Midwest Air Group 2Q Profit Falls
Thursday July 26,
Midwest Air Group 2Q Profit Falls 45 Percent on Weaker Fare Trends
MILWAUKEE (AP) -- Midwest Air Group Inc. said Thursday its second-quarter profit fell 45 percent, hurt by weakening fare trends and tougher fuel costs.
Quarterly earnings dropped to $4.9 million, or 19 cents per share, from $8.8 million, or 39 cents per share, in the prior-year period. Revenue rose to $194.5 million from $176.9 million.
The company said its yield -- an industry gauge that tracks fare trends -- fell 5.3 percent amid industrywide pricing weakness. Its aircraft fuel and oil costs, meanwhile, jumped to $66.4 million from $60.6 million. They are Midwest Air Group's biggest expenses.
Midwest Air Group Chairman and Chief Executive Timothy E. Hoeksema said in a statement that despite the challenging pricing environment, travel demand remained strong during the second quarter. Passenger traffic grew 15.8 percent during the quarter.