Market Overview

Republic Airways Sees Q4 EPS Ex-Items of $0.31-0.36

Republic Airways Holdings Inc. (NASDAQ: RJET) has raised its guidance for year over year unit revenue increases on its Frontier Airlines branded operations for the Fourth Quarter of 2011.

The Company is updating its guidance on year-end unrestricted cash from a previous range of $200 to $210 million to a new range of $215 to $220 million.

The Company's decision to remove 37-50 seat ERJ aircraft from branded flight operations during the fourth quarter prompted a review of the carrying value of owned ERJ equipment. The Company now estimates that its 37-50 seat ERJ fleet will no longer produce positive cash returns and anticipates recording a non-cash impairment charge of approximately $4.5 million to $5.0 million per aircraft to reduce the carrying value of its 42 owned ERJ aircraft in the fourth quarter.

The Company also anticipates significant non-cash charges in the fourth quarter of 2011 related to aircraft that will be returned to lessors in 2012. The Company anticipates a non-cash charge of approximately $24 million related to the write-off of prepaid maintenance reserves associated with the early termination of Airbus aircraft to their lessors, and approximately $7 million of mostly non-cash charges related to the renegotiation of the E190 purchase agreement and charges associated with the early return of certain Embraer aircraft.

GAAP Diluted EPS $(2.72) to $(2.67) Ex-Items Diluted EPS $0.31 to $0.36

Posted-In: News Guidance

 

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