MAIR Holdings, Inc. Reports Fiscal 2005 Second Quarter Results

Business Wire, Oct 28, 2004

MINNEAPOLIS & ST. PAUL, Minn. -- MAIR Holdings, Inc. (Nasdaq:MAIR) today reported earnings of $4.8 million for the fiscal 2005 second quarter ended September 30, 2004 compared to earnings of $3.9 million in the comparable fiscal 2004 period. On a per-share basis, the fiscal 2005 second quarter results equal earnings of $0.23 per share compared with $0.19 per share in the comparable fiscal 2004 period. The Company's second quarter results exceeded First Call consensus estimates of $0.17 per share.

"The year-over-year improvement in the second quarter was a result of increased jet utilization, additional ground handling revenue and continued focus on cost controls," said Paul Foley, MAIR Holdings' president and chief executive officer. "In this tumultuous airline industry environment, we remain both opportunistic and patient as we examine strategies for growth and expansion," Foley continued.

Operating income increased 20.7% to $7.6 million in the second quarter of fiscal 2005 compared to $6.3 million reported in the second quarter of fiscal 2004. Operating revenue for the second quarter increased 0.6% to $118.1 million compared with $117.5 million during the same quarter a year ago. Operating expenses for the second quarter decreased 0.6% to $110.5 million compared with $111.2 million during the same quarter a year ago. Mesaba Aviation is insulated from higher fuel prices as a result of its operating contracts with Northwest Airlines.

QUARTERLY CONFERENCE CALL

MAIR Holdings will conduct a live webcast to discuss its fiscal 2005 second quarter earnings today at 1:00 PM (CDT). The webcast will be available through the MAIR Holdings' web site at www.mairholdings.com under the "Investor" link.

ABOUT THE COMPANY

MAIR Holdings' primary business units are its regional airline subsidiary Mesaba Aviation, Inc., d/b/a Mesaba Airlines, and its regional airline subsidiary Big Sky Transportation Co., d/b/a Big Sky Airlines. MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market. More information about MAIR Holdings is available on the Internet at www.mairholdings.com.

Mesaba Aviation operates as a Northwest Jet Airlink and Airlink partner under service agreements with Northwest Airlines. Currently, the airline serves 104 cities in 29 states and Canada from Northwest's and Mesaba Aviation's three major hubs: Detroit, Minneapolis/St. Paul and Memphis. Mesaba Aviation operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340. Mesaba Aviation maintains a web site at www.mesaba.com.

Big Sky currently serves 18 cities in Montana, North Dakota, Washington and Idaho using 10 Fairchild Metro III/23, 19 seat aircraft. Big Sky is based in Billings, Montana and has codeshare agreements with Northwest Airlines, Alaska Airlines and America West Airlines. Big Sky is a provider of air service under the Essential Air Service program administered by the Department of Transportation. Big Sky maintains a web site at www.bigskyair.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual developments will be those anticipated by MAIR Holdings, Inc. Actual results could differ materially from those projected because of a number of factors, some of which MAIR Holdings, Inc. cannot predict or control. For a discussion of some of these factors, please see the 'Cautionary Note Regarding Forward-Looking Statements' and 'Risk Factors Relating to the Company and the Airline Industry' in the company's Annual Report on Form 10-K for the year ended March 31, 2004 and Form 10-Q for the quarter ended June 30, 2004.