RENO, Nev., Sept. 16 /PRNewswire/ -- Reno Air, Inc. (Nasdaq: RENO),
(PCX: RNO) today announced that due to the addition of spare engines over the
course of the third quarter it has returned to its historical level of
excellent reliability.  The spare engines were acquired at an additional cost
of approximately $250,000 per month, to protect the airline's ability to
operate its schedule following a second quarter industry-wide shortage of its
Pratt & Whitney engines which had resulted in the unscheduled grounding of
several aircraft.
    Management expects Reno Air's load factor for the third quarter to be
higher than last year.  However, the additional expense associated with the
spare engines and the impact of yields being slightly below expectations
primarily due to the reinstatement of the Federal Excise Tax, are expected to
result in earnings at approximately last year's third quarter level, therefore
below analysts consensus forecast of $0.57 per share.
    "Reno Air's outlook remains positive," said Robert Reding, President and
CEO.  "The recent five percent fare hike by the major airlines and the $1-2
per segment increase by a major competitor should lead to improved yields in
the next few quarters for Reno Air.  The problem of the extra engine rental
expense is being managed and Reno Air should be at a more normal level of
spare engines by the end of the fourth quarter."
    As previously reported, Reno Air disclosed traffic growth of 9 percent for
the months of July and August and a combined load factor of 73.5 percent,
compared with 71.9 percent during the same two months last year.
    Except for historical information contained herein, this document contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995.  These statements involve known and unknown
risks and uncertainties that may cause the company's actual results or
outcomes to be materially different from those anticipated or discussed
herein.  Further, the company operates in an industry sector in which
securities values may be volatile and may be influenced by regulatory or other
factors beyond the company's control.  In assessing forward-looking statements
contained herein, readers are urged to read carefully all cautionary
statements contained in the company's public filings with the Securities and
Exchange Commission.

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