Posted on: 25 February 2015 by Ross McSweeny
Republic Airways Holdings has released its financial results for the fourth quarter of 2014 (4Q14) and the full year ended 31 December 2014 (FY2014), showing a FY2014 pre-tax income (excluding special items) of $120.2 million, up $17.7 million (nearly 15%) on the previous year.
During 4Q14, Republic extended the service terms of aircraft under its fixed-fee capacity purchase agreements with US Airways and Delta Air Lines as well as agreeing to operate an additional nine E170 aircraft for Delta. For this period, Republic’s pre-tax income (excluding special items) was $32.1 million, an 8.4% increase in comparison to 4Q13.
Although on a GAAP basis – including special items – Republic’s FY2014 pre-tax income was $85.2 million, its 4Q14 pre-tax loss was $1.4 million. “We took some significant steps in 2014 in our effort to simplify and streamline our business,” commented CEO of Republic Airways Holdings, Bryan Bedford. “While this simplification strategy results in near-term transition expenses, such as the fleet impairment charge we took this quarter, the actions that we’ve taken in 2014 and that we intend to take in 2015 are key to the future success of our airline.”
Overall during 2014, Republic’s operational fleet decreased from 258 to 244. The company took delivery of 22 Embraer 175s, permanently parked 15 ERJ 140s, temporarily parked 13 ERJ 145s, sold two E190s and leased three ERJ 145s and three E190s.
On 1 January, 2015, Republic completed its transfer of all Chautauqua Airlines operations onto the Shuttle America operating certificate, and hopes to sell the remaining Chautauqua Airlines entity and related assets during the first half of 2015.