Higher expenses hurt Republic Airways profit

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Republic Airways Holdings Inc. earned $17 million in the third quarter, down 16 percent from a year earlier on higher expenses, the Indianapolis-based regional carrier reported late yesterday.

The 50 cents per share beat the 47 cents expected by analysts surveyed by Thomson Financial.

Republic had $7.4 million in additional expenses related to the return of smaller aircraft in its fleet. Operating revenue rose 17 percent to $385.2 million.

Earlier this month Republic announced it would accept a lower reimbursement from American Airlines and operate two fewer aircraft for the carrier. Republic also agreed to loan long-time customer US Airways up to $35 million.

Republic shares closed yesterday at $13.36.

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