ATW Daily News

ExpressJet sinks to first-quarter loss

Wednesday May 7, 2008

ExpressJet Holdings, which flies for partners Continental Airlines and Delta Air Lines as well as its own branded operation, reported a $31.3 million first-quarter loss, reversed from a $10.2 million profit in the first three months of 2007. A $13.7 million impairment charge related to investments in auction rate securities held by the company dragged on the bottom line, while revenue rose just 8.6% to $448.2 million. Costs climbed 21.3% to $483.2 million, swinging ExpressJet to a $35 million operating loss from the $14.3 million profit reported in the year-ago quarter.

The carrier flew 2.01 billion RPMs for CO and DL aboard 215 aircraft during the quarter, posting a 76.9% load factor. The branded operation logged 498 million RPMs with a 61.3% load. It said "booking patterns and results for the. . . branded segment are steadily improving," but rising fuel prices and the "slowing economy" will force it to reduce daily departures by June to 166 from the 193 averaged during the first quarter. Aircraft removed from branded service will be transferred to its charter operation.

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