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CCAIR REPORTS QUARTERLY RESULTS

 CHARLOTTE, N.C., Nov. 19 /PRNewswire/ -- CCAIR, Inc. (NASDAQ-NMS: CCAR), an independent airline providing service as USAir Express in the southeast United States, reported financial and operating results today for the first fiscal quarter 1994 ended Sept. 30, 1993.
 The company reported an operating loss of $1,020,291 and net loss of $1,236,020 or 19 cents per share for the quarter ended Sept. 30, 1993, compared to an operating loss of $2,221,095 and net loss of $2,369,565 or 36 cents per share as revenue increased $379,345 and operating cost decreased $816,333 from the same period in 1992 which included a write-off of preoperating costs.
 Kenneth Gann, president and chief executive officer, said, "Several problems directly affected the quarterly results."
 "The month of July contributed 77 percent of the quarterly loss due to a yield per passenger mile of 39.3 cents as fares were depressed by industrywide summer discounting and a 47.5 percent load factor," said Gann. "But we were able to redeploy some flights in August and September and the load factor improved to 49.4 percent and 53.2 percent, respectively, as well as an increase in yield to 41 cents."
 In November 1992, the company agreed with USAir to employ an industry standard ticket sampling procedure to estimate interline revenue billings. Although the procedures were followed correctly by USAir and the company, the company's estimated revenue, based on industry sampling procedures, varied with the final audited revenue. The company's largest variances occurred in the fiscal fourth quarter of 1993 and the first fiscal quarter of 1994 ended Sept. 30, 1993. Therefore, the company has made adjustments to its fourth quarter 1993 ended June 30, 1993, and first quarter of 1994 ended Sept. 30, 1993, revenue to reflect the audited revenue. Management is pursuing a more detailed analysis of past sampling procedures to probe the unacceptable variances. On Oct. 1, 1993, the company reverted back to audit 100 percent pricing of its passenger tickets which will alleviate any future discrepancies.
 The company reported last week that October 1993 set a new revenue passenger miles record and a load factor of 54.9 percent. Further enhancements to the schedule were implemented on the Nov. 10, 1993, schedule change.
 The company is in the final stages of planning to assume the responsibility from USAir to handle its own operation at the Charlotte/Douglas International Airport in Charlotte, N.C. The cutover is scheduled for Feb. 1, 1994, and should provide substantial cost savings to offset ground operations and reservation fees that increased in the quarter ended Sept. 30, 1993.
 The company also today announced the completion of the sale of 335,000 shares of its common stock to two companies. The proceeds will satisfy certain obligations for aircraft leases and engines and service as well as current installments due under long-term debt. The sales price was based upon the market price at the date of issuance with adjustments to be made based upon the resale prices achieved by the purchasers.
 Gann said: "This sale is a key element in our program to reduce reliance on the company's line of credit and other borrowings in the Fall and Winter months. It's completion should assure that operating decisions in the second and third fiscal quarter can be based on profitability rather than liquidity considerations."
 CCAIR, Inc.
 First Quarter Ended Sept. 30,
 1993 1992 Pct.
 Change
 Revenues
 Operating revenues $16,013,343 $15,633,998 2.4
 Operating expense 17,033,634 17,849,967 -4.6
 Total operating loss (1,020,291) (2,221,095) 54.1
 Nonoperating expense (215,729) (148,470) 45.3
 Net income $(1,236,020) $(2,369,565) 47.8
 Loss per share $(.19) $(.36) 47.2
 Traffic
 Passengers enplaned 229,315 249,687 -8.2
 Revenue passenger miles 39,075,542 37,133,840 5.2
 Available seat miles 78,196,230 74,760,621 4.6
 Load factor 50.0pct 49.7pct .6
 Average passenger miles 170.4 148.7 14.6
 Yield per revenue passenger mile 40.4cents 41.5cents -2.7
 Cost per available seat mile 21.8cents 23.9cents -8.8
 -0- 11/19/93
 /CONTACT: Kenneth W. Gann of CCAIR, 704-359-8990/
 (CCAR)


CO: CCAIR, Inc. ST: North Carolina IN: AIR SU: ERN

CM-MM -- CH004 -- 6625 11/19/93 15:18 EST
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Publication:PR Newswire
Date:Nov 19, 1993
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