Virgin America reports 9.8% decline in CASM for 3Q2016 although offset by merger costs

Virgin America reported (02-Nov-2016) CASM decreased by 9.8% to USD9.17 cents for 3Q2016 year-over-year as a result of lower per ASM costs, in particular for aircraft rent. The decrease was partially offset by increased depreciation expense per ASM as well as USD1.6 million of costs associated with the negotiation of the proposed acquisition of Virgin America by Alaska Air Group. In addition, net other expense 3Q2016 increased by USD4.3 million year-over-year as a result of financing Virgin entered into for ten aircraft that it acquired and placed into service from Jul-2015 through Jul-2016. [more - original PR]