Midwest Express Holdings Reports First Quarter Results

Apr 19, 2001, 01:00 ET from Midwest Express Holdings, Inc.

    MILWAUKEE, April 19 /PRNewswire/ --
 
     First Quarter Summary
     -- Traffic increased 9% on 12% capacity growth
     -- Revenue increased 11% to $118.9 million
     -- Operating loss increased from $2.6 million to $10.2 million
     -- Loss per share increased from $0.45 to $0.47; first quarter 2000
        results included changes in accounting methods that resulted in a $0.34
        loss per share
     -- Fuel price increases negatively impacted earnings per share by $0.09
 
     Midwest Express Holdings, Inc. (NYSE:   MEH) today reported financial
 results for its Midwest Express and Astral Aviation (dba Skyway Airlines, The
 Midwest Express Connection) operations.
     "A combination of factors resulted in very poor financial results in the
 first quarter," said Timothy E. Hoeksema, chairman and chief executive
 officer.  "While our operational performance improved somewhat, we were
 adversely impacted by higher fuel prices, lower-than-planned capacity
 increases, a softening economy that reduced revenue, and higher unit costs --
 particularly in the aircraft maintenance and labor categories."
     For the first quarter ending March 31, 2001, operating revenue increased
 11.4% to $118.9 million from $106.8 million in the same quarter last year.
 Operating loss increased from $2.6 million to $10.2 million in the quarter.
 Loss per share increased from $0.45 in first quarter 2000 to $0.47 in first
 quarter 2001; first quarter 2000 results included changes in accounting
 methods that resulted in a $0.34 loss per share.
     At Midwest Express Airlines, cost per available seat mile (unit cost)
 increased 6.3% in the first quarter, or 5.8% excluding the cost of fuel.  Unit
 costs increased in most categories due to lower-than-planned aircraft
 utilization; most significantly, the airline discontinued its Indianapolis
 service in early January but did not re-deploy the two aircraft that had
 served that city until April.  Unit labor costs at Midwest Express increased
 6.7% due to higher pay rates and benefit costs, additional employees, and
 increased overtime pay. Aircraft maintenance material and repair costs
 increased $3.3 million in the quarter, or 20.6% on a unit cost basis -- the
 result of the continuing transition to a new maintenance program, the cost of
 outsourcing a large aircraft maintenance project, higher engine repair costs
 and increased use of contract maintenance labor.  The airline also incurred
 $0.6 million in higher aircraft deicing costs and $0.4 million to subcontract
 charter services in January and February due to damage to its dedicated
 charter aircraft last November.
     Midwest Express Airlines' fuel costs increased 20.5% in the first quarter
 from the year earlier -- up $3.7 million, with $1.9 million due to higher fuel
 prices.  The company has no fuel hedged in the current quarter or beyond.
     Revenue per available seat mile at Midwest Express Airlines decreased
 0.7%, the result of a 2.6% increase in revenue yield offset by a
 1.7 percentage point reduction in load factor.  The load factor decrease was
 due to increased competition in some markets, unproductive new capacity and
 some softening in demand for business travel.
     At Skyway Airlines, operating income decreased $0.3 million from first
 quarter 2000, with higher fuel prices accounting for $0.1 million of the
 change.  Revenue increased 21.1% as the airline increased capacity 29.0% by
 adding two regional jets and achieving higher utilization of existing
 aircraft.  Revenue per available seat mile decreased 6.1%; a 0.3 percentage
 point increase in load factor was not enough to offset a 6.6% decrease in
 revenue yield -- a result of new routes that have longer flight lengths and
 lower-than-system-average yield.
     At the end of the first quarter, Midwest Express Holdings had
 $19.3 million in cash, up from $15.7 million at the end of the fourth quarter.
 Capital spending totaled $27.3 million in the quarter, which included the
 acquisition of an MD-80 aircraft and a regional jet, refurbishment of an MD-80
 aircraft, an engine overhaul, and capitalized aircraft components.
 
     Highlights of the first quarter included:
     -- Midwest Express added service to 15 Midwestern destinations through a
        codeshare agreement with US Airways Express/Air Midwest.
     -- Skyway launched nonstop regional jet service between Grand Rapids,
        Michigan and New York La Guardia.
     -- Midwest Express Airlines was named the #1 Domestic Airline by the Zagat
        Airline Survey for the fourth consecutive time.
     -- Astral Aviation received the Federal Aviation Administration's
        Certificate of Excellence Diamond Award for the fourth consecutive
        year.
     -- Astral Aviation appointed James P. Rankin president and chief executive
        officer.
     -- Astral Aviation announced plans to construct a 72,000-square-foot
        maintenance facility to support the planned expansion of its regional
        jet fleet.
 
     The second quarter marks the introduction of new service on several
 routes. On April 1, Midwest Express launched nonstop service between Kansas
 City, Missouri and Atlanta, and will begin nonstop service between Kansas City
 and New Orleans on April 23.  Skyway will introduce nonstop regional jet
 service between Grand Rapids and Columbus -- the only nonstop service on the
 route -- on April 23.
     On April 11, Midwest Express Holdings announced major fleet growth plans
 that will allow both Midwest Express and Skyway to better meet passenger needs
 by expanding capacity on existing routes and launching service to additional
 cities.  The purchase of 20 Boeing 717 aircraft (delivery beginning in
 February 2003) will provide Midwest Express with the ability to expand its
 fleet while maintaining its signature two-by-two wide leather seating
 configuration, while the purchase of 20 Embraer regional jets (delivery
 beginning in March 2002) will give Skyway the flexibility to serve markets of
 different sizes.
     In the second quarter, Midwest Express expects to increase capacity 11%
 and Skyway 35%, with full-year estimates at 10% and 34%, respectively -- lower
 than originally planned.  Hoeksema said Astral Aviation will add a regional
 jet -- its eighth -- to the Skyway fleet in June, and realize full utilization
 from its sixth and seventh regional jets added in the first quarter.
     "We have achieved 14 consecutive years of profitability at Midwest
 Express, and have now experienced two consecutive very poor quarters," said
 Hoeksema.  "While some of the factors -- such as higher fuel prices and
 softening business travel demand -- are impacting the entire industry, we must
 do everything we can internally to improve our financial results.  Going
 forward, we're taking aggressive steps to better align our cost structure with
 our planned capacity and improve our productivity without impacting our
 product and service levels."
     He explained that the company's immediate focus would be to reduce costs
 by a minimum of $1.5 million per month.  It will eliminate approximately 7% of
 positions throughout the organization within the next 90 days through improved
 scheduling, attrition and select reductions of workforce.  The company will
 also reduce its planned non-aircraft-related capital spending by $5 million
 this year.
     "There are good things happening at Midwest Express -- public recognition
 is high, our employees show great pride in working here, we've made
 significant aircraft acquisition announcements, and our customers believe in
 our product and service value," said Hoeksema.  "Our success continues to
 depend on service, and our plan to trim our cost structure will not impact our
 excellent level of service.  This is critical work that must be accomplished
 to enable our company to have a strong and healthy future."
     Midwest Express Holdings, Inc. is the holding company for Midwest Express
 Airlines, a premium-service airline headquartered in Milwaukee.  Catering
 primarily to business travelers since taking to the skies in 1984, the airline
 known as "the best care in the air" has earned its reputation providing
 passengers with personal attention, two-across wide leather seats, fine food
 served on china with complimentary wine or champagne, and baked-onboard
 chocolate chip cookies on luncheon flights -- all at competitive fares.  Conde
 Nast Traveler, Travel+Leisure and the Zagat Airline Survey recognize Midwest
 Express as the best airline in the United States.
     Midwest Express Airlines features primarily nonstop service to major
 destinations throughout the United States.  Astral Aviation, Inc. -- its
 wholly owned subsidiary -- operates Skyway Airlines, The Midwest Express
 Connection, which offers connections to Midwest Express as well as
 point-to-point service between select markets.  Together, the airlines fly to
 49 cities.  More information is available at http://www.midwestexpress.com
     This document contains forward-looking statements that may state the
 company's or management's intentions, hopes, beliefs, expectations or
 predictions for the future. Words such as "expect," "anticipate," "believe,"
 "estimate," "goal," "objective" or similar words are intended to identify
 forward-looking statements.  It is important to note that the company's actual
 results could differ materially from those projected results due to factors
 that include but are not limited to uncertainties related to general economic
 factors, industry conditions, scheduling developments, government regulations,
 labor relations, aircraft maintenance and refurbishment schedules, potential
 delays related to acquired aircraft, fuel costs, competitive developments and
 interest rates.
 
 
                          Midwest Express Holdings, Inc.
                        Consolidated Statements of Income
                 (Dollars in thousands, except per share amounts)
                                   (Unaudited)
 
                                          Three Months Ended March 31,
                                                2001        2000    % Change
     Operating revenues:
          Passenger service                   $107,801     $96,165    12.1%
          Cargo                                  2,845       2,896    (1.8%)
          Other                                  8,283       7,703     7.5%
            Total operating revenues           118,929     106,764    11.4%
 
     Operating expenses:
          Salaries, wages and benefits          42,313      35,575    18.9%
          Aircraft fuel and oil                 24,381      20,006    21.9%
          Commissions                            6,235       5,822     7.1%
          Dining services                        6,163       5,466    12.8%
          Station rental, landing and
           other fees                           10,489       8,771    19.6%
          Aircraft maintenance
           materials and repairs                15,743      11,978    31.4%
          Depreciation and amortization          4,950       3,913    26.5%
          Aircraft rentals                       6,040       6,194    (2.5%)
          Other                                 12,797      11,666     9.7%
            Total operating expenses           129,111     109,391    18.0%
     Operating (loss)                          (10,182)     (2,627) (287.6%)
 
     Other (expense) income:
          Interest income                         228         225     1.3%
          Interest expense                       (447)        (66) (577.3%)
          Other                                   (11)        (18)   38.9%
            Total other (expense) income         (230)        141     n.m.
 
     (Loss) before income tax credit and
      cumulative effect of accounting changes (10,412)     (2,486) (318.8%)
     Income tax credit                         (3,852)       (924) (316.9%)
     (Loss) before cumulative effect of
      accounting changes                       (6,560)     (1,562) (320.0%)
     Cumulative effect of accounting
      changes, net of applicable income taxes      --      (4,713)  100.0%
 
     Net (loss)                               $(6,560)    $(6,275)   (4.5%)
 
     Net (loss) per share - basic:
       (Loss) before cumulative effect
        of accounting changes                  $(0.47)     $(0.11) (327.3%)
       Cumulative effect of accounting
        changes, net                               --       (0.34)  100.0%
       Net (loss)                              $(0.47)     $(0.45)   (4.4%)
 
     Net (loss) per share - diluted:
       (Loss) before cumulative effect
        of accounting changes                  $(0.47)     $(0.11) (327.3%)
       Cumulative effect of accounting
        changes, net                               --       (0.34)  100.0%
       Net (loss)                              $(0.47)     $(0.45)   (4.4%)
 
 
     Weighted average shares - basic       13,823,061  14,017,394     n.m.
     Weighted average shares - diluted     13,823,061  14,017,394     n.m.
 
 
                           Midwest Express Holdings, Inc.
                                Operating Statistics
 
                                          Three Months Ended
                                              March 31,
                                                                     %
                                            2001     2000         Change*
     Midwest Express Operations
     Origin & Destination Passengers       495,904  460,666         7.6
     Revenue Passenger Miles (000s)        483,051  447,794         7.9
     Scheduled Service Available Seat
          Miles (000s)                     834,431  751,268        11.1
     Total Available Seat Miles (000s)     843,316  760,824        10.8
     Load Factor (%)                         57.9%    59.6%        -1.7 pts.
     Revenue Yield                          $0.190   $0.186         2.6
     Revenue per Schd. Svc. ASM (a)         $0.115   $0.116        -0.7
     Total Cost per Total ASM               $0.133   $0.125         6.3
     Average Passenger Trip Length (miles)   974.1    972.1         0.2
     Number of Flights                      12,304   10,793        14.0
     Into-plane Fuel Cost per Gallon        $0.989   $0.901         9.8
     Full-time equivalent Employees at
          End of Period                      2,997    2,556        17.3
     Aircraft in Service at End of Period       34       32         6.3
 
 
     Skyway Airlines Operations
     Origin & Destination Passengers       118,368   97,044        22.0
     Revenue Passenger Miles (000s)         30,844   23,761        29.8
     Scheduled Service Available Seat
          Miles (000s)                      72,915   56,516        29.0
     Total Available Seat Miles (000s)      72,924   56,542        29.0
     Load Factor (%)                         42.3%    42.0%         0.3 pts.
     Revenue Yield                          $0.514   $0.550        -6.6
     Revenue per Schd. Svc. ASM (a)         $0.218   $0.232        -6.1
     Total Cost per Total ASM               $0.247   $0.264        -6.3
     Average Passenger Trip Length (miles)   260.6    244.9         6.4
     Number of Flights                      13,543   12,021        12.7
     Into-plane Fuel Cost per Gallon        $1.055   $1.002         5.3
     Full-time equivalent Employees at
          End of Period                        558      457        22.1
     Aircraft in Service at End of Period       22       20        10.0
 
 
     *Numbers may not recalculate due to rounding.
 
     (a) Passenger, Cargo, and Other Transport Related Revenue divided by
         Scheduled Service ASMs.
 
     Note:
     All statistics exclude charter operations except the following: total
 available seat miles, cost per total ASM, into-plane fuel cost, number of
 employees and aircraft in service.  Aircraft acquired but not yet placed into
 service are excluded from the aircraft in service statistics.
 
 

SOURCE Midwest Express Holdings, Inc.
    MILWAUKEE, April 19 /PRNewswire/ --
 
     First Quarter Summary
     -- Traffic increased 9% on 12% capacity growth
     -- Revenue increased 11% to $118.9 million
     -- Operating loss increased from $2.6 million to $10.2 million
     -- Loss per share increased from $0.45 to $0.47; first quarter 2000
        results included changes in accounting methods that resulted in a $0.34
        loss per share
     -- Fuel price increases negatively impacted earnings per share by $0.09
 
     Midwest Express Holdings, Inc. (NYSE:   MEH) today reported financial
 results for its Midwest Express and Astral Aviation (dba Skyway Airlines, The
 Midwest Express Connection) operations.
     "A combination of factors resulted in very poor financial results in the
 first quarter," said Timothy E. Hoeksema, chairman and chief executive
 officer.  "While our operational performance improved somewhat, we were
 adversely impacted by higher fuel prices, lower-than-planned capacity
 increases, a softening economy that reduced revenue, and higher unit costs --
 particularly in the aircraft maintenance and labor categories."
     For the first quarter ending March 31, 2001, operating revenue increased
 11.4% to $118.9 million from $106.8 million in the same quarter last year.
 Operating loss increased from $2.6 million to $10.2 million in the quarter.
 Loss per share increased from $0.45 in first quarter 2000 to $0.47 in first
 quarter 2001; first quarter 2000 results included changes in accounting
 methods that resulted in a $0.34 loss per share.
     At Midwest Express Airlines, cost per available seat mile (unit cost)
 increased 6.3% in the first quarter, or 5.8% excluding the cost of fuel.  Unit
 costs increased in most categories due to lower-than-planned aircraft
 utilization; most significantly, the airline discontinued its Indianapolis
 service in early January but did not re-deploy the two aircraft that had
 served that city until April.  Unit labor costs at Midwest Express increased
 6.7% due to higher pay rates and benefit costs, additional employees, and
 increased overtime pay. Aircraft maintenance material and repair costs
 increased $3.3 million in the quarter, or 20.6% on a unit cost basis -- the
 result of the continuing transition to a new maintenance program, the cost of
 outsourcing a large aircraft maintenance project, higher engine repair costs
 and increased use of contract maintenance labor.  The airline also incurred
 $0.6 million in higher aircraft deicing costs and $0.4 million to subcontract
 charter services in January and February due to damage to its dedicated
 charter aircraft last November.
     Midwest Express Airlines' fuel costs increased 20.5% in the first quarter
 from the year earlier -- up $3.7 million, with $1.9 million due to higher fuel
 prices.  The company has no fuel hedged in the current quarter or beyond.
     Revenue per available seat mile at Midwest Express Airlines decreased
 0.7%, the result of a 2.6% increase in revenue yield offset by a
 1.7 percentage point reduction in load factor.  The load factor decrease was
 due to increased competition in some markets, unproductive new capacity and
 some softening in demand for business travel.
     At Skyway Airlines, operating income decreased $0.3 million from first
 quarter 2000, with higher fuel prices accounting for $0.1 million of the
 change.  Revenue increased 21.1% as the airline increased capacity 29.0% by
 adding two regional jets and achieving higher utilization of existing
 aircraft.  Revenue per available seat mile decreased 6.1%; a 0.3 percentage
 point increase in load factor was not enough to offset a 6.6% decrease in
 revenue yield -- a result of new routes that have longer flight lengths and
 lower-than-system-average yield.
     At the end of the first quarter, Midwest Express Holdings had
 $19.3 million in cash, up from $15.7 million at the end of the fourth quarter.
 Capital spending totaled $27.3 million in the quarter, which included the
 acquisition of an MD-80 aircraft and a regional jet, refurbishment of an MD-80
 aircraft, an engine overhaul, and capitalized aircraft components.
 
     Highlights of the first quarter included:
     -- Midwest Express added service to 15 Midwestern destinations through a
        codeshare agreement with US Airways Express/Air Midwest.
     -- Skyway launched nonstop regional jet service between Grand Rapids,
        Michigan and New York La Guardia.
     -- Midwest Express Airlines was named the #1 Domestic Airline by the Zagat
        Airline Survey for the fourth consecutive time.
     -- Astral Aviation received the Federal Aviation Administration's
        Certificate of Excellence Diamond Award for the fourth consecutive
        year.
     -- Astral Aviation appointed James P. Rankin president and chief executive
        officer.
     -- Astral Aviation announced plans to construct a 72,000-square-foot
        maintenance facility to support the planned expansion of its regional
        jet fleet.
 
     The second quarter marks the introduction of new service on several
 routes. On April 1, Midwest Express launched nonstop service between Kansas
 City, Missouri and Atlanta, and will begin nonstop service between Kansas City
 and New Orleans on April 23.  Skyway will introduce nonstop regional jet
 service between Grand Rapids and Columbus -- the only nonstop service on the
 route -- on April 23.
     On April 11, Midwest Express Holdings announced major fleet growth plans
 that will allow both Midwest Express and Skyway to better meet passenger needs
 by expanding capacity on existing routes and launching service to additional
 cities.  The purchase of 20 Boeing 717 aircraft (delivery beginning in
 February 2003) will provide Midwest Express with the ability to expand its
 fleet while maintaining its signature two-by-two wide leather seating
 configuration, while the purchase of 20 Embraer regional jets (delivery
 beginning in March 2002) will give Skyway the flexibility to serve markets of
 different sizes.
     In the second quarter, Midwest Express expects to increase capacity 11%
 and Skyway 35%, with full-year estimates at 10% and 34%, respectively -- lower
 than originally planned.  Hoeksema said Astral Aviation will add a regional
 jet -- its eighth -- to the Skyway fleet in June, and realize full utilization
 from its sixth and seventh regional jets added in the first quarter.
     "We have achieved 14 consecutive years of profitability at Midwest
 Express, and have now experienced two consecutive very poor quarters," said
 Hoeksema.  "While some of the factors -- such as higher fuel prices and
 softening business travel demand -- are impacting the entire industry, we must
 do everything we can internally to improve our financial results.  Going
 forward, we're taking aggressive steps to better align our cost structure with
 our planned capacity and improve our productivity without impacting our
 product and service levels."
     He explained that the company's immediate focus would be to reduce costs
 by a minimum of $1.5 million per month.  It will eliminate approximately 7% of
 positions throughout the organization within the next 90 days through improved
 scheduling, attrition and select reductions of workforce.  The company will
 also reduce its planned non-aircraft-related capital spending by $5 million
 this year.
     "There are good things happening at Midwest Express -- public recognition
 is high, our employees show great pride in working here, we've made
 significant aircraft acquisition announcements, and our customers believe in
 our product and service value," said Hoeksema.  "Our success continues to
 depend on service, and our plan to trim our cost structure will not impact our
 excellent level of service.  This is critical work that must be accomplished
 to enable our company to have a strong and healthy future."
     Midwest Express Holdings, Inc. is the holding company for Midwest Express
 Airlines, a premium-service airline headquartered in Milwaukee.  Catering
 primarily to business travelers since taking to the skies in 1984, the airline
 known as "the best care in the air" has earned its reputation providing
 passengers with personal attention, two-across wide leather seats, fine food
 served on china with complimentary wine or champagne, and baked-onboard
 chocolate chip cookies on luncheon flights -- all at competitive fares.  Conde
 Nast Traveler, Travel+Leisure and the Zagat Airline Survey recognize Midwest
 Express as the best airline in the United States.
     Midwest Express Airlines features primarily nonstop service to major
 destinations throughout the United States.  Astral Aviation, Inc. -- its
 wholly owned subsidiary -- operates Skyway Airlines, The Midwest Express
 Connection, which offers connections to Midwest Express as well as
 point-to-point service between select markets.  Together, the airlines fly to
 49 cities.  More information is available at http://www.midwestexpress.com
     This document contains forward-looking statements that may state the
 company's or management's intentions, hopes, beliefs, expectations or
 predictions for the future. Words such as "expect," "anticipate," "believe,"
 "estimate," "goal," "objective" or similar words are intended to identify
 forward-looking statements.  It is important to note that the company's actual
 results could differ materially from those projected results due to factors
 that include but are not limited to uncertainties related to general economic
 factors, industry conditions, scheduling developments, government regulations,
 labor relations, aircraft maintenance and refurbishment schedules, potential
 delays related to acquired aircraft, fuel costs, competitive developments and
 interest rates.
 
 
                          Midwest Express Holdings, Inc.
                        Consolidated Statements of Income
                 (Dollars in thousands, except per share amounts)
                                   (Unaudited)
 
                                          Three Months Ended March 31,
                                                2001        2000    % Change
     Operating revenues:
          Passenger service                   $107,801     $96,165    12.1%
          Cargo                                  2,845       2,896    (1.8%)
          Other                                  8,283       7,703     7.5%
            Total operating revenues           118,929     106,764    11.4%
 
     Operating expenses:
          Salaries, wages and benefits          42,313      35,575    18.9%
          Aircraft fuel and oil                 24,381      20,006    21.9%
          Commissions                            6,235       5,822     7.1%
          Dining services                        6,163       5,466    12.8%
          Station rental, landing and
           other fees                           10,489       8,771    19.6%
          Aircraft maintenance
           materials and repairs                15,743      11,978    31.4%
          Depreciation and amortization          4,950       3,913    26.5%
          Aircraft rentals                       6,040       6,194    (2.5%)
          Other                                 12,797      11,666     9.7%
            Total operating expenses           129,111     109,391    18.0%
     Operating (loss)                          (10,182)     (2,627) (287.6%)
 
     Other (expense) income:
          Interest income                         228         225     1.3%
          Interest expense                       (447)        (66) (577.3%)
          Other                                   (11)        (18)   38.9%
            Total other (expense) income         (230)        141     n.m.
 
     (Loss) before income tax credit and
      cumulative effect of accounting changes (10,412)     (2,486) (318.8%)
     Income tax credit                         (3,852)       (924) (316.9%)
     (Loss) before cumulative effect of
      accounting changes                       (6,560)     (1,562) (320.0%)
     Cumulative effect of accounting
      changes, net of applicable income taxes      --      (4,713)  100.0%
 
     Net (loss)                               $(6,560)    $(6,275)   (4.5%)
 
     Net (loss) per share - basic:
       (Loss) before cumulative effect
        of accounting changes                  $(0.47)     $(0.11) (327.3%)
       Cumulative effect of accounting
        changes, net                               --       (0.34)  100.0%
       Net (loss)                              $(0.47)     $(0.45)   (4.4%)
 
     Net (loss) per share - diluted:
       (Loss) before cumulative effect
        of accounting changes                  $(0.47)     $(0.11) (327.3%)
       Cumulative effect of accounting
        changes, net                               --       (0.34)  100.0%
       Net (loss)                              $(0.47)     $(0.45)   (4.4%)
 
 
     Weighted average shares - basic       13,823,061  14,017,394     n.m.
     Weighted average shares - diluted     13,823,061  14,017,394     n.m.
 
 
                           Midwest Express Holdings, Inc.
                                Operating Statistics
 
                                          Three Months Ended
                                              March 31,
                                                                     %
                                            2001     2000         Change*
     Midwest Express Operations
     Origin & Destination Passengers       495,904  460,666         7.6
     Revenue Passenger Miles (000s)        483,051  447,794         7.9
     Scheduled Service Available Seat
          Miles (000s)                     834,431  751,268        11.1
     Total Available Seat Miles (000s)     843,316  760,824        10.8
     Load Factor (%)                         57.9%    59.6%        -1.7 pts.
     Revenue Yield                          $0.190   $0.186         2.6
     Revenue per Schd. Svc. ASM (a)         $0.115   $0.116        -0.7
     Total Cost per Total ASM               $0.133   $0.125         6.3
     Average Passenger Trip Length (miles)   974.1    972.1         0.2
     Number of Flights                      12,304   10,793        14.0
     Into-plane Fuel Cost per Gallon        $0.989   $0.901         9.8
     Full-time equivalent Employees at
          End of Period                      2,997    2,556        17.3
     Aircraft in Service at End of Period       34       32         6.3
 
 
     Skyway Airlines Operations
     Origin & Destination Passengers       118,368   97,044        22.0
     Revenue Passenger Miles (000s)         30,844   23,761        29.8
     Scheduled Service Available Seat
          Miles (000s)                      72,915   56,516        29.0
     Total Available Seat Miles (000s)      72,924   56,542        29.0
     Load Factor (%)                         42.3%    42.0%         0.3 pts.
     Revenue Yield                          $0.514   $0.550        -6.6
     Revenue per Schd. Svc. ASM (a)         $0.218   $0.232        -6.1
     Total Cost per Total ASM               $0.247   $0.264        -6.3
     Average Passenger Trip Length (miles)   260.6    244.9         6.4
     Number of Flights                      13,543   12,021        12.7
     Into-plane Fuel Cost per Gallon        $1.055   $1.002         5.3
     Full-time equivalent Employees at
          End of Period                        558      457        22.1
     Aircraft in Service at End of Period       22       20        10.0
 
 
     *Numbers may not recalculate due to rounding.
 
     (a) Passenger, Cargo, and Other Transport Related Revenue divided by
         Scheduled Service ASMs.
 
     Note:
     All statistics exclude charter operations except the following: total
 available seat miles, cost per total ASM, into-plane fuel cost, number of
 employees and aircraft in service.  Aircraft acquired but not yet placed into
 service are excluded from the aircraft in service statistics.
 
 SOURCE  Midwest Express Holdings, Inc.