ExpressJet reports loss for first quarter 2009
ExpressJet Holdings has reported a first quarter loss, excluding special items, of $10.6 million compared with a $22.8 million loss for the same period in 2008.
These results represent continued improvement from the restructuring efforts ExpressJet undertook beginning mid-2008 due to record-breaking fuel prices and its amended capacity purchase agreement (CPA) with Continental Airlines. Including special items, ExpressJet reported a first quarter loss of $11.4 million.
"During this quarter we were able to maintain our cash position while keeping active in our securities repurchase programme. This achievement emphasises our focus on improving the balance sheet during the current tough, economic conditions while still providing some of the best customer service in the industry," said Jim Ream, president and CEO. "We also continue to be pleased with our charter operation as it experienced reasonable growth in both our customer base and revenues despite the challenging obstacles created by the economic recession."
Under its agreement with Continental, ExpressJet flew 157,606 block hours operating 214 aircraft. This represents a 9.5% decrease over block hours flown during 1Q08. The Continental Express average aircraft utilisation during the quarter totalled 8.18 hours per day versus 9.33 hours per day during 1Q08.
ExpressJet generated $169.7 million in revenue during the three months ended 31 March 2009. Under the amended CPA, Continental paid ExpressJet $144.2 million in block hour revenue and pass-through expense reimbursements. Revenue earned during the first quarter in the corporate aviation division totalled $16.1 million and first quarter revenue from aviation services was $9.5 million.