Republic suffers $36.5M loss in first quarter

May 5, 2010

Indianapolis-based Republic Airways Holdings Inc. said late Tuesday that it lost $36.5 million in its first quarter and took an $11.5 million charge to write off the Midwest Airlines brand.

Republic’s loss translated to $1.06 per share for the quarter ended March 31, compared with a profit of $2.2 million, or 6 cents per share, for the year-ago period.

The regional airline reported first-quarter revenue of $608.7 million, an 87-percent increase compared to $325.3 million for last year's first quarter.

Republic's 2009 acquisitions of Midwest and Denver-based Frontier Airlines led to the steep rise in revenue. Republic announced in April it is phasing out the Midwest name and is combining Milwaukee-based Midwest with Denver-based Frontier Airlines.

Republic’s pre-tax loss of $58.4 million included the $11.5 million Midwest write-off, as well as $13.1 million of expenses related to the integration of Midwest and Frontier. The company also said severe winter storms in the first quarter had a $7.5 million negative impact on pre-tax results.

During the quarter, Republic took delivery of one A320 aircraft and two E190 aircraft it purchased from US Airways. It also removed four E145 aircraft and the final seven CRJ-200 aircraft from its fleet, bringing its total number of airplanes to 282, down from 290 at the end of the year.


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