo: Operated by subsidiary Republic Airlines (2nd) as a spare aircraft but carrying Republic Airways titles, Embraer ERJ 170-100SU N821MD (msn 17000042) climbs away from runway 27R at Fort Lauderdale/Hollywood.