AIRNET SYSTEMS REPORTS 2ND-QUARTER LOSS

AIRNET SYSTEMS REPORTS 2ND-QUARTER LOSS

   AirNet Systems Inc., the time-sensitive air transport service provider for small package shippers and banks, reported a second-quarter net loss of $354,000, due to $2.7 million in non-recurring charges.

   The charges were $1.7 million for to cover the loss of a major customer in the company's Check Exchange System Co., and $1.0 million for a retirement agreement with Gerald G. Mercer, founder and chairman of AirNet Systems Inc. Mercer will retire following the August 3 board of directors meeting.

   Without the charges, net income was $1.97 million, roughly the same as the year earlier quarter. Revenue rose 1.3 percent to $35.4 million. Expense rose to $32.6 million from $31.1 million, due to increases in contracted air and ground courier costs, and aircraft maintenance costs.

   For the first half of 2001 net income was $966,000 compared to $3.3 million for the year-earlier period. Excluding the two non-recurring charges, net income was $3.3 million.

   Revenue was $69.7 million, up from $668.6 million in the first half of 2000.