Republic Airways (RJET) Q3 2025 earnings summary

Executive summary

• Operated 60 Embraer 175 aircraft under a capacity purchase agreement (CPA) with United as of June 30, 2025, providing service to 79 cities with 254 daily departures.

• Revenues for the nine months ended June 30, 2025, were almost entirely derived from the United CPA, with DHL FSA revenues ending in March 2024.

• Entered into a merger agreement with Republic Airways Holdings, with significant changes to capital structure and operations expected.

Financial highlights

• For the three months ended June 30, 2025: Operating revenues were $92.8M (down 16.3% YoY), operating loss was $0.1M (improved from $9.0M loss YoY), and net income was $20.9M (vs. $19.9M net loss YoY).

• For the nine months ended June 30, 2025: Operating revenues were $290.8M (down 19.5% YoY), operating loss was $168.2M (vs. $48.8M loss YoY), and net loss was $152.3M (vs. $66.1M loss YoY).

• Significant non-recurring items included a $54.4M loss on sale of 18 E-175 aircraft and $111.8M in impairment charges.

• Cash and cash equivalents at June 30, 2025, were $42.5M, with $60.3M in assets held for sale.

Outlook and guidance

• Management implemented measures to address liquidity concerns, including asset sales, debt reduction, and a new long-term CPA with United.

• Plans to meet $84.7M in principal debt maturities over the next 12 months through cash on hand, operations, and further asset sales.

• Forecast assumes successful execution of asset sales and operational adjustments; failure to do so may require refinancing or deferral of debt payments.