Republic Airways boosts expectations for 4th quarter

Republic Airways Holdings Inc. on Wednesday raised its outlook related to the performance of its Frontier Airlines service. It also detailed the scale of write-downs for such things as removing some aircraft from branded flight operations.

Shares were up nearly 15 percent Thursday morning, to $5.20 each.

The Indianapolis-based company said it now expects total revenue per available seat-mile in the quarter through December to rise 10 percent to 11 percent from a year ago, compared to previous guidance of an increase of 8 percent to 9 percent.

It also said it expects adjusted earnings per share of 31 cents to 36 cents. It did not previously give guidance on adjusted earnings per share.

Republic plans to release its fourth-quarter earnings during the last week of February.

When using generally accepted accounting principles, or GAAP, the company expects a fourth-quarter net loss of $2.67 to $2.72 per share, where it previously also did not provide guidance.

Unrestricted cash is seen at $215 million to $220 million, up from $200 million to $210 million.

The company said the occupancy of Frontier flights and higher revenue per unit contributed to improved performance.

It also said it expected to take non-cash impairment charges of $4.5 million to $5 million per aircraft on removing some 37-50 seat ERJ aircraft out of branded flight operations; and $24 million to write off prepaid maintenance reserves related to the early termination of Airbus aircraft to their lessors.

The company also said it will book $7 million, mostly in non-cash charges, for renegotiating an E190 purchase agreement and returning certain Embraer aircraft early.