Midwest Express Holdings Reports August Performance
Milwaukee, Wisconsin, September 11, 2003 – Midwest Express Holdings, Inc. (NYSE: MEH) today reported August performance data for Midwest Airlines and Midwest Connect. Compared with August 2002, both airlines reported increases in traffic, decreases in capacity, increases in load factor and decreases in yield.
· In August, Midwest Airlines’ traffic (measured in scheduled service revenue passenger miles) increased 1.0% on an 18.7% decrease in capacity (measured in scheduled service available seat miles). Year to date, traffic was down 3.9% on a 9.8% decrease in capacity. Midwest Airlines expects to decrease capacity 14-16% in the third quarter compared with third quarter 2002 – part of its previously announced capacity reduction plan.
· Load factor for the month was 74.4%, compared with 59.8% in August 2002; year to date, load factor was 66.1%, compared with 62.0% last year.
· Revenue yield declined 15.9% from August 2002 and 14.2% year to date.
· Revenue per scheduled service available seat mile increased 5.3% in August – the result of higher load factor offsetting lower revenue yield, and decreased 8.0% year to date.
· Fuel prices were 17.4% higher in August than a year ago, and 30.0% higher in the first eight months of 2003 than 2002.
· In August, Midwest Connect’s traffic increased 17.7% on an 8.5% decrease in capacity. Year to date, traffic was up 15.5% on a 3.3% increase in capacity. Midwest Connect expects to decrease capacity 8-10% in the third quarter compared with third quarter 2002.
· Load factor for the month was 61.5%, compared with 47.8% in August last year; year to date, load factor was 52.5%, compared with 46.9% last year.
· Revenue yield declined 18.8% from August 2002 and 19.6% year to date.
· Revenue per scheduled service available seat mile increased 6.7% in August – the result of higher load factor offsetting lower revenue yield, and decreased 8.2% year to date.
· Fuel prices were 15.0% higher in August than a year ago, and 25.3% higher in the first eight months of 2003 than 2002.
Midwest Airlines features nonstop jet service to major destinations throughout the United States. Skyway Airlines, Inc. – its wholly owned subsidiary – operates Midwest Connect, which offers connections to Midwest Airlines as well as point-to-point service between select markets on regional jet and turboprop aircraft. Together, the airlines offer service to 50 cities. More information is available at www.midwestairlines.com.
I'm not quite sure what this means. Capacity has decreased significantly for what was already a small carrier. Yeilds are down. But load factor is up. I guess we'll have to wait until the quarterly report to find out what this all means in terms of actual revenue.