Harbor Diversified, Inc., the parent company of Air Wisconsin Airlines, has released its Form 10-Q report for the third quarter of 2023. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting significant changes due to the transition from United Airlines to American Airlines as its sole regional partner.
Financial Highlights
- Total Operating Revenues: $50.056 million for the three months ended September 30, 2023, compared to $68.410 million for the same period in 2022.
- (Loss) Income from Operations: $(5.072) million for the three months ended September 30, 2023, compared to $12.500 million for the same period in 2022.
- Net (Loss) Income: $(3.688) million for the three months ended September 30, 2023, compared to $8.022 million for the same period in 2022.
- Net (loss) income available to common stockholders: $(4.046) million for the three months ended September 30, 2023, compared to $7.824 million for the same period in 2022.
- Basic (Loss) Earnings per share: $(0.09) for the three months ended September 30, 2023, compared to $0.17 for the same period in 2022.
- Diluted (Loss) Earnings per share: $(0.09) for the three months ended September 30, 2023, compared to $0.13 for the same period in 2022.
Business Highlights
- American Capacity Purchase Agreement: Air Wisconsin entered into a five-year capacity purchase agreement with American Airlines, which was amended in February, March, and November 2023. This agreement involves providing up to 60 CRJ-200 regional jet aircraft for American's regional airline services. As of September 30, 2023, 45 aircraft were in service under this agreement.
- Transition from United to American: Air Wisconsin transitioned its operations from United Airlines to American Airlines, becoming American's sole regional partner after ceasing operations with United in early June 2023.
- Operational Metrics: Under the American capacity purchase agreement, Air Wisconsin receives fixed payments per aircraft per day, per departure, and per block hour flown, with eligibility for bonus compensation based on performance criteria starting September 2023.
- Geographical Performance: The transition to American Airlines as the sole partner marks a significant shift in operational focus and geographical alignment, concentrating Air Wisconsin's services under a single major airline partner.
- Future Outlook: The company anticipates continued operations under the American capacity purchase agreement, with potential discussions on adding CRJ-700 regional jets to the fleet. The agreement provides stability against market volatility by covering fuel prices and other variable costs.
SEC Filing: