Midwest Air Group Reports $5.4 Million 2006 Profit
Published on: January 26, 2007
Midwest Air Group, operator of Midwest Airlines and Skyway Airlines d/b/a Midwest Connect, reported a full-year profit of $5.4 million in 2006, even as the airline is fighting off a hostile bid from AirTran Airways. “Our performance was very strong, resulting in our third consecutive quarterly profit and continuing the turnaround for Midwest Air Group,” said Timothy Hoeksema, the carrier’s chairman and chief executive officer. “Traffic and revenue remained strong, and we benefited from moderating fuel prices in the quarter. Clearly, our strategic plan is driving growth for the company.”
In the fourth quarter, Midwest’s operating revenue increased 17.9 percent to $168.3 million. The revenue increase reflects a 16.3 percent increase in passenger traffic due to strong customer demand in response to competitive pricing, as well as schedule and service enhancements, the company said. For the full year, operating revenue increased 27.1 percent to $664.5 million. Going forward, Hoeksema said Midwest is committed to creating long-term value while continuing to provide the superior customer service that its customers expect.
“Our long-term strategic plan provides significant opportunities to continue to improve profitability, including a 15 percent increase in capacity in 2007 and an average increase of 10 percent per year over the next three years,” he said. “And our customers will benefit from aggressive route expansion and equipment upgrades in 2007, as well as the addition of at least six new destinations and as many as 12 new routes.”
