RENO, Nev., April 24 /PRNewswire/ -- Reno Air, Inc. (Nasdaq: RENO; PCX:
RNO) today reported a net loss of $4,997,271 for the quarter ended March 31,
1997.  The first quarter loss, which was in line with most analyst
expectations amounted to $0.47 per primary share compared to a net profit of
$275,104, or $0.03 per share during the same quarter last year.  Operating
revenues for the quarter totaled $89,683,870, which is an increase of 23% year
over year, while operating expenses were $93,855,969.
    During the first quarter of 1997, the airline carried 1,272,875
passengers, and reported a load factor of 64.7%.  Reno Air flew 722.6 million
revenue passenger miles (RPMs), based upon a capacity of 1,116.8 million
available seat miles (ASMs).
    "Primarily due to the '100 Year' flood in Reno and severe weather on the
West Coast in January, we canceled 257 flights, which is five times higher
than normal," said Reno Air President and CEO Robert Reding.  "Combined with
high fuel prices and other factors, we lost in excess of $5 million in January
alone.
    "However, while January's performance suffered, recent improvements in
West Coast fare levels and fuel prices led to better than anticipated results
in February and March," said Reding.
    Reno Air currently serves 24 cities, and operates nearly 200 daily
scheduled departures.  The carrier's fleet of 30 McDonnell Douglas MD-80 and
MD-90 series jets has an average age of less than six years.  Reno Air offers
everyday low fares, advance seat assignments, frequent flyer programs, a
spacious first class cabin, "EZtrip" ticketless travel and full participation
in all major computer reservation systems.  On May 22, the airline will expand
its Las Vegas operation by adding non-stop service to Albuquerque, San Diego
and Los Angeles, and will commence service between Reno/Tahoe and Ontario,
California.

                                Reno Air, Inc.
                           Statement of Operations

                                                      Three Months Ended
                                                           March 31,
                                                      1997           1996
                                                          (unaudited)
    OPERATING REVENUES:
      Passenger                                   $84,294,639    $68,685,556
      Other                                         5,389,231      4,134,305
        Total operating revenues                   89,683,870     72,819,861
    OPERATING EXPENSES:
      Salaries, wages and benefits                 15,322,449     11,475,598
      Aircraft fuel and oil                        18,078,041     12,781,811
      Aircraft leases                              16,603,247     12,919,381
      Handling, landing and airport fees            9,378,094      7,370,430
      Maintenance                                   7,579,979      5,818,767
      Advertising, sales and distribution           7,465,124      6,771,889
      Commissions                                   4,899,986      4,173,147
      Facility leases                               3,090,115      2,559,413
      Insurance                                     1,832,884      1,921,668
      Communications                                1,298,192        994,647
      Depreciation and amortization                 2,217,559        981,069
      Other operating expenses                      6,090,299      4,608,030
        Total operating expenses                   93,855,969     72,375,850
    OPERATING INCOME (LOSS)                        (4,172,099)       444,011
    NON-OPERATING INCOME (EXPENSE):
      Interest expense                             (1,268,054)      (795,516)
      Interest income                                 487,961        723,707
      Other, net                                      (45,079)       (97,098)
    NET INCOME (LOSS)                             $(4,997,271)   $   275,104
    Net income (loss) per common share
     and common share equivalent:
          Primary                                 $     (0.47)   $      0.03
          Fully diluted                           $     (0.47)   $      0.02
    Weighted average number of common shares
     and common share equivalents outstanding:
          Primary                                  10,633,256     10,745,854
          Fully diluted                            10,727,769     11,123,058

                                Reno Air, Inc.
                           Selected Operating Data

                                                       Three Months Ended
                                                            March 31,
                                                      1997            1996

    Revenue Passenger Miles (RPMs; 000 omitted)       722,618        645,205
    Available Seat Miles (ASMs; 000 omitted)        1,116,811        947,347
    Load Factor (%)                                      64.7           68.1
    Revenue Passengers                              1,272,875      1,097,964
    Average passenger stage length (in miles)             568            588
    Average aircraft stage length (in miles)              528            550
    Yield per RPM (cents)                                11.7           10.6
    Passenger revenue per ASM (cents)                     7.6            7.3
    Cost per ASM (cents)                                  8.4            7.6
    Break-even load factor (%)                           68.5           67.8
    Average fuel cost per gallon                  $      0.86    $      0.69

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