RENO, Nev., Oct. 27 /PRNewswire/ -- Reno Air Inc. (Nasdaq: RENO),
(PCX: RNO) today announced record results for the third quarter ending
Sept. 30, 1997 with a net income of $4.8 million, or $0.44 per share ($0.40
fully diluted) of common stock.
    "Our all-time record earnings and revenues in this third quarter continues
to demonstrate that our full service, low-fare product has gained the
preference of travelers in the markets we serve," said Reno Air President and
CEO, Robert Reding.  "We are particularly proud of our employees whose
commitment to delivering a superior product resulted in this record quarter."

    Operating Revenues
    Operating revenues increased 4.4 percent to a record $105.2 million during
the third quarter of 1997 compared to $100.7 million during the third quarter
of 1996.  During the first nine months of 1997, operating revenues increased
10.5 percent to $292.3 million compared to $264.5 million in the first nine
months of the previous year.
    The third quarter's load factor of 69.9 percent was an increase of 1.5
points over the third quarter of 1996.  Year-to-date Sept. 30, 1997 load
factor of 68.0 percent is up .6 points over the first nine months of 1996.
    Yield remained unchanged at 11.4 cents per revenue passenger miles during
the third quarter of 1997 as compared to the third quarter of 1996 and
increased from the 11.1 cents reported for the first nine months of 1996 to
11.5 cents during the first nine months of 1997 despite the reinstatement of
the ticket tax on March 10, 1997.

    Operating Expenses
    Operating cost per available seat mile increased to 8.0 cents in the third
quarter of 1997 compared to 7.8 cents during the same quarter of 1996.  Unit
operating expenses in the third quarter continued higher than last year,
primarily due to the cost of carrying several extra spare engines at a cost of
$250,000 per month and a five percent reduction in the average aircraft stage
length.  During the first nine months of 1997, the cost per ASM was 8.2 cents
versus 7.6 cents for the same period of 1996.

    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:
    Information about the fourth quarter of 1997 set forth in this press
release is forward-looking, and actual results could differ materially from
expected results.  Factors that could significantly affect unit revenue per
share include:  the airline pricing environment, fuel prices, excise taxes and
increased competition.

                                Reno Air, Inc.
                           Statement of Operations
                                 (unaudited)

                               Three months ended          Nine months ended
                                 September 30,               September 30,
                             1997           1996          1997           1996
    OPERATING REVENUES:
    Passenger          $99,582,718   $96,673,915 $275,344,871  $251,856,374
    Other                5,598,831     4,046,723   16,942,393    12,600,027

     Total operating
     revenues          105,181,549   100,720,638  292,287,264   264,456,401


    OPERATING EXPENSES:
    Salaries, wages
     and benefits       17,942,853    15,544,614   50,128,276    40,586,441
    Aircraft fuel
     and oil            17,545,414    18,894,508   51,785,986    48,269,372
    Aircraft leases     18,022,978    16,233,471   52,138,897    44,713,350
    Handling, landing
     and airport fees   10,305,903     9,340,724   29,472,775    25,633,437
    Maintenance          9,150,488     7,575,312   24,798,650    19,705,815
    Advertising, sales
     and distribution    6,899,810     8,662,966   21,974,378    23,346,141
    Commissions          5,619,051     5,560,222   15,581,959    14,881,212
    Facility leases      3,664,438     2,946,754   10,254,710     8,320,222
    Insurance            1,496,509     1,905,683    4,719,137     5,858,525
    Communications       1,358,110     1,227,978    4,098,812     3,245,184
    Depreciation
     and amortization    2,610,483     1,608,953    7,311,840     3,976,289
    Other                6,164,064     6,940,512   18,848,116    17,571,256

     Total operating
     expenses          100,780,101    96,441,697  291,113,536   256,107,244

    OPERATING INCOME
     (LOSS)              4,401,448     4,278,941    1,173,728     8,349,157

    NON - OPERATING
     INCOME (EXPENSE):
    Interest expense   (1,371,769)   (1,190,227)  (3,806,918)   (2,842,636)
    Interest income        531,202       775,433    1,556,831     2,227,819
    Other, net           1,236,228     1,083,140    1,100,572       900,278

    INCOME (LOSS)
     BEFORE INCOME
     TAXES               4,797,109     4,947,287       24,213     8,634,618

    INCOME TAX PROVISION        --       199,455           --       336,776

    NET INCOME(LOSS)    $4,797,109    $4,747,832      $24,213    $8,297,842

    Net income (loss)
     per common share
     and common share
     equivalent:
    Primary                  $0.44         $0.43        $0.00         $0.76
    Fully diluted            $0.40         $0.39        $0.00         $0.74

    Weighted average
     number of common
     shares and common
     share equivalents
     outstanding:
    Primary             10,850,435    10,993,441   10,695,869    10,896,249
    Fully diluted       13,725,435    13,874,921   10,695,869    13,893,574


                                  Reno Air, Inc.
                             Selected Operating Data

                               Three months ended          Nine months ended
                                 September 30,               September 30,
                              1997          1996         1997          1996
    Revenue Passenger Miles
     (RPMs; 000 omitted)   876,278       848,278    2,401,404     2,263,359

    Available Seat Miles
     (ASMs; 000 omitted) 1,253,986     1,239,825    3,532,581     3,356,248

    Load Factor (%)           69.9          68.4         68.0          67.4

    Revenue
     Passengers          1,518,293     1,390,089    4,196,111     3,786,877

    Average passenger
     stage length
     (in miles)                577           610          572           598

    Average aircraft
     stage length
     (in miles)                511           536          514           541

    Yield per RPM (cents)     11.4          11.4         11.5          11.1

    Passenger revenue
     per ASM (cents)           7.9           7.8          7.8           7.5

    Cost per
     ASM (cents)               8.0           7.8          8.2           7.6

    Break-even
     load factor (%)          66.5          65.1         67.9          65.2

    Average fuel cost
     per gallon              $0.69         $0.79        $0.75         $0.74

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