Republic reports net income of $2.2 million for 1Q09

Republic Airways Holdings has reported operating revenues of $325.3 million for the quarter ended 31 March 2009, a 10.6% decrease, compared with $363.9 million for the same period last year. The company reported net income of $2.2 million for the quarter ended 31 March 2009, compared with $20.2 million reported in the 2008’s first quarter.

Repiblic’s first quarter 2009 results included a $13.3 million, non-cash goodwill impairment charge, which creates no tax benefit and therefore reduced net income by the full $13.3 million. Excluding the goodwill impairment, net income for the quarter was $15.5 million and earnings per diluted share was $0.45.

Excluding reimbursement for fuel expense, which is a pass-through cost to Republic's partners, regional airline service revenues increased 4.3% for the first quarter of 2009. This increase was primarily as a result of a shift in the mix of flying toward larger regional jets.

Total operating expenses for the first quarter of 2009, including interest expense but excluding fuel charges (which are reimbursable by the company’s major partners), of $283.9 million, increased approximately 15.0% from $246.9 million for the same quarter of 2008. Operating cost per available seat mile (CASM), including interest expense but excluding fuel and the goodwill impairment charge increased to 8.14¢ for the first quarter of 2009, from 7.62¢ for the same quarter of 2008. Operating expenses in 2009 also include $3.1 million of expenses to accrue for return costs on CRJ200 aircraft and a $3.0 million charge related to the recapitalisation of Mokulele Airlines.

During the quarter, Republic took delivery of three new 76-seat Embraer 175s which were placed into fixed-fee service for Delta. The company entered into fixed rate debt financing arrangements for these aircraft. The company also removed three 50-seat aircraft from service from its Continental operations during the quarter. Two of these aircraft removed have been subleased offshore and the other aircraft will be returned to the lessor. At 31 March 2009, Republic's fleet consisted of 221 regional jet aircraft.