Posted on: 22 February 2011 by Ross McSweeny
Republic Airways Holdings has announced net income of $32.3 million excluding items reported during the year, compared with an ex-item result of $35.0 million for 2009.
With those items included, the company reported a full year 2010 loss of $13.8 million (on a GAAP basis) compared with net income of $39.7 million for 2009, based on 2010 revenues of $2.7 billion compared with $1.6 billion in revenues in 2009.
Excluding fuel reimbursement from its partners, fixed-fee service revenues decreased by $126.4 million, or 11.6%, for 2010 due to a 12% reduction in block hours. The reduction in block hours is due mainly to reporting certain operations on behalf of Frontier in Republic’s fixed-fee results prior to its acquisition and that of Midwest Airlines in 2009.
Total revenues for the year for Frontier were $1.6 billion. Excluding items reported during the year, Frontier reported a pre-tax loss of $29.8 million. Excluding items, the unit cost for Frontier, excluding fuel, was 6.93¢ for the year. Frontier fuel costs were $548.6 million for the year.
For the fourth quarter of 2010 ending 31 December (4Q10), Republic reported operating revenues of $649.8 million, a 2.0% increase compared with $637.3 million for 4Q09. The increase in 4Q revenues is the result of higher unit revenues from the company’s Frontier operations. On a GAAP basis, the company reported a net loss of $1.3 million for the quarter, compared to $20.1 million of net income for the same period 12 months earlier.
During 4Q10, 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.
The operational fleet decreased from 30 September 2010 by two aircraft to 275 aircraft as of 31 December 2010 with one Airbus A318 and one Bombardier Q400 being withdrawn from the fleet.