IBJNews

Republic shares hit two-year high on revised outlook

Back to TopCommentsE-mailPrintBookmark and Share

Shares of Republic Airways Holdings rocketed into 2013, closing 19.5 percent higher Wednesday after the Indianapolis-based company raised its quarterly outlook.

Republic shares continued to climb Thursday morning, rising 5.2 percent, to $7.14 each. The shares haven't traded above $7 in nearly two years.

The regional airline operator and parent of Frontier Airlines on Dec. 31 lifted its earnings-per-share estimate for the quarter to a range of 30 cents to 36 cents from prior guidance of 18 cents to 24 cents.

The company said its regional airlines operation should record pretax income of $20 million to $25 million. That’s up from previous guidance of $15 million to $20 million.

Contract-based regional flying business for larger airlines has been difficult in recent years amid airline mergers and souring economics for smaller jet aircraft on many routes.

Prospects improved in recent months. Republic's fixed-fee agreement with American Airlines was extended 18 months. And, in October, Republic signed a three-year deal to fly Caesar’s Entertainment Corp. members to resorts around the country, amounting to more than 1,500 flights annually.

Last year, Republic Airways Holdings turned around its Denver-based Frontier Airlines, in part through substantial cost-cutting. It plans to sell all or part of Frontier, although no takers have been found.

This week’s upbeat guidance also include estimates that total unit revenue at Frontier during 2013 should be 12.4 cents to 12.8 cents. That would be more than 5.5 percent higher than in 2012.

 

 


 

ADVERTISEMENT

  • Congrats...?
    I don't know whether to congratulate RAH or not. Congrats to RAH on great earnings and higher public value. But shame on you for not sealing a deal with your flight crews last year, you could've got them at such a discount! Now that the money train is tearing down the tracks you'll pay even more... Like I said, congrats...? Guess it's win-win.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
ADVERTISEMENT