Posted on: 02 August 2011 by Ross McSweeny
Republic Airways Holdings has reported key financial results for the second quarter of 2011 with an EBITDAR of $128.8 million (down 17.1% compared with the same quarter in 2010) and a net loss on a GAAP basis of $14.9 million, compared to net income of $2.6 million, for the same period last year.
For the three months ended 30 June, total operating revenues were $739.7 million, 8.3% up on 2Q10’s $683.3 million. Operating income fell by 72% to $12.2 million from $43.5 million.
Excluding fuel reimbursement from its partners, fixed-fee service revenues increased 1.7% compared to the 2Q10 on a 2.3% increase in block hours. On an ex-item basis, income before taxes on the fixed-fee operations was $17.6 million for the quarter, compared to a pre-tax income of $20.8 million for the second quarter of 2010. Cost per available seat mile (CASM), including interest expense but excluding fuel, increased to 8.06¢ for the second quarter of 2011, from 7.86¢ for the same quarter of 2010, primarily as a result of higher engine restoration costs on the company’s 50-seat regional jets.
The company’s branded business segment includes all operations marketed as Frontier Airlines. Total revenues on Frontier increased 10.4% to $461.8 million for the quarter, compared to $418.4 million for the same period in 2010. Capacity on Frontier, as measured by ASMs, was down 0.2% from the prior year’s second quarter. Load factor for the quarter was 87.4%, an increase of 1.5 points from the second quarter of 2010, and total revenue per ASM (TRASM) was 11.90¢, up 10.6% from the same quarter in 2010. For the quarter ended, 30 June 2011, Frontier posted an ex-items pre-tax loss of $32.8 million compared to an ex-items pre-tax income of $2.9 million for the same quarter in 2010.
The unit cost for Frontier, excluding fuel, was 7.56¢ for the quarter, a 4.6% increase from 7.23¢ for the same metric in 2Q10. The unit cost increase was due mainly to higher engine restoration costs on the Airbus fleet and higher Airbus ownership costs on the A320 aircraft that were leased in 2011.