RJET

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:00 a.m. ET Corporate Controller - Keely Mitchell President and Chief Executive Officer - Matthew Koscal Executive Vice President and Chief Financial Officer - Joe Allman Operator: Hello, everyone. Thank you for joining us, and welcome to the Republic Airways Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Keely Mitchell, Corporate Controller. Keely, please go ahead. Keely Mitchell: Thank you, Kenneth, and thank you, everyone, for joining our earnings call. On with me today are Matt Koscal, President and Chief Executive Officer; and Joe Allman, Executive Vice President and Chief Financial Officer. In the Investor Relations section of our website, you will find the earnings press release and slide presentation to accompany today's discussion. This call is being recorded and will be available for replay on our Investor Relations website. Today's discussion will include forward-looking statements regarding Republic Airways' future performance, strategic initiatives and market outlook. These statements reflect our current expectations and beliefs based on information available to us today, but they are subject to various risks and uncertainties that could cause actual results to differ materially from our projections. The aviation industry operates in a dynamic environment with inherent risks, including regulatory changes, economic fluctuations, weather-related disruptions and evolving market conditions that can significantly impact our operations and financial performance. Additionally, our business is subject to the operational and financial health of our major airline partners, labor market conditions, aircraft availability and other factors beyond Republic's direct control. For a comprehensive understanding of the specific risks and uncertainties that may affect our business and financial results, I encourage all participants to review our detailed disclosures in our filings with the Securities and Exchange Commission, including our Form 10-K on file with the SEC and subsequent periodic reports. These documents provide important context and detailed information that supplement today's discussion and are or will be available on both the SEC's website and in the Investor Relations section of our company website at rjet.com. Additionally, throughout this webcast, we will also present and discuss non-GAAP financial measures. Reconciliations of our non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures to the extent they are available without unreasonable efforts appear in today's earnings press release and accompanying presentation, which are available on our Investor Relations website. And now, I will turn the call over to Matt. Matthew Koscal: Thank you, Keely, and good morning, everyone. Before I turn to results, let me briefly acknowledge where we are as a leadership team. As you know, I stepped into the CEO role last month when David Grizzle returned to his role as Non-Executive Chairman. I'm grateful for David's continued partnership on the Board and for the confidence the Board and our associates have placed in this team. My focus and this team's focus is exactly where it has been, investing in our people to maintain a culture of excellence, focused on safe, reliable flying and the disciplined execution of our integration and growth strategy. Earlier this morning, we reported second quarter adjusted net income of $41 million or $0.89 per diluted share. Demand from our partners remained strong throughout the quarter. We saw increase in scheduled block hour utilization of approximately 2% and much better weather for most of the quarter, resulting in an increased completion factor of 98%, up from just under 94% in the first quarter. Together, those factors drove block hour production up nearly 7% sequentially over Q1. These results are the hard work and dedication of our frontline crew and technicians who ensure we deliver safe, reliable flying every single day and the teams working around the clock behind the scenes. Our crew schedulers, dispatchers and maintenance controllers and many others support our operations 24/7, and none of what we accomplished on the line happens without them. Together, our Republic and Mesa associates delivered 85 days of perfect controllable completion factor and an overall 99.99% controllable completion factor on nearly 120,000 completed flights during the quarter. That is a standard of excellence that sets us apart in this industry and it's by design. To all 8,500 of our Republic and Mesa associates, thank you for an outstanding quarter and for delivering on our mission. Now let me turn to the integration of Mesa and Republic. I'm pleased to report that we remain ahead of schedule and this quarter delivered a significant milestone. We received FAA acceptance and approval on the first of 5 revision cycles, the step that harmonizes our safety management systems across both airlines. That progress runs across all 4 of our core work streams: back-office consolidation, IT systems integration, maintenance and fleet harmonization and our path toward a single operating certificate, each led by our integration office touching every department in the company. We anticipate filing revision cycle 2, which covers the preflight procedures and activities during the third quarter. The remaining revision cycles are scheduled for completion throughout 2027 and into early 2028. We continue to make substantial progress on Mesa's fleet health and maintenance harmonization. We continue to see reduced heavy check footprint and improved turnaround times, which will support better aircraft availability in the back half of 2027 and beyond. And finally, during the third quarter, we anticipate moving Mesa's network and operations center to our aviation campus here in Carmel, Indiana. This represents an important milestone in further aligning the cultures of our 2 airlines. I know change can be difficult, and I want to thank our integration office and the broader team for their leadership and commitment through this transition. Let me turn for a moment to labor. We've reached some meaningful milestones. We are actively implementing the flight attendant Joint Collective Bargaining Agreement or JCBA, that was ratified earlier this year. And I'm pleased to say several important provisions are now live for our flight attendants, including the introduction of boarding pay earlier this month. These are real, tangible improvements for our flight attendants who care for our passengers every day. With respect to our pilots, we continue to actively negotiate with the IBT and ALPA teams, and I want to thank both unions for their continued engagement, and we will provide further updates as meaningful progress is achieved. In May, Republic's mechanic associates elected IBT as their bargaining representative. We are still early in the stages here and look forward to engaging constructively with our mechanics and their representatives as that process moves forward. Now let me turn the call over to Joe to review the financial highlights for the quarter, and then I'll come back to provide an update on guidance. Joe? Joe Allman: Thanks, Matt, and good morning, everyone. As Matt noted, strong partner demand and improved operating performance drove block hour production up 7% sequentially and revenues up 8% to approximately $571 million for the quarter. Second quarter GAAP net income was $31.2 million or $0.68 per diluted share. Pretax income was $43.4 million. Excluding executive separation and merger-related items and the mark-to-market on our Eve investment and adjustments to our equity investment in Cape Air, both of which are included in the non-operating income expense line, adjusted net income was $41.3 million or $0.89 per diluted share. Adjusted pretax income was $57.4 million and adjusted EBITDAR was $109.6 million for the quarter. The adjustments primarily consist of costs associated with the CEO transition, other severance related to the Mesa integration and professional fees tied to the ongoing integration work and certain duplicative overheads at Mesa. These items are expected to subside as the integration milestones are achieved and when we reach the end of the revision cycle process in early 2028. Turning to the balance sheet. We ended the quarter with $278 million in unrestricted cash, up slightly from $273 million at the end of March. Capital expenditures during the quarter were approximately $21 million, and we repaid $43 million of debt. During the quarter, we received refunds of tariffs paid of approximately $20 million, and the offset went to reduce the basis in the aircraft and does not have a material impact on our financial results or guidance. Total debt and lease liabilities stood at $1.2 billion at quarter end. We continue to make solid progress on our deleveraging initiatives. Our fleet ended the quarter at 314 aircrafts, unchanged from March. And just a reminder, 275 aircrafts are operating under capacity purchase agreements, 31 aircrafts are on lease to a partner and 8 aircrafts remain unallocated. We remain focused on finding solutions to meet our partners' growth needs and continue to work on redeployment opportunities of the unallocated aircraft. Lastly, I noted on our last call, we have 26 delivery positions with Embraer, and our next scheduled delivery position is in April of 2028. We retain significant fleet flexibility to meet our partners' needs and fund future growth of our business. And with that, I'll turn the call back over to Matt to provide us an update on 2026 guidance. Matt? Matthew Koscal: Thank you, Joe. Turning to guidance. The improved operating environment we experienced in Q2 has not translated to the start of Q3. July weather across the East Coast and in the Mid-Atlantic, the heart of our Northeast operations has been severe. Through July 28, our completion factor for the month stood at 91%. To put that in perspective, that is below where we ended in either January or February, the months hit by major winter storms. But here's what I want you and our team to hear clearly. Our people have met the moment. Through some of the most demanding conditions we've seen, our associates delivered post [ irregular ] operations recovery efforts that reflect the culture of excellence that we've built, maintaining a 99.99% controllable completion factor in this environment. This gives me real confidence in what our team is capable of delivering for the back half of the year. On our Q1 call, I said absent the macro uncertainty, guidance would have been increased at that time. Despite the recent headwinds we just discussed, with an additional quarter completed, we are now able to increase our guidance for the year. We now expect the following: 2026 block hour production of approximately 880,000 hours, up roughly 2% from our previous guidance of at least 865,000 hours; revenue is expected to be greater than $2.1 billion, up from the greater than $2 billion target; and adjusted EBITDAR in the range of $395 million to $405 million, up from the greater than $380 million target we previously provided. We have no changes to our previously issued guidance for capital expenditures or debt reduction. To recap, despite a more volatile market and the extraordinary weather challenges of the third quarter so far, we continue to see solid demand for our product, and we are raising our full year outlook. We remain focused on cost discipline and executing on our strategic initiative, the successful integration of Mesa and Republic. We are ahead of schedule on each of our integration work streams. We've consolidated back-office responsibilities. We received FAA approval on our first revision cycle. And next month, we take the important step of relocating Mesa's network and operations center to our Carmel campus in Indiana. Each of these steps brings us closer to greater efficiencies, stronger financial performance and enhanced long-term shareholder value. We said 2026 would be a transformational year for Republic. It is proving to be exactly that. None of this progress would be possible without the dedication of our associates and the continued support of our partners and shareholders. As we move through the second half of the year, we remain focused on executing our integration priorities and continuing to deliver safe and reliable air service. And with that, Kenneth, we are ready to open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Savi Syth with Raymond James. Savanthi Syth: Just on the guidance, Matt, you mentioned that -- in last call, you said that just given the uncertainty, you weren't taking it up. And I was just curious, is this kind of confidence to take your guidance up just based on what you've completed already? Or are you getting kind of greater confidence from your partners as they schedule kind of their block hours? Matthew Koscal: Savi, this is Matt. Thanks for the question. Thanks for joining the call. It's a bit of both. We -- as we talked in the first quarter, we had seen a demand signal that was greater than where we entered the year and what our plan and forecast was. And we continue to see that demand signal as we go through Q3 and Q4. Q3, we do have some noise and a lot of it is this weather disruption. As I said, we're at 91% through earlier this week. Our worst month during winter storms was just over 92%. So that kind of gives you an idea of the magnitude of that impact. But despite that noise, the organic demand signal remains strong. Demand for the product is strong, and we feel confident that we can take that number up through the back half of the year here. Savanthi Syth: That's helpful. And then -- just on the Mesa alignment side, I know a lot -- you were working on kind of aligning the maintenance on the aircraft. I was wondering where you were in kind of aligning that and getting kind of that fleet closer to kind of the legacy Republic fleet? Matthew Koscal: Yes. So great question. And let me break it up as kind of answering it in 2 parts. First, we have our internal metrics of, are we meeting our turn time reductions that we had planned for and the improvement that we thought we could bring to the Mesa maintenance program, and we are. We're actually seeing all of those improvements on an aircraft-by-aircraft turn time. We still need to get through the entire fleet, though, right? So it's just -- it changes the amount of duration that it takes for us to get through the entire fleet. It accelerates that. So you still don't start to see that real improvement or that impact till the back half of 2027. It just means though that the ability for us to actually meet those improved turn times ensures that, that work gets done by the end of 2027 as opposed to going through 2028 if we were on the previous turn times at Mesa. Operator: Your next question comes from the line of Michael Linenberg with Deutsche Bank. Michael Linenberg: It's always nice to hear an airline characterize the year as a transformational year and still post double-digit operating and pretax margins. And so my question is just, as you -- in the release, you talk about the integration taking 18 to 24 months and then you get to a point where you expect to realize true operational synergies. How can we express that in margin improvement? We're at 10% on a pretax, 12% operating. Are we talking a couple of hundred basis points of margin improvement once the full integration is complete? How should we think about that? Matthew Koscal: Yes. So Mike, I don't know if we're ready to unpack what it looks like at the end of the road here yet. We're going to be able to unpack 2027 for you as we get towards our end of year forecast here, and we'll give you a bit of a peek into that. We really don't start to appreciate the full effects of this until we get through that back half of 2027 and fully into 2028, right? As we get into 2028, you'll start to see a lot of the noise, the redundancy and the fleet improvement, right, that increase in utilization that we'll unlock at Mesa and in the fleet there begin to contribute both to the top line and to the bottom line. But I think the 2027 forecast that we're working through now will help unpack a bit of that and start to shape up what 2028 can look like as well. Michael Linenberg: Matt, when you talk about the fleet utilization, maybe to put some numbers around that, where are you today on a daily utilization? And where do you think that could go? Matthew Koscal: So, let me unpack where I really think the improvement on the Mesa side is. In the fleet utilization concept there, we believe we could actually add about 10% to 15% when we get to full health on the maintenance program at Mesa. If we look at the difference between the maintenance program at Mesa and the maintenance program at Republic, how we've historically operated those fleets, we think there's a greater than 10% improvement in the overall Mesa fleet once we get to the end of that 2027, 2028 time frame. The daily utilization per aircraft will fluctuate a little bit up and down from where we're at today seasonally, but it's really getting more of those aircraft put to work. Joe Allman: Yes. Mike, this is Joe speaking. And Matt's exactly right. It's really an increase in scheduled lines available to fly as the maintenance aircraft come back online. And so you get that what I'll call normal pickup to what we're seeing today on that fleet. And on a scheduled available aircraft line of flying, we're somewhere in that above 9.5, probably closer to 9.8. And our partners want to continue to try to squeeze as much utilization as they can out of fleet. So we're ready to respond, and we're positioning the fleet to be in a position to capture that utilization when available. Michael Linenberg: My second actually is to you, Joe. Can you just remind us, this is a quick one, just your percentages of what you own of Eve and Cape Air? Joe Allman: Yes. So we're about a 40% owner in the Cape Air equity. And on the Eve investment, that's really a mark-to-market on the warrants that we hold related to Eve that flows through the non-operating line. Operator: There are no further questions at this time. I will now turn the call back to Matt Koscal, President and Chief Executive Officer, for closing remarks. Matthew Koscal: Thank you, Kenneth, and thank you all for joining us this morning. We've accomplished a great deal in the first half of the year, and that would not have been possible without the dedication of our over 8,500 aviation professionals and the trust and support of our long-term partners. Have a great rest of your day, and I look forward to providing a further update next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Republic Airways, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Republic Airways wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Republic Airways (RJET) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:00 a.m. ET Corporate Controller - Keely Mitchell President and Chief Executive Officer - Matthew Koscal Executive Vice President and Chief Financial Officer - Joe Allman Operator: Hello, everyone. Thank you for joining us, and welcome to the Republic Airways Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Keely Mitchell, Corporate Controller. Keely, please go ahead. Keely Mitchell: Thank you, Kenneth, and thank you, everyone, for joining our earnings call. On with me today are Matt Koscal, President and Chief Executive Officer; and Joe Allman, Executive Vice President and Chief Financial Officer. In the Investor Relations section of our website, you will find the earnings press release and slide presentation to accompany today's discussion. This call is being recorded and will be available for replay on our Investor Relations website. Today's discussion will include forward-looking statements regarding Republic Airways' future performance, strategic initiatives and market outlook. These statements reflect our current expectations and beliefs based on information available to us today, but they are subject to various risks and uncertainties that could cause actual results to differ materially from our projections. The aviation industry operates in a dynamic environment with inherent risks, including regulatory changes, economic fluctuations, weather-related disruptions and evolving market conditions that can significantly impact our operations and financial performance. Additionally, our business is subject to the operational and financial health of our major airline partners, labor market conditions, aircraft availability and other factors beyond Republic's direct control. For a comprehensive understanding of the specific risks and uncertainties that may affect our business and financial results, I encourage all participants to review our detailed disclosures in our filings with the Securities and Exchange Commission, including our Form 10-K on file with the SEC and subsequent periodic reports. These documents provide important context and detailed information that supplement today's discussion and are or will be available on both the SEC's website and in the Investor Relations section of our company website at rjet.com. Additionally, throughout this webcast, we will also present and discuss non-GAAP financial measures. Reconciliations of our non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures to the extent they are available without unreasonable efforts appear in today's earnings press release and accompanying presentation, which are available on our Investor Relations website. And now, I will turn the call over to Matt. Matthew Koscal: Thank you, Keely, and good morning, everyone. Before I turn to results, let me briefly acknowledge where we are as a leadership team. As you know, I stepped into the CEO role last month when David Grizzle returned to his role as Non-Executive Chairman. I'm grateful for David's continued partnership on the Board and for the confidence the Board and our associates have placed in this team. My focus and this team's focus is exactly where it has been, investing in our people to maintain a culture of excellence, focused on safe, reliable flying and the disciplined execution of our integration and growth strategy. Earlier this morning, we reported second quarter adjusted net income of $41 million or $0.89 per diluted share. Demand from our partners remained strong throughout the quarter. We saw increase in scheduled block hour utilization of approximately 2% and much better weather for most of the quarter, resulting in an increased completion factor of 98%, up from just under 94% in the first quarter. Together, those factors drove block hour production up nearly 7% sequentially over Q1. These results are the hard work and dedication of our frontline crew and technicians who ensure we deliver safe, reliable flying every single day and the teams working around the clock behind the scenes. Our crew schedulers, dispatchers and maintenance controllers and many others support our operations 24/7, and none of what we accomplished on the line happens without them. Together, our Republic and Mesa associates delivered 85 days of perfect controllable completion factor and an overall 99.99% controllable completion factor on nearly 120,000 completed flights during the quarter. That is a standard of excellence that sets us apart in this industry and it's by design. To all 8,500 of our Republic and Mesa associates, thank you for an outstanding quarter and for delivering on our mission. Now let me turn to the integration of Mesa and Republic. I'm pleased to report that we remain ahead of schedule and this quarter delivered a significant milestone. We received FAA acceptance and approval on the first of 5 revision cycles, the step that harmonizes our safety management systems across both airlines. That progress runs across all 4 of our core work streams: back-office consolidation, IT systems integration, maintenance and fleet harmonization and our path toward a single operating certificate, each led by our integration office touching every department in the company. We anticipate filing revision cycle 2, which covers the preflight procedures and activities during the third quarter. The remaining revision cycles are scheduled for completion throughout 2027 and into early 2028. We continue to make substantial progress on Mesa's fleet health and maintenance harmonization. We continue to see reduced heavy check footprint and improved turnaround times, which will support better aircraft availability in the back half of 2027 and beyond. And finally, during the third quarter, we anticipate moving Mesa's network and operations center to our aviation campus here in Carmel, Indiana. This represents an important milestone in further aligning the cultures of our 2 airlines. I know change can be difficult, and I want to thank our integration office and the broader team for their leadership and commitment through this transition. Let me turn for a moment to labor. We've reached some meaningful milestones. We are actively implementing the flight attendant Joint Collective Bargaining Agreement or JCBA, that was ratified earlier this year. And I'm pleased to say several important provisions are now live for our flight attendants, including the introduction of boarding pay earlier this month. These are real, tangible improvements for our flight attendants who care for our passengers every day. With respect to our pilots, we continue to actively negotiate with the IBT and ALPA teams, and I want to thank both unions for their continued engagement, and we will provide further updates as meaningful progress is achieved. In May, Republic's mechanic associates elected IBT as their bargaining representative. We are still early in the stages here and look forward to engaging constructively with our mechanics and their representatives as that process moves forward. Now let me turn the call over to Joe to review the financial highlights for the quarter, and then I'll come back to provide an update on guidance. Joe? Joe Allman: Thanks, Matt, and good morning, everyone. As Matt noted, strong partner demand and improved operating performance drove block hour production up 7% sequentially and revenues up 8% to approximately $571 million for the quarter. Second quarter GAAP net income was $31.2 million or $0.68 per diluted share. Pretax income was $43.4 million. Excluding executive separation and merger-related items and the mark-to-market on our Eve investment and adjustments to our equity investment in Cape Air, both of which are included in the non-operating income expense line, adjusted net income was $41.3 million or $0.89 per diluted share. Adjusted pretax income was $57.4 million and adjusted EBITDAR was $109.6 million for the quarter. The adjustments primarily consist of costs associated with the CEO transition, other severance related to the Mesa integration and professional fees tied to the ongoing integration work and certain duplicative overheads at Mesa. These items are expected to subside as the integration milestones are achieved and when we reach the end of the revision cycle process in early 2028. Turning to the balance sheet. We ended the quarter with $278 million in unrestricted cash, up slightly from $273 million at the end of March. Capital expenditures during the quarter were approximately $21 million, and we repaid $43 million of debt. During the quarter, we received refunds of tariffs paid of approximately $20 million, and the offset went to reduce the basis in the aircraft and does not have a material impact on our financial results or guidance. Total debt and lease liabilities stood at $1.2 billion at quarter end. We continue to make solid progress on our deleveraging initiatives. Our fleet ended the quarter at 314 aircrafts, unchanged from March. And just a reminder, 275 aircrafts are operating under capacity purchase agreements, 31 aircrafts are on lease to a partner and 8 aircrafts remain unallocated. We remain focused on finding solutions to meet our partners' growth needs and continue to work on redeployment opportunities of the unallocated aircraft. Lastly, I noted on our last call, we have 26 delivery positions with Embraer, and our next scheduled delivery position is in April of 2028. We retain significant fleet flexibility to meet our partners' needs and fund future growth of our business. And with that, I'll turn the call back over to Matt to provide us an update on 2026 guidance. Matt? Matthew Koscal: Thank you, Joe. Turning to guidance. The improved operating environment we experienced in Q2 has not translated to the start of Q3. July weather across the East Coast and in the Mid-Atlantic, the heart of our Northeast operations has been severe. Through July 28, our completion factor for the month stood at 91%. To put that in perspective, that is below where we ended in either January or February, the months hit by major winter storms. But here's what I want you and our team to hear clearly. Our people have met the moment. Through some of the most demanding conditions we've seen, our associates delivered post [ irregular ] operations recovery efforts that reflect the culture of excellence that we've built, maintaining a 99.99% controllable completion factor in this environment. This gives me real confidence in what our team is capable of delivering for the back half of the year. On our Q1 call, I said absent the macro uncertainty, guidance would have been increased at that time. Despite the recent headwinds we just discussed, with an additional quarter completed, we are now able to increase our guidance for the year. We now expect the following: 2026 block hour production of approximately 880,000 hours, up roughly 2% from our previous guidance of at least 865,000 hours; revenue is expected to be greater than $2.1 billion, up from the greater than $2 billion target; and adjusted EBITDAR in the range of $395 million to $405 million, up from the greater than $380 million target we previously provided. We have no changes to our previously issued guidance for capital expenditures or debt reduction. To recap, despite a more volatile market and the extraordinary weather challenges of the third quarter so far, we continue to see solid demand for our product, and we are raising our full year outlook. We remain focused on cost discipline and executing on our strategic initiative, the successful integration of Mesa and Republic. We are ahead of schedule on each of our integration work streams. We've consolidated back-office responsibilities. We received FAA approval on our first revision cycle. And next month, we take the important step of relocating Mesa's network and operations center to our Carmel campus in Indiana. Each of these steps brings us closer to greater efficiencies, stronger financial performance and enhanced long-term shareholder value. We said 2026 would be a transformational year for Republic. It is proving to be exactly that. None of this progress would be possible without the dedication of our associates and the continued support of our partners and shareholders. As we move through the second half of the year, we remain focused on executing our integration priorities and continuing to deliver safe and reliable air service. And with that, Kenneth, we are ready to open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Savi Syth with Raymond James. Savanthi Syth: Just on the guidance, Matt, you mentioned that -- in last call, you said that just given the uncertainty, you weren't taking it up. And I was just curious, is this kind of confidence to take your guidance up just based on what you've completed already? Or are you getting kind of greater confidence from your partners as they schedule kind of their block hours? Matthew Koscal: Savi, this is Matt. Thanks for the question. Thanks for joining the call. It's a bit of both. We -- as we talked in the first quarter, we had seen a demand signal that was greater than where we entered the year and what our plan and forecast was. And we continue to see that demand signal as we go through Q3 and Q4. Q3, we do have some noise and a lot of it is this weather disruption. As I said, we're at 91% through earlier this week. Our worst month during winter storms was just over 92%. So that kind of gives you an idea of the magnitude of that impact. But despite that noise, the organic demand signal remains strong. Demand for the product is strong, and we feel confident that we can take that number up through the back half of the year here. Savanthi Syth: That's helpful. And then -- just on the Mesa alignment side, I know a lot -- you were working on kind of aligning the maintenance on the aircraft. I was wondering where you were in kind of aligning that and getting kind of that fleet closer to kind of the legacy Republic fleet? Matthew Koscal: Yes. So great question. And let me break it up as kind of answering it in 2 parts. First, we have our internal metrics of, are we meeting our turn time reductions that we had planned for and the improvement that we thought we could bring to the Mesa maintenance program, and we are. We're actually seeing all of those improvements on an aircraft-by-aircraft turn time. We still need to get through the entire fleet, though, right? So it's just -- it changes the amount of duration that it takes for us to get through the entire fleet. It accelerates that. So you still don't start to see that real improvement or that impact till the back half of 2027. It just means though that the ability for us to actually meet those improved turn times ensures that, that work gets done by the end of 2027 as opposed to going through 2028 if we were on the previous turn times at Mesa. Operator: Your next question comes from the line of Michael Linenberg with Deutsche Bank. Michael Linenberg: It's always nice to hear an airline characterize the year as a transformational year and still post double-digit operating and pretax margins. And so my question is just, as you -- in the release, you talk about the integration taking 18 to 24 months and then you get to a point where you expect to realize true operational synergies. How can we express that in margin improvement? We're at 10% on a pretax, 12% operating. Are we talking a couple of hundred basis points of margin improvement once the full integration is complete? How should we think about that? Matthew Koscal: Yes. So Mike, I don't know if we're ready to unpack what it looks like at the end of the road here yet. We're going to be able to unpack 2027 for you as we get towards our end of year forecast here, and we'll give you a bit of a peek into that. We really don't start to appreciate the full effects of this until we get through that back half of 2027 and fully into 2028, right? As we get into 2028, you'll start to see a lot of the noise, the redundancy and the fleet improvement, right, that increase in utilization that we'll unlock at Mesa and in the fleet there begin to contribute both to the top line and to the bottom line. But I think the 2027 forecast that we're working through now will help unpack a bit of that and start to shape up what 2028 can look like as well. Michael Linenberg: Matt, when you talk about the fleet utilization, maybe to put some numbers around that, where are you today on a daily utilization? And where do you think that could go? Matthew Koscal: So, let me unpack where I really think the improvement on the Mesa side is. In the fleet utilization concept there, we believe we could actually add about 10% to 15% when we get to full health on the maintenance program at Mesa. If we look at the difference between the maintenance program at Mesa and the maintenance program at Republic, how we've historically operated those fleets, we think there's a greater than 10% improvement in the overall Mesa fleet once we get to the end of that 2027, 2028 time frame. The daily utilization per aircraft will fluctuate a little bit up and down from where we're at today seasonally, but it's really getting more of those aircraft put to work. Joe Allman: Yes. Mike, this is Joe speaking. And Matt's exactly right. It's really an increase in scheduled lines available to fly as the maintenance aircraft come back online. And so you get that what I'll call normal pickup to what we're seeing today on that fleet. And on a scheduled available aircraft line of flying, we're somewhere in that above 9.5, probably closer to 9.8. And our partners want to continue to try to squeeze as much utilization as they can out of fleet. So we're ready to respond, and we're positioning the fleet to be in a position to capture that utilization when available. Michael Linenberg: My second actually is to you, Joe. Can you just remind us, this is a quick one, just your percentages of what you own of Eve and Cape Air? Joe Allman: Yes. So we're about a 40% owner in the Cape Air equity. And on the Eve investment, that's really a mark-to-market on the warrants that we hold related to Eve that flows through the non-operating line. Operator: There are no further questions at this time. I will now turn the call back to Matt Koscal, President and Chief Executive Officer, for closing remarks. Matthew Koscal: Thank you, Kenneth, and thank you all for joining us this morning. We've accomplished a great deal in the first half of the year, and that would not have been possible without the dedication of our over 8,500 aviation professionals and the trust and support of our long-term partners. Have a great rest of your day, and I look forward to providing a further update next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Republic Airways, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Republic Airways wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Republic Airways (RJET) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

CARMEL, Ind., July 30, 2026--(BUSINESS WIRE)--Republic Airways Holdings Inc. (NASDAQ: RJET) (the "Company" or "Republic") today reported financial results for the second quarter of 2026 and increased its outlook for the full year 2026. The Company’s consolidated results reported in the second quarter of 2026 include the results of Mesa Airlines, Inc. ("Mesa"), while comparable prior periods exclude any Mesa results because the merger of Republic Airways Holdings Inc. and Mesa Air Group, Inc. was consummated on November 25, 2025 (the "Merger"). Second quarter 2026 GAAP highlights: Revenues of $571.1 million Operating income of $58.7 million with an operating margin of 10.3%1 Pre-tax income of $43.4 million with a pre-tax margin of 7.6%1 Net income of $31.2 million with a net income margin of 5.5%1 Net income per diluted common share of $0.68 Unrestricted cash, cash equivalents, and marketable securities of $277.6 million Total debt and lease liabilities of $1.2 billion Second quarter 2026 Non-GAAP highlights: Adjusted operating income2 of $72.3 million with an adjusted operating margin of 12.7% Adjusted pre-tax income2 of $57.4 million with an adjusted pre-tax margin of 10.1% Adjusted net income2 per diluted common share of $0.89 Adjusted EBITDAR2 of $109.6 million Strategic and operational highlights: Matt Koscal named President & Chief Executive Officer and appointed to the Board of Directors, effective June 15, 2026, and David Grizzle resumed his role as non-executive Chairman of the Board of Directors Ended quarter with total fleet of 314 aircraft, of which 275 aircraft are operated under capacity purchase agreements with American Airlines, Delta Air Lines, and United Airlines, with 31 aircraft leased to American Airlines and eight unallocated spare aircraft Achieved block hour production of 226,815 for Q2 2026 Achieved completion factor of 98.21% or 0.86 points above Q2 2025 performance of 97.35% Controllable completion factor, excluding weather, air traffic control, and partner requested cancellations, of 99.99% for Q2 2026 Substantial progress on Merger integration activities - core support functions are substantially complete and harmonization process of operational policies and procedures with the Federal Aviation Administration ("FAA") are on track "Our strong second quarter results reflect the continued commitment of our associates and the strength of demand from our partners," said Matt Koscal, President & Chief Executive Officer. "We increased production, delivered a 98% completion factor and made meaningful progress across each of our integration workstreams, while continuing to provide a safe and reliable service. Our focus remains on the execution of our integration plans, improving efficiency, and supporting the operations to deliver industry-leading operational performance and exceeding our financial targets which will create long-term value for all of our stakeholders." Financial Results Results are compared to the prior year quarterly period unless otherwise noted. Revenues were $571.1 million, up $165.5 million, or 40.8%. The increase is primarily attributable to the 35.9% increase in block hour production related to the 60 additional E175 aircraft operating for United Airlines related to the Merger and increased daily block hour utilization throughout the entire fleet. Operating expenses were $512.4 million, up $161.2 million, or 45.9%. The increase is primarily attributable to the expenses associated with the increase in aircraft and associates in conjunction with the Merger. For the second quarter of 2026, operating expenses include $13.6 million of executive separation and Merger-related items. Balance sheet, cash, and liquidity The Company generated $49.3 million of operating cash flow during the second quarter of 2026. As of June 30, 2026, the Company had $277.6 million in unrestricted cash and cash equivalents and marketable securities on hand. The Company has 26 additional E175 aircraft on order with Embraer, with scheduled deliveries expected from 2028 through 2030. Total capital expenditures inclusive of aircraft, rotable spare parts, and pre-delivery deposits for aircraft on order totaled $20.5 million for the second quarter of 2026. Total debt and operating lease liabilities at June 30, 2026 were $1.2 billion. As of June 30, 2026, the Company’s adjusted net debt2 was $916.9 million, and second quarter 2026 adjusted EBITDAR2 was $109.6 million, resulting in trailing twelve-month leverage2 of 2.4x. Mesa Merger Integration Update The Company continued its progress in the full integration of key support functions including human resources, accounting and finance, and supply chain during the second quarter of 2026. In addition, we began executing on several operational and administrative workstreams that will pave the way for operations under a single operating certificate in the future. We continue to expect the integration process to take between 18-24 more months and expect to realize true operational synergies upon the consolidation of operating certificates. Full Year 2026 Guidance Update The Company is updating the following full year 2026 guidance, previously provided in the April 29, 2026 update: A reconciliation of the forward-looking guidance for the non-GAAP metric of Adjusted EBITDAR cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. Earnings call The Company will host a live webcast to discuss second quarter 2026 financial results on Thursday, July 30, 2026 at 9:00 a.m. EDT. The webcast link and related presentation materials are available at investor.rjet.com. A replay of the webcast will be available shortly after the webcast. About Republic Airways Founded in 1974, Republic Airways maintains a combined fleet of 314 Embraer 170/175 aircraft, and its airlines offer scheduled passenger service on approximately 1,300 daily scheduled flights to approximately 125 cities in the United States, Canada, Mexico, and the Caribbean. The airlines provide fixed-fee flights operated under their codeshare partners’ brands: American Eagle, Delta Connection, and United Express. The airlines employ more than 8,500 aviation professionals. Learn more at www.rjet.com. Website and Social Media Information We routinely post important news and information regarding Republic on our corporate website, www.rjet.com, our investor relations website, investor.rjet.com, and our social media channels to disclose important information about Republic Airways Holdings Inc. to comply with its disclosure obligations under Regulation Fair Disclosure. The information accessible through Republic's website and social media channels are not incorporated into, and are not considered part of, this press release. Forward-looking statements Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "forecast," "anticipate," "believe," "estimate," "plan," "project," "could," "should," "hope," "likely," and "continue" and similar terms used in connection with statements regarding our outlook, anticipated operations, the revenue environment, contractual relationships, and our anticipated financial performance. These statements include, but are not limited to, statements about the continued demand for our product, the effect of economic conditions on Republic’s business, financial condition and results of operations, integration progress related to the merger with Mesa Air Group, Inc., the timing of scheduled aircraft deliveries, fleet expansion, changes in aircraft seat configurations, transition, and anticipated fleet size for Republic in upcoming periods, expected production levels in future periods, pilot attrition trends, mechanic attrition trends, Republic’s coordination with American Airlines, Inc. ("American Airlines"), Delta Air Lines, Inc. ("Delta Air Lines"), and United Airlines, Inc. ("United Airlines") (collectively, our "Partners" or "Partner Airlines") regarding the delivery of aircraft under previously announced agreements and timing of placing new aircraft deliveries into service, the expected terms, timing, and benefits related to Republic’s leasing, strategic arrangements, strategic agreements, and equity investments in third parties, scheduled flight service to smaller communities, increasing the utilization and efficiency of all fleet types as well as Republic’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this press release and accompanying statements made by management are made as of the date hereof and are based on information available to Republic as of such date. Readers should note that many factors could affect the future operating and financial results of Republic and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this press release and accompanying management statements. These factors include, but are not limited to, the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to inflationary pressures and related decreases in customer demand and spending; uncertainty regarding potential future outbreaks of infectious diseases or other health concerns and the consequences of such outbreaks to the travel industry, including travel demand and travel behavior and our Partner Airlines in general and the financial condition and operating results of Republic, in particular; the prospects of entering into agreements with existing or other carriers to fly new aircraft; uncertainty regarding timing and performance of key third-party service providers; ongoing negotiations between Republic and its Partner Airlines regarding their contractual obligations; uncertainties regarding operation of new aircraft; the ability to attract and retain qualified pilots, mechanics and other personnel; the impact of regulatory issues such as pilot rest rules and qualification requirements; the ability to obtain aircraft financing; the financial stability of Republic’s Partner Airlines and any potential impact of their financial condition on the operations of Republic; fluctuations in flight schedules, which are determined by the Partner Airlines for whom Republic conducts flight operations; variations in market and economic conditions; significant aircraft debt commitments; estimated useful lives of long-lived assets, residual values of aircraft and related equipment and related asset impairments; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs and potential fuel shortages; the impact of weather-related, natural disasters and other air safety incidents on air travel and airline costs; aircraft deliveries; uncertainty regarding ongoing international hostilities, including conflicts in the Middle East and between Russia and Ukraine, and the related impacts on macroeconomic conditions and on the international operations of any of our Partner Airlines as a result of such conflicts; the availability of parts used in connection with maintenance and repairs of the aircraft; the availability of suitable replacement aircraft for aging aircraft; the impact of enacted, proposed, and rescinded U.S. tariffs on global economic conditions and the financial markets, passenger demand, the cost of aircraft parts and supplies sourced internationally and the cost of service providers located outside of the United States; the impact of potential future U.S. government shutdowns on air traffic controller staffing and flight cancellations; and other unanticipated factors. There may be other factors that could affect matters discussed in forward-looking statements set forth in this press release and accompanying management statements, which factors may also cause actual results to differ materially from those discussed. We assume no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these statements other than as required by applicable law. For additional information on these and other factors that could cause Republic’s actual results to differ materially from expected results, please see Republic’s filing with the Securities and Exchange Commission (the "SEC"), including the section entitled "Risk Factors", in the Company’s Annual Report on Form 10-K filed with the SEC on March 19, 2026, as such factors may be updated from time to time in Republic’s filings with the SEC, which are or will be accessible on the SEC’s website at www.sec.gov. Committed Fleet Our committed fleet as of June 30, 2026 consists of 306 aircraft, including 31 aircraft currently leased to American Airlines. In addition to the 306 aircraft in the committed fleet, the Company also has eight unallocated spare aircraft. The committed fleet has grown by 63 aircraft from the second quarter of 2025, when there were 243 fleet in service of our Partners including 31 leased to American Airlines. This increase includes 60 E175 aircraft owned by United Airlines and operated by Mesa. Additionally, we have firm orders for 26 new Embraer E175 aircraft to be delivered from 2028 through 2030. Non-GAAP Financial Information In discussing financial results and guidance, the Company refers to financial measures that are not in accordance with GAAP. The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP, but should not be considered a substitute or superior to GAAP results. The tables presented below show reconciliations of non-GAAP financial measures used in this earnings release to the most directly comparable GAAP measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730384603/en/ Contacts [email protected] Media Jon Austin(612) [email protected]

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong partner demand drove block hour production up 7% sequentially and revenues up 8% to approximately $571 million in Q2 2026. Adjusted net income of $41 million or $0.89 per diluted share, with adjusted EBITDA of $109.6 million. Achieved a 99.99% controllable completion factor on nearly 120,000 flights, demonstrating operational excellence. Integration of Mesa remains ahead of schedule, with FAA approval on the first revision cycle and plans to relocate Mesa's operations center. Raised full-year 2026 guidance: block hour production to ~880,000 hours, revenues >$2.1 billion, and adjusted EBITDA to $395-$405 million. Severe weather in July 2026 caused completion factor to drop to 91%, below winter storm levels, impacting Q3 operations. Integration costs, including CEO transition, severance, and professional fees, continue to weigh on financial results. Mesa fleet maintenance improvements will not yield full benefits until the back half of 2027, delaying operational synergies. Unallocated aircraft (8 units) remain a challenge, with ongoing efforts needed to redeploy them to meet partner demand. Labor negotiations with pilots and mechanics are ongoing, introducing uncertainty and potential cost pressures. Here are the key highlights from the Republic Airways Holdings Inc (NASDAQ:RJET) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 5 Warning Signs with RJET. Is RJET fairly valued? Test your thesis with our free DCF calculator. Q: What drove the confidence to raise full-year guidance, and is it based on completed results or greater partner confidence? A: (Matt Koskill, President and CEO) It is a bit of both. The strong demand signal we saw in Q1 has continued into Q3 and Q4. While Q3 has been impacted by severe weather, the organic demand for our product remains strong, giving us the confidence to raise our full-year outlook. Q: How should we think about the potential margin improvement once the Mesa integration is fully complete? Are we talking about a couple hundred basis points of improvement? A: (Matt Koskill, President and CEO) We are not ready to unpack the exact end-state margin yet. The full effects won't be realized until the back half of 2027 and into 2028. As we get into 2028, the benefits from reduced redundancy and improved fleet utilization at Mesa will begin to contribute to both the top and bottom lines. Our 2027 forecast will help shape that picture. Q: Can you provide more detail on the fleet utilization improvement potential from the Mesa fleet? Where are you today and where could that go? A: (Matt Koskill, President and CEO) We believe we can add about 10-15% to the Mesa fleet's utilization once the maintenance program is fully healthy. The difference between Mesa's and Republic's maintenance programs suggests a greater than 10% improvement in the overall Mesa fleet by the end of 2027-2028. (Joe Allman, CFO) This is really about increasing the number of scheduled lines available to fly as maintenance aircraft come back online. Q: What are your ownership percentages in Eve and Cape Air? A: (Joe Allman, CFO) We are about a 40% owner in Cape Air. Regarding the Eve investment, the mark-to-market on the warrants we hold flows through the non-operating line. Q: Where are you in the process of aligning the Mesa fleet's maintenance with the legacy Republic fleet? A: (Matt Koskill, President and CEO) We are meeting our internal metrics for turn-time reductions and improvements to the Mesa maintenance program on an aircraft-by-aircraft basis. However, we still need to get through the entire fleet. This accelerated work ensures the fleet will be fully healthy by the end of 2027, rather than extending into 2028. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Mesa Air Group, Inc.? Here are five stocks we like better. Second-quarter performance improved: Republic Airways increased block-hour production 7% sequentially and revenue 8% to approximately $571 million. Adjusted net income was $41 million, or $0.89 per diluted share, while the completion factor improved to 98%. Mesa integration is advancing ahead of schedule: Republic received FAA approval for the first of five safety-management-system revision cycles and plans to submit the second in the third quarter. The company expects maintenance improvements and integration work to raise Mesa fleet utilization by more than 10% in 2027-2028. Full-year 2026 guidance was raised despite July weather disruptions: Republic now expects about 880,000 block hours, revenue above $2.1 billion, and adjusted EBITDAR of $395 million to $405 million. The company ended the quarter with $278 million in unrestricted cash after repaying $43 million of debt. Republic Airways reported higher second-quarter revenue and block-hour production, citing strong demand from airline partners and improved operating conditions, while raising its full-year outlook despite severe weather disruptions early in the third quarter. President and Chief Executive Officer Matt Koscal, who assumed the CEO role last month as David Grizzle returned to his position as non-executive chairman, said the company’s focus remains on safe and reliable operations, employee investment, and execution of its integration strategy with Mesa Air Group (NASDAQ:RJET). → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Republic reported adjusted net income of $41 million, or $0.89 per diluted share, for the second quarter. GAAP net income totaled $31.2 million, or $0.68 per diluted share, while pre-tax income was $43.4 million. Chief Financial Officer Joe Allman said block-hour production rose 7% sequentially from the first quarter, supported by a roughly 2% increase in scheduled block-hour utilization and improved weather for much of the period. Revenue increased 8% to approximately $571 million. → 3 Value ETFs to Consider as Growth Stocks Lag Behind The company’s completion factor rose to 98% in the second quarter from just under 94% in the first quarter. Koscal said Republic and Mesa employees achieved 85 days of perfect controllable completion factor and a 99.99% controllable completion factor across nearly 120,000 completed flights during the quarter. Adjusted pre-tax income was $57.4 million and adjusted EBITDA was $109.6 million. Allman said adjustments to reported results primarily included costs tied to the CEO transition, severance related to the Mesa integration, professional fees for integration work, and certain duplicative overhead expenses at Mesa. He said those costs are expected to decline as integration milestones are completed and the revision-cycle process concludes in early 2028. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Republic said it remains ahead of schedule on the Mesa integration. During the quarter, the company received Federal Aviation Administration acceptance and approval for the first of five revision cycles needed to harmonize the airlines’ safety management systems. Koscal said Republic expects to file its second revision cycle, covering pre-flight procedures and activities, during the third quarter. The remaining cycles are expected to be completed through 2027 and into early 2028. The company is also consolidating back-office activities, integrating IT systems, harmonizing maintenance and fleet operations, and working toward a single operating certificate. Republic expects to move Mesa’s network and operations center to its aviation campus in Carmel, Indiana, during the third quarter. On fleet maintenance, Koscal said the company has met its internal goals for reducing aircraft turnaround times within Mesa’s maintenance program. However, he said the broader operational benefit will not be realized until the fleet work is completed, with greater aircraft availability expected in the second half of 2027 and beyond. In response to an analyst question, Koscal said Republic believes the Mesa fleet could see a more than 10% improvement in overall utilization once maintenance work is completed in the 2027-2028 period. Allman said scheduled available aircraft utilization is currently above 9.5 hours and closer to 9.8 hours. Republic ended the quarter with $278 million in unrestricted cash, up from $273 million at the end of March. Capital expenditures were approximately $21 million, while the company repaid $43 million of debt during the quarter. Total debt and lease liabilities were $1.2 billion at quarter-end. The company received about $20 million in tariff refunds during the period, which reduced the basis in aircraft and did not materially affect financial results or guidance, according to Allman. The fleet remained unchanged at 314 aircraft. Of those, 275 aircraft operate under capacity purchase agreements, 31 are leased to a partner, and eight remain unallocated. Republic said it is pursuing redeployment opportunities for the unallocated aircraft. The company also holds 26 delivery positions with Embraer, with its next scheduled delivery position in April 2028. Republic raised its full-year 2026 guidance, even as severe weather in July affected East Coast and Mid-Atlantic operations. Through July 28, the company’s completion factor stood at 91% for the month, below the level recorded during either January or February, which were affected by major winter storms. Koscal said that while weather disruptions created third-quarter “noise,” the company continues to see strong demand from partners for its flying. Republic now expects: Approximately 880,000 block hours in 2026, up from prior guidance of at least 865,000 hours. Revenue greater than $2.1 billion, compared with its prior target of more than $2 billion. Adjusted EBITDAR of $395 million to $405 million, compared with previous guidance of more than $380 million. The company left its prior capital expenditure and debt-reduction guidance unchanged. Koscal said Republic expects the integration efforts, maintenance improvements, and expanded fleet availability to support stronger financial performance as the company moves through 2027 and into 2028. Mesa Air Group, Inc is a regional airline holding company headquartered in Phoenix, Arizona. The company provides feeder air transportation services under capacity purchase agreements with major carriers in the United States, operating as an affiliate of American Airlines and United Airlines. Mesa Air Group’s operations are conducted through two wholly owned subsidiaries, Mesa Airlines and Mokulele Airlines, which serve domestic markets on a scheduled basis. Mesa Airlines is the company’s primary regional carrier. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mesa Air Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Republic Airways Holdings Inc.'s (NASDAQ:RJET) stock was strong despite it releasing a soft earnings report last week. We think that investors might be looking at some positive factors beyond the earnings numbers. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To properly understand Republic Airways Holdings' profit results, we need to consider the US$58m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. If Republic Airways Holdings doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Republic Airways Holdings. Because unusual items detracted from Republic Airways Holdings' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Republic Airways Holdings' earnings potential is at least as good as it seems, and maybe even better! Unfortunately, though, its earnings per share actually fell back over the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you'd like to know more about Republic Airways Holdings as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with Republic Airways Holdings, and understanding these bad boys should be part of your investment process. Today we've zoomed in on a single data point to better understand the nature of Republic Airways Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Strong Q1 financials: Republic reported revenue of $527 million (up 34% YoY), adjusted pre-tax income of $47 million and adjusted EBITDAR of $100 million, reaffirming full-year guidance of revenue >$2 billion and adjusted EBITDAR >$380 million while targeting net leverage below 2.2x by year-end 2026. Leadership and merger integration: Matthew Koscal will become CEO on June 15 as the company advances Mesa integration across four work streams (back office, IT, fleet, FAA operating certificate), with back-office work ahead of plan and integration costs of $9.5 million reported for the quarter. Operations and fleet updates: Winter storms reduced the full-up completion factor to 94%, but Republic completed its United E175/E170 fleet transition and redeployed 31 E170s, and agreed to push the next Embraer delivery from Feb 2027 to April 2028 to better match partner demand. Interested in Mesa Air Group, Inc.? Here are five stocks we like better. Republic Airways executives used the company’s fiscal first-quarter 2026 earnings call to highlight strong profitability, progress integrating Mesa Air Group (NASDAQ:RJET) following last November’s merger, and a leadership transition set for mid-June. At the outset of the call, the operator provided an update on leadership changes: the board promoted President and Chief Commercial Officer Matthew Koscal to chief executive officer, effective June 15. At the same time, CFO Joseph Allman and COO Paul Kinstedt will become executive vice presidents, while David Grizzle will remain chairman. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Grizzle said the quarter marked the first fiscal quarterly reporting period following the merger with Mesa. He also emphasized that the company’s Q1 2025 results did not include Mesa. Allman reported total revenue of $527 million, up 34% year over year, driven by a 30% increase in block hour production and the inclusion of Mesa’s operations for a full quarter. The company posted adjusted pre-tax income of $47 million, up 15% versus Q1 2025, representing an 8.9% pre-tax margin, while Grizzle said adjusted net income per diluted share was $0.73. Allman added that adjusted EBITDAR was $100 million, up 14% from the prior-year period. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank The company recorded $9.5 million of merger and integration-related costs during the quarter. Allman said these costs are tied to the integration and harmonization initiatives and will continue to be reported separately, with the expectation they will decline as activities subside. On cash flow and financing, Allman said the company generated $58 million in cash from operations. Cash outlays for investments in aircraft, property, and equipment—including pre-delivery deposits—rose to $95 million, driven by the acquisition of three E175 aircraft. The company received $64 million of new debt proceeds and made $49 million of scheduled principal repayments. → Did Qualcomm Just Put Apple in Check? Adjusted net leverage ended the quarter flat versus year-end 2025 at 2.7 times. Allman said the company expects leverage to improve through 2026, reiterating a goal to reduce net leverage below 2.2 times by year-end 2026 and a longer-term target below 1.5 times. In response to a question about refinancing, Allman said the company’s focus is currently on strengthening the balance sheet, noting it has “a lot of unencumbered assets” and that “70% of the fleet today is…free of financing,” including a number of debt-free E175s and E170s. Management said first-quarter operations were affected by severe winter weather, which typically makes the quarter seasonally the lowest for block hour production. Grizzle said winter storms Fern and Hernando disrupted operations in the Northeast and Mid-Atlantic, citing one day during Fern when the airline “was unable to operate 87% of the airline because of weather,” which created crew positioning disruptions. Grizzle said the company’s “full up completion factor” was 94%, three points lower than the prior-year quarter’s 97%, though he said controllable completion remained “exceptional.” He added the airline delivered 80 days of “perfect” 100% controllable completion factor performance during the quarter. Grizzle also announced completion of the company’s fleet transition at United, saying Republic took delivery of its last three new E175 aircraft to complete the swap of 38 new E175s for 38 E170s at United, a program that began in November 2022. He said 31 of the removed E170s have been redeployed to other partners, either in revenue service or under long-term leases, while the remaining seven are unallocated and will be used for ad hoc charters and other support. Grizzle reiterated that substantially all revenue is generated under capacity purchase agreements with American, Delta, and United, and said the model limits exposure to fuel costs because partners are responsible for fuel, ground handling, and passenger pricing and demand management, while Republic provides “safe, reliable and cost-efficient operations.” Koscal said demand signals from airline partners were “cautiously optimistic” and focused on “smart capacity deployments,” adding that demand for “large multi-class regional aircraft remains strong” in the hubs the company serves. He also addressed an FAA order capping daily flights at Chicago O’Hare at 2,700 beginning in June, saying Republic expects some June schedule adjustments but does not anticipate “material long-term impacts,” as block hours can be redeployed elsewhere in partner networks. Koscal said the Mesa merger added geographic diversity, specifically citing Houston as helping offset lost flying days in the Northeast during winter storms, and said the company expects to “increase utilization at Mesa over the next couple of years.” On integration, Koscal outlined four work streams: Consolidation of back office functions IT systems integration Fleet harmonization Regulatory operating certificate harmonization He said back office integration is “slightly ahead of plan” and expected to be substantially complete by Q4 of this year. On IT, he said the company continues to invest in legacy Mesa hardware and software, describing the work as a multi-year process that will not fully conclude until operating certificate harmonization is completed in 2028. Koscal said the company received FAA approval to recognize its Carmel training campus as an approved Mesa training facility, which he said is a step toward training all crews at the Carmel, Indiana campus. On fleet harmonization, he said Republic is in the early stages of moving the Mesa fleet onto its standard maintenance cycle and harmonizing E175 programs, with the goal of improving utilization and consistency across maintenance and inventory management. He added that the company reached an initial milestone in Q1 on reduced heavy maintenance turnaround times and is targeting completion of fleet harmonization in late 2027. For FAA operating certificate harmonization, Koscal said the process is expected to continue into 2028 and will involve five FAA revision cycles. He said the first cycle, aligning safety systems and processes, is anticipated to be submitted in early May. On labor, Koscal said the company reached a joint collective bargaining agreement in December with the two flight attendant unions and spent the first quarter preparing for implementation. For pilots, he said the company continues “productive dialogue and negotiations” with the IBT at Republic and ALPA at Mesa. Allman reaffirmed the company’s previously issued full-year 2026 outlook, saying Republic expects: Revenue in excess of $2 billion Adjusted EBITDAR in excess of $380 million Block hour production of at least 865,000 hours CapEx of approximately $170 million Principal repayments of $165 million and new debt proceeds of about $75 million Allman said CapEx should decline after what he described as the year’s heaviest quarter in Q1, which included aircraft deliveries, with remaining spending tied to the Carmel campus construction, general maintenance, and continued investment at Mesa. The company also updated its aircraft delivery timeline with Embraer. Allman said Republic reached an agreement to reschedule delivery positions, moving the next expected delivery from February 2027 to April 2028. He said the revised timing allows the company to better match deliveries to expected demand from airline partners. During Q&A, Koscal said that absent macro uncertainty, the company would have been inclined to raise guidance given the quarter’s performance and demand trends heading into Q2 and Q3, but he said management viewed it as “prudent to get a little bit further into the year.” Asked about pilot attrition and the LIFT Academy pipeline, Koscal said LIFT is positioned to cover about 20% to 25% of hiring needs in a normal year, with no change to planned throughput in 2026. He said attrition remained at normalized, pre-COVID levels during the quarter and that the company was seeing the start of a seasonal slowdown heading into summer months, with hiring and attrition “right on plan.” In closing remarks, Grizzle said the company maintained strong operating and financial performance despite winter weather disruptions and said demand signals from partners for the rest of the year “remain quite strong,” adding that management expects headwinds to subside and anticipated “positive momentum and significant growth throughout the rest of 2026.” Mesa Air Group, Inc is a regional airline holding company headquartered in Phoenix, Arizona. The company provides feeder air transportation services under capacity purchase agreements with major carriers in the United States, operating as an affiliate of American Airlines and United Airlines. Mesa Air Group’s operations are conducted through two wholly owned subsidiaries, Mesa Airlines and Mokulele Airlines, which serve domestic markets on a scheduled basis. Mesa Airlines is the company’s primary regional carrier. The article "Mesa Air Group Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Republic Airways Holdings Inc (NASDAQ:RJET) reported a strong financial performance with Q1 2026 adjusted net income per diluted share of $0.73. The company achieved a significant milestone by completing its fleet transition at United, swapping 38 new E-175s for 38 E-170s. Despite severe winter weather, Republic Airways Holdings Inc (NASDAQ:RJET) maintained an exceptional controllable completion rate and achieved 80 days of perfect performance. The merger with Mesa has been progressing well, with substantial progress in integration efforts, including back-office consolidation and IT systems integration. Republic Airways Holdings Inc (NASDAQ:RJET) has a strong demand environment, with partners showing optimism and focusing on smart capacity deployments. Severe winter weather in January and February significantly impacted operations, with one storm causing 87% of the airline to be non-operational. The company's full-up completion factor was 3 points lower than the previous year, at 94% versus 97%. Republic Airways Holdings Inc (NASDAQ:RJET) incurred $9.5 million in merger and integration-related costs during the quarter. The company faces ongoing challenges with the integration and harmonization of Mesa operations, expected to continue into 2028. There is macroeconomic uncertainty, including volatility in oil prices and geopolitical tensions, which could impact future performance. Warning! GuruFocus has detected 6 Warning Signs with RJET. Is RJET fairly valued? Test your thesis with our free DCF calculator. Q: With the severe weather impact this quarter, was there a notable impact on earnings that we should consider? A: (Matt, President and Chief Commercial Officer) The impact was significant, about three full points over last year, which is not typical for us. In a more typical seasonal environment, we would expect the business to perform more robustly. Q: Is there an opportunity to do something creative with the E170s or E145s, similar to United's CRJ550? A: (Matt, President and Chief Commercial Officer) We have a history of being a solution provider for our partners. We are focused on a successful Mesa integration and strengthening our balance sheet, which positions us well to respond to our partners' needs. Q: How are you thinking about putting the order book to work? Will it be for growth or fleet replacement? A: (Matt, President and Chief Commercial Officer) Our past deployment has been a combination of both growth and fleet replacement. We have flexibility and a great relationship with Embraer, allowing us to find the best deployment of assets with our partners. Q: Do you see opportunities to refinance a portion of your debt given your improved credit profile? A: (Joe, Senior Vice President and Chief Financial Officer) Our focus is on strengthening the balance sheet. We have many unencumbered assets, which gives us flexibility to work with our airline partners and find strategic solutions. Q: Are you ahead of plan for the year despite the challenging first quarter? A: (Matt, President and Chief Commercial Officer) In any other environment, we would be raising our guidance. However, due to macro uncertainty, we think it's prudent to wait and see how things develop further into the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CARMEL, Ind., April 29, 2026--(BUSINESS WIRE)--Republic Airways Holdings Inc. (NASDAQ: RJET) (the "Company" or "Republic") today reported financial results for the first quarter of 2026 and reaffirmed its outlook for the full year 2026. The Company’s consolidated results reported in the first quarter of 2026 include the results of Mesa Air Group, Inc. ("Mesa") while comparable prior periods exclude any Mesa results because the merger of Republic Airways Holdings Inc. and Mesa Air Group, Inc. was consummated on November 25, 2025 (the "Merger"). First quarter 2026 GAAP highlights: Revenues of $527.4 million Operating income of $54.2 million with an operating margin of 10.3% Pre-tax income of $37.6 million with a pre-tax margin of 7.1% Net income of $26.9 million with a net income margin of 5.1% Net income per diluted common share of $0.58 Unrestricted cash, cash equivalents, and marketable securities of $273.4 million Total debt and operating lease liabilities of $1.2 billion First quarter 2026 Non-GAAP highlights: Adjusted operating income1 of $63.7 million with an adjusted operating margin of 12.1% Adjusted pre-tax income1 of $47.1 million with an adjusted pre-tax margin of 8.9% Adjusted net income1 per diluted common share of $0.73 Adjusted EBITDAR1 of $100.1 million Strategic and operational highlights: Took delivery of three new E175 aircraft to close out the United Airlines fleet conversion of 38 E170 aircraft to 38 E175 aircraft Settled 691,701 of outstanding warrants with the U.S. Treasury for $5.3 million in February 2026 Ended quarter with total fleet of 314 aircraft, of which 275 aircraft are operated under agreements with American Airlines, Delta Air Lines, and United Airlines, with 31 aircraft leased to American Airlines, and 8 unallocated spare aircraft Achieved block hour production of 212,479 Completion factor of 93.87% or 3.2 points lower than Q1 2025 performance of 97.09% due to extreme winter weather Achieved controllable completion factor, excluding weather and partner-requested cancellations, of 99.98% "Republic’s strong first quarter results underscore the resilience and stability of our operating model and the commitment of our team of over 8,400 aviation professionals to deliver an excellent operation despite significant disruptions from extremely challenging winter storms and continued air traffic controller constraints in our demanding operating environment. Moreover, this was our first full quarter of operations as a combined company with Mesa," said David Grizzle, Chairman and Chief Executive Officer. "We continue to see strong demand from our airline partners as we look forward to better weather this spring and summer." Financial Results Results are compared to the prior year quarterly period unless otherwise noted. Revenues were $527.4 million, up $132.6 million, or 33.6%. The increase is primarily attributable to the 30.4% increase in block hour production related to the 60 additional E175 aircraft operating for United Airlines related to the Merger and increased daily block hour utilization throughout the entire fleet. Operating expenses were $473.2 million, up $131.3 million, or 38.4%. The increase is primarily attributable to the expenses associated with the increase in aircraft and associates in conjunction with the Merger. For the first quarter of 2026, operating expenses include $9.5 million of executive separation and Merger-related items. Balance sheet, cash, and liquidity The Company generated $57.8 million of operating cash flow during the first quarter of 2026. As of March 31, 2026, the Company had $273.4 million in cash and cash equivalents and marketable securities on hand. The Company took delivery of three E175 aircraft during the first quarter of 2026, two of which were placed into service with United Airlines in the first quarter and the third of which entered service in early second quarter 2026. The Company has 26 additional E175 aircraft on order with Embraer, with scheduled deliveries expected from 2028 through 2030. Total capital expenditures inclusive of aircraft, rotable spare parts, and pre-delivery deposits for aircraft on order totaled $95.1 million for the first quarter of 2026. Total debt and operating lease liabilities at March 31, 2026 were $1.2 billion. The Company secured new borrowings of $64.4 million for the three new aircraft deliveries and made mandatory scheduled debt repayments of $48.8 million for the first quarter of 2026. As of March 31, 2026, the Company’s adjusted net debt1 was $965.5 million, and first quarter 2026 adjusted EBITDAR1 was $100.1 million, resulting in trailing twelve-month leverage1 of 2.7x. Mesa Merger Integration Update The Company made significant strides in integrating key support functions during the first quarter of 2026, including finance, accounting, and human resources functions. The Company expects the Mesa operations integration to be a multi-year endeavor over the next 18 to 24 months. Matt Koscal, President and Chief Commercial Officer said, "We are making solid progress on the integration, with a clear path to realizing cost efficiencies and operational alignment over the next 18 to 24 months. Our team continued to deliver a reliable operation in the quarter, with a 99.98% controllable completion factor. This level of operational execution is central to how we create value for our airline partners and differentiate Republic in the regional market. I am proud of our team for those outstanding results. As we look ahead, we remain focused on disciplined execution as we convert long-term growth opportunities driven by demand from our partners into consistent earnings and robust cash flow." 2026 Guidance The Company is reaffirming the following full year 2026 guidance, previously provided in the March 4, 2026 update: A reconciliation of the forward-looking guidance for the non-GAAP metric of Adjusted EBITDAR cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. Earnings call The Company will host a live webcast to discuss first quarter 2026 financial results on Wednesday, April 29, 2026 at 5:00 p.m. EDT. The webcast link and related presentation materials are available at http://investor.rjet.com. A replay of the webcast will be available shortly after the webcast. About Republic Airways Founded in 1974, Republic Airways maintains a combined fleet of 314 Embraer 170/175 aircraft, and its airlines offer scheduled passenger service on approximately 1,300 daily scheduled flights to approximately 125 cities in the United States, Canada, Mexico and the Caribbean. The airline provides fixed-fee flights operated under its codeshare partners’ brands: American Eagle, Delta Connection, and United Express. The airlines employ more than 8,400 aviation professionals. Learn more at www.rjet.com. Forward-looking statements Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "forecast," "anticipate," "believe," "estimate," "plan," "project," "could," "should," "hope," "likely," and "continue" and similar terms used in connection with statements regarding our outlook, anticipated operations, the revenue environment, contractual relationships, and our anticipated financial performance. These statements include, but are not limited to, statements about the continued demand for our product, the effect of economic conditions on Republic’s business, financial condition and results of operations, the timing of scheduled aircraft deliveries, fleet expansion, changes in aircraft seat configurations, transition and anticipated fleet size for Republic in upcoming periods, expected production levels in future periods, pilot attrition trends, Republic’s coordination with American Airlines, Inc. ("American Airlines"), Delta Air Lines, Inc. ("Delta Air Lines"), and United Airlines, Inc. ("United Airlines") (collectively, our "Partners" or "Partner Airlines") regarding the delivery of aircraft under previously announced agreements and timing of placing new aircraft deliveries into service, the expected terms, timing and benefits related to Republic’s leasing, strategic arrangements, strategic agreements and equity investments in third parties, scheduled flight service to smaller communities, increasing the utilization and efficiency of all fleet types as well as Republic’s future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that are not historical facts. All forward-looking statements included in this press release and accompanying statements made by management are made as of the date hereof and are based on information available to Republic as of such date. Readers should note that many factors could affect the future operating and financial results of Republic and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this press release and accompanying management statements. These factors include, but are not limited to, the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to inflationary pressures and related decreases in customer demand and spending; uncertainty regarding potential future outbreaks of infectious diseases or other health concerns and the consequences of such outbreaks to the travel industry, including travel demand and travel behavior and our Partner Airlines in general and the financial condition and operating results of Republic, in particular; the prospects of entering into agreements with existing or other carriers to fly new aircraft; uncertainty regarding timing and performance of key third-party service providers; ongoing negotiations between Republic and its Partner Airlines regarding their contractual obligations; uncertainties regarding operation of new aircraft; the ability to attract and retain qualified pilots, mechanics and other personnel; the impact of regulatory issues such as pilot rest rules and qualification requirements; the ability to obtain aircraft financing; the financial stability of Republic’s Partner Airlines and any potential impact of their financial condition on the operations of Republic; fluctuations in flight schedules, which are determined by the Partner Airlines for whom Republic conducts flight operations; variations in market and economic conditions; significant aircraft debt commitments; estimated useful lives of long-lived assets, residual values of aircraft and related equipment and related asset impairments; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs and potential fuel shortages; the impact of weather-related, natural disasters and other air safety incidents on air travel and airline costs; aircraft deliveries; uncertainty regarding ongoing international hostilities, including conflicts in the Middle East and between Russia and Ukraine, and the related impacts on macroeconomic conditions and on the international operations of any of our Partner Airlines as a result of such conflicts; the availability of parts used in connection with maintenance and repairs of the aircraft; the availability of suitable replacement aircraft for aging aircraft; the impact of enacted and proposed U.S. tariffs on global economic conditions and the financial markets, passenger demand, the cost of aircraft parts and supplies sourced internationally and the cost of service providers located outside of the United States; the impact of potential future U.S. government shutdowns on air traffic controller staffing and flight cancellations; and other unanticipated factors. There may be other factors that could affect matters discussed in forward-looking statements set forth in this press release and accompanying management statements, which factors may also cause actual results to differ materially from those discussed. We assume no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these statements other than as required by applicable law. For additional information on these and other factors that could cause Republic’s actual results to differ materially from expected results, please see Republic’s filing with the Securities and Exchange Commission (the "SEC"), including the section entitled "Risk Factors", in the Company's Annual Report on Form 10-K filed with the SEC on March 19, 2026, as such factors may be updated from time to time in Republic’s filings with the SEC, which are or will be accessible on the SEC’s website at www.sec.gov. Committed Fleet Our committed fleet as of March 31, 2026 consists of 306 aircraft, including 31 aircraft currently leased to American Airlines. In addition to the 306 aircraft in the committed fleet, the Company also has 8 unallocated spare aircraft. The committed fleet has grown by 67 aircraft from the first quarter of 2025, when there were 239 fleet in service of our Partners including 31 leased to American Airlines. This increase includes 60 E175 aircraft owned by United Airlines and operated by Mesa. Additionally, we have firm orders for 26 new Embraer E175 aircraft to be delivered from 2028 through 2030. Non-GAAP Financial Information In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. GAAP. The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP, but should not be considered a substitute or superior to GAAP results. The tables presented below show reconciliations of non-GAAP financial measures used in this earnings release to the most directly comparable GAAP measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260429385536/en/ Contacts Investor Relations 2 Brickyard Lane, Carmel, IN 46032 [email protected] Media Jon Austin (612) 839-5172 [email protected]