Republic Airways Holdings Reports Third Quarter 2013 Financial Results

  Republic Airways Holdings Reports Third Quarter 2013 Financial Results

Business Wire

INDIANAPOLIS -- November 6, 2013

Republic Airways Holdings Inc. (NASDAQ/NM:RJET) today reported diluted
earnings per share from continuing operations for the third quarter of 2013 of
$0.09 as compared to $0.13 for the same period in the prior year. During the
third quarter of 2013, the company recorded a non-cash impairment charge of
$21.2 million, $13.0 million after-tax or $0.25 per diluted share, to reduce
the carrying value of seven owned E190 aircraft and write-off the maintenance
deposits on three leased E190 aircraft. Income from continuing operations was
$4.3 million compared to $6.3 million for the same period last year. Excluding
the E190 impairment charge, pre-tax income from continuing operations was
$26.6 million, resulting in an adjusted pre-tax margin from continuing
operations of 7.9%. Operating revenues totaled $338.6 million, an increase of
0.4%, compared to $337.4 million for the third quarter of 2012.

The company classified its Frontier business as discontinued operations due to
the expected sale during the fourth quarter of 2013. Unless otherwise
specified, all financial information disclosed in this release is from
continuing operations.

On October 1, 2013, the company reported that it had agreed to sell its
Frontier business to an affiliate of Indigo Partners LLC (Indigo). Indigo will
acquire all the outstanding shares of Frontier Airlines Holdings, Inc. As part
of the transaction, under a separate agreement, Republic will assign to
Frontier all of Republic’s rights under agreements relating to the Republic’s
Airbus A320neo order. The transaction is subject to receipt of certain
third-party consents and releases and other customary closing conditions.

On November 6, 2013, Indigo informed the company that it had satisfied or
waived certain key conditions to close under the transaction. The company
expects the transaction to close later this month.

For additional information on the divestiture of Frontier, please see the
company's separate news release dated October 1, 2013 and a separate filing
with the U.S. Securities and Exchange Commission on Form 8-K filed on October
7, 2013.

"The sale of Frontier will allow our management team to re-focus on our core
business," said Republic Airways Chairman, President and Chief Executive
Officer Bryan Bedford. "We continue to be excited about the growth
opportunities for our fixed-fee business and are focused on providing safe,
reliable and low-cost solutions to each of our airline partner brands,
including American Eagle, Delta Connection, United Express and US Airways
Express," said Bedford.

"I'd like to personally thank each and every one of my Republic and Frontier
co-workers for their outstanding service and dedication to customer service
for our passengers and our partners. To all of you at Frontier, I wish you the
very best." Bedford concluded.

The Company reported the following key metrics for the three and nine months
ended September 30:


             Three Months ended September 30,  Nine Months ended September 30,
                                    %                                      %
(Unaudited)   2013      2012      Increase /   2013        2012        Increase /
                                    (Decrease)                             (Decrease)
(in
millions,
except as
noted)
Operating     $ 338.6    $ 337.4    0.4     %    $ 1,000.0    $ 1,050.0    (4.8   )%
revenues
Available
seat miles    3,470      3,424      1.3     %    9,975        10,143       (1.7   )%
(ASMs)
Adjusted
Income from   $ 17.3     $ 6.3      174.6   %    $ 44.8       $ 22.5       99.1   %
continuing
operations
Adjusted
Diluted
earnings
per share     $ 0.34     $ 0.13     161.5   %    $ 0.84       $ 0.46       82.6   %
from
continuing
operations
(dollars)
                                                                           
Adjusted
EBITDAR
from          $ 123.0    $ 108.3    13.6    %    $ 358.0      $ 309.4      15.7   %
continuing
operations


Third Quarter Review

Operating Revenue Highlights

Total operating revenues increased $1.2 million, or 0.4%, from the third
quarter of 2012 to $338.6 million in the third quarter of 2013. Fixed-fee
service revenue increased $51.6 million, or 19.2%, to $320.3 million due to an
increase in Q400 flying with United Airlines, new fixed-fee E190 charter
flying and new E175 flying with American Airlines. Passenger service revenue
decreased $50.5 million due to a significant reduction in the number of E190
aircraft operating under our pro-rate agreement with Frontier.

Operating Expense Highlights

Fuel costs for Republic decreased $14.1 million to $11.3 million for the
quarter, due to a 4.7 million decrease in gallons consumed due to the reduced
E190 pro-rate operations. The fuel cost per gallon, including into-plane taxes
and fees, increased to $3.55 per gallon in the third quarter of 2013, compared
to $3.21 per gallon in the prior year's third quarter. The fuel cost per
gallon related to our fixed-fee charter agreement is generally higher than our
pro-rate operations with Frontier and is treated as a pass through cost under
the agreement.

Landing fees and airport rents decreased $6.6 million to $7.9 million for the
quarter. Beginning in June 2013, landing fee expense and the related
pass-through reimbursement revenue were lower due to United paying airports
directly for its associated landing fee costs.

At September 30, 2013, the company had a fleet of ten E190 aircraft, of which
three were leased and seven were owned. Five of the aircraft operate within
the fixed-fee charter agreement and the remainder were operating under the
pro-rate agreement with Frontier. The company is working to sell, sublease or
otherwise place into fixed-fee charter service the five aircraft operating in
pro-rate service. During the third quarter of 2013, we recorded a non-cash
impairment charge of $21.2 million to reduce the carrying value of our owned
E190 aircraft and expensed the deferred maintenance deposits on the leased
E190 aircraft.

Discontinued Operations

Income from discontinued operations, net of tax, increased 52.8% from $19.5
million in the third quarter of 2012 to $29.8 million in this quarter. The
improvement is primarily due to Frontier TRASM increasing 6.6% over the prior
period and lower fuel costs. The loss on disposal of discontinued operations,
net of tax, is currently estimated to be $47.9 million. This estimate will
adjust in future periods based on the actual results of the discontinued
operations and the closing date of the transaction.

Fleet Highlights

As of September30, 2013, Republic operated a fleet of 235 aircraft. Within
our fixed-fee commercial and charter agreements, we operated 68 aircraft with
44-50 seats and 162 aircraft with 69-99 seats. In addition, we operated five
99-seat aircraft under the pro-rate agreement with Frontier, down from
seventeen 99-seat aircraft operated in pro-rate service during the third
quarter of 2012.

During the quarter the company took delivery of nine E175 aircraft operating
under its American Airlines capacity purchase agreement and expects to take
delivery of an additional ten E175 aircraft by the end of 2013.

Balance Sheet and Liquidity

The company's total cash balance decreased $6.3 million to $224.1 million as
of September30, 2013, compared to December31, 2012. Restricted cash
increased $12.6 million, to $32.2 million, from December31, 2012 due to the
escrow requirements under our fixed-fee charter agreements. The Company's
unrestricted cash balance decreased $18.9 million, to $191.9 million, from
December31, 2012. A condensed consolidated balance sheet and cash flow
statement have been included in the tables section of this release.

The Company's debt increased to $2.00 billion as of September30, 2013,
compared to $1.97 billion at December31, 2012, primarily related to the
financing of E175 aircraft for the American Airlines fixed-fee agreement. As
of September30, 2013, approximately 95% of our 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% discount factor, the
present value of these lease obligations was approximately $0.5 billion and
$0.6 billion as of September30, 2013, and December31, 2012, respectively.

At September 30, 2013 the company had assets held for sale of $594.8 million
and liabilities held for sale of $517.8 million. The $77.0 million of value in
net assets held for sale represents the estimated cash proceeds from the sale
of Frontier. These amounts will adjust in future periods based on the actual
results of discontinued operations and the closing date of the transaction.

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 over 1,600 flights daily to over 145 cities in the U.S.
as well as to the Bahamas, Canada, Costa Rica, Jamaica, Mexico and Turks and
Caicos Islands under branded operations at Frontier and through fixed-fee
flights operated under airline partner brands, including American Eagle, 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 third quarter
2013 results tomorrow morning (Thursday, November 7, 2013) at 10:30 a.m. EST.
This call is being webcast by Thomson/Reuters and can be accessed at the
Republic Airways Holdings' website at www.rjet.com. Those wishing to
participate can do so by calling 866-953-6857. International callers can
participate by calling +1-617-399-3481; the passcode is 10591212.

To listen to a telephone replay of the webcast, call 888-286-8010 and use
password 97573607. International telephone replay will be available by calling
+1-617-801-6888 and using the same password. The replay will be available from
November 7, at 2:30 p.m. EST until 11:59 p.m. EST November 14, 2013.

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 STATEMENT OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)
              Three Months Ended September 30,    Nine Months Ended September 30,
                                       % Increase                           % Increase
               2013       2012       /            2013       2012       /
                                       (Decrease)                           (Decrease)
OPERATING
REVENUES
Fixed-fee      $ 320.3     $ 268.7     19.2    %    $ 941.2     $ 828.7     13.6   %
service
Passenger      12.6        63.1        (80.0   )%   41.6        200.4       (79.2  )%
service
Charter and    5.7        5.6        1.8     %    17.2       20.9       (17.7  )%
other
Total
operating      338.6       337.4       0.4     %    1,000.0     1,050.0     (4.8   )%
revenues
OPERATING
EXPENSES
Wages and      87.1        79.0        10.3    %    256.6       227.6       12.7   %
benefits
Aircraft       11.3        25.4        (55.5   )%   37.1        139.6       (73.4  )%
fuel
Landing fees
and airport    7.9         14.5        (45.5   )%   38.3        46.9        (18.3  )%
rents
Aircraft and   32.0        29.0        10.3    %    91.6        86.1        6.4    %
engine rent
Maintenance    67.3        66.6        1.1     %    184.0       178.1       3.3    %
and repair
Insurance      6.5         5.8         12.1    %    18.5        18.6        (0.5   )%
and taxes
Depreciation
and            37.0        39.9        (7.3    )%   110.5       119.7       (7.7   )%
amortization
Promotion      0.6         3.3         (81.8   )%   2.1         10.2        (79.4  )%
and sales
Other
impairment     21.2        —           100.0   %    21.2        —           100.0  %
charges
Other          34.9       34.5       1.2     %    105.4      97.1       8.5    %
Total
operating      305.8       298.0       2.6     %    865.3       923.9       (6.3   )%
expenses
                                                                            
OPERATING      32.8        39.4        (16.8   )%   134.7       126.1       6.8    %
INCOME
OTHER INCOME
(EXPENSE)
Interest       (27.4   )   (28.9   )   (5.2    )%   (83.1   )   (88.7   )   (6.3   )%
expense
Other - net    —          0.1        —       %    0.1        0.1        —      %
Total other    (27.4   )   (28.8   )   (4.9    )%   (83.0   )   (88.6   )   (6.3   )%
expense
                                                                            
INCOME FROM
CONTINUING
OPERATIONS     5.4         10.6        (49.1   )%   51.7        37.5        37.9   %
BEFORE
INCOME TAXES
                                                                            
INCOME TAX     1.1        4.3        (74.4   )%   19.9       15.0       32.7   %
EXPENSE
                                                                            
INCOME FROM
CONTINUING     $ 4.3      $ 6.3      (31.7   )%   $ 31.8     $ 22.5     41.3   %
OPERATIONS
INCOME FROM
DISCONTINUED
OPERATIONS:
Income from
discontinued   $ 29.8      $ 19.5      52.8    %    $ 27.2      $ 16.2      67.9   %
operations,
net of tax
Loss from
disposal of
discontinued   $ (47.9 )   $ —        100.0   %    $ (47.9 )   $ —        100.0  %
operations,
net of tax
(Loss)
income from
discontinued   (18.1   )   19.5        —            (20.7   )   16.2        —
operations,
net of tax
                                                                            
NET (LOSS)     (13.8   )   25.8       (153.5  )%   11.1       38.7       (71.3  )%
INCOME
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
INCOME FROM
CONTINUING
OPERATIONS     0.09       0.13       (30.8   )%   0.64       0.46       39.1   %
PER COMMON
SHARE -
BASIC
INCOME FROM
CONTINUING
OPERATIONS     0.09       0.13       (30.8   )%   0.60       0.46       30.4   %
PER COMMON
SHARE -
DILUTED
NET INCOME
(LOSS) PER     (0.28   )   0.53       (152.8  )%   0.22       0.80       (72.5  )%
COMMON SHARE
- BASIC
NET INCOME
(LOSS) PER     (0.26   )   0.51       (151.0  )%   0.23       0.79       (70.9  )%
COMMON SHARE
- DILUTED
                                                                            
Weighted
average
common
shares
Basic          49.4        48.5        1.9     %    49.8        48.5        2.7    %
Diluted        52.5        50.8        3.3     %    55.1        50.3        9.5    %



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts)

(Unaudited)
                                                 September 30,  December 31,
                                                  2013            2012
ASSETS
Current Assets:
Cash and cash equivalents                         $  191.9        $  210.8
Restricted cash                                   32.2            19.6
Receivables, net of allowance for doubtful        31.0            40.2
accounts of $1.5 and $1.3, respectively
Inventories                                       72.7            72.8
Prepaid expenses and other current assets         13.9            12.2
Assets held for sale                              594.8           756.7
Deferred income taxes                             48.3           31.3       
Total current assets                              984.8           1,143.6
Aircraft and other equipment, net                 2,354.5         2,311.2
Maintenance deposits                              33.0            28.1
Other intangible assets, net                      9.0             9.0
Other assets                                      239.8          163.4      
Total assets                                      $  3,621.1     $  3,655.3 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt                 $  234.8        $  220.7
Accounts payable                                  21.7            22.9
Air traffic liability                             —               —
Deferred frequent flyer revenue                   —               —
Accrued liabilities                               163.6           148.4
Liabilities held for sale                         517.8          522.2      
Total current liabilities                         937.9           914.2
Long-term debt, less current portion              1,760.9         1,752.0
Deferred frequent flyer revenue, less current     —               —
portion
Deferred credits and other non-current            104.5           91.0
liabilities
Deferred income taxes                             286.3          384.6      
Total liabilities                                 3,089.6         3,141.8
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;
59,252,442 and 58,529,449 shares issued and       —               —
49,302,926 and 48,558,312 shares outstanding,
respectively
Additional paid-in-capital                        418.9           412.1
Treasury stock, 9,333,266 shares at cost          (181.8      )   (181.8     )
Accumulated other comprehensive loss              (4.9        )   (5.0       )
Accumulated earnings                              299.3          288.2      
Total stockholders' equity                        531.5          513.5      
Total liabilities and stockholders' equity        $  3,621.1     $  3,655.3 



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)
                                              Nine Months Ended September 30,
                                               2013              2012
OPERATING ACTIVITIES:
Cash from operating activities - continuing    $   170.0          $  172.2
operations
Cash from operating activities -               66.4              10.6      
discontinued operations
NET CASH FROM OPERATING ACTIVITIES             236.4             182.8     
                                                                  
INVESTING ACTIVITIES:
Purchase of aircraft and other equipment       (233.4      )      (15.2     )
Proceeds from sale of other assets             40.1               23.1
Aircraft deposits                              (25.0       )      —
Other, net                                     (2.4        )      (4.4      )
                                                                  
Cash from investing activities - continuing    (220.7      )      3.5
operations
Cash from investing activities -               (8.0        )      (19.9     )
discontinued operations
NET CASH FROM INVESTING ACTIVITIES             (228.7      )      (16.4     )
                                                                  
FINANCING ACTIVITIES:
Payments on debt                               (147.9      )      (144.1    )
Proceeds from debt issuance and refinancing    236.8              —
Payments on early extinguishment of debt and   (58.7       )      —
refinancing
Proceeds from exercise of stock options        3.9                —
Other, net                                     (2.3        )      (0.2      )
                                                                  
Cash from financing activities - continuing    31.8               (144.3    )
operations
Cash from financing activities -               (31.0       )      (14.2     )
discontinued operations
NET CASH FROM FINANCING ACTIVITIES             0.8               (158.5    )
                                                                  
NET INCREASE IN CASH AND CASH EQUIVALENTS      8.5                7.9
CASH AND CASH EQUIVALENTS—Beginning of         $   247.2         $  219.3  
period
CASH AND CASH EQUIVALENTS—End of period        255.7              227.2
Less cash and equivalents of discontinued      (63.8       )      (21.2     )
operations at end of year
Cash and equivalents of continuing             $   191.9         $  206.0  
operations at end of year
                                                                  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
CASH PAID FOR INTEREST AND INCOME TAXES:
Interest paid                                  $   86.4           $  95.2
Income taxes paid                              0.6                0.3
NON-CASH INVESTING & FINANCING TRANSACTIONS:
Aircraft parts financed                        $   42.8           $  —
Chautauqua restructuring asset                 12.0               —
Engine received and not yet paid               5.8                —



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED OPERATING HIGHLIGHTS
                                        Three Months Ended September 30,   
                                         2013         2012         Change
Operating Highlights – Republic
Fixed-fee service                        $  320.3      $  268.7      19.2   %
Passenger service                        12.6          63.1          (80.0  )%
Charter and other                        5.7          5.6          1.8    %
Total revenues (millions)                $  338.6      $  337.4      0.4    %
                                                                     
Total fuel expense (millions)            $  11.3       $  25.4       (55.5  )%
Operating aircraft at period end:
44-50 seats^7                            68            64            6.3    %
69-99 seats                              167           148           12.8   %
Block hours                              190,589       178,251       6.9    %
Departures                               114,037       104,660       9.0    %
Passengers carried                       5,624,693     5,333,769     5.5    %
Revenue passenger miles ("RPM")          2,688         2,691         (0.1   )%
(millions)^1
Available seat miles ("ASM")             3,470         3,424         1.3    %
(millions)^2
Passenger load factor^3                  77.5      %   78.6      %   (1.1 pts)
Total cost per ASM, including interest   9.60          9.49          1.2    %
expense (cents)^4
Cost per ASM, including interest
expense and excluding fuel expense       9.28          8.74          6.2    %
(cents)
Gallons consumed                         3,178,707     7,923,584     (59.9  )%
Average cost per gallon                  $  3.55       $  3.21       10.6   %
Average daily utilization of each        9.7           10.1          (4.0   )%
aircraft (hours)^6
Average stage length (miles)             460           489           (5.9   )%
Average seat density                     66            67            (1.5   )%


1.    Revenue passenger miles are the number of scheduled miles flown by
         revenue passengers.
2.       Available seat miles are the number of seats available for passengers
         multiplied by the number of scheduled miles those seats are flown.
3.       Passenger load factor is revenue passenger miles divided by available
         seat miles.
4.       Total operating costs divided by available seat miles.
5.       Hours from takeoff to landing, including taxi time.
6.       Average number of hours per day that an aircraft flown in revenue
         service is operated (from gate departure to gate arrival).
7.       Excludes seven aircraft as of September 30, 2012 that were
         temporarily idled.



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED OPERATING HIGHLIGHTS
                                      Nine Months Ended September 30,
                                       2013          2012          Change
Operating Highlights – Republic
Fixed-fee service                      $  941.2       $  828.7       13.6   %
Passenger service                      41.6           200.4          (79.2  )%
Charter and other                      17.2          20.9          (17.7  )%
Total revenues (millions)              $  1,000.0     $  1,050.0     (4.8   )%
                                                                     
Total fuel expense (millions)^1        $  37.1        $  139.6       (73.4  )%
Operating aircraft at period end:
44-50 seats^8                          68             64             6.3    %
69-99 seats                            167            148            12.8   %
Block hours^6                          555,255        524,961        5.8    %
Departures                             327,060        306,396        6.7    %
Passengers carried                     15,910,016     14,949,272     6.4    %
Revenue passenger miles ("RPM")        7,601          7,560          0.5    %
(millions)^2
Available seat miles ("ASM")           9,975          10,143         (1.7   )%
(millions)^3
Passenger load factor^4                76.2       %   74.5       %   1.7 pts
Total cost per ASM, including          9.51           9.93           (100.0 )%
interest expense (cents)^5
Cost per ASM, including interest
expense and excluding fuel expense     9.13           8.56           6.7    %
(cents)
Gallons consumed^1                     10,328,831     42,569,841     (75.7  )%
Average cost per gallon                $  3.59        $  3.28        9.5    %
Average daily utilization of each      9.7            10.0           (3.0   )%
aircraft (hours)^7
Average stage length (miles)           464            492            (5.7   )%
Average seat density                   66             67             (1.5   )%


         Includes $49.6 million of fuel expense reimbursement for the nine
         months ended September 30, 2012 Effective July 1, 2012, United agreed
         to supply fuel directly to our flights under its code-share
1.    agreements and the Company will no longer recognize the cost of fuel
         and related revenue for fuel used under the United Code-Share
         Agreement. Only fuel for pro-rate and fixed-fee charter flying is
         included in the fuel amount for the nine months ended September 30,
         2013.
2.       Revenue passenger miles are the number of scheduled miles flown by
         revenue passengers.
3.       Available seat miles are the number of seats available for passengers
         multiplied by the number of scheduled miles those seats are flown.
4.       Passenger load factor is revenue passenger miles divided by available
         seat miles.
5.       Total operating costs divided by available seat miles.
6.       Hours from takeoff to landing, including taxi time.
7.       Average number of hours per day that an aircraft flown in revenue
         service is operated (from gate departure to gate arrival).
8.       Excludes seven aircraft as of September 30, 2012 that were
         temporarily idled.

The Company is providing disclosure of the reconciliation of reported non-GAAP
financial measures to its comparable GAAP basis financial measures. The
company believes that the non-GAAP financial measures provide investors
meaningful measurements of the Company's financial performance.


               Three months ended               Nine months ended
                September 30, 2013                September 30, 2013
(in millions,
except per      Pre-tax   After-Tax  Dilutive   Pre-tax   After-Tax  Dilutive
share                                  EPS                               EPS
amounts)
Income from
continuing      $ 5.4      $  4.3      $ 0.09     $ 51.7     $  31.8     $  0.60
operations
Adjustments:
Non-recurring   21.2      13.0       0.25      21.2      13.0       0.24
impairment
Adjusted
income from     $ 26.6    $  17.3    $ 0.34    $ 72.9    $  44.8    $  0.84
continuing
operations



Non-GAAP Reconciliation of Income from Continuing Operations to EBITDAR from Continuing
Operations
               Three Months ended September 30,    Nine Months ended September 30,
($ in                                   % Increase                           % Increase
millions)       2013       2012       /            2013       2012       /
                                        (Decrease)                           (Decrease)
Income from
continuing      $ 4.3       $ 6.3       (31.7  )%    $ 31.8      $ 22.5      41.3   %
operations
Adjust:
Interest and    27.4        28.8        (4.9   )%    83.0        88.6        (6.3   )%
other expense
Income tax      1.1         4.3         (74.4  )%    19.9        15.0        32.7   %
expense
Depreciation
and             37.0        39.9        (7.3   )%    110.5       119.7       (7.7   )%
amortization
Aircraft and    32.0       29.0       10.3   %     91.6       86.1       6.4    %
engine rents
EBITDAR         $ 101.8    $ 108.3    (6.0   )%    $ 336.8    $ 309.4    8.9    %
Non-recurring   $ 21.2      $ —         100.0  %     $ 21.2      $ —         100.0  %
impairment
Adjusted
EBITDAR from    123.0      108.3      13.6   %     358.0      309.4      15.7   %
continuing
operations


Contact:

Republic Airways Holdings
Joe Allman,317-246-2612
Investor Relations Contact