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RENO AIR ANNOUNCES UNAUDITED THIRD QUARTER RESULTS

 RENO, Nev., Nov. 8 /PRNewswire/ -- Nevada-based Reno Air (NASDAQ: RENO; PSE: RNO) today announced results for the quarter ended Sept. 30, 1993, which was the carrier's fifth quarter of operations.
 During the third quarter of 1993, the airline flew 314.6 million revenue passenger miles (RPMs), an increase of 73 percent over the second quarter of this year. Reno Air's available seat miles (ASMs) also increased in the third quarter by 48 percent to 504 million. The airline carried 619,194 passengers during the quarter ended Sept. 30, 1993, and posted a third quarter load factor of 62.4 percent.
 Operating revenues for the third quarter of 1993 were $39,658,180, while operating expenses were $39,986,378, which included costs to open the airline's hub in San Jose, Calif., as well as costs to increase Reno Air's capacity and fleet size from 12 to 17 MD-80 aircraft. Operating revenues for the first nine months of 1993 were $85,244,733, while operating expenses for the same period were $84,571,916.
 Operating income for the first nine months of 1993 showed a profit of $672,816, with a third quarter operating loss of $328,198. Jeff Erickson, president and chief executive officer of Reno Air, said several factors directly affected third quarter results.
 "The start-up costs and development of our San Jose hub, the added capacity of five more aircraft, and the especially soft post-Labor Day traffic have all had an impact on our third quarter results," said Erickson. "But we were able to decrease our cost per ASM in September to 7.5 cents from 8.2 cents in July, when we opened San Jose. Likewise, our yield increased from 11.2 cents in July, to 12.5 cents in September."
 Erickson said the seasonal decline in passenger traffic between Labor Day and Thanksgiving could also affect fourth quarter results, until the carrier begins service to Las Vegas, Phoenix and Tucson on Dec. 15.
 "With the exception of the upcoming holidays, we would expect fourth quarter traffic to also be slow, resulting in a loss, until our previously announced schedule goes into effect in mid-December," said Erickson. "Our new schedule, combined with the recent announcements of discontinued service by competitors in our markets, should position us properly for the upcoming winter season."
 Reno Air currently leases 17 McDonnell Douglas MD-80 series jet aircraft, and serves its hometown of Reno/Tahoe, as well as Seattle, Portland, Ore., San Jose, Los Angeles, San Diego, Burbank and Ontario, Calif. The company has previously announced it will cease its operations in San Francisco on Dec. 1.
 RENO AIR INC.
 Financial and Operating Highlights
 Third Quarter Nine Months
 1993 1993
 Operating Revenues $ 39,658,180 $ 85,244,733
 Operating Expenses 39,986,378 84,571,916
 Operating Income/(Loss) (328,198) 672,816
 Non-Operating Income/(Expense) - Net (46,060) (141,452)
 Income/(Loss) Before Taxes (374,258) 531,364
 Income Tax Provision (Benefit) (314,432) ---
 Net Income/(Loss) $ (59,826) $ 531,364
 Net Income/(Loss) per Common Share and
 Common Share Equivalent $ (0.01) $ 0.06
 Selected Operating Data Third Quarter Nine Months
 1993 1993
 Revenue Passenger Miles (RPMs) 314,640,000 645,418,000
 Available Seat Miles (ASMs) 504,070,000 1,052,480,000
 Load Factor (percent) 62.4 61.3
 Revenue Passengers 619,194 1,276,779
 Yield (cents) 11.9 12.6
 Cost per ASM (cents) 7.9 8.0
 Break Even Load Factor (percent) 62.9 60.8
 -0- 11/8/93
 /CONTACT: Sue Putnam, manager of public relations of Reno Air, 702-686-3874/
 (RENO RNO)


CO: Reno Air Inc. ST: California, Nevada IN: AIR SU: ERN

RB-TM -- SF006 -- 1559 11/08/93 08:02 EST
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Publication:PR Newswire
Date:Nov 8, 1993
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