IBJNews

Republic to buy $3B in jets; quarterly profit rises

Back to TopCommentsE-mailPrintBookmark and Share

Republic Airways Holdings Inc. earned $20.1 million in the fourth quarter, partly due to its acquisition of Frontier Airlines Holdings, the Indianapolis-based regional carrier reported late Wednesday.

In addition, the company announced it has agreed to buy 40 Bombardier Inc. CS300 regional jets valued at $3.06 billion, the largest order for the aircraft since its introduction in 2008.

Its profit translated to 55 cents per share in the quarter ended Dec. 31, compared to $19 million for the same period in 2008, or 56 cents per share.

Republic, the operator of six regional carriers, reported fourth quarter revenue of $637.3 million, an 88-percent increase from the same time in 2008.

The results included $109.2 million of impairment charges and a $203.7 million gain on a “bargain purchase” related to the acquisition of Frontier. Republic bought Denver-based Frontier for $108.8 million on Oct. 1.

The two non-recurring items increased the local carrier’s quarterly profit by $17.1 million. In addition, the company reported a year-end tax adjustment, which increased profit by $2.1 million.

Earnings excluding one-time items were $900,000, or 3 cents per share, falling short of analysts’ estimates of 6 cents per share.
 
For the entire year, Republic’s profit fell 53.1 percent, to $39.7 million. That translated to $1.13 per share, compared to $2.42 in 2009.

Revenue in 2009 climbed 11 percent, to $1.6 billion.

Company shares closed Wednesday at $5.12, down from a 52-week high of $10.64 reached in September.

Republic is the first North American customer for the Bombardier CS300. It holds options to purchase as many as 40 more jets, bringing the total potential value to $6.34 billion, Montreal-based Bombardier said. Carriers that order multiple aircraft typically get discounts.

The operator of regional carriers, including Republic Airlines, Frontier Airlines and Chautauqua Airlines, said the jets would be more fuel-efficient and provide customers with wider aisles and more storage space than its current fleet.

“This aircraft will bring next-generation advantages to all phases of its mission,” Bryan Bedford, Republic CEO, said.

The aircraft will carry 138 passengers in a two-by-three seat configuration. Deliveries begin in the second quarter of 2015.

ADVERTISEMENT

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:
 
Subscribe to IBJ
ADVERTISEMENT