KITTY HAWK POSTS 4Q EARNINGS IMPROVEMENT

KITTY HAWK POSTS 4Q EARNINGS IMPROVEMENT

   Kitty Hawk Inc., the Dallas-based U.S. domestic all-cargo carrier, said net income increased 18 percent to $13.5 million in the fourth quarter last year, pushing annual profit — including a one-time $10.2 million gain — up 41 percent to $23.5 million.

   Better fourth quarter earnings come as the scheduled and charter carrier begins to move past a major reorganization period following an acquisition of Kalitta Cos. in late 1997. Having shed its passenger and maintenance operations to focus on cargo carriage, Kitty Hawk received a boost in the fourth quarter when the U.S. Postal Service awarded the airline a six-year contract to carry mail and parcels in the western U.S.

   Total revenues for the fourth quarter increased to $241.5 million from $233.8 million in the previous period. Annual revenue rose 4 percent to $731.4 million. Fourth quarter operating income grew 10 percent to $35.0 million and increased 7 percent to $75.5 million for the year.

   Kitty Hawk's scheduled freight revenue grew more than 30 percent due to higher volumes and a higher rate-per-pound charge, the company said. Fuel costs increased more than 10 percent, or $6.6 million.

   “Overall, 1999 was a very good year for Kitty Hawk, during which we positioned the company for continued growth and success while posting year-over-year increases in both revenue and net income despite higher than expected fuel costs,” said M. Tom Christopher, Kitty Hawk's chairman and chief executive officer.'

   “Our 2000 focus is on growing the scheduled freight operation,” Christopher said.    “We recently announced plans to expand our network to include service to more than 50 cities across the United States.    This service network, which is dedicated to our customer base of air freight forwarders and lead logistics providers, will enable our customers to sell next-day freight delivery to many parts of the world.”