Dallas, Texas 12/04/2014 (FINANCIALSTRENDS) – Republic Airways Holdings Inc. (NASDAQ:RJET) is continuing its uptrend since it hit bottom in April. The stock has gained more than 24% since mid-October and more than 65% from its 52-week low. Recently, the stock marked a fresh 52-week high of $13.80. The airline posted strong 3Q14 financial results backed by strong increase in traffic and revenue passenger miles.
Republic Airways’ 3Q14 operating revenues increased 3.3% YoY to $349.7 million. Revenue passenger miles (RPM) increased 12% YoY to 3.01 billion in 3Q14 from 2.68 billion in 3Q13. The company also reported strong 10% YoY increase in available seat miles (ASM) to 3.81 billion in 3Q14 from 3.47 billion in 3Q13.
The company reported a combined operating fleet of nearly 240 aircraft at the end of 3Q14, of which 198 were 69-99 seats. This airline holding company owns Republic Airlines, Chautauqua Airlines and Shuttle America. Even in October, RPM increased 10% YoY and ASM increased 6% YoY.
Quarterly Traffic Highlights
Republic Airways Holdings Inc. (NASDAQ:RJET) reported 5.7% YoY increase in passengers carried, which amounted to 5.94 million in 3Q14. The airline also reported 6.1% increase in average seat density and 1.4 percentage point increase in passenger load factor.
The company reported 7.3% YoY increase in fixed-fee service revenue during 3Q14 to $343.7 million and 5.3% YoY increase in revenues from charter and other services to $6 million. The company did not report any passenger service revenue because of the removal of E190 aircraft operated by Frontier Airlines under pro-rate agreement. Fixed-fee service revenue was also impacted by removal of 12 E145 and 15 E140 aircraft from service.
Financial Highlights
Republic Airways Holdings Inc. (NASDAQ:RJET) reported 5.5% YoY decrease in total operating expenses to $288.9 million during 3Q14. However, depreciation and amortization expenses increased 18.1% and wages and benefits expenditures increased 7.7% during the quarter.
The airline reported strong surge in its 3Q14 net income to $18.5 million from $(13.8) million in 3Q13. For nine-month period, net income increased nearly five-fold to $52.6 million in 2014 from $11.1 million in 2013.
