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Midway flies over estimates
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August 2, 1999: 1:48 p.m. ET
But regional carrier says having fewer planes and pilots weigh down 2Q
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NEW YORK (CNNfn) - Fewer aircraft and pilots caused Midway Airlines Corp.'s income to lose altitude in the second quarter, but the regional air carrier still had enough gas to soar over Wall Street's expectations.
Excluding a charge for the retirement of certain aircraft, Durham, N.C.-based Midway posted income of $4.7 million, or 49 cents per diluted share, 7 cents higher than First Call Corp.'s estimate of 42 cents.
Income was down 12 percent from $5.3 million, or 54 cents per share, in the second quarter. Despite operating with 3.2 percent less capacity during the quarter, revenue was in a holding pattern at $55.6 million.
The company took an after-tax charge of $670,000, or 7 cents per share, related to the retirement of two aircraft during the latest quarter. Including this charge, Midway's net income was $4 million, down 24 percent from 1998's second quarter. Earnings per diluted share were 42 cents.
Midway (MDWY) said costs increased and revenue fell due to a shortage of pilots driven by a tripling of the normal pilot attrition rate. Attrition, due to increased hiring by the major carriers, forced cancellation of one aircraft's worth of capacity throughout the quarter. Increased hiring and a reduction in pilot attrition have since eliminated the shortage.
For the first half of 1999, Midway's net income was $8 million, or 83 cents per diluted share, down 12 percent from the $9.2 million, or 93 cents per share, earned in the first half of 1998.
While operating with 1.3 percent less capacity, revenue was up 4 percent to $110.5 million and operating income before the charge rose 2.2 percent to $16.4 million.
Shares of Midway rose 1/8 to 8-1/2 in Monday afternoon trading.
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Midway Airlines
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