Kitty Hawk posts $4.1 million 4th-quarter net loss
Dallas-based U.S. domestic all-cargo carrier Kitty Hawk Inc., parent company of Kitty Hawk Cargo and Kitty Hawk Aircargo, said investment in its scheduled airport-to-airport less-than-truckload deferred freight network resulted in a fourth quarter net loss of $4.1 million.
In the fourth quarter of 2004, Kitty Hawk reported net income of $5.4 million, which included the reversal of $4.7 million of aircraft maintenance expenses.
The company’s fourth quarter 2005 revenue was $45.9 million, up 3.4 percent from $44.4 million in the same quarter 2004. Scheduled freight revenue for the fourth quarter 2005 was $43.9 million, an increase of $857,000 compared to the fourth quarter 2004.
“The fourth quarter of 2005 was one of the most significant quarterly periods in Kitty Hawk’s operating history,” said Robert W. Zoller, Kitty Hawk’s president and chief executive officer. “During the fourth quarter, we launched our new scheduled airport-to-airport LTL ground network, significantly improved our balance sheet and began to realize the efficiencies from the completed integration of our Boeing 737-300SF cargo aircraft into the Kitty Hawk fleet.”
For the full year, Kitty Hawk posted a net loss of $8.8 million, compared to net income of $6.5 million in 2004. Total revenue dropped 1.1 percent to $156.7 million from $158.5 million in the previous year. Scheduled freight revenue for 2005 was $151.9 million, compared to $154.0 million in 2004.
During 2005, the company incurred $3.7 million in one-time costs, including induction expenses and capital expenditures, to integrate the Boeing 737-300SF cargo aircraft into its fleet and operations. Kitty Hawk now operates seven Boeing 737-300SF cargo aircraft under operating leases, five owned Boeing 727-200 cargo aircraft and five Boeing 727-200 cargo aircraft available under an aircraft and engine use agreement. The company provides expedited air cargo service to 57 North American markets and scheduled LTL ground service to 46 North American markets.
Kitty Hawk finished the fourth quarter with $26.6 million in cash and over $6.5 million of credit availability.
“Due to the seasonality of the business and continued investment in the scheduled airport-to-airport LTL ground network, the company expects a net loss in the first quarter of 2006 that will exceed the fourth quarter 2005 net loss,” Kitty Hawk said in a statement.
“During the first two quarters of 2006, the company expects its transportation and freight handling expenses to continue to increase from the fourth quarter 2005 level, due to the company’s continued investment in its scheduled airport-to-airport LTL ground network. In addition, the company expects its capital expenditures for the full year 2006 to approximately match its historical annual rate of approximately $3 million.”