Republic Airways reports Q3 results

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By TESTCustomwebLP TESTCustomwebLP November 5, 2015 17:53

Republic Airways reports Q3 results

Republic Airways has reported pre-tax income for the third quarter of 2015 of $8.3 million, compared to $30.5 million for the year-ago period. Republic’s net income for the third quarter of 2015 was $2.9 million, or $0.06 per diluted share compared to prior year net income of $18.5 million or $0.35 per diluted share. The effective tax rate of 65.1 percent for the quarter was higher than the normalized tax rate, primarily due to the impact of miscellaneous non-deductible expenses.

The third quarter 2015 financial results continued to be negatively impacted by the airline’s inability to fully utilize its aircraft due to regulatory changes that created a national pilot shortage which has been amplified by the ongoing labor dispute. “As a result of this pilot labor shortage we operated approximately 6 percent fewer block hours during the third quarter of 2015 as compared to the third quarter of 2014,” the airline said.

Republic also added that the third quarter results were also negatively impacted by fleet transition costs and idled aircraft costs totaling $7.2 million associated with the removal of E190 and Q400 aircraft and surplus E145 aircraft, said Republic Airways Holdings Chairman, President and CEO Bryan Bedford.

Bedford added that the ratification of a new labor agreement with its pilots represents a “significant positive step forward for our pilots and our airline”.

Operating revenues decreased $9.2 million, or 2.6 percent, during the third quarter of 2015 to $340.5 million. Fixed-fee service revenue decreased $9.7 million, or 2.8 percent, to $334.0 million primarily due to a decrease in block hours flown and reduced revenues associated with the non-reimbursed aircraft ownership costs associated with aircraft temporarily removed from revenue service during the third quarter.

Wages and benefits expenses decreased 1.6 percent, or $1.5 million, primarily due to lower employee expenses as a result of a decrease in flying levels.

Maintenance and repair expense increased 8.5 percent, or $5.6 million, due to an increase in engine limited life part events, coupled with an increase in other engine repair costs.

Depreciation and amortization expenses increased 6.9 percent, or $3.0 million, due primarily to the increase in the number of owned aircraft.

Other expenses increased 27.9 percent, or $10.2 million, primarily due to an increase in reorganization costs, coupled with an increase in costs for fleet transition, professional fees.

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By TESTCustomwebLP TESTCustomwebLP November 5, 2015 17:53