ExpressJet Holdings has reported a second quarter loss, excluding special items, of $11.5 million compared with a $13.1 million loss for the same period in 2008.
Including special items, ExpressJet reported a second quarter loss of $13.1 million versus a $34.3 million loss during the second quarter of 2008.
In the year-to-date, excluding special items, ExpressJet lost $22.2 million, whereas including special items, ExpressJet reported a year-to-date loss of $24.5 million.
"These results are reflective of the worldwide drop in passenger revenues, which are forecast to continue through 2009," commented Jim Ream, president and CEO. "While these results are disappointing, ExpressJet's competitive position continues to improve through superior customer service for network carriers and by expanding customer bases in our charter and ground handling businesses."
During the quarter, ExpressJet managed 41 contracts at 30 stations for a total aircraft turn count of 19,670, an increase of 7.7% over first quarter of 2009.
ExpressJet generated $170.6 million in revenue during the three months ended 30 June 2009. Under the amended capacity purchase agreement, Continental paid ExpressJet $149.4 million in block hour revenue and pass-through expense reimbursements. The year-over-year decrease in passenger revenue stems from numerous factors including: suspended flying for both the ExpressJet branded and Delta operations, amended agreement with Continental effective 1 July 2008 and decreased block hours due to a global economic recession.
In 2009 so far, ExpressJet earned $340.3 million in revenue, including $293.6 million in passenger revenue from Continental Express flying, $28.9 million through corporate aviation and $17.9 million via aviation services.
At these utilisation levels, ExpressJet expects that approximately 30% of its costs for Continental Express flying will be pass-through expenses. Of the remaining costs associated with Continental Express flying, ExpressJet expects that 60% will vary as utilisation increases and 40% will be fixed.
ExpressJet ended the second quarter 2009 with $116 million in cash, cash equivalents and short-term investments. The cash balance included $20.3 million in restricted cash and $38.5 million in short-term investments, primarily auction rate securities, after accounting adjustments to impair the value of these assets. ExpressJet intends to continue monitoring the auction rate securities market to attempt to monetise the assets at or near face value and initiated litigation against Royal Bank of Canada related to such investments brokered by the firm.
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