Republic Airways Holdings Reports Quarterly and Full Year 2012 Net Income

  Republic Airways Holdings Reports Quarterly and Full Year 2012 Net Income

Business Wire

INDIANAPOLIS -- February 27, 2013

Republic Airways Holdings Inc. (NASDAQ: RJET) today reported full year 2012
net income of $51.3 million, or $1.02 per diluted share, a $203.1 million
improvement from our full year 2011 results of a net loss of $151.8 million,
or $3.14 per diluted share. The Company also reported fourth quarter 2012 net
income of $12.6 million, or $0.25 per diluted share, a $136.1 million
improvement over the fourth quarter 2011 net loss of $123.5 million, or $2.55
per diluted share.

“We’re pleased with the solid financial improvement we experienced in 2012,”
said Republic Airways Holdings Chairman, President and CEO Bryan Bedford. “Our
restructuring efforts in 2011 laid the foundation for Frontier to return to
profitability in 2012, despite higher fuel costs. Our 50-seat RJ restructuring
effort completed last October enabled us to return all of our idled aircraft
to fixed-fee service with our partners and significantly reduced the financial
burden associated with our Chautauqua operation.”

The Company incurred the            Segment    Pre-tax amount   Period
following items in 2012:
* Loss on sale of E190s                 Republic     $11.2 million      3Q-12
* Gain on sale of slots                 Republic     ($8.3) million     3Q-12
* Professional and legal fees           Republic     $4.3 million       4Q-12
related to restructuring
* Restructuring and fleet               Frontier     $15.5 million      4Q-12
transition expenses
* Frequent flyer adjustment to          Frontier     ($9.8) million     4Q-12
passenger revenue
                                                                        
The Company incurred the                Segment      Pre-tax amount     Period
following items in 2011:
* Fleet transition expenses             Republic     $9.1 million       4Q-11
* Impairment of fleet asset             Republic     $191.1 million     4Q-11
values
* Fleet transition expenses             Frontier     $32.3 million      4Q-11
                                                                        

Note: The amounts reported below for pre-tax income (loss) and net income
(loss) exclude the impact of the items listed above. Please refer to the
schedules at the end of this release for a tabular reconciliation of the
Company’s GAAP pre-tax and after tax income (loss) to the ex-tem pre-tax and
after-tax income (loss) and diluted earnings per share.

Consolidated Results (ex-items)
Excluding the items listed above, the Company reported 2012 full year net
income of $59.0 million, or $1.15 per diluted share, as compared to a 2011
full year net loss of $6.2 million, or $0.13 per diluted share. For the fourth
quarter of 2012 the Company reported net income of $18.5 million, or $0.35 per
diluted share, as compared to the fourth quarter 2011 net income of $20.7
million, or $0.41 per diluted share.

Business Segment Presentation
The Company has adjusted its presentation of business segments in 2012 and has
revised the prior year’s information to conform to the current period segment
presentation. Reportable segments now consist of Republic and Frontier. The
Republic segment includes all regional flying performed by sub-100-seat
aircraft operating under either fixed-fee or pro-rate agreements, subleasing
activities, regional charter operations as well as the cost of any unassigned
regional aircraft. The Frontier segment includes passenger service revenues
and expenses for operating Frontier’s Airbus fleet, as well as its charter and
cargo operations.

Republic Segment Summary (ex-items)
Revenues for the year decreased 10.2% to $1,377.4 million. This was a result
of a change in the mix of flying between pro-rate and fixed-fee operations and
a $48.2 million reduction in fuel-related revenue under Republic’s fixed-fee
agreements. Pre-tax income improved nearly 31% to $69.5 million for the year
ended December 31, 2012, compared to $53.1 million for the prior year.

For the quarter, revenues decreased 8.9%, or $31.9 million to $327.4 million,
compared to the prior year’s fourth quarter, due primarily to a decrease of
$23.3 million in fuel reimbursement under Republic’s fixed-fee agreements.
Effective July 1, 2012, Republic no longer records fuel expense and does not
recognize fuel-related pass-through revenue under any of its fixed-fee
agreements. The remainder of the decrease in revenue is due to the increase of
Republic’s fixed-fee operations and reduction in pro-rate flying with
Frontier.

Income before taxes was $24.1 million for the quarter, compared to pre-tax
income of $23.3 million for the prior year’s fourth quarter. Fuel costs for
Republic were $21.8 million for the quarter, a decrease of $38.5 million from
the prior year’s fourth quarter, due to both the removal of fuel expense under
Republic’s fixed-fee agreement with United and a reduction in pro-rate
operations with Frontier. The price per gallon increased 9.1% from $3.19 in
the fourth quarter of 2011 to $3.48 in the fourth quarter of 2012.

As of December 31, 2012, Republic operated 70 aircraft with 44-50 seats and
143 aircraft with 69-80 seats to support its fixed-fee commercial agreements.
Additionally, Republic operated one aircraft with 50 seats and 12 aircraft
with 99 seats under pro-rate agreements with Frontier.

Frontier Segment Summary (ex-items)
Frontier revenues for the year increased 7.0% to $1,423.7 million. On a 1.1%
increase in capacity, unit revenues increased 5.8% to 11.96¢ from 11.30¢.
Frontier’s pre-tax income improved $92.6 million to $29.6 million of income
for 2012 compared to a pre-tax loss of $63.0 million for 2011.

For the quarter, decreased 1.1% to $334.9 million, compared to $338.5 million
for the same period in 2011. Total revenue per ASM (“TRASM”) was 11.88¢, an
increase of 2.9% from the same quarter in 2011, while capacity on Frontier
decreased 4.0% from the prior year’s fourth quarter. Load factor for the
fourth quarter was 88.9%, an increase of 0.7% from the fourth quarter of 2011.

For the quarter, Frontier posted pre-tax income of $7.3 million compared to
pre-tax income of $10.1 million for the prior year’s fourth quarter. Fuel
costs for Frontier were $128.2 million for the quarter, a decrease of $0.8
million from the prior year’s fourth quarter. The fuel cost per gallon,
including into-plane taxes and fees, increased 6.5% to $3.42 for the fourth
quarter of 2012, compared to $3.21 for last year’s fourth quarter. The fourth
quarter results include an expense on fuel hedges of $0.5 million, or $0.01
per gallon, while the 2011 results include a benefit of $3.5 million, or $0.09
per gallon. Frontier has approximately 15% of its anticipated fuel consumption
hedged through the second quarter of 2013.

Frontier’s operating unit cost was 7.03¢ for the quarter, a 3.4% increase
compared to 6.80¢ for the same quarter in 2011.

As of December 31, 2012, Frontier operated a total of 55 Airbus aircraft
versus 60 Airbus aircraft as of December 31, 2011.

Recent Business Developments
During the fourth quarter of 2012, the Company completed the restructuring of
its 50-seat platform, Chautauqua Airlines, Inc. As a result of the
restructuring, the Company expects to realize, on average, $45.0 million of
cash flow improvement per year for the next five years and has reduced its
aircraft rent and depreciation expense on its 50-seat aircraft. In addition,
in order to finalize the restructuring, the Company issued a $25.0 million
convertible note to one of the third parties involved in the restructuring.
The note bears interest at a rate of 6.0% per annum and is convertible into
2.5 million shares of Republic Airways Holdings Inc. common stock.

On January 24, 2013, the Company entered into a capacity purchase agreement
(“CPA”) with American Airlines which is subject to bankruptcy court approval.
American filed a motion for approval of the CPA to be heard before the court
on February 14, 2013. The hearing on that motion was subsequently adjourned
until February 26, 2013. On February 14, 2013, US Airways and American
Airlines announced a merger agreement. On February 21, 2013, the hearing on
American's motion to approve the CPA between the Company and American was
adjourned to March 12, 2013.

On February 8, 2013, the Company announced the transition of nine E145
aircraft flying on Chautauqua Airlines, Inc. from US Airways to Delta under
separate amendments. The US Airways amendment provides for termination of the
current aircraft operating under the Jet Service Agreement by July 2013. The
Delta amendment extends the current term for certain aircraft, as well as adds
ten aircraft into service during 2013.

Balance Sheet and Liquidity
The Company’s total cash balance increased $23.6 million to $394.3 million as
of December 31, 2012, compared to December 31, 2011. Restricted cash decreased
$4.3 million, to $147.1 million, from December 31, 2011. The Company’s
unrestricted cash balance increased $27.9 million, to $247.2 million, from
December 31, 2011. A condensed cash flow statement has been provided in the
tables section of this release.

The Company’s debt decreased to $2.12 billion as of December 31, 2012,
compared to $2.36 billion at December 31, 2011. As of December 31, 2012,
almost 90% of the total debt is at a fixed interest rate. The Company has
significant long-term lease obligations for aircraft that are classified as
operating leases and are not reflected as liabilities on the Company’s
consolidated balance sheet. At a 6.0% discount factor, the present value of
these lease obligations was approximately $1.0 billion and $1.2 billion as of
December 31, 2012 and 2011, respectively. A condensed balance sheet as of
December 31, 2012 and 2011 has been provided in the tables section of this
release.

Corporate Information
Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an airline
holding company that owns Chautauqua Airlines, Frontier Airlines, Republic
Airlines and Shuttle America, collectively “the airlines.” The airlines
operate a combined fleet of more than 280 aircraft and offer scheduled
passenger service on nearly 1,500 flights daily to over 145 cities in the U.S.
as well as to the Bahamas, Canada, Costa Rica, Dominican Republic, Jamaica,
Mexico and Turks and Caicos Islands under branded operations at Frontier, and
through fixed-fee flights operated under airline partner brands, including
AmericanConnection, Continental Express, Delta Connection, United Express, and
US Airways Express. The airlines currently employ approximately 10,000
aviation professionals. For more information on Republic Airways, please visit
our website at www.rjet.com.

The Company will conduct a telephone briefing to discuss its fourth quarter
and full year 2012 results tomorrow morning (Thursday, February 28, 2013) at
10:30 a.m. EST. This call is being webcast by Thomson/Reuters and can be
accessed at Republic Airways Holdings’ website at www.rjet.com. Those wishing
to participate can do so by calling 800-901-5259. International callers can
participate by calling +1-617-786-4514; the password is 80290913.

Additional Information
In addition to historical information, this release contains forward-looking
statements. Republic Airways Holdings Inc. may, from time to time, make
written or oral forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements encompass Republic
Airways’ beliefs, expectations, hopes or intentions regarding future events.
Words such as “expects,” “intends,” “believes,” “anticipates,” “may,” “will,”
“should,” “plan,” “estimate,” “predict,” “potential,” “continue,” or “likely”
and similar expressions as well as the negative of such expressions are used
to identify forward-looking statements. All forward-looking statements
included in this release are made as of the date hereof and are based on
information available to Republic Airways as of such date. Republic Airways
assumes no obligation to update any forward-looking statement. Actual results
may vary, and could differ materially, from those anticipated, estimated,
projected or expected in these forward-looking statements for a number of
reasons, including, among others, the risk factors disclosed in the Company’s
most recent filing with the Securities and Exchange Commission.

                                                                                  
                                                                                       
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
                                       
                     Three Months Ended December 31,       Years Ended December 31,
                     2012       2011         Change       2012         2011          Change
OPERATING
REVENUES
Fixed-fee            $ 273.4     $ 270.1      1.2    %     $ 1,102.1     $ 1,079.0     2.1    %
service
Passenger              366.4       402.8      -9.0   %       1,556.8       1,694.5     -8.1   %
service
Charter and           32.3     24.9      29.7   %      152.0      91.0       67.0   %
other
Total
operating              672.1       697.8      -3.7   %       2,810.9       2,864.5     -1.9   %
revenues
                                                                                       
OPERATING
EXPENSES
Wages and              141.8       134.7      5.3    %       562.3         560.6       0.3    %
benefits
Aircraft               150.0       187.7      -20.1  %       693.7         821.1       -15.5  %
fuel
Landing fees
and airport            40.1        41.7       -3.8   %       169.7         167.7       1.2    %
rents
Aircraft and           57.1        57.7       -1.0   %       243.2         251.5       -3.3   %
engine rent
Maintenance            70.9        68.4       3.7    %       296.3         297.2       -0.3   %
and repair
Insurance              7.4         9.7        -23.7  %       38.1          42.1        -9.5   %
and taxes
Depreciation
and                    47.3        48.6       -2.7   %       190.6         200.2       -4.8   %
amortization
Promotion              23.8        27.9       -14.7  %       110.5         133.6       -17.3  %
and sales
Other
impairment             -           191.1      -100.0 %       -             191.1       -100.0 %
charges
Other                 81.6     96.4      -15.4  %      293.6      305.0      -3.7   %
Total
operating             620.0    863.9     -28.2  %      2,598.0    2,970.1    -12.5  %
expenses
OPERATING
INCOME                 52.1        (166.1 )   131.4  %       212.9         (105.6  )   301.6  %
(LOSS)
                                                                                       
OTHER INCOME
(EXPENSE)
Interest               (30.8 )     (33.1  )   6.9    %       (127.0  )     (137.3  )   7.5    %
expense
Other - net           0.1      0.1       0.0    %      0.3        0.5        -40.0  %
Total other           (30.7 )   (33.0  )   7.0    %      (126.7  )   (136.8  )   7.4    %
expense
                                                                                       
INCOME
(LOSS)                 21.4        (199.1 )   110.7  %       86.2          (242.4  )   135.6  %
BEFORE
INCOME TAXES
                                                                                       
INCOME TAX
EXPENSE               8.8      (75.6  )   111.6  %      34.9       (90.6   )   138.5  %
(BENEFIT)
                                                                                       
NET INCOME           $ 12.6    $ (123.5 )   110.2  %     $ 51.3      $ (151.8  )   133.8  %
(LOSS)
PER SHARE,           $ 0.26      $ (2.55  )   110.2  %     $ 1.06        $ (3.14   )   133.8  %
BASIC
PER SHARE,           $ 0.25      $ (2.55  )   109.8  %     $ 1.02        $ (3.14   )   132.5  %
DILUTED
Weighted
average
common
shares
Basic                  48.5        48.4                      48.5          48.2
Diluted                52.7        48.4                      51.4          48.2
                                                                                       

                                                               
                                                                  
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share amounts)
(Unaudited)
                                            
                                                 December 31,     December 31,
                                                 2012             2011
ASSETS
Current Assets:
Cash and cash equivalents                        $  247.2         $  219.3
Restricted cash                                     147.1            151.4
Receivables, net of allowance for
doubtful accounts of $2.9 and $0.6,                 79.5             89.0
respectively
Inventories, net                                    86.5             101.8
Prepaid expenses and other current                  44.4             64.2
assets
Assets held for sale                                -                33.0
Deferred income taxes                              31.3           35.3    
Total current assets                                636.0            694.0
Aircraft and other equipment, net                   2,546.7          2,808.7
Maintenance deposits                                170.0            146.0
Other intangible assets, net                        65.0             86.5
Other assets                                       237.5          166.5   
Total assets                                     $  3,655.2      $  3,901.7 
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt                $  276.2         $  284.6
Accounts payable                                    29.8             43.9
Air traffic liability                               146.6            179.5
Deferred frequent flyer revenue                     54.8             68.2
Accrued liabilities                                238.8          258.8   
Total current liabilities                           746.2            835.0
Long-term debt, less current portion                1,843.3          2,074.5
Deferred frequent flyer revenue, less               57.8             68.1
current portion
Deferred credits and other non-current              109.8            110.4
liabilities
Deferred income taxes                              384.6          353.2   
Total liabilities                                   3,141.7          3,441.2
                                                                  
Commitments and Contingencies
                                                                  
Stockholders' Equity:
Preferred stock, $.001 par value;
5,000,000 shares authorized; no shares              -                -
issued or outstanding
Common stock, $.001 par value; one vote
per share; 150,000,000 shares
authorized; 58,529,449 and 58,097,574               -                -
shares issued and 48,558,312 and
48,412,516 shares outstanding,
respectively
Additional paid-in-capital                          412.1            409.4
Treasury stock, 9,333,266 shares at cost            (181.8  )        (181.8  )
Accumulated other comprehensive loss                (5.0    )        (4.0    )
Accumulated earnings                               288.2          236.9   
Total stockholders' equity                         513.5          460.5   
Total liabilities and stockholders'              $  3,655.2      $  3,901.7 
equity
                                                                             

                                                              
                                                                    
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
                                                                    
                                                      Years ended December 31,
                                                      2012          2011
                                                                    
NET CASH FROM OPERATING ACTIVITIES                    $  255.6     $ 131.5  
INVESTING ACTIVITIES:
Purchase of aircraft and other equipment                 (35.7  )     (105.9 )
Proceeds from sale of aircraft, slots and                84.3         142.3
other assets
Aircraft deposits, net                                   (8.0   )     (10.4  )
Other, net                                              (3.4   )    (2.4   )
NET CASH FROM INVESTING ACTIVITIES                    $  37.2       $ 23.6
FINANCING ACTIVITIES:
Payments on debt                                         (216.1 )     (208.5 )
Proceeds from debt issuance                              3.7          70.7
Payments on early extinguishment of debt                 (52.0  )     (88.0  )
Other, net                                              (0.5   )    (1.2   )
NET CASH FROM FINANCING ACTIVITIES                    $  (264.9 )   $ (227.0 )
NET INCREASE (DECREASE) IN CASH AND CASH              $  27.9      $ (71.9  )
EQUIVALENTS
CASH AND CASH EQUIVALENTS, Beginning of               $  219.3     $ 291.2  
period
CASH AND CASH EQUIVALENTS, End of period              $  247.2     $ 219.3  
                                                                             

                                                                
                                                                       
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED OPERATING HIGHLIGHTS
                                                                       
                                     Three Months Ended December 31,
Operating Highlights –           2012            2011            Change
Republic^1
Total revenues (millions)            $ 327.4          $ 359.3          -8.9  %
Total fuel expense                   $ 21.8           $ 60.3           -63.8 %
(millions)^2
Operating aircraft at period
end:
37-50 seats^3                          71               73             -2.7  %
69-99 seats^4                          155              148            4.7   %
Block hours                            176,079          174,062        1.2   %
Departures                             102,662          102,338        0.3   %
Passengers carried                     5,163,017        4,912,182      5.1   %
Revenue passenger miles                2,560            2,474          3.5   %
(millions)
Available seat miles                   3,294            3,358          -1.9  %
(millions)
Passenger load factor                  77.7       %     73.7       %   4.0 pts
Total cost per available
seat mile, including                   9.21             10.01          -8.0  %
interest expense and
excluding items (cents)^6
Cost per available seat
mile, including interest and           8.55             8.21           4.1   %
excluding fuel expense and
excluding items (cents)^6
Gallons consumed                       6,272,203        18,936,470     -66.9 %
Average cost per gallon              $ 3.48           $ 3.19           9.1   %
Average daily utilization of
each scheduled aircraft                9.3              9.7            -4.1  %
(hours)
Average stage length                   482              490            -1.6  %
Average seat density                   67               67             0.0   %
                                                                       
Operating Highlights –                                         
Frontier^1
Total revenues (millions)^7          $ 334.9          $ 338.5          -1.1  %
Total fuel expense                   $ 128.2          $ 127.4          0.6   %
(millions)
Operating aircraft at period
end:
120 seats                              2                4              -50.0 %
136-138 seats                          37               41             -9.8  %
162-168 seats                          16               15             6.7   %
Passengers carried                     2,596,521        2,731,199      -4.9  %
Revenue passenger miles                2,505            2,588          -3.2  %
(millions)
Available seat miles                   2,818            2,934          -4.0  %
(millions)
Passenger load factor                  88.9       %     88.2       %   0.7 pts
Total revenue per available            11.88            11.54          2.9   %
seat mile (cents)^7
Operating cost per available           11.58            11.15          3.9   %
seat mile (cents)^5,8
Fuel cost per available seat           4.55             4.34           4.8   %
mile (cents)^5
Cost per available seat
mile, excluding fuel expense           7.03             6.80           3.4   %
(cents)^8
Gallons consumed                       37,478,548       39,745,972     -5.7  %
Average cost per gallon^5            $ 3.42           $ 3.21           6.5   %
Block hours                            50,662           54,242         -6.6  %
Departures                             20,587           22,102         -6.9  %
Average daily utilization of
each scheduled aircraft                10.5             10.5           0.0   %
(hours)
Average stage length                   946              935            1.2   %
Average seat density                   145              142            2.1   %

^1 See business segment presentation discussion for information regarding our
change in segments.
^2 Includes $23.3 million for the three months ended December 31, 2011, which
was passed-through under our fixed-fee agreements with our partners.
^3 Includes one aircraft and eleven aircraft as of December 31, 2012 and 2011,
respectively, that were unassigned.
^4 Includes three aircraft as of December 31, 2011 that were unassigned.
^5 Includes mark-to-market fuel hedge expense of $0.5 million and benefit of
$3.5 million for the three months ended December 31, 2012 and 2011,
respectively.
^6 Excludes $4.3 million and $200.2 million items for the three months ended
December 31, 2012 and 2011, respectively.
^7 Excludes $9.8 million of items for the three months ended December 31,
2012.
^8 Excludes $15.5 million and $32.3 million of items for the three months
ended December 31, 2012 and 2011, respectively.


                                                                
                                                                       
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED OPERATING HIGHLIGHTS
                                                                       
                                   Years Ended December 31,
Operating Highlights –         2012             2011             Change
Republic^1
Total revenues (millions)          $ 1,377.4         $ 1,534.0         -10.2 %
Total fuel expense                 $ 161.4           $ 303.3           -46.8 %
(millions)^2
Operating aircraft at
period end:
37-50 seats^3                        71                73              -2.7  %
69-99 seats^4                        155               148             4.7   %
Block hours                          701,040           731,440         -4.2  %
Departures                           409,058           429,564         -4.8  %
Passengers carried                   20,112,289        20,773,219      -3.2  %
Revenue passenger miles              10,120            10,691          -5.3  %
(millions)
Available seat miles                 13,437            14,449          -7.0  %
(millions)
Passenger load factor                75.3        %     74.0        %   1.3 pts
Total cost per available
seat mile, including
interest expense and                 9.73              10.25           -5.1  %
excluding impairment
(cents) ^6
Cost per available seat
mile, including interest
and excluding fuel expense           8.53              8.15            4.7   %
and excluding impairment
(cents) ^6
Gallons consumed                     48,842,044        91,890,705      -46.8 %
Average cost per gallon            $ 3.30            $ 3.30            0.0   %
Average daily utilization
of each scheduled aircraft           9.8               9.9             -1.0  %
(hours)
Average stage length                 469               498             -5.8  %
Average seat density                 67                68              -1.5  %
                                                                       
Operating Highlights –                                         
Frontier^1
Total revenues (millions)          $ 1,423.7         $ 1,330.5         7.0   %
^7
Total fuel expense                 $ 532.3           $ 517.8           2.8   %
(millions)
Operating aircraft at
period end:
120 seats                            2                 4               -50.0 %
136-138 seats                        37                41              -9.8  %
162-168 seats                        16                15              6.7   %
Passengers carried                   10,700,669        10,583,331      1.1   %
Revenue passenger miles              10,579            10,271          3.0   %
(milllions)
Available seat miles                 11,908            11,779          1.1   %
(millions)
Passenger load factor                88.8        %     87.2        %   1.6 pts
Total revenue per
available seat mile                  11.96             11.30           5.8   %
(cents) ^7
Operating cost per
available seat mile                  11.66             11.77           -0.9  %
(cents)^5,8
Fuel cost per available              4.47              4.40            1.6   %
seat mile (cents)^5
Cost per available seat
mile, excluding fuel                 7.19              7.38            -2.6  %
expense (cents)^8
Gallons consumed                     158,361,595       159,145,671     -0.5  %
Average cost per gallon^5          $ 3.36            $ 3.25            3.4   %
Block hours                          214,494           219,359         -2.2  %
Departures                           85,328            87,938          -3.0  %
Average daily utilization
of each scheduled aircraft           11.0              11.2            -1.8  %
(hours)
Average stage length                 976               957             2.0   %
Average seat density                 143               140             2.1   %

^1 See business segment presentation discussion for information regarding our
change in segments.
^2 Includes $48.2 million and $102.5 million for the year ended December 31,
2012 and 2011, respectively, which was passed-through under our fixed-fee
agreements with our partners.
^3 Includes one aircraft and eleven aircraft as of December 31, 2012 and 2011,
respectively, that were unassigned.
^4 Includes three aircraft as of December 31, 2011 that were unassigned.
^5 Includes mark-to-market fuel hedge expense of $2.2 million and benefit of
$(3.8) million for the year ended December 31, 2012 and 2011, respectively.
^6 Excludes $7.2 million and $200.2 million items for the year ended December
31, 2012 and 2011, respectively.
^7 Excludes $9.8 million of items for the year ended December 31, 2012.
^8 Excludes $15.5 million and $32.3 million of items for the year ended
December 31, 2012 and 2011, respectively.



Reconciliation of GAAP to non-GAAP measures:

The following tables present the reconciliation of results on a GAAP basis to
the reported ex-item results for the three months and full years ended
December 31, 2012 and 2011:

                  Three months ended Dec. 31, 2012
                      Pre-tax by Segment                   After-tax      Diluted
                                                                              Earnings
($ in                 Republic  Frontier  Consolidated     Consolidated     Per share
millions)
GAAP income           $  19.8   $ 1.6     $   21.4         $   12.6         $ 0.25
Adjustments:
Restructuring
and fleet                4.3       15.5         19.8             11.7           0.21
transition
expenses
Frequent
flyer                           (9.8 )     (9.8  )         (5.8  )       (0.11 )
adjustment^1
Ex-item               $  24.1   $ 7.3    $   31.4        $   18.5        $ 0.35  
income

^1Additional revenue related to the change in expiration of mileage earned
under its frequent flyer program from 24 to 18 months

                                                                     
                      Year ended Dec. 31, 2012
                      Pre-tax by Segment                     After-tax        Diluted
                                                                              Earnings
($ in                 Republic  Frontier  Consolidated     Consolidated     Per share
millions)
GAAP income           $  62.3   $ 23.9    $   86.2         $   51.3         $ 1.02
Adjustments:
Restructuring
and fleet                4.3       15.5         19.8             11.8           0.21
transition
expenses
Loss, net on
sale of                  2.9                    2.9              1.7            0.03
assets
Frequent
flyer                           (9.8 )     (9.8  )         (5.8  )       (0.11 )
adjustment^1
Ex-item               $  69.5   $ 29.6   $   99.1        $   59.0        $ 1.15  
income

^1Additional revenue related to the change in expiration of mileage earned
under its frequent flyer program from 24 to 18 months

                                                                        
                      Three months ended Dec. 31, 2011
                      Pre-tax by Segment                        After-tax        Diluted
                                                                                 Earnings
($ in                 Republic    Frontier   Consolidated     Consolidated     Per share
millions)
GAAP income           $ (176.9 )  $ (22.2 )  $  (199.1  )     $  (123.5  )     $ (2.55 )
(loss)
Adjustments:
Restructuring
and fleet               9.1          32.3         41.4             25.7            0.51
transition
expenses
Non-recurring          191.1     -         191.1          118.6         2.46  
impairment
Ex-item               $ 23.3     $ 10.1    $  33.4         $  20.7         $ 0.41  
income
                                                                                 
                                                                                 
                      Year ended Dec. 31, 2011
                      Pre-tax by Segment                        After-tax        Diluted
                                                                                 Earnings
($ in                 Republic    Frontier   Consolidated     Consolidated     Per share
millions)
GAAP income           $ (147.1 )   $ (95.3 )   $  (242.4  )     $  (151.8  )     $ (3.14 )
(loss)
Adjustments:
Restructuring
and fleet               9.1          32.3         41.4             25.9            0.54
transition
expenses
Non-recurring          191.1     -         191.1          119.7         2.48  
impairment
Ex-item               $ 53.1     $ (63.0 )  $  (9.9    )     $  (6.2    )     $ (0.13 )
income (loss)
                                                                                         

                                              
                              Three months ended         Twelve months ended
                              Dec. 31,                   Dec. 31,
                              2012                       2012
($ in                         Frontier     TRASM        Frontier     TRASM
millions)                                   (cents)                    (cents)
GAAP revenue                  $  344.7      12.23        $ 1,433.5     12.04
Adjustments:
Frequent
flyer                           (9.8   )   (0.35  )      (9.8    )   (0.08 )
adjustment^1
Ex-item                       $  334.9     11.88       $ 1,423.7    11.96 
revenue

^1Additional revenue related to the change in expiration of mileage earned
under its frequent flyer program from 24 to 18 months

                                              
                        Three months ended Dec.      Twelve months ended Dec.
                        31,                          31,
                        2012                         2012
($ in millions)         Frontier      CASM          Frontier       CASM
                                       (cents)                       (cents)
GAAP operating          $  341.7       12.13         $  1,404.1      11.79
expenses
Adjustments:
Restructuring
and fleet                 (15.5  )    (0.55  )        (15.5    )   (0.13  )
transition
expenses
Ex-item
operating               $  326.2      11.58        $  1,388.6     11.66  
expenses
                                                                     
                                                                     
                        Three months ended Dec.      Twelve months ended Dec.
                        31,                          31,
                        2011                         2011
($ in millions)         Frontier       CASM          Frontier        CASM
                                       (cents)                       (cents)
GAAP operating          $  359.3       12.25         $  1,419.2      12.05
expenses
Adjustments:
Restructuring
and fleet                 (32.3  )    (1.10  )        (32.3    )   (0.28  )
transition
expenses
Ex-item
operating               $  327.0      11.15        $  1,386.9     11.77  
expenses
                                                                            

Contact:

Republic Airways Holdings
Margaret Miller, 317-246-2628
 
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