Friday October 22, 6:48 pm Eastern Time
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Company Press Release
SOURCE: Kitty Hawk, Inc.
Kitty Hawk Discussed Jet Fuel Price Increase, Impact
on Third Quarter
DALLAS, Oct. 22 /PRNewswire/ -- Kitty Hawk, Inc. (Nasdaq: KTTY - news) announced today that it expects its earnings for the quarter to be $0.47 to $0.49 per share (diluted), compared with the third quarter of 1998 reported earnings of $0.15 per share (diluted). The third quarter results include approximately $10 million or $0.35 per share in non-recurring gains from the sales of its Oscoda, MI maintenance facilities, an aircraft and certain other assets. The anticipated net operating results of $0.12 to $0.14 per share reflect higher than expected fuel prices.
Kitty Hawk's average cost per gallon for jet fuel has increased by approximately $0.10 a gallon in the third quarter of 1999 as compared to its previous third quarter expectations. Based on approximately 25 million gallons of fuel consumed by its own cargo operations in the third quarter, the $0.10 increase in fuel prices cost the company approximately $2.5 million in additional pretax fuel costs, or about $0.09 per share, after tax.
Kitty Hawk intends to report its earnings on November 2, 1999.
Operating its own and leased aircraft, Kitty Hawk, Inc., through its three separate air freight carriers, provides global air freight carrier services; scheduled overnight air cargo service to more than 40 U.S. cities through its hub in Fort Wayne, Indiana; and air charter logistics management services. The company trades on the Nasdaq stock market under the symbol KTTY. For more information on the company, visit Kitty Hawk's Web site at www.kha.com.
This release may contain forward-looking statements relating to future financial results or business expectations. Business plans
may change as circumstances warrant. Actual results may differ materially as a result of factors over which the company has no
control. Such factors include, but are not limited to: world-wide business and economic conditions; acquisitions, recruiting and
new business solicitation efforts; product demand and the rate of growth in the air cargo industry; the impact of competitors and
competitive aircraft and aircraft financing availability; the ability to attract and retain new and existing customers; jet fuel prices;
normalized aircraft operating costs and reliability and regulatory actions. These risk factors and additional information are
included in the company's reports on file with the Securities and Exchange Commission.
SOURCE: Kitty Hawk, Inc. |
