World Air Holdings Files Form 8-K With Audited 2004 Results for North American Airlines

Investor Call Scheduled for 9 a.m. Thursday, Oct. 20, 2005 


PEACHTREE CITY, Ga., Oct. 20  /PRNewswire-FirstCall/ -- World Air Holdings, Inc. (NASDAQ:WLDAE), parent company of World Airways and North American Airlines, today filed a Form 8-K/A with re-audited 2004 financial results for North American, which was acquired on April 27, 2005.

Total revenues for 2004 were $212.9 million compared to the estimate of $213.4 million, as stated during the May 5 investor conference call, with military revenues for 2004 of $92.0 million versus the $88.9 million previously stated. The difference is due primarily to adjustments for end-of- period cutoffs, the timing of credits due to customers, and billing errors.

Operating income for 2004 was approximately $770,000, compared to the $500,000 estimate provided during the May 5 call. The higher-than-estimated operating income was the result of several positive factors: reimbursement of qualifying heavy maintenance reserves paid to lessors, recognition of insurance proceeds for aircraft damage, reversal of a write-off of funds embargoed by the civil courts in the Dominican Republic and depreciation adjusted to a straight-line basis.

Those factors were partially offset by increases in expenses resulting from properly accounting for aircraft lease costs on a straight-line basis and recognizing federal excise tax penalties due to late filings or non-filing of excise tax returns.

"North American's 2004 re-audited financial results are positive and reinforce the rationale for this acquisition," said Randy Martinez, World Air Holdings chief executive officer. "We're pleased to complete this important process and focus on continuing the success of both of our airlines."

Increased military demand at World Airways and North American led to the company's issuance of improved guidance for the third quarter of 2005.  On Sept. 29, 2005, World Air Holdings announced that it expected third-quarter revenues to be in the range of $215 to $225 million, with military revenues of $145 to $155 million, and operating income between $22 and $24 million. The company now expects results to be in the lower end of the guidance range.

The company also announced that the Nasdaq Listing Qualifications Panel has granted an appeal hearing on Nov. 3, 2005, regarding non-compliance notifications issued on Sept. 27 and Sept. 28, citing the delay in filing the 8-K/A and the lack of a completed review by the company's independent auditor of the company's 2005 second-quarter financial statements.

                         INVESTOR CONFERENCE CALL
                       Oct. 20, 2005, at 9 a.m. EDT
            Phone:  [phone], Conference ID number 1666933



A conference call will begin at 9 a.m. EDT on Oct. 20, 2005. Investors and media can access the conference by calling 866-436-5160, ID # 1666933, prior to the 9 a.m. start time. The investor call will be available live via the World Wide Web at http://www.worldairholdings.com/investor. The on-line replay will be available until Nov. 3, 2005, at the same site shortly after the Webcast is complete. The broadcast also will be available at http://www.streetevents.com/.

About North American Airlines

North American Airlines is a U.S.-certificated air carrier offering air transportation services throughout the world for the U.S. military and commercial customers. North American Airlines focuses on "niche" markets, where high product quality and excellent passenger service provide value to its customers. Founded in 1989, North American operates a fleet of eight 767 and 757 passenger aircraft in charter and limited scheduled service. For information, visit http://www.northamericanair.com/.

About World Air Holdings, Inc.

World Air Holdings has three wholly owned subsidiaries, World Airways, Inc., North American Airlines, Inc., and World Risk Solutions, Ltd. World Airways is a charter passenger and cargo airline founded in 1948, North American is a charter passenger airline founded in 1989, and World Risk Solutions is an insurance subsidiary established in 2004.

["Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:  This release contains forward looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competition in the market for air transportation services, the cyclical nature of the air carrier business, reliance on key marketing relationships, fluctuations in operating results and other risks detailed from time to time in the company's periodic reports filed with the SEC (reports are available from the company upon request).  These various risks and uncertainties may cause the company's actual results to differ materially from those expressed in any of the forward looking statements made by, or on behalf of the company in this release.]

                        North American Airlines, Inc.
                           SELECTED FINANCIAL DATA
                (IN THOUSANDS, EXCEPT FOR BLOCK HOUR RESULTS)
                                 (unaudited)

                                                     RESTATED
                                                    YEAR ENDED
                                                 DECEMBER 31, 2004
  OPERATING REVENUES
              Total operating revenues                 212,926

  OPERATING EXPENSES
            Flight operations                           73,030
            Maintenance                                 25,899
            Aircraft rent and insurance                 33,148
            Fuel                                        48,013
            Flight operations
             subcontracted to other
             carriers                                      915
            Commissions                                  6,775
            Depreciation and
             amortization                                  431
            Sales, general and
             administrative                             23,945
              Total operating expenses                 212,156

  OPERATING INCOME                                        $770

  BLOCK HOUR RESULTS

  BLOCK HOURS                                           27,145

  OPER REVENUE PER BLOCK HOUR                           $7,844
  OPER EXPENSE PER BLOCK HOUR                            7,816
  Operating Spread Per Block Hour                          $28

  (1) The selected financial data provided above was derived from
      the Form 8K/A and provides a summary only.  The Form 8K/A should be
      read in its entirety.


DATASOURCE: World Air Holdings, Inc.



CONTACT:  Steve Forsyth for World Air Holdings, Inc., [phone]; or

Investors: Karen Vahouny of Qorvis Communications, [phone]



Web site:  http://www.worldairways.com/

http://www.northamericanair.com/ 

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