Flyi (FLYIQ) 8-K Atlantic Coast Airlines Holdings, Inc. Reports

Exhibit 99.1

Atlantic Coast Airlines Holdings, Inc. Reports

Third Quarter 2003 Financial and Operating Results

Dulles, VA, (October 22, 2003) — Atlantic Coast Airlines Holdings, Inc. (Nasdaq/NM: ACAI), parent of Atlantic Coast Airlines (ACA), today reported—based on accounting principles generally accepted in the United States (GAAP)—net income of $21.3 million ($0.47 per diluted share) for the third quarter 2003 compared to net income of $8.5 million ($0.19 per diluted share) for the third quarter 2002. The company’s results for third quarter 2002 included an aircraft early retirement charge of $7.6 million (pre-tax) which negatively impacted third quarter 2002 EPS by 10 cents.

During the third quarter 2003, ACA generated approximately 1.2 billion available seat miles (ASMs), an increase of 7.6 percent over the same period last year. The company carried 2,206,540 passengers, an increase of 14.8 percent over the same period last year.Load factor improved 5.7 points to 73.7 percent for the third quarter compared to 68.0 percent in the third quarter 2002.

ACA currently operates as United Express and Delta Connection in the Eastern and Midwestern United States as well as Canada. On July 28, 2003, ACA announced plans to establish a new, independent low-fare airline to be based at Washington Dulles International Airport. The company has a fleet of 146 aircraft—including a total of 118 regional jets—and offers over 840 daily departures, serving 84 destinations. ACA employs over 4,800 aviation professionals.

Statements in this press release and by company executives regarding its implementation of new business strategies and its relationship with United Airlines, Inc., regarding the unsolicited acquisition proposal by Mesa Air Group, Inc. and other matters, as well as regarding operations, earnings, revenues and costs, represent forward-looking information. A number of risks and uncertainties exist which could cause actual results to differ materially from these projected results. Such risks and uncertainties include, among others: the costs of reviewing and responding to the unsolicited proposal, and other impacts of the proposal on the company’s operations; United’s option under bankruptcy rules to assume or reject the existing United Express Agreement; the timing of any disengagement by the company as a United Express carrier under the United Express Agreement or pursuant to bankruptcy court proceedings and impact on the company’s ability to operate an independent airline; the ability to effectively implement its low-fare business strategy utilizing regional jets; the ability to acquire and obtain financing for any additional aircraft intended to be operated; the availability of additional or alternative business opportunities for the company’s operations; the effects of United’s bankruptcy proceedings; the continued financial health of Delta Air Lines, Inc.,

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Atlantic Coast Airlines 3^rd Quarter 2003 Financial and Operating Results

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and the ability and willingness of Delta to continue to deploy the company’s aircraft and to utilize and pay for scheduled service at agreed upon rates; availability and cost of product support for the company’s 328JET aircraft; unexpected costs arising from the insolvency of Fairchild Dornier; general economic and industry conditions; additional acts of war or terrorism; and risks and uncertainties arising from the events of September 11, any of which may impact the company, its aircraft manufacturers and its other suppliers in ways that the company is not currently able to predict. Certain of these and other risk factors are more fully disclosed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended December 31, 2002 and in its Quarterly Report on Form 10-Q for the six-month period ended June 30, 2003. These statements are made as of October 22, 2003 and ACA undertakes no obligation to update any such forward-looking information, including as a result of any new information, future events, changed expectations or otherwise.

The common stock of parent company Atlantic Coast Airlines Holdings, Inc. is traded on the Nasdaq National Market under the symbol ACAI. For more information about Atlantic Coast Airlines, visit our website atwww.atlanticcoast.com.

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Atlantic Coast Airlines 3^rd Quarter 2003 Financial and Operating Results

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Condensed Consolidated Financial Results

(in thousands, except per share amounts)

Unaudited

	Third Quarter Ended September 30,
	2003			2002			Pct. Change
Operating revenues:
Passenger revenue	$	217,279		$	192,220		13.0	%
Other revenue		3,757			2,813		33.6	%
Total operating revenues		221,036			195,033		13.3	%
Operating expenses:
Salaries and related costs		51,845			51,389		0.9	%
Aircraft fuel		35,119			31,156		12.7	%
Aircraft maintenance and materials		20,317			19,655		3.4	%
Aircraft rentals		32,406			28,293		14.5	%
Traffic commissions and related fees		5,682			5,517		3.0	%
Facility rents and landing fees		13,102			11,197		17.0	%
Depreciation and amortization		7,780			5,534		40.6	%
Other		17,411			21,673		(19.7	%)
Aircraft early retirement charge		—			7,568		nmf
Total operating expenses		183,662			181,982		0.9	%
Operating income		37,374			13,051		186.4	%
Non-operating income (expense)		(1,219	)		394		409.4	%
Income before taxes		36,155			13,445		168.9	%
Income tax provision		14,824			4,945		199.8	%
Net income	$	21,331		$	8,500		151.0	%
Net income per common and common equivalent shares:
Basic	$	0.47		$	0.19
Diluted	$	0.47		$	0.19
Weighted average number of common and common equivalent shares
Basic		45,333			45,194
Diluted		45,425			45,484
Operating Statistics—Third Quarter
	2003			2002			Pct. Change
Revenue passenger miles (000’s)		877,522			752,873		16.6	%
Available seat miles (000’s)		1,190,851			1,106,478		7.6	%
Load Factor		73.7	%		68.0	%	5.7 p	ts.
Passengers		2,206,540			1,922,839		14.8	%
Revenue departures		73,687			72,563		1.5	%
Revenue block hours		105,925			103,301		2.5	%
Yield per RPM (cents)		24.8			25.5		(2.7	%)
Passenger revenue per ASM (cents)		18.2			17.4		4.6	%
Operating cost per ASM (cents)		15.4			16.4		(6.1	%)
Operating cost per ASM excluding aircraft early retirement charge (cents)		15.4			15.8		(2.5	%)
Operating cost per ASM excluding fuel and aircraft early retirement charge (cents)		12.5			12.9		(3.1	%)
Operating margin		16.9	%		6.7	%	10.2 p	ts.
Operating margin excluding aircraft early retirement charge		16.9	%		10.6	%	6.3 p	ts.
Average passenger trip length (miles)		398			392		1.5	%

Atlantic Coast Airlines 3^rd Quarter 2003 Financial and Operating Results

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Condensed Consolidated Financial Results

(in thousands, except per share amounts)

Unaudited

	Nine Months Ended September 30,
	2003			2002		Pct. Change
Operating revenues:
Passenger revenue	$	639,601		$	548,522	16.6	%
Other revenue		12,774			7,670	66.5	%
Total operating revenues		652,375			556,192	17.3	%
Operating expenses:
Salaries and related costs		161,023			146,253	10.1	%
Aircraft fuel		107,428			82,809	29.7	%
Aircraft maintenance and materials		62,967			53,616	17.4	%
Aircraft rentals		96,501			82,356	17.2	%
Traffic commissions and related fees		17,949			15,786	13.7	%
Facility rents and landing fees		37,803			32,696	15.6	%
Depreciation and amortization		20,899			15,067	38.7	%
Other		63,960			59,423	7.6	%
Aircraft early retirement charge		(34,586	)		2,804	nmf
Total operating expenses		533,944			490,810	8.8	%
Operating income		118,431			65,382	81.1	%
Non-operating income (expense)		(2,897	)		490	691.2	%
Government compensation		1,520			944	61.0	%
Income before taxes		117,054			66,816	75.2	%
Income taxes		47,992			26,560	80.7	%
Net income	$	69,062		$	40,256	71.6	%
Net income per common and common equivalent shares:
Basic	$	1.53		$	0.89
Diluted	$	1.52		$	0.87
Weighted average number of common and common equivalent shares:
Basic		45,269			44,997
Diluted		45,365			46,136

Operating Statistics—Nine Months Ending September 30,

	2003		2002		Pct. Change
Revenue passenger miles (000’s)	2,478,521		2,074,263		19.5	%
Available seat miles (000’s)	3,426,560		3,229,145		6.1	%
Load Factor	72.3	%	64.2	%	8.1 p	ts.
Passengers	6,310,481		5,157,965		22.3	%
Revenue departures	218,955		208,119		5.2	%
Revenue block hours	315,037		303,178		3.9	%
Yield per RPM (cents)	25.8		26.4		(2.3	%)
Passenger revenue per ASM (cents)	18.7		17.0		10.0	%
Operating cost per ASM (cents)	15.6		15.2		2.6	%
Operating cost per ASM excluding aircraft early retirement charge (cents)	16.6		15.1		9.9	%
Operating cost per ASM excluding fuel and aircraft early retirement charge (cents)	13.5		12.5		8.0	%
Operating margin	18.2	%	11.8	%	6.4 p	ts.
Operating margin excluding aircraft early retirement charge	12.9	%	12.3	%	0.6 p	ts.
Average passenger trip length (miles)	393		402		(2.2	%)

Atlantic Coast Airlines 3^rd Quarter 2003 Financial and Operating Results

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Selected Balance Sheet Data

(in thousands)

	September 30, 2003		December 31, 2002		Pct. Change
	(unaudited)
Cash and cash equivalents	$	12,806	$	29,261	(56.2	%)
Short-term investments		212,839		213,360	(0.2	%)
Restricted cash		14,816		-0-	nmf
Property and equipment, net		287,922		195,413	47.3	%
Aircraft deposits		44,210		44,810	(1.3	%)
Accounts payable		20,029		22,475	(10.9	%)
Long-term debt, including current portion		115,095		58,440	96.9	%
Stockholders’ equity	$	345,442	$	275,368	25.4	%

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