Republic Airways Holdings pre-tax income for the second quarter of 2015 was $9.1 million, compared to $33.3 million for the prior year's second quarter. Republic's net income for the second quarter of 2015 was $4.3 million, or $0.08 per diluted share compared to prior year net income of $20.1 million or $0.38 per diluted share. The effective tax rate of 52.7% for the quarter was higher than the normalized tax rate, primarily due to the impact of miscellaneous non-deductible expenses.
The second quarter 2015 financial results were negatively impacted by a significant reduction in operational reliability. The Company's controllable completion factor and operating revenues were significantly lower than expected due to a high number of pilot related cancellations as a result of the growing national pilot labor shortage and our on-going labor dispute with International Brotherhood of Teamsters (IBT).
The second quarter results were also negatively impacted by fleet transition costs and idled aircraft costs totaling $10.8 million associated with our removal of E190 and Q400 aircraft and surplus E145 aircraft.
The company reported the available seat miles (ASMs) down by 2.3% to 3,628m for the second quarter.
Operating revenues decreased $5.4 million, or 1.6%, during the second quarter of 2015 to $337.6 million. Wages and benefits expenses increased 3.6%, or $3.3 million, primarily due to an increase in pilot wages. Depreciation and amortization expense increased 10.7%, or $4.5 million, due primarily to the increase in the number of owned E175 aircraft.
Other expenses increased 31.0%, or $11.3 million, primarily due to an increase in fleet transition costs primarily related to the removal of Q400 and E190 aircraft coupled with costs for increased professional fees.
The Company's unrestricted cash balance decreased $32.3 million, to $191.6 million, from December 31, 2014, due mainly to scheduled principal repayments. A consolidated balance sheet and a condensed statement of cash flows have been included in the tables section of this release.
The company's debt decreased to $2.25 billion as of June 30, 2015, compared to $2.34 billion at December 31, 2014, primarily related to the Company's scheduled principal repayments.
On July 24, 2015, Republic announced the engagement of Seabury Group as its advisor to restructure the company's operational and financial commitments and explore all options to maintain its enterprise value. The company has initiated discussions with its CPA partners to further reduce flying schedules during the second half of 2015 and 2016. In light of the anticipated fleet reductions, the company rescinded all previously issued financial and operational guidance on July 24, 2015.
Republic announced Paul Kinstedt as acting Chief Operating Officer.