Republic Airways announces fourth quarter and 2008 earnings
Republic Airways Holdings has reported net income of $84.6 million for 2008 compared to $82.8 million for 2007.
For the full year ended 31 December 2008, Republic operating revenues increased 14.5% to $1.48 billion, compared to $1.29 billion for the whole of 2007. Excluding reimbursement for fuel expense, which is a pass-through cost to its partners, regional airline services revenues increased 16.0% to $1.13 billion for 2008 from $0.98 billion for 2007, primarily as a result of an 8.9% increase in block hours and a shift in the mix of flying toward larger regional jets.
Republic increased its operating fleet to 221 aircraft as of 31 December 2008, from 219 at 31 December 2007. Twenty-six additional Embraer 175s were placed into service during the year and twenty-four 37-50 seat aircraft were removed. These removals include all 17 ERJ 135s, 15 of which were flown for Delta and two of which were in charter service, as well as seven Bombardier CRJ200s removed from Continental service in the fourth quarter of 2008. As of 31 December 2008, the company owned nine ERJ 135s, eight of which are under firm agreements to be sold.
For the quarter ended 31 December 2008, the company has reported operating revenues of $339.3 million a 3.6% decrease, compared to $351.8 million for the same period last year. The company also reported net income of $19.0 million for the quarter compared to $24.3 million of net income for the same period in 2007. The prior year’s fourth quarter results included a year-to-date adjustment for state tax liabilities which increased net income for the quarter by approximately $2.7 million, or $0.07 per diluted share.
Total operating expenses for the fourth quarter of 2008, including interest expense but excluding fuel charges (which are reimbursable by the company’s partners) of $263.4 million, increased 10.9% from $237.5 million for the same quarter of 2007. Operating cost per ASM (CASM), including interest expense but excluding fuel increased to 8.09¢ from 7.38¢ in the prior year’s fourth quarter. For the quarter, the company reported a 1.2% increase in available seat miles (ASMs) to 3.26 billion ASMs, up from 3.22 billion ASMs during the same period last year.
The fourth quarter 2008 pre-tax results included $4.9 million of expenses, or 0.15¢ per ASM, to accrue for return costs associated with 16 of the 24 CRJ200 aircraft that are on short-term lease. During the quarter the company incurred $5.1 million, or 0.16¢ per ASM, of carrying costs for aircraft that were not in revenue service. Also, during the quarter the company had a non-cash, fuel expense adjustment which increased pre-tax income by $4.4 million.