Republic Airways reports positive 1st quarter results

Republic Airways Holdings—parent of Chautauqua Airlines, Republic Airlines and Shuttle America—reported first-quarter net income of $14 million, up significantly from $0.3 million in the year-ago quarter. The Indianapolis, Indiana-based carrier said the March 2013 quarter had been negatively impacted by $11.1 million of losses from discontinued operations at Frontier Airlines.

Republic Airways Holdings chairman, president and CEO Bryan Bedford said the improved results “demonstrate the stability and strength within our core fixed-fee business.” He also said the results were achieved despite “the most severe weather events in a single quarter I can recall in my 27 years of experience in the airline industry.”

Republic said it canceled more than 12,400 flights during the first quarter, primarily because of severe weather in January and February. “That was a 145% increase from the number of canceled flights compared to the first quarter of 2013. These cancellations negatively impacted the pre-tax financial results by about $7 million during the first quarter of 2014,” Republic said in a statement.

First-quarter operating revenue was up 3.9% to $337.5 million, while expenses rose 9.3% to $303.3 million, producing an operating profit of $34.2 million, down 27.7% year-over-year.

According to Republic, fixed-fee service revenue increased $24.4 million, or 8%, to $328.4 million due to increased Bombardier Q400 flying with United Airlines and increased Embraer E-175 flying with American Airlines. Passenger service revenue decreased $15.2 million due to the removal of E-190 aircraft operating under pro-rate agreement with Frontier Airlines in February.

Passenger traffic for the first-quarter increased 11.9% to 2.6 billion RPMs on a 6.3% rise in capacity to 3.4 billion ASMs, producing a load factor of 76.2%, up 3.8 points.

As of March 31, Republic said it operated a fleet of 247 aircraft. Within its fixed-fee and charter agreements, the company operated 68 aircraft with 44-50 seats and 179 aircraft with 69-99 seats.

During the first quarter, the company took delivery of five Embraer E-175s related to its American Airlines E-175 fixed-fee agreement, bringing the total to 24 of the 47 aircraft deliveries. It expects to take delivery of 19 E-175 aircraft during the remainder of 2014 and the remaining four aircraft in early 2015.

On April 4, Republic announced that its pilots, represented by the International Brotherhood of Teamsters, failed to ratify a proposed four-year pilot labor agreement.

(Linda Blachly - ATWOnline News)