Republic Airways (RJET) Q2 2025 earnings summary

Executive summary

• Reported a net loss of $58.6 million for Q2 2025, compared to net income of $11.7 million in Q2 2024, driven by asset sales, impairments, and lower contract revenue.

• Operating revenues fell 28% year-over-year to $94.7 million, with contract revenue down 39.9% due to fewer aircraft under contract and higher deferred revenue.

• Entered into a merger agreement with Republic Airways Holdings and a Three Party Agreement with United and Republic, involving asset sales, debt extinguishment, and a 3% CPA block hour rate increase.

• Liquidity initiatives included asset sales, deferral of maintenance, and amendments to credit agreements to address going concern risks.

Financial highlights

• Q2 2025 operating loss was $57.3 million, compared to operating income of $11.6 million in Q2 2024.

• Six-month net loss was $173.2 million, up from a $46.2 million loss in the prior year period.

• Asset impairment charges totaled $46.2 million for the quarter and $111.8 million for the six months, mainly related to held-for-sale assets and E-175 aircraft write-downs.

• Loss on sale of assets was $7.7 million for the quarter and $54.4 million for the six months.

• Adjusted EBITDA for Q2 2025 was $8.3 million, down from $26.8 million in Q2 2024.

Outlook and guidance

• Management expects liquidity and operational challenges to persist but believes recent asset sales, credit amendments, and the merger will support obligations for the next twelve months.

• Plans to meet $98.6 million in principal debt maturities over the next year through cash, operations, and further asset sales.