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36
stock options andnon-vested restricted stock grants. Total unrecognized compensation cost will be
adjusted for future changes in estimated forfeitures. We expect to recognizethis cost over a weighted
average period of 1.0years.
Results of Operations
2006 Compared to 2005
Operating Statistics.The following tablesets forth our major operational statistics and the
percentage-of-change for the years identifiedbelow.
Year ended
December 31,
20062005%Change
Blockhours........................................ 1,298,769 866,975 49.8
Departures........................................ 857,631 623,307 37.6
Passengers carried .................................. 31,465,55220,343,975 54.7
Revenuepassengermiles (000)....................... 15,819,1919,538,906 65.8
Availableseat miles(000). ........................... 20,209,88812,718,973 58.9
Passenger load factor ............................... 78.3%75.0%3.3pts
Passengerbreakeven load factor...................... 72.7%68.6%4.1pts
Yieldper revenuepassengermile..................... 19.5¢20.3¢(3.9)
Revenueper availableseat mile ...................... 15.4¢15.4¢—
Cost peravailable seat mile .......................... 14.3¢14.1¢1.4
Fuel cost peravailableseat mile ...................... 5.0¢4.6¢8.7
Averagepassengertrip length (miles)................. 503469 7.2
Our total ASMs generated during theyear ended December 31, 2006increased 58.9%from the year
ended December 31, 2005. The increase in ASMs wasprimarily a result of increasing the size of our
aircraft fleet, from 380 aircraft as of December 31, 2005, to 410 aircraft as of December 31, 2006. On
September 7, 2005,thedatewe acquired ASA, ASA’s fleet consisted of 149 aircraft (35CRJ700s, 102
CRJ200s and 12 ATRs). Additionally, during the year ended December 31,2006,wetook delivery of 9
CRJ900s, 15 CRJ 700s and 6 CRJ200s.
Net Income.Net income increased to $145.8 million, or $2.30 per diluted share, for theyear ended
December 31,2006, compared to $112.3 million, or $1.90 per diluted share, for the year ended
December 31,2005. Factors relating to thechange in net income are discussed below.
Operatingrevenues increased58.6% for theyear ended December 31, 2006, compared to the year
ended December 31, 2005. The increase in total operating revenues wasprimarily due to a58.9% increase
in ASMs. Revenue per ASMwas15.4¢ forthe years ended December 31, 2006 and 2005. Airline operating
and interest expenses, excludingfuel charges, perASM decreased 2.1% to 9.3¢ for theyear ended
December 31,2006, from 9.5¢ for the year ended December 31, 2005. The primary reason for the decrease
was theoperating efficiencies obtained from increased stage lengths flown by ourregional jets.
Passenger Revenues. Passenger revenues, which represented 99.1% of consolidated operating
revenues forthe year ended December 31, 2006, increased59.3% to $3.09 billion for the year ended
December31, 2006, from $1.94 billion, or 98.7% of consolidated operating revenues, for theyear ended
December31, 2005. Our passenger revenues,excluding fuel reimbursements from major partners,
increased 53.5% forthe year ended December 31, 2006. The increase in passenger revenues excluding fuel
was primarily due to a58.9% increase in ASMs (which resulted principally from the acquisition of ASA in
September 2005 andadditional aircraft delivered in 2006). Revenue perASM was15.4¢ for the years
ended December 31, 2006 and2005. Passenger revenues include an amount designed to reimburse us for