Midwest Air Group Reports May Performance

MILWAUKEE, Wis., June 12 /PRNewswire-FirstCall/ — Midwest Air Group, Inc. (AMEX:MEH) today reported May performance data for Midwest Airlines and Midwest Connect. It should be noted that the performance report now includes operating statistics for the 50-seat regional jet fleet operated by SkyWest Airlines, affecting year-over-year comparisons for Midwest Air Group and Midwest Connect. That service, which launched April 1, has allowed for the opening of new markets as well as the conversion to Midwest Connect of some flights previously flown by Midwest Airlines.


At the group level, a 21.6% increase in traffic outpaced an 18.8% increase in capacity, resulting in a 1.8 percentage point increase in load factor compared with May 2006. Revenue per total available seat mile decreased 6.4% in the same time period.

              Midwest Air Group, Inc. — Performance Report

Five Months Ended
May May 31,
2007 2006 % Change 2007 2006 % Change
Midwest Air Group

Scheduled Service
Revenue Passenger
Miles (000s) 412,995 339,769 21.6 1,850,401 1,657,654 11.6
Scheduled Service
Available Seat
Miles (000s) 517,213 435,193 18.8 2,402,671 2,212,537 8.6
Total Available
Seat Miles
(000s) 518,732 437,672 18.5 2,421,229 2,252,498 7.5
Load Factor (%) 79.9% 78.1% 1.8 pts. 77.0% 74.9% 2.1 pts.
Revenue Yield
(estimate) $0.1358 $0.1478 (8.1) $0.1379 $0.1407 (1.9)
Passenger Revenue
per Schd. Svc.
ASM
(estimate) $0.1084 $0.1154 (6.0) $0.1062 $0.1054 0.8
Total Revenue per
Total ASM
(estimate) $0.1206 $0.1288 (6.4) $0.1198 $0.1178 1.6
Number of Flights 9,955 9,454 5.3 46,319 45,758 1.2
Into-plane Fuel
Cost per Gallon
(estimate) $2.14 $2.28 (6.1) $2.10 $2.10 —

Midwest Airlines Operations

Origin &
Destination
Passengers 340,565 305,324 11.5 1,579,076 1,462,634 8.0
Scheduled Service
Revenue Passenger
Miles (000s) 376,181 316,601 18.8 1,727,857 1,554,801 11.1
Scheduled Service
Available Seat
Miles (000s) 465,868 401,674 16.0 2,222,689 2,054,010 8.2
Total Available
Seat Miles
(000s) 467,387 404,153 15.6 2,241,248 2,093,604 7.1
Load Factor (%) 80.7% 78.8% 1.9 pts. 77.7% 75.7% 2.0 pts.
Revenue Yield
(estimate) $0.1197 $0.1311 (8.7) $0.1236 $0.1250 (1.1)
Passenger Revenue
per Schd. Svc.
ASM
(estimate) $0.0967 $0.1033 (6.4) $0.0961 $0.0946 1.5
Total Revenue per
Total ASM
(estimate) $0.1109 $0.1188 (6.7) $0.1114 $0.1090 2.2
Average Passenger
Trip Length
(miles) 1,105 1,037 6.5 1,094 1,063 2.9
Number of Flights 4,774 4,512 5.8 23,494 22,029 6.7
Into-plane Fuel
Cost per Gallon
(estimate) $2.14 $2.27 (5.7) $2.10 $2.10 —

Midwest Connect Operations

Origin &
Destination
Passengers 100,265 71,184 40.9 374,519 330,125 13.4
Scheduled Service
Revenue Passenger
Miles (000s) 36,814 23,167 58.9 122,545 102,853 19.1
Scheduled Service
Available Seat
Miles (000s) 51,345 33,519 53.2 179,982 158,527 13.5
Total Available
Seat Miles (000s) 51,345 33,519 53.2 179,982 158,894 13.3
Load Factor (%) 71.7% 69.1% 2.6 pts. 68.1% 64.9% 3.2 pts.
Revenue Yield
(estimate) $0.3003 $0.3763 (20.2) $0.3399 $0.3771 (9.9)
Passenger Revenue
per Schd. Svc.
ASM
(estimate) $0.2153 $0.2601 (17.2) $0.2314 $0.2447 (5.4)
Total Revenue per
Total ASM
(estimate) $0.2369 $0.2897 (18.2) $0.2617 $0.2759 (5.1)
Average Passenger
Trip Length
(miles) 367 325 12.8 327 312 5.0
Number of Flights 5,181 4,942 4.8 22,825 23,729 (3.8)
Into-plane Fuel
Cost per Gallon
(estimate) $2.11 $2.32 (9.2) $2.12 $2.15 (1.2)


Note: All statistics exclude charter operations except total available seat miles, total revenue per total available seat miles and into-plane fuel cost. Numbers may not recalculate due to rounding.


Curtis E. Sawyer, senior vice president and chief financial officer, explained that like the rest of the domestic airline industry, Midwest is experiencing softness in yields, though some of the reported yield decline is the result of a significant increase in passenger trip length at both Midwest Airlines and Midwest Connect. Passenger traffic volumes remain strong. As a result of the softening yields, the company estimates that earnings for the second quarter will fall short of analysts’ expectations and could fall slightly below the results posted in second quarter 2006 (excluding the impact of costs associated with the unsolicited exchange offer from AirTran Holdings and accounting for the fair value of fixed fuel contracts). The shortfall is primarily attributable to industrywide price weakness that may persist in the U.S. domestic market for some time. The company’s full-year results are likely to be adversely affected, but the amount and duration of the impact cannot be accurately determined at this time. As a result, the company is suspending its previous guidance; revised guidance for the full year will be provided in the near future.


Midwest Airlines features jet service throughout the United States, including Milwaukee’s most daily nonstop flights and best schedule to major destinations. Catering 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. Both Skyway Airlines, Inc. — a wholly owned subsidiary of Midwest Airlines — and SkyWest Airlines, Inc. operate as Midwest Connect and offer service to and connections through Midwest Airlines’ hubs. Together, the airlines offer service to 51 cities. More information is available at http://www.midwestairlines.com/.


This news release 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 “project,” “expect,” “anticipate,” “predict,” “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, customer acceptance of the company’s strategic plan, the company’s ability to successfully implement the strategic plan, an adverse industry yield environment, 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, 2006.


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Source: Midwest Air Group, Inc.