Midwest Air Group Swings to 2Q Profit

Midwest Air Group, owner of Midwest Airlines and Midwest Connect, said Thursday it swung to a profit in the second-quarter, as a rise in passenger traffic helped offset soaring fuel expense.

Net income totaled $8.8 million, or 39 cents per share, compared to a loss of $8.2 million, or 47 cents per share during the same period last year. Revenue grew 34 percent to $176.9 million, from $131.6 million in the same quarter of 2005a.

More passengers and higher fares offset higher fuel costs, the company said.

Passenger traffic grew 28.6 percent due in part to competitive pricing, the company said, while fuel expense increased 49.4 percent.

Midwest Airlines saw passenger revenue per scheduled service available seat mile grew 19.8 percent in the second quarter. Each revenue passenger mile is equal to one paying passenger flown one mile. Load factor, or occupancy, grew 7.4 percentage points as traffic grew 29.8 percent on an 18.1 percent increase in capacity.

Cost per available seat mile (unit costs) at Midwest Airlines increased $0.0042 to $0.1151, or 3.8 percent, compared with second quarter 2005. Excluding fuel, cost decreased $0.0055 to $0.0727, or 7.0 percent.

Midwest Connect saw passenger revenue per scheduled service available seat mile grow 13.2 percent. Traffic climbed 12.8 percent on a 1.6 percent increase in capacity, resulting in load factor growth of 7.1 percentage points.

Cost per available seat mile increased $0.0449 to $0.2960, or 17.9 percent. Excluding fuel, the increase was $0.0299 to $0.2212, or 15.6 percent compared with second quarter 2005.

In premarket trading, Midwest Air Group rose 60 cents, or 12 percent, to $5.50.

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