Republic Airways swings to $51.3m profit in 2012

Washington DC
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A restructured Republic Airways Holdings rebounded in 2012 by recording a net income of $51.3 million, a one-year swing from a net loss of $152 million a year earlier.

Revenues of the streamlined parent company for Republic Airways, Chautauqua Airlines, Frontier Airlines and Shuttle America declined by 1.9% year on year to $2.81 billion.

But the bottom line improved because the company reduced operating costs by 12.5% in 2012 to $2.6 billion, yielding an operating income of $213 million.

"We're pleased with the solid financial improvement we experienced in 2012," says Bryan Bedford, Republic chief executive and president.

In the regional jet segment, Republic completed the restructuring of Chautauqua's 50-seat jet operation in October, yielding a $45 million cash flow improvement annually for the next five years.

Meanwhile, Republic's Frontier Airlines segment, which is targeted for a spin-off, saw revenues decline by 1.1% on a 3.2% drop on traffic and a 4% reduction in capacity.