Republic Airways reports record ex-items profit for 3Q10

Republic Airways Holdings has reported operating revenues of $711.9 million for the quarter ended 30 September 2010, a 97.9% increase compared to $359.6 million for the same period last year and due primarily to the acquisition of Frontier Airlines and Midwest Airlines during 2009.

The company also reported net income of $21.3 million for 3Q10, compared with $3.3 million of net income in 3Q09.

During the third quarter of 2010, the company’s GAAP pre-tax income of $35.1 million was negatively impacted by a total of $7.8 million of items: $4.7 million of expenses related to the integration of the branded business; $2.9 million of disposal costs for A318 and Q400 aircraft; and $0.2 million in negative adjustments for fuel hedges.

On an ex-item basis, the company’s pre-tax earnings came in at an all-time record of $42.9 million.

Additionally, the company recorded a total of $8.6 million of non-cash adjustments associated with the purchase accounting for Frontier and Midwest: $5.4 million as a reduction of passenger revenues and $3.2 million expense for amortisation of intangible assets. This is the last quarter for the non-cash adjustments to revenue and the intangible asset amortisation is expected to continue at current levels for the next few quarters.

During the quarter the company removed three Airbus A318s, one Q400, and one Embraer 170 from service. The total operational fleet was 277 aircraft as of 30 September 2010 compared to 282 aircraft as of 30 June 2010.

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