Server: Microsoft-IIS/3.0 Date: Thu, 20 Nov 1997 15:49:01 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Tue, 11 Nov 1997 15:36:13 GMT Content-Length: 5615



Sunday, February 25, 1996

1995: Reno Air's First Profitable Year


Winning industry respect
By John Stearns
Reno Gazette-Journal

Expansion Ahead: Airline promises to continue aggressive growth in the future. When Reno Air Inc. reported a loss of almost $14 million in 1994, industry experts didn't deploy their parachutes.

"Given the specialty of Reno Air, its region and the expansion it has pursued, I see no reason it can't turn around", Kambiz Raffiee, a University of Nevada, Reno economist and airline industry specialist, said last March.

Turn around it did, by more than $15 million dollars.

The Reno-based airline's bottom line flew from red to black in 1995, its first annual profit. It reported operating income of $3.6 million, and net income of $1.9 million.

To have a performance like (Reno Air) had in 1995 vs. 1994, that's basically a major, major accomplishment" in a volatile industry, Raffiee said.

Earnings 1993 1994 1995  
Operating rev. $124.6 mil $195.5 mil $256.5 mil  
Operating exp. $132 mil $209.4 mil $252.9 mil  
Operating income ($7.3 mil) ($13.9 mil) $3.6 mil  
Net Income ($7.3 mil) ($14 mil) $1.9 mil  
         
Earnings per share ($1.06) ($1.73) .18 Stock price
fully diluted

Figures for years ending Dec. 31; numbers in (parentheses) indicate loss

Operation 1993 1994 1995
Revenue Passengers 1.8 mil 3.4 mil 3.9 mil
Load Factor 57.5% 60.6% 62.9%
Employees 1,153 1,483 1,600
Stock Price $6.625 $3.75 $7.875
Planes 17 20 24
Cities Served 1993 1994 1995
11 15 16

Source: Reno Air


1-800-RENO-AIR