RJET $20.33 -1.21%

RJET · Republic Airways Holdings Inc.

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$20.33 -0.25 (-1.21%) At close · Aug 14

Market Cap

$962.14M

46.82M

All earnings calls

Earnings call · FY2026 Q2

Republic Airways Second Fiscal Quarter 2026 Earnings Call

Concluded Jul 30, 2026 Audio replay

Jul 30, 2026 3:09 7 turns

Period: FY2026 Q2
Runtime: 3:09
Sources: 4 artifacts

8-K 10-Q

Executive readout · one minute

What matters this quarter

Republic Airways reported Q2 2026 revenue of $571.1 million (up 40.8% year-over-year), net income of $31.2 million, and raised its full-year 2026 outlook, with management highlighting expected 10–15% improvement in Mesa fleet utilization by 2027–2028 as maintenance normalizes.

Partner relationships and fleet positioning 11 Mesa fleet maintenance and utilization improvement 9 EVE investment ownership 4 Republic fleet operating baseline 3 Workforce appreciation 3 Cape Air equity stake 2

Management tone

Positive

Net tone +35 · low hedging

Grounding quotes

“we believe we could actually add about 10% to 15% when we get to full health on the maintenance program at Mesa”
“we think there's a greater than 10% improvement in the overall Mesa fleet once we get to the end of that 2027-2028 timeframe”
“We've accomplished a great deal in the first half of the year”
“it's really an increase in scheduled lines available to fly as the maintenance aircraft come back online”

Research coverage

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Revenue $571.10M +40.8% YoY

Diluted EPS $0.68 -27.7% YoY

Net income $31.20M -16.6% YoY

Research materials

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8-K earnings release Filed Jul 30, 2026 10-Q report Filed Jul 31, 2026 Company webcastOpen the original investor-relations page

Key takeaways

What improved, and what deserves a closer read.

↑ Constructive signals

Q2 2026 revenue of $571.1 million, up $165.5 million or 40.8% year-over-year.
Operating income of $58.7 million with an operating margin of 10.3%; adjusted operating margin of 12.7%.
Net income of $31.2 million, or $0.68 per diluted share; adjusted net income of $0.89 per diluted share.
Company raised its full-year 2026 outlook.
Block hour production of 226,815, a 35.9% increase tied to 60 additional E175 aircraft for United.
Completion factor of 98.21%, up 0.86 points versus Q2 2025; controllable completion factor of 99.99%.

↓ Risks & pressure points

Operating expenses rose 45.9% year-over-year, outpacing the 40.8% revenue increase.
Total debt and lease liabilities of $1.2 billion.
Current Mesa fleet maintenance program is below Republic's historical performance, limiting near-term utilization.
CEO transition during the quarter — Matt Koscal appointed effective June 15, 2026.

Key moments

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Transcript

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3:09 Audio

Matthew J. Koscal CEO

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 timeframe. You know, the daily utilization for 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.

Joseph P. Allman CFO

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 nine and a half, probably closer to nine, eight. And, you know, 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.

Mike Lenz Analyst — Melius Research

Thanks, Joe. My second actually is to you, Joe.

Joseph P. Allman CFO

Can you just remind us, this is a quick one, just your percentages of what you own of EVE and Cape Air? yeah so we're about a 40 percent owner uh in the cape air equity um and on the eve investment that's really a mark to market on the warrants that we hold uh okay related to eve uh that flows through the non-operating line okay all right thank you thank you there are no further questions

Operator

at this time. I will now turn the call back to Matt Coskell, President and Chief Executive Officer, for closing remarks.

Matthew J. Koscal CEO

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.

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