Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Republic Airways Holdings Inc. (NASDAQ:RJET)

Q1 2010 Earnings Conference Call

May 5,2010 10:30 AM ET

Executives

Hal Cooper – EVP, CFO, Treasurer and Secretary

Bryan Bedford – Chairman, President and CEO

Greg Aretakis – VP, Revenue Production

Daniel Shurz – VP, Planning and Strategy

Analysts

Duane Pfennigwerth – Raymond James

Jim Parker – Raymond James

Stephen O’Hara – Sidoti

Steven Marshall [ph]

Operator

Good day, ladies and gentlemen, and welcome to the Q1 2010 Republic Airways Holdings, Inc. earnings conference call. At this time, all participants’ are in a listen-only mode. Later, we will conduct a question-and-answer session towards the end of this conference.

(Operator instructions)

As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the call over to Mr. Hal Cooper, CFO. Please proceed.

Hal Cooper

Good morning everyone, and thank you for joining us for our first quarter 2010 call. Let me introduce the people are in the room here with me and that will be on the call. Of course, Bryan Bedford, our Chairman and CEO; Wayne Heller, our COO is with us; Joe Allman, our VP Controller; Tim Dooley, our VP of FP&A; Greg Aretakis, our Vice President of Revenue Production and joining us from Denver is Daniel Shurz, our Vice President of Planning and Strategy.

We will have some open comments from Bryan, from Greg, and from Daniel and then we will be happy to take your questions. But first let me start by covering our Safe Harbor please.

Please note that the information contained in our earnings release and this call contains forward-looking information as defined by United States securities laws. Forward-looking information is subject to risk and uncertainties, and we refer you to a summary of risk factors contained in our most recent filing with the SEC.

With that I will turn the call over to Bryan and he will turn it over to Greg and Daniel, then we will take your questions. Bryan?

Bryan Bedford

Welcome to all of our listeners this morning. First I would like to start out by thanking all of our 11,000 co-workers in the Republic family for all of their hard work and professional efforts this last quarter. I think it goes without saying Q1 was one of the most challenging winter quarters that the industry has experienced in quite a while and we certainly were affected by it as well. I have to say though from my many travels throughout our system in this quarter certainly reinforced my feelings that we have some of the best people in the business who are fully committed to serving our customers and providing the best possible customer service experience.

So again to all of my co-workers, I just want to say thank you and please keep up the great team work.

Obviously our financial results are noisy. We told that they would be and we certainly didn’t let you down there. We are going to do our best to wade through that noise today and give you a sense of how our business fundamentals are actually performing and our outlook for the remainder of the year. But before I get into the numbers, I just like to make a few introductory remarks.

It should go without saying that we are disappointed with our Q1 financial performance. The last time Republic reported a quarterly loss was after 9/11. And since that time we posted 32 consecutive quarters of profitability, which I think is among the best track records in the industry. And even though it was clear to us during our due diligence process that the combined brand operation would lose money in Q1 of this. And even though we told everybody on the previous calls that we expected to post a sizeable loss for the quarter, frankly none of that makes any – make these results any easier to accept.

Having said that and especially in light of the recent merger announced between Continental United it seems clear to us though that the underlying rationale for the purchase of Frontier and Midwest is justified. We support consolidation, we support hub rationalization even though both of those processes could result in lower overall demand for our core fixed-fee flying.

But however as our partners who have struggled to maintain profitability in the last cycle, return to sustain profitability, the counter party risk on our CPA contracts also decreases. And since we have very long-term CPA contracts in place, that reduced financial risk is welcome.

If consolidation does lead as we speculated to 4% to 5% reduction in domestic capacity, then all domestic airlines will benefit including frontier. However, we can assume anything. In fact we have to assume the competition will be every bit as challenging it has been over the past years and we must work hard to position Frontier to return to sustain profitability on the harshest of environments.

I can tell you this management team and all of our employees are fully committed to restoring the company to long-term profitability. We expect to begin a new track record of consistent quarterly profits in the second quarter of this year and we expect our Frontier operation to contribute to both profits and cash flows in the second half of 2010.

I will give you more progress on how we are doing with the brand integration but let me just go through some of the highlights in the press release we put out last night and let me start with our results from our fixed-fee business. Our pretax income we reported $14.3 million for the quarter, which was a pretax margin of 5.7%. We did incur a $2 million negative impact for the winter storms; that’s basically reduced flying due to airport closures. We also had a $2 million negative effect for the final aircraft return cost for the last of the CRJs. Those aircrafts have now all been returned to the (inaudible) and we think we are past that.

If we adjust for those two items, pretax income for the quarter was $18.3 million, which was a margin of 7.3%.

Excluding fuel, our fixed-fee service revenues were down $53 million, that’s an 18% reduction on a 19% reduction and block our production in that segment of our business. This is the effect of reducing 50-seat flying for Continental, the removal of those CRJs we just discussed and also the removal of seven 145s that we are flying for United. However, it also includes the effect of now reporting our Midwest connect regional operations as part of our branded results in 2010 when they were reported as part of our fixed-fee segment in the first quarter of last year.

The unit costs in the quarter on the fixed-fee business were $0.0807; that’s up from $0.078 in Q1 of ‘09. But again, we do have the impacts of the storm and reduced ASMs and if we adjust out for that and – you would remove about two tenths of a cent off of our unit costs.

Fixed-fee margins are down primarily because of the benign inflation environment which is driving much lower increases in our reimbursement rates from our partners. However because our fixed-fee business is not growing, we are seeing increases for wages and benefit costs and our maintenance vendor agreements are increasing at rates that are outpacing the actual increase in our reimbursement rates.

Of course, if we are seeing higher underlying unit cost increases and lower revenue increases from our partners, that’s obviously creating some margin pressure. We have previously guided that our fixed-fee business should produce a margin between 7.5% and 8.5% pretax margins, we think that number now is going to be more in the 7% to 8% range for 2010. Clearly we do have some work to continue to look for ways to reduce costs in the fixed fee operation without sacrificing quality.

For the brand business, total revenues were $352 million for the quarter. Our branded unit revenues in Q1 came in at $0.0953; that compares to $0.1012 in Q1 of ‘09. Our load factor for the quarter was 75.7%; that compares to 71.8% last year. So our aircrafts were 4% more full but the airline actually produced 6% lower unit revenues.

Frankly some of this underperformance was self inflicted in January and February, which Greg Aretakis, our VP of our (inaudible) will discuss shortly. However we would like to point out we saw strengthening rise in trends as we moved through the quarter, especially in March as momentum – and that momentum is building in the second quarter. We had a March load factor that was over 84%, the highest load factor in the company’s history. It’s worth pointing out that this performance was achieved well. We actually increased capacity almost 6%. And again, we did see strengthening rise trends during quarter, which Greg will discuss shortly.

Fuel costs in the quarter were another big part of our story. We spent $43 million more for fuel. That’s up about 50%. Some of that’s due to our growth but the actual cost per gallon was up nearly 40% to $2.32 versus $1.66 in the first quarter of ‘09. Our operating costs for the quarter excluding fuel and impairment items but including interest expense were $0.0763. Fuel CASM was an additional $0.035, so a total CASM of $0.111. Excluding interest expense and integration cost, we actually produced CASM ex-fuel of $0.7. And I have to point out that was achieved on a fleet with an average seat density of 98 seats per aircraft. So we are making good progress on the cost side.

We reported a pretax loss for the quarter on the brand business of $78.5 million. The branded results have a lot of noise and they were negatively impacted by impairment charges of $11.5 million due to our decision to select Frontier as our brand name. So we had to write off the Midwest brand intangibles, we had integration on aircraft return expenses over $11 million, winter storm impact of $5.5 million. So absent these three times, we had a pretax loss in the brand business of $42 million. And, of course, that loss also includes other noncash adjustments to revenue and amortization of intangibles related to our purchase accounting for Frontier and Midwest. Those numbers totaled over $13 million in the quarter.

We reported total cash of $386 million as of March 31st, of which $239 million was restricted.

So now, I am going to turn the call over to Greg Aretakis, our Vice President Revenue Management. He is going to walk through some capacity and unit revenue results and some guidance on the Frontier business. Greg.

Greg Aretakis

Good morning everyone, thank you Bryan. I am Greg Aretakis; I am the Vice President of Revenue Management for Frontier Airlines. I would like to start this morning by reviewing our first quarter actual results versus the guidance we gave you last time. And as Bryan mentioned early, I am going to give you a little bit more granularity on the RASM trends within the first quarter.

First off, we guided to a 5% to 6% decline in FRASM, that’s total RASM versus 2009, and it was down 5.8%. First quarter capacity was forecasted to increase 5% to 6% and we came in at 5.6%. So both results were in line with what we were guiding to.

It’s worth drilling down into the quarter to give you more color on the revenue results. First, some of the disappointing results were things that we were dealing that had a negative impact. First of all, we began the process of integrating Frontier and Midwest and we had some struggles with our Co-Chair between the two companies.

Secondly, revenues were depressed as we integrated our revenue management and scheduling systems. We attempted a fair premium strategy in January which was revenue negative and which we subsequently abandoned. And we created some uncertainty in the marketplaces as many of you I am sure have heard as we attempted to promote two brands both independently and through the codeshare.

As we move through the quarter we tackled these issues and we saw results beginning to improve. Talking in terms of PRASM, January PRASM was down 8.2% versus the prior year. February was down 4.5% versus the prior year. March was actually up 4.4%.

In particular, the west network turned from a PRASM negative of 2.5% to a PRASM positive in March of 10.8%, so a substantial traction in the west, and certainly we were very pleased with the direction we are seeing out of the Denver operation. And the east network saw load factors that were up 10 points in the quarter year-over-year 18% more ASMs, but the yield was down 29%, due both to increased competition and also impacted by 9% increase (inaudible) length of haul.

Keep in mind that this year versus last year we are operating five Airbuses, the A319s in Milwaukee on our most popular leisure route. So our average shell size in the Milwaukee operation increased by 12% versus the prior year.

Turning to the upcoming June quarter and what we are seeing right now, we are looking at capacity of 5% to 7% which is up 1% from the guidance we gave last time around. We expect to see TRASM down in the 1% to 2% range versus previous guidance where we provided a negative 3% to 5% range and would result in TRASM in the 10.3% to 10.5% range for 2Q.

Demand strength that we saw in the late part of the first quarter is continuing. From a demand perspective, we set record load factors as we reported earlier for April, and as Bryan pointed out, also record load factors for March. So we are now anticipating 2Q load factors to exceed those of last year. After a tough first quarter, we are also expecting passenger yields to exceed those of last year.

Booking for the balance of the quarter is up 14%. So 14% more bookings than we had last year at this point in time. Like 1Q, we are seeing stronger yields and revenue production strength in the west network, the Denver side of our business versus the east network.

For the west network, we are looking for a 2 to 4 load factor point improvement versus last year and a strong uptake in yield. In fact, we are estimating double-digit increases in unit revenue for the west network in each month of 2Q.

For the east network we are expecting improved load factors in the 3 to 5 load factor point range versus last year, but yields will continue to be down versus last year, perhaps, not as much as we saw in the first quarter.

A note, as we move into June, we are going to start to digest the competitive capacity, which started entering the market last summer. So the comps on that front are going to start to get a little bit easier.

The pricing environment through the first quarter and so far into the second quarter reflects a generally healthier demand environment that we are seeing in which we just talked about. While there continues to be regular sale activity, the sale fare values that we are seeing are actually up versus where they had been in the fourth quarter and early first quarter, and apparently the industry is seeking a higher fares.

Since the beginning of the year, we have seen 11 significant fare increases which were accepted and which have stuck. Several such initiatives were led by the LCC carriers. At the level of demand, we are seeing today, frankly there is no reason why fares can’t continue to go up.

Full-year 2010 capacity increase is still in the 6% to 7% range and we are still expecting to see TRASM flat to down perhaps 2% for the year or 10.3% to 10.5%.

Some advance booking data, April load factor at 82.4% was a record for the combined system, and up 4 points versus the prior year April. May, we are looking at load factors that will beat the 2009 results. By the way, we were at 80.1 a year-ago. But we are going to beat them in the 2 to 3 point range and that’s on 5% more capacity.

June load factor is also tracking ahead of 2009, where incidentally we ran an 86.7% load factor. We are flying 90% more capacity in June this year than last.

Just a minute about what’s happening in each of the hubs and from a capacity standpoint. Milwaukee continues to see significant capacity increases. We are now expecting industry capacity in Milwaukee to be up 36% year-over-year in the second quarter and perhaps 25% year-over-year up in the third quarter.

We reported this morning that our branded business had a record load factor for the second straight month, so obviously people are flying in and out of Milwaukee. In fact, Mitchell Airport had its highest traffic numbers ever in March 2010, but an average fare that was $60 lower than the national average for a round trip.

As per Denver, in February, we reached a share of the market that was greater than half of what United shared, they are the market leader in Denver. For the first time in our history, we are solidly the number two carrier there with over 23% of the passengers in and out of Denver.

Capacity is Denver is expected is expected to rise about 2.5% in the second quarter and 5% in the third quarter. Final comment, I wanted to talk just a minute about ancillaries. We launched a Stretch seeding product where we give enhanced legroom and we charge modestly for that. We launched that in February of this year. All of our airbuses and E190 fleet have 67 aircraft are now configured with Stretch.

In February we sold 31% of our Stretch seats and that improved to 36% in March. We are currently selling the upgrade for $25 but we intent to start tinkering with the pricing over the next little while. Generally speaking we judge Stretch to be right on track and we’re expecting about a $1 million a month of revenue from this program.

And with that I’m going to hand it of Daniel Shurz, who runs the planning and strategy department to talk a little about its expansion and new service. Daniel?

Daniel Shurz

Good morning everyone. Thank you Greg and Bryan for the leading. We are about two-thirds the way through our launch of 17 new markets in the second quarter and I would say overall I want you guys pleased with the booking levels. In line with Greg’s comments on how traffic is very strong, we’re seeing very strong traction in our new markets, there are lot of cases we’re bringing the first low fare carrier service into cities.

The (inaudible) from Denver bring to 61, the number of nonstop markets we offer from Denver which is the largest number of frontiers as ever offered in this market. In addition the profile of our growth recession reduces our route overlap with nonstop low cost competition in Denver to 54%, which is lower than it has been in recent quarter. And in the coming weeks we will add further new nonstop service from Denver to Fairbanks, Grand Rapids, Long Beach, New Orleans and Santa Barbara.

In the Milwaukee, the five new markets we’ve been adding this spring bring us to 34 total nonstop destinations. We’re now serving 19 of the top 20 destinations from Milwaukee and I think importantly in terms of market presence, we serve at 11 more destinations than our largest competitor in Milwaukee.

And in Kansas City which is our third focus city. We’re adding 72 markets that previously had no nonstop service and we are continuing to look the opportunities in that market to take advantage of significant levels of customer loyalty to the Frontier brand. Turning to our expectation on competitive capacity for Q2 and beyond, we are as Greg mentioned seeing different trends in Milwaukee and Denver.

In Milwaukee had faster growth in the competitive overlap markets for Q2 is expected to be 38%, just down from 48% in Q1 and the trends continue to improve as we look into Q3. And in late summer, Southwest is eliminating in Milwaukee for nonstop service and reducing the overall capacity in Milwaukee, Orlando by 50%, which certainly will make our Q3 comparisons much easier.

In Denver, hardly because of the diversification of our (inaudible) work competitive capacity stability has continued to be very good and our competitive markets we expect Q2 capacity to grow by slightly under 1%. And the main competitive story in Denver is the while Southwest is continuing to grow in the Denver market, United has continued to reduce board capacity for both Q2 and Q3.

And with that I’ll turn the call back to Bryan.

Bryan Bedford

Thank you, Daniel. Just one last item before we open up the call for questions. As we reported on April 13, we announced the outcome of our brand research and our decision to select Frontier as our unified brand going forward. We conducted extensive amount of customer research and did a lot of work with our employees, surveys, town hall meetings. All with an eye of trying to make sure that what we select is unified brand was going to resonate best with our customers.

And what our customers told us which probably isn’t surprising, but what they said, they valued most in a career choice was affordability, convenience and a differentiated customer service experience. So after a lot of internal deliberations our path seem pretty clear. We decided that the Frontier brand was just much better position to meet those customer expectations.

So with that announcement on the table and we now introduced our first Wisconsin spokes-animal, the badger. We’re now moving forward aggressively with the brand integration. We are committed to an aggressive integration timeline by fall of this year whether that’s end of October or early November, we expect the operational integration to be fully completed, that’s the fleeting and technology and processes and procedures. And then over the following year, we’ll roll out the actual customer facing brand integration and we expect that to be completed again by October, November 2011.

So that’s the brand update. With that Madge, I think we are ready to take questions.

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). And your first question comes from the line of Duane Pfennigwerth. Please proceed.

Duane Pfennigwerth – Raymond James

Hi, do you hear me?

Bryan Bedford

We can hear you Duane.

Duane Pfennigwerth – Raymond James

Thanks, just wondering how many regional aircraft you have not owned as the Frontier or Midwest level but I guess owned at the Holdings level that support the branded business and what’s your flexibility is over time to get out of those smaller aircrafts.

Bryan Bedford

Well Duane, it depends a little bit on what you refer to the smaller airplanes, I mean we have.

Duane Pfennigwerth – Raymond James

Say less than a 100 seats.

Robert Cooper

Okay. Well we have 15 190 airplanes that we’ll be flying under the brand at the regional carriers. We will have approximately 20.

Bryan Bedford

Just to be clear, we only own 10 of those 15.

Robert Cooper

That’s correct the other five released. We’ll have approximately 20 aircraft flying I believe most of those were owned as well 70 to 76 seat airplanes and then Duane about 12 smaller jets 37 to 50 seat airplanes.

Duane Pfennigwerth – Raymond James

So I guess that totals 47 airplanes operated by the regional carriers on behalf of Midwest and Frontier? And as you look at if you aircraft order, I mean what is the implied flexibility for you to get out of those and do you have a desire to get into larger aircraft for the branded business?

Bryan Bedford

Well first of all, part of what we’re doing is we’re phasing out of the Q400 which is a 74 seat turbo-prop. So we just didn’t quite frankly find a compelling need to have a 74 seat turbo-prop and a 76 seat jet in the portfolio and we have the ability to return the least Q400s, of course we did take a head this quarter to write off prepaid rents and maintenance deposits as a non-cash item but we will forfeit those as part of the aircraft return.

And so we are if you want to look at shrinking sub 76C capacity out of the network Duane, but it’s just simply putting the points that we feel are best configured to succeed in markets. We were operating Q400s in markets up against Southwest 737s and United RJs and the preference for the jet was pretty clear. So we think we actually pick up a QSI improvement with the replacement of the Q400s with jets.

As far being able to move capacity around or eliminate capacity, again we do own most of the 76 seat jets. We have the ability to sell those assets or move them around. The small jets that we operate in the former Midwest network in Milwaukee, those are in markets that quite frankly needs small jets, I mean they are not markets that can absorb the amount of seats, places like Appleton or Green Bay to Milwaukee, Madison to Milwaukee and these are markets that need to be served in small jets and they’re actually being served profitably in small jets.

So we think we’ve got the right aircraft in the right markets to be successful.

Duane Pfennigwerth – Raymond James

Okay. Thanks.

Operator

And you next question comes from the line of Jim Parker from Raymond James. Please proceed.

Jim Parker – Raymond James

Good morning guys, I am just following up on Duane’s question here about, now that the industry, the legacy’s revenue is picking up considerably and it looks they may make some pretty good profits in the second quarter. I wonder if there is a possibility that you might be able to place your 170s, your 70 and 76 seat aircraft perhaps under fixed fee business, should you want to do so with legacy carriers?

Bryan Bedford

Well Jim as you probably know there is only two legacy airlines that actually have any scope availability for larger capacity planes. United still has scope for 70 seat aircraft and of course US Airways has scope for up to 90 seat aircraft, but we don’t suspect during the tendency of the merger process that United or Continental is going to be making any wholesale changes on their regional side.

So we don’t see anything in the near term, but we’re open to it and then as it relates to US Airways also I don’t believe that there is any near term change in their RJ portfolio or mix requirements. So I think in the short term let’s call in the next 12 months probably not. Of course if Continental and United do in fact merge, if that gets passed to regulatory process then we have to see which is the surviving collective bargaining agreement. Does the United scope authority survive and if so then boy Continental what was the former Continental network would probably have some real demand for 70 seat jets. So I could be a positive.

Jim Parker – Raymond James

Alright, Bryan did you say in your opening comments that the merger of United and Continental might increase the risks for your 60 flying, did you say that?

Bryan Bedford

No I said it would decrease.

Jim Parker – Raymond James

Decrease the risk.

Bryan Bedford

Yes right, healthy carriers, decreased counter party risk.

Jim Parker – Raymond James

So the combination of those two, there is not going to be overlapping routes where that you might risk some removal of aircraft?

Bryan Bedford

Well none of our contracts are cancelled, and we went to the same level of concern with the Delta/Northwest merger, hopefully that has satisfied everybody’s contract actually survive on merger. So our United contract runs from, I think our first aircraft start facing out of there in 2015, through 2019.

Jim Parker – Raymond James

Okay and then you’ve got six Q400s that you own I believe and what’s the carrying cost on those aircraft and what are the prospects for placing them elsewhere?

Bryan Bedford

Well the five aircraft that are leased will be returned to the leasers run a month from July through November I believe. So is that correct July to November on month.

Robert Cooper

That’s correct.

Bryan Bedford

So those aircraft are going to continue to operate with links in serving our Denver hub. The six owned aircraft, they are available for sale and we believe that either they will sell or link in its entirely will sell once we’re ready to face it out as a Frontier operation in the third quarter.

Jim Parker – Raymond James

Okay, thank you.

Operator

And you next question comes from the line of Stephen O’Hara from Sidoti. Please proceed.

Stephen O’Hara – Sidoti

I think that’s me. I just had a question on the – I think you said your CASM fuel on the branded business, could you just give that number again?

Robert Cooper

Well CASM fuel, ex items $0.07, CASM fuel as reported was $0.07.

Stephen O’Hara – Sidoti

Okay and in terms of further room on that, I mean you see being able to get that down kind of your Southwest and other competitors level?

Bryan Bedford

I think our target on that Steve is certainly sub $0.07 in the short term. We’d be happy maintaining CASM at around $0.07 but ultimately we think sub $0.07 number is.

Robert Cooper

Well again even before you adjust for length of haul or ceding density actually I think we reported lower cost in Southwest in Q1, AirTran is the real target.

Stephen O’Hara – Sidoti

Okay and then in terms of the aircraft for links, I mean what impact did they have on the first quarter and I mean I assume the flying is still going out at this point and what impact do you see going through if they don’t, if you can’t find a buyer for that?

Bryan Bedford

I’ll let one of the other guys get to the Q1 answer, but we think the carrying cost on those six airplanes is a little lower, a million bucks a month.

Daniel Shurz

(Inaudible) just in turn have disposition. We have some interest in both the entity and some interest in just buying the aircraft. So we’re talking to people and ultimately and ultimately the disposition of lengths will – we don’t know how they’re accounting for that, it’s going to work because we don’t know how would be disposed up but I do think that there is interest in the aircraft and the entity and I think some of that’s going to come to (inaudible) I don’t see us holding those aircraft long term likely.

Bryan Bedford

Well Steve as it relates to the decision to actually to exit links again driven by two things, one customers at Denver town have preference for jets over props. So we are seeing a negative QSI share shift in markets where we have links operating up against Southwest 737s and even United regional jets. So replacing those turbo props with E-Jets, we think is going to be revenue positive. And then secondly the links in enough itself was a niche operator of 11 aircraft which gave it higher unit costs then what we’re going to have as a network operating a 130 E-Jets.

So clearly we think the P&L performance is going to be better for us on the inner cost side than what we are also experiencing decline. So we think we went on revenue and we think we went on costs with the replacement.

Stephen O’Hara – Sidoti

Okay. The last question I have is on the credit card hold back, any movement there on I think you guys have been in discussions with trying to lessen that burden?

Bryan Bedford

Well we’re still in discussion Steve. We’re kind on the short strokes with two different providers and I forget what I said on the last call, I probably said sometime in the next 30 to 60 days but I do think in the next 30 days we’ll have something to talk about.

Stephen O’Hara – Sidoti

Alright, great. Thank you very much.

Bryan Bedford

Thank you.

Operator

(Operator Instructions). And please standby. And your next question comes from the line of Steven Marshall [ph] from (inaudible) Investment Partners. Please proceed.

Steven Marshall

Hi I just wanted to see if you guys could provide any additional color on branded segment profitabilities in terms of I guess the East network or legacy Midwest versus the West network, with the I guess the legacy Frontier West network profitable on its own or could you fly there?

Bryan Bedford

Well we won’t provide segment breakouts of Denver, Milwaukee or Kansas City. I think from the revenue guidance that we gave clearly the revenue environment in Denver is superior to the revenue environment in Milwaukee. So you can probably draw some conclusions from that.

Steven Marshall

Okay. All of the rest of my questions were answered. Thanks.

Bryan Bedford

Okay. Thank you.

Operator

(Operator Instructions).

Bryan Bedford

Well, okay, looks like we do have a few folks trying to get into the queue, but for some reason technically we can’t get to you. For those of you who are in the queue and we’re not able to open up your line, feel free to give us a call afterwards and we’ll be happy to chat with you. So I’ll go ahead and conclude the call Madge. And just again thank you guys for joining us this morning and thank you to my 11,000 coworkers. Keep up the good work and we look forward to reporting much improved results for the second quarter. Thank you.

Operator

Thank you for your participation in today’s conference. This concludes the presentation and you may now disconnect. Good day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY’S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY’S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY’S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Republic Airways Holdings Inc. Q1 2010 Earnings Call Transcript
This Transcript
All Transcripts