Republic Q3 Earnings Dive

The airline says operations will continue as normal throughout the reorganization process.

Indianapolis-based Republic Airways Holdings Inc. (Nasdaq: RJET) is reporting third quarter net income of $2.9 million, compared to $18.5 million during the same quarter last year, which is a more than 80 percent dip. Chief Executive Officer Bryan Bedford attributes the performance to a national pilot shortage, "uniquely amplified" by a labor shortage that drove down the amount of time the company’s aircraft spent flying.

Bedford says times are challenging, but looking up. "The ratification of a new labor agreement with our pilots represents a significant positive step forward for our pilots and our airline, and I would like to thank the leadership of the IBT Local 357 for their support through the ratification process. We simply could not move forward without a consensual agreement with our pilots. However, we still face several challenges as we continue our work to rebuild our operation and work to achieve a consensual restructuring with our other stakeholders." The parties signed a three-year agreement at the end of last month, which Republic Airways says includes "significant improvements in work rules and pilot quality of life" and "establishes pay rates that recognize Republic’s pilots as leaders in the regional airline industry."

The company says it is continuing a major fleet transition, which included $7.2 million in costs associated with removal of E190 and Q400 aircraft and surplus E145 aircraft.