08-09-2021UPDATE 2-ExpressJet reports second-quarter loss
Reuters - August 08, 2007 7:36 AM ET
NEW YORK, Aug 8 (Reuters) - ExpressJet Holdings Inc. (XJT), which provides regional air service for Continental Airlines (CAL), on Wednesday reported a quarterly loss that widely missed estimates, burdened by costs from starting up its own scheduled service.
ExpressJet, which began flying under its own brand in April, said it had lost $26.4 million, or 49 cents per share, compared with a year-earlier profit of $23.3 million, or 39 cents per share.
Wall Street analysts on average were expecting a loss of 15 cents per share, according to Reuters Estimates.
Operating revenue fell 5.8 percent to $395.2 million.
ExpressJet, which was in a fee dispute with former parent Continental over 2007 rates, said a panel had decided that the rates originally presented by ExpressJet should be reduced by $14.2 million. The decision resulted in a $6.5 million decrease in the second-quarter's operating income, ExpressJet said.
The company was forced to find new ventures for 69 planes, or about a quarter of its fleet, after Continental canceled a capacity purchase agreement last year.
Its largest, and perhaps riskiest venture, is to fly its own scheduled service with about 42 of its 50-seat aircraft, connecting secondary cities such as Oklahoma City and San Diego.
The company also flies corporate air charters and has reached agreements with Delta Air Lines Inc. (DAL) to provide the carrier with regional service. (Reporting by Aarthi Sivaraman)
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