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Republic shares hit two-year high on revised outlook

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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.

 

 


 

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  • 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.

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  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

  3. I don't know about the rest of you but I only stop at these places for one reason, and it's not to picnic. I move trucks for dealers and have been to rest areas in most all 48 lower states. Some of ours need upgrading no doubt. Many states rest areas are much worse than ours. In the rest area on I-70 just past Richmond truckers have to hike about a quarter of a mile. When I stop I;m generally in a bit of a hurry. Convenience,not beauty, is a primary concern.

  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

  5. I have obtained my 6 gallon badge for my donation of A Positive blood. I'm sorry to hear that my donation was nothing but a profit center for the Indiana Blood Center.

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