Third quarter profit at Republic Airways Holdings Inc. soared 186 percent from a year earlier in the wake of restructuring its Frontier Airlines unit, the Indianapolis-based company announced late Wednesday.
Republic Airways Holdings Inc. Wednesday reported a third-quarter net income of $25.8 million, compared to $9.0 million compared to the same period last year.
Republic Airways Holdings Inc. also announced it has reached agreements with several key stakeholders which, combined with other steps taken such as placing idled aircraft back into revenue service, will mitigate future negative cash flows at its Chautauqua Airlines subsidiary on average by approximately $45 million annually over the next five years.
“This is an important milestone in our Chautauqua restructuring effort,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “These agreements take us about three-quarters of the way to our stated need of $60 million in average annual cash flow improvements at Chautauqua in order to stabilize and secure its future. We still have approximately two-thirds of our small jet fleet of 70 aircraft operating under capacity purchase agreements (CPAs) with less than two years remaining, so we are focused on ensuring both our labor productivity and long-term maintenance costs of these aircraft remain competitive.”
Republic reported Wednesday that subsidiary Frontier posted pre-tax income of $29.8 million for the third quarter of 2012, up significantly from a pre-tax loss of $1.5 million for the third quarter of 2011.