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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowRegional airline operator Republic Airways Holdings Inc. said yesterday its first quarter profit fell by 89 percent as costs rose and traffic fell slightly.
Indianapolis-based Republic, which flies regional jets for carriers including Delta Air Lines, United Airlines, and US Airways, said it earned $2.2 million, or 6 cents per share, during the quarter that ended March 31, down from $20.2 million, or 55 cents per share, during the same period last year.
Revenue fell 10.6 percent, to $325.3 million, from $363.9 million a year ago.
Republic said it took a $13.3 million goodwill impairment charge. Not counting that, it would have earned $15.5 million, or 45 cents per share.
Analysts surveyed by Thomson Reuters were expecting a profit of 49 cents per share.
Republic said its operating expenses for the first quarter rose 15 percent, to $246.9 million, not counting fuel expenses, which are passed along to Republic’s customers. Its cost per available seat mile, a key measure of an airline’s expenses, rose to 8.14 cents, from 7.62 cents a year ago.
The company said it took delivery of three new 76-seat Embraer E175 aircraft which it will fly for Delta. It also removed three 50-seat planes it had been flying for Continental. Two of those were subleased outside the United States and the third was returned to the leasing company.
Republic said it had a fleet of 221 regional jets as of the end of the quarter.
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