Republic shares fall despite rare first-period profit

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Republic Airways Holdings Inc. reported a first-quarter profit for the first time in four years Monday, but the company's stock fell Tuesday morning after the performance missed analyst forecasts.

"I am pleased that during our seasonally most challenging quarter, we were able to restore our consolidated results to profitability," CEO Bryan Bedford said.

Earnings for the quarter ended March 31 were $300,000, compared with a loss of $7.1 million in the first quarter of 2012. On a per-share basis, that translated to one penny, compared with a loss of 15 cents a year ago.

Indianapolis-based Republic turned the profit despite an 8.9-percent drop in revenue, to $635.6 million.

Expenses, driven by fuel costs, declined 10.3 percent, to $605.5 million.

Analysts polled by Thomson Reuters expected the company to earn 2 cents per share on revenue of $646.8 million for the first quarter.

Republic shares were down 5.5 percent Tuesday morning, to $10.89 each.

 

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