EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

     

Midwest Air Group, Inc.

6744 South Howell Avenue

Oak Creek, Wisconsin 53154-1402

414-570-4000

www.midwestairlines.com

Traded: AMEX (MEH)

Media Inquiries: Carol Skornicka, 414-570-3980 (o), 414-303-6516 (c) or Carol.Skornicka@midwestairlines.com

Analyst/Investor Inquiries: Dennis O’Reilly, 414-570-3954 (o) or Dennis.O’Reilly@midwestairlines.com

FOR IMMEDIATE RELEASE

January 25, 2007

MIDWEST AIR GROUP REPORTS FOURTH QUARTER AND 2006 RESULTS

Airline Reports Third Consecutive Quarterly Profit and Profitable Year

Summary: Fourth Quarter and Full-Year 2006 vs. Fourth Quarter and Full-Year 2005

 

  Operating revenue: Q4: increased 17.9% to $168.3 million; 2006: increased 27.1% to $664.5 million

 

  Net income: Q4: income of $3.6 million vs. loss of $13.8 million; 2006: income of $5.4 million vs. loss of $64.9 million

 

  Diluted earnings per share: Q4: earnings of $0.16 vs. loss of $0.79; 2006: earnings of $0.29 vs. loss of $3.71

 

  Scheduled service revenue passenger miles: Q4: increased 16.3% to 1.0 billion on a 6.2% increase in capacity; 2006: increased 21.5% to 4.1 billion on a 13.1% increase in capacity

 

  Revenue per available seat mile: Q4: increased 11.7% to 12.27¢; 2006: increased 12.5% to 12.26¢

 

  Fuel prices: Q4: lower fuel prices positively impacted operating results by $0.9 million, or $0.04 per share – diluted; 2006: higher fuel prices negatively impacted operating results by $33.0 million, or $1.37 per share – diluted for the year

Milwaukee, Wisconsin, January 25, 2007 – Midwest Air Group, Inc. (AMEX: MEH) today reported fourth quarter and full-year results for its Midwest Airlines and Skyway Airlines (dba Midwest Connect) operations.

“Our performance was very strong, resulting in our third consecutive quarterly profit and continuing the turnaround for Midwest Air Group,” said Timothy E. Hoeksema, 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.”

Comparing fourth quarter 2006 to fourth quarter 2005, operating revenue increased 17.9% to $168.3 million. Operating income improved to $1.9 million from a $14.0 million loss in the fourth quarter of 2005, while net income improved to $3.6 million from a $13.8 million loss. Due to accumulated losses, Midwest Air Group discontinued recording federal income tax benefit on losses in second quarter 2004 and state income tax benefit on losses in second quarter 2005. During 2006, the company recorded alternative minimum tax expense, offset by the favorable resolution of tax contingencies previously accrued. Diluted earnings per share were $0.16, compared with a $0.79 loss in the same quarter a year earlier.

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The revenue increase reflects a 16.3% increase in passenger traffic, due to strong customer demand in response to competitive pricing, as well as schedule and service enhancements. A 0.9% increase in revenue yield was driven by improvements in the company’s revenue management processes and a reduction in industry capacity. Total operating expenses increased 6.2%, due primarily to the 6.2% increase in capacity and increased flight operations, which led to increases in fuel expense; salary, wages and benefits; aircraft rentals; and commissions. Fuel expense increased $2.9 million, or 5.3% – including $0.9 million of favorable price impact (calculated by applying 2005 prices to actual gallons consumed in 2006 and comparing the result to actual 2006 expense). Fuel expense includes the effect of hedging, which negatively affected fuel cost by $2.7 million in the quarter.

For the full year, operating revenue increased 27.1% to $664.5 million. Operating income improved to $0.6 million from a $65.2 million loss in 2005, while net income improved to $5.4 million from a $64.9 million loss the previous year. Diluted earnings per share rose to $0.29 from a $3.71 loss. Results for 2005 included an impairment charge due to the planned retirement of two aircraft, as well as capitalized expense write-offs, a litigation settlement, severance costs and a change in employee vacation policy totaling $0.98 per share.

The company ended the year with $157.7 million in cash, of which $118.1 million was unrestricted. Total cash was up from $137.8 million at December 31, 2005; unrestricted cash was up from $99.0 million at the same date. Capital spending – net of credits used to fund such spending – resulted in a cash outlay of $13.5 million for the year and consisted primarily of the acquisition of two Fairchild 328JETs, a spare Boeing 717 engine and additional spare parts for the Boeing 717 fleet.

Midwest continues to post sizeable gains in market share in its Milwaukee and Kansas City hubs. In November 2006, the most recent month for which market share results are available:

 

  Midwest Airlines and Midwest Connect carried 52.2% of all passengers departing from Milwaukee, up from 50.4% in the same month a year earlier. In November 2006, the airlines transported 148,691 Milwaukee passengers, up 2.3% from 145,376 passengers in November 2005.

 

  In Kansas City, Midwest Airlines market share rose to 10.8% for November from 8.9% in the same month a year earlier. In November 2006, Midwest Airlines carried a total of 48,837 Kansas City passengers, up 35.4% from 36,068 passengers in November 2005.

Midwest Airlines

At Midwest Airlines, passenger revenue per scheduled service available seat mile increased 13.1% in fourth quarter 2006 compared with the same quarter a year earlier. Load factor increased 6.7 percentage points due to a 17.5% increase in passenger traffic on a 7.0% increase in capacity. Revenue yield increased 2.9%.

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Into-plane fuel prices decreased 1.3% in fourth quarter 2006, averaging $2.09 per gallon versus $2.12 per gallon in fourth quarter 2005, and resulted in a $0.7 million favorable price impact. Fuel consumption increases resulted in a $4.0 million unfavorable impact in the quarter, primarily as a result of the increase in the number of flight operations.

In the fourth quarter, cost per available seat mile (unit costs) at Midwest Airlines increased $0.0031 to $0.1121, or 2.9% (excluding fuel, increased $0.0029 to $0.0725, or 4.2%) compared with fourth quarter 2005.

Note: Cost per available seat mile excluding fuel expense is an industry measurement that provides management and investors the ability to track changes in cost absent fuel-related expenses.

Midwest Connect

At Midwest Connect, passenger revenue per scheduled service available seat mile increased 5.1% in the fourth quarter. Passenger traffic increased 0.6% on a 4.0% decrease in capacity, resulting in a 3.1 percentage point improvement in load factor, while revenue yield increased 0.3%. Cost per available seat mile decreased $0.0129 to $0.2931, or 4.2% (excluding fuel, decreased $0.0115 to $0.2225, or 4.9%) compared with fourth quarter 2005. Excluding fuel, the increase was due primarily to labor costs associated with ramp functions performed for Midwest Airlines; the transfer of ramp and dining services functions to Midwest Connect in mid-2005 has reduced the total cost of these services to Midwest Air Group. Into-plane fuel prices decreased 2.7% in fourth quarter 2006, averaging $2.13 per gallon versus $2.19 per gallon in fourth quarter 2005. Fuel consumption decreases resulted in a $0.2 million favorable impact quarter over quarter.

Highlights and Outlook

In the fourth quarter of 2006:

 

  Midwest Airlines selected SkyWest Airlines, Inc. to operate 50-seat regional jet service beginning in April 2007. SkyWest will operate a minimum of 15 and up to 25 Canadair regional jets for Midwest during the five-year term of the agreement. Flying as Midwest Connect, the SkyWest jets will allow Midwest to add new destinations, increase frequency on existing routes and upgrade regional routes to all-jet service. The new regional jet program is an essential component of Midwest’s 2007 growth plans.

 

  Midwest Airlines signed a letter of intent to acquire two additional MD-80 series jet aircraft, expanding its fleet of MD-80s from 11 to 13. The airline plans to put the planes into revenue service by mid-2007.

 

  Skyway Airlines completed the purchase of a Fairchild 328JET regional jet, which will enter service in first quarter 2007.

 

  Midwest Air Group increased the number of directors on its board from eight to nine, and elected James R. Boris to the new position. He is chairman of JB Capital Management, LLC, a private investment firm.

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  Midwest Airlines began offering complimentary canine travel packs to dogs checking in with their owners for travel on the airline. The pack is an enhancement to the airline’s popular Premier Pet Program, the first program of its kind to offer frequent flying pets that travel with their owners the opportunity to earn free travel.

 

  Midwest Airlines re-launched Best Care News, its newsletter for frequent flyers, in a monthly all-electronic format – reaching more people, more frequently, in a more cost-effective manner.

 

  Midwest Airlines launched a blog that provides travel tips and tourist information on the cities served by the airline. Geared toward women traveling together or in groups, “Travels With Tish – Girlfriends Getaway Guide” can be accessed at http://girlfriendsgetaway.wordpress.com.

 

  Skyway Airlines was awarded the Diamond Award, the top honor in the Federal Aviation Administration’s Aviation Maintenance Technician awards program. The award recognizes exemplary training of maintenance technicians.

Additionally, Midwest enhanced schedules and upgraded equipment on a number of routes:

 

  Midwest Airlines enhanced its flight schedule in two key markets: Kansas City-New York La Guardia with a fifth daily nonstop and Kansas City-Milwaukee with an eighth daily nonstop. In addition to offering travelers a more flexible and convenient schedule on the routes, the new service also provides significantly more connection opportunities through Kansas City.

 

  Midwest Airlines enhanced service between Milwaukee and Florida, adding second daily seasonal nonstop roundtrips to Ft. Myers, Ft. Lauderdale and Tampa. The airline also launched new daily nonstop service between Kansas City and Ft. Myers and added seasonal nonstop daily frequency between Kansas City and both Ft. Lauderdale and Orlando.

 

  Midwest Connect upgraded service in its Milwaukee-Appleton, Milwaukee-Columbus, Milwaukee-Dayton markets to regional jets, as well as one additional Milwaukee-Grand Rapids daily roundtrip.

In the first quarter of 2007:

Midwest Airlines has announced a number of service expansions that are part of its 2007 strategic growth plan.

 

  On March 4, Midwest Connect plans to launch nonstop service between Milwaukee and Duluth/Superior. The new service will be aboard the airline’s quick and comfortable Fairchild 328JET aircraft. On the same day, the airline will also upgrade its Milwaukee-St. Louis service to the regional jets.

 

  On April 1, Midwest Airlines plans to introduce service to Seattle/Tacoma, the 49th destination on Midwest’s nationwide route network. The airline will offer nonstop Signature Service – featuring two-by-two wide leather seats and generous legroom on new Boeing 717 aircraft – from Kansas City, with easy connections to and from Milwaukee.

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% increase in capacity in 2007 and an average increase of 10% per year over the next three years. 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.”

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For the full year of 2007, Midwest is projecting non-GAAP net earnings per diluted share to be in excess of $1.70. Midwest is also projecting that 2007 revenues will exceed $825 million and 2007 EBITDAR will exceed $140 million. GAAP (Generally Accepted Accounting Principles) net earnings per diluted share in 2007 will include expenses relating to the unsolicited exchange offer by AirTran and other items that are not currently determinable, but may be significant. For that reason, Midwest is unable to provide full-year GAAP net earnings at this time.

EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) is considered to be a non-GAAP financial measure.

Midwest believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating Midwest’s operating performance as these costs are not directly attributable to the underlying performance of its business operations. Internally, Midwest uses this non-GAAP information as an indicator of business performance and management’s effectiveness. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

Midwest Air Group issued a separate news release today describing the position of its board of directors regarding AirTran’s unsolicited exchange offer.

Management of Midwest Air Group will discuss the company’s financial results and its board’s position on the exchange offer in a conference call with industry analysts and institutional investors at 11 a.m. Eastern time today. The discussion will be available simultaneously in a listen-only mode and for the following 30 days at http://phx.corporate-ir.net/phoenix.zhtml?c=88626&p=irol-irhome.

Midwest Airlines features jet service throughout the United States, including Milwaukee’s most daily nonstop flights and best schedule to major destinations. Catering primarily to business travelers and discerning leisure travelers, the airline earned its reputation as “The best care in the air” by providing passengers with impeccable service and onboard amenities at competitive fares. Skyway Airlines, Inc. – Midwest’s wholly owned subsidiary – operates as Midwest Connect and 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 49 cities. More information is available at http://www.midwestairlines.com.

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This document contains forward-looking statements about the results expected under the company’s strategic plan and that otherwise may state the company’s or management’s intentions, hopes, beliefs, expectations or predictions for the future. Words such as “projecting,” “expect,” “anticipate,” “believe,” “estimate,” “goal,” “plan,” “objective” or similar words are intended to identify forward-looking statements. It is important to note that the company’s actual results could differ materially from the projected results contained in these forward-looking statements. Factors that may cause such a difference to occur include, but are not limited to, fees and expenses incurred in connection with AirTran’s unsolicited exchange offer and the risk factors described in “Item 1A. Risk Factors” in the company’s “Annual Report on Form 10-K” for the year ended December 31, 2005.

Editor’s note: Tables follow

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MIDWEST AIR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended
December 31,
   

% Change

Better/(Worse)

 
     2006     2005    

Operating revenues:

      

Passenger service

   $ 147,033     $ 125,279     17.4 %

Cargo

     3,122       1,831     70.5 %

Other

     18,167       15,656     16.0 %
                      

Total operating revenues

     168,322       142,766     17.9 %
                      

Operating expenses:

      

Salaries, wages and benefits

     40,541       37,240     (8.9 )%

Aircraft fuel and oil

     57,121       54,229     (5.3 )%

Commissions

     4,559       3,694     (23.4 )%

Dining services

     1,973       2,186     9.8 %

Station rental, landing and other fees

     13,039       13,240     1.5 %

Aircraft maintenance, materials and repairs

     12,934       13,142     1.6 %

Depreciation and amortization

     3,945       3,646     (8.2 )%

Aircraft rentals

     16,442       13,872     (18.5 )%

Impairment loss

     0       0     NM  

Other

     15,861       15,473     (2.5 )%
                      

Total operating expenses

     166,415       156,722     (6.2 )%
                      

Operating income/(loss)

     1,907       (13,956 )   NM  
                      

Other (expense)/income:

      

Interest income

     2,089       1,016     105.7 %

Interest expense

     (792 )     (908 )   12.8 %
                      

Total other (expense)/income

     1,297       108     NM  
                      

Income/(loss) before income tax

     3,204       (13,848 )   NM  

Income tax (benefit)

     (403 )     0     NM  
                      

Net income/(loss)

   $ 3,607     $ (13,848 )   NM  
                      

Income/(loss) per common share – basic:

   $ 0.19     $ (0.79 )   NM  

Income/(loss) per common share – diluted:

   $ 0.16     $ (0.79 )   NM  

Weighted average shares – basic

     18,888,835       17,553,323    

Weighted average shares – diluted

     25,154,682       17,553,323    

See notes to unaudited condensed consolidated financial statements.


MIDWEST AIR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)

 

     Twelve Months Ended
December 31,
   

% Change

Better/(Worse)

 
     2006     2005    

Operating revenues:

      

Passenger service

   $ 588,242     $ 459,652     28.0 %

Cargo

     9,444       6,323     49.4 %

Other

     66,815       57,014     17.2 %
                      

Total operating revenues

     664,501       522,989     27.1 %
                      

Operating expenses:

      

Salaries, wages and benefits

     160,060       147,010     (8.9 )%

Aircraft fuel and oil

     232,013       178,079     (30.3 )%

Commissions

     18,018       13,784     (30.7 )%

Dining services

     8,397       9,622     12.7 %

Station rental, landing and other fees

     51,562       46,282     (11.4 )%

Aircraft maintenance, materials and repairs

     51,451       51,823     0.7 %

Depreciation and amortization

     15,178       16,001     5.1 %

Aircraft rentals

     64,215       51,468     (24.8 )%

Impairment loss

     0       15,622     NM  

Other

     63,015       58,466     (7.8 )%
                      

Total operating expenses

     663,909       588,157     (12.9 )%
                      

Operating income/(loss)

     592       (65,168 )   100.9 %
                      

Other (expense)/income:

      

Interest income

     7,701       3,723     106.8 %

Interest expense

     (3,284 )     (3,581 )   8.3 %
                      

Total other (expense)/income

     4,417       142     NM  
                      

Income/(loss) before income tax

     5,009       (65,026 )   NM  

Income tax (benefit)

     (403 )     (140 )   187.9 %
                      

Net income/(loss)

   $ 5,412     $ (64,886 )   NM  
                      

Income/(loss) per common share – basic:

   $ 0.30     $ (3.71 )   NM  

Income/(loss) per common share – diluted:

   $ 0.29     $ (3.71 )   NM  

Weighted average shares – basic

     18,117,907       17,508,360    

Weighted average shares – diluted

     24,033,540       17,508,360    

See notes to unaudited condensed consolidated financial statements.


MIDWEST AIR GROUP, INC.

OPERATING STATISTICS

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2006     2005     2006     2005  

Midwest Air Group

        

Scheduled Service Revenue Passenger Miles (000s)

     1,004,520       863,436       4,086,394       3,363,995  

Scheduled Service Available Seat Miles (000s)

     1,360,608       1,281,191       5,362,671       4,740,662  

Total Available Seat Miles (000s)

     1,371,308       1,299,289       5,421,119       4,799,932  

Load Factor (%)

     73.8 %     67.4 %     76.2 %     71.0 %

Revenue Yield

   $ 0.1464     $ 0.1451     $ 0.1440     $ 0.1366  

Passenger Revenue per Schd. Svc. ASM

   $ 0.1081     $ 0.0978     $ 0.1097     $ 0.0970  

Total Revenue per Total ASM

   $ 0.1227     $ 0.1099     $ 0.1226     $ 0.1090  

Total Cost per Total ASM

   $ 0.1214     $ 0.1206     $ 0.1225     $ 0.1225  

Total Cost per Total ASM (ex-fuel cost) (1)

   $ 0.0797     $ 0.0789     $ 0.0797     $ 0.0854  

Number of Flights

     27,126       27,163       110,120       106,042  

Into-plane Fuel Cost per Gallon

   $ 2.10     $ 2.13     $ 2.17     $ 1.86  

Full-time Equivalent Employees at End of Period

     3,020       2,906       3,020       2,906  

Aircraft in Service at End of Period

     55       55       55       55  

Midwest Airlines Operations

        

Origin & Destination Passengers

     893,265       778,121       3,621,048       3,009,082  

Scheduled Service Revenue Passenger Miles (000s)

     942,840       802,119       3,827,111       3,121,785  

Scheduled Service Available Seat Miles (000s)

     1,268,643       1,185,368       4,982,631       4,358,678  

Total Available Seat Miles (000s)

     1,279,342       1,203,466       5,040,712       4,417,682  

Load Factor (%)

     74.3 %     67.7 %     76.8 %     71.6 %

Revenue Yield

   $ 0.1316     $ 0.1279     $ 0.1285     $ 0.1193  

Passenger Revenue per Schd. Svc. ASM

   $ 0.0978     $ 0.0865     $ 0.0987     $ 0.0854  

Total Revenue per Total ASM

   $ 0.1144     $ 0.1005     $ 0.1135     $ 0.0994  

Total Cost per Total ASM

   $ 0.1121     $ 0.1089     $ 0.1127     $ 0.1121  

Total Cost per Total ASM (ex-fuel cost) (1)

   $ 0.0725     $ 0.0696     $ 0.0722     $ 0.0773  

Average Passenger Trip Length (miles)

     1,055       1,031       1,057       1,038  

Number of Flights

     13,877       12,653       54,213       46,492  

Into-plane Fuel Cost per Gallon

   $ 2.09     $ 2.12     $ 2.16     $ 1.85  

Full-time Equivalent Employees at End of Period

     2,101       1,905       2,101       1,905  

Aircraft in Service at End of Period

     36       34       36       34  

Midwest Connect Operations

        

Origin & Destination Passengers

     194,613       200,273       819,946       820,487  

Scheduled Service Revenue Passenger Miles (000s)

     61,681       61,317       259,283       242,210  

Scheduled Service Available Seat Miles (000s)

     91,965       95,823       380,040       381,983  

Total Available Seat Miles (000s)

     91,965       95,823       380,407       382,251  

Load Factor (%)

     67.1 %     64.0 %     68.2 %     63.4 %

Revenue Yield

   $ 0.3717     $ 0.3705     $ 0.3719     $ 0.3606  

Passenger Revenue per Schd. Svc. ASM

   $ 0.2493     $ 0.2371     $ 0.2537     $ 0.2286  

Total Revenue per Total ASM

   $ 0.2818     $ 0.2662     $ 0.2851     $ 0.2471  

Total Cost per Total ASM

   $ 0.2931     $ 0.3060     $ 0.2936     $ 0.2698  

Total Cost per Total ASM (ex-fuel cost) (1)

   $ 0.2225     $ 0.2339     $ 0.2210     $ 0.2065  

Average Passenger Trip Length (miles)

     317       306       316       295  

Number of Flights

     13,249       14,510       55,907       59,550  

Into-plane Fuel Cost per Gallon

   $ 2.13     $ 2.19     $ 2.21     $ 1.91  

Full-time Equivalent Employees at End of Period

     919       1,001       919       1,001  

Aircraft in Service at End of Period

     19       21       19       21  

(1) Non-GAAP measurement.

Note: All statistics exclude charter operations except the following: Total Available Seat Miles (“ASMs”), Total Cost per Total ASM, Total Cost per ASM (ex-fuel cost), Into-plane Fuel Cost, Number of Employees and Aircraft in Service. Aircraft acquired but not yet placed into service are excluded from the aircraft in service statistics.

Numbers in this table may not be recalculated due to rounding.


MIDWEST AIR GROUP, INC.

NON-GAAP FINANCIAL MEASURES

 

     Three Months Ended
December 31,
   %     Twelve Months Ended
December 31,
   %  
     2006    2005      2006    2005   

Midwest Air Group

                

Total GAAP operating expenses ($000)

   $ 166,415    $ 156,722    6.2 %   $ 663,909    $ 588,157    12.9 %

ASMs (000)

     1,371,308      1,299,289    5.5 %     5,421,119      4,799,932    12.9 %

CASM

   $ 0.1214    $ 0.1206    0.6 %   $ 0.1225    $ 0.1225    (0.1 )%
                                        

Total GAAP operating expenses ($000)

   $ 166,415    $ 156,722    6.2 %   $ 663,909    $ 588,157    12.9 %

Less: aircraft fuel ($000)

   $ 57,121    $ 54,229    5.3 %   $ 232,013    $ 178,079    30.3 %
                                        

Operating expenses excluding fuel ($000)

   $ 109,294    $ 102,493    6.6 %   $ 431,897    $ 410,078    5.3 %

ASMs (000)

     1,371,308      1,299,289    5.5 %     5,421,119      4,799,932    12.9 %

CASM excluding fuel

   $ 0.0797    $ 0.0789    1.0 %   $ 0.0797    $ 0.0854    (6.7 )%
                                        

Midwest Airlines Operations

                

Total GAAP operating expenses ($000)

   $ 143,396    $ 131,111    9.4 %   $ 568,259    $ 495,418    14.7 %

ASMs (000)

     1,279,342      1,203,466    6.3 %     5,040,712      4,417,682    14.1 %

CASM

   $ 0.1121    $ 0.1089    2.9 %   $ 0.1127    $ 0.1121    0.5 %
                                        

Total GAAP operating expenses ($000)

   $ 143,396    $ 131,111    9.4 %   $ 568,259    $ 495,418    14.7 %

Less: aircraft fuel ($000)

   $ 50,625    $ 47,320    7.0 %   $ 204,399    $ 153,859    32.8 %
                                        

Operating expenses excluding fuel ($000)

   $ 92,772    $ 83,792    10.7 %   $ 363,860    $ 341,559    6.5 %

ASMs (000)

     1,279,342      1,203,466    6.3 %     5,040,712      4,417,682    14.1 %

CASM excluding fuel

   $ 0.0725    $ 0.0696    4.2 %   $ 0.0722    $ 0.0773    (6.6 )%
                                        

Midwest Connect Operations

                

Total GAAP operating expenses ($000)

   $ 26,957    $ 29,325    (8.1 )%   $ 111,677    $ 103,141    8.3 %

ASMs (000)

     91,965      95,823    (4.0 )%     380,407      382,251    (0.5 )%

CASM

   $ 0.2931    $ 0.3060    (4.2 )%   $ 0.2936    $ 0.2698    8.8 %
                                        

Total GAAP operating expenses ($000)

   $ 26,957    $ 29,325    (8.1 )%   $ 111,677    $ 103,141    8.3 %

Less: aircraft fuel ($000)

   $ 6,497    $ 6,909    (6.0 )%   $ 27,614    $ 24,220    14.0 %
                                        

Operating expenses excluding fuel ($000)

   $ 20,460    $ 22,417    (8.7 )%   $ 84,063    $ 78,921    6.5 %

ASMs (000)

     91,965      95,823    (4.0 )%     380,407      382,251    (0.5 )%

CASM excluding fuel

   $ 0.2225    $ 0.2339    (4.9 )%   $ 0.2210    $ 0.2065    7.0 %
                                        

Note: Numbers and totals in this table may not be recalculated due to rounding and intercompany eliminations.