FYI: XJT Loses Money

[Scrapdog]

XJT reports second quarter loss
ExpressJet Holdings Inc. (XJT), which provides regional air service for CO, today reported a quarterly loss “that widely missed estimates, burdened by costs from starting up its own scheduled service,” according to a news report from Reuters.
XJT, which began flying under its own brand in April, said it had lost $26.4 million, compared with a year-earlier profit of $23.3 million.
XJT and CO had submitted to an arbitration panel for a decision on the rates XJT could charge for regional jet service.
“The panel determined that the 2007 budgeted rates originally presented by ExpressJet should be reduced by a total of approximately $14.2 million (which includes the margin of 10% the company earns on its expenses under the agreement). This revenue reduction resulted in a $6.5 million decrease in operating income recorded in the second quarter,” XJT said in a press release.

 

[Secret Squirrel]

Must be that our pay is too high. Lets offer concessions!!!!!

 

[MJG]

This is no surprise to anyone. Last time I checked, you can't start an airline for nothing.

The question is: how long can XJET sustain the losses?

 

[cwebster2]

This is no surprise to anyone. Last time I checked, you can't start an airline for nothing.

The question is: how long can XJET sustain the losses?

they are projecting a net profit by 1Q 2008.

 

[Pocono Pilot]

XJT reports second quarter loss
ExpressJet Holdings Inc. (XJT), which provides regional air service for CO, today reported a quarterly loss “that widely missed estimates, burdened by costs from starting up its own scheduled service,” according to a news report from Reuters.
XJT, which began flying under its own brand in April, said it had lost $26.4 million, compared with a year-earlier profit of $23.3 million.
XJT and CO had submitted to an arbitration panel for a decision on the rates XJT could charge for regional jet service.
“The panel determined that the 2007 budgeted rates originally presented by ExpressJet should be reduced by a total of approximately $14.2 million (which includes the margin of 10% the company earns on its expenses under the agreement). This revenue reduction resulted in a $6.5 million decrease in operating income recorded in the second quarter,” XJT said in a press release.

Look at it this way, at least we aren't stuck at CAL like you are. hehehe

Or are you trying to get on at UPS? If so, hopefully they will call and you can join all your squadron buds. ;-)

 

[CRJ_Driver]

they are projecting a net profit by 1Q 2008.

HA! I heard that one at IDE.

But, it sure was one hel of a ride!

 

[CRJ_Driver]

XJT reports second quarter loss
ExpressJet Holdings Inc. (XJT), which provides regional air service for CO, today reported a quarterly loss “that widely missed estimates, burdened by costs from starting up its own scheduled service,” according to a news report from Reuters.
XJT, which began flying under its own brand in April, said it had lost $26.4 million, compared with a year-earlier profit of $23.3 million.
XJT and CO had submitted to an arbitration panel for a decision on the rates XJT could charge for regional jet service.
“The panel determined that the 2007 budgeted rates originally presented by ExpressJet should be reduced by a total of approximately $14.2 million (which includes the margin of 10% the company earns on its expenses under the agreement). This revenue reduction resulted in a $6.5 million decrease in operating income recorded in the second quarter,” XJT said in a press release.

I haven't looked at their financials, but 26.4 million isn't that much for them most likely. They are pretty diversified in their businesses..much more than IDE. They will be okay.

 

[Superpilot92]

I haven't looked at their financials, but 26.4 million isn't that much for them most likely. They are pretty diversified in their businesses..much more than IDE. They will be okay.

You are right. Our financials are good right now. My concern is us getting bought out. We have little to no debt and lots of cash in the bank (almost 400 million). The loads really are picking up most of the flights i have done are pretty close to full. The loss was mostly because of the initial start up costs and getting the tickets sold on all the sales sites. Time will tell but i am cautiously optimistic. Also I think you will see more flying for Delta and possibly another carrier in the near future. Just a hunch.

 

[B-J-J Fighter]

How are the loads on the branded?

 

[Avpilot]

How are the loads on the branded?

From the various press releases, they are picking up rapidly. For Q2 of this year (which includes from April 2nd, the start of the new airline) we had a 39% load factor. BUT...in June it was 50% and in July it was 65%.

CEO says we're about 3 to 5 seats per flight from making a profit on average. He also said that about 20% of the routes are under-performing and may need some adjustment to schedules as we go into fall. However, there are routes that routinely leave full, so they might could take some more frequency.

Whether it will succeed, only time will tell. I think most of us are optimistic based on what we're seeing. It should be interesting.

Tim

 

[Superpilot92]

How are the loads on the branded?

Most of the flights i have done are close to being full. There are a couple that are half full but it is getting better month by month.

 

[dojetdriver]

XJT reports second quarter loss
ExpressJet Holdings Inc. (XJT), which provides regional air service for CO, today reported a quarterly loss “that widely missed estimates, burdened by costs from starting up its own scheduled service,” according to a news report from Reuters.
XJT, which began flying under its own brand in April, said it had lost $26.4 million, compared with a year-earlier profit of $23.3 million.
XJT and CO had submitted to an arbitration panel for a decision on the rates XJT could charge for regional jet service.
“The panel determined that the 2007 budgeted rates originally presented by ExpressJet should be reduced by a total of approximately $14.2 million (which includes the margin of 10% the company earns on its expenses under the agreement). This revenue reduction resulted in a $6.5 million decrease in operating income recorded in the second quarter,” XJT said in a press release.

And your point of posting this was.....?

 

[bailey3083]

You are right. Our financials are good right now. My concern is us getting bought out. We have little to no debt and lots of cash in the bank (almost 400 million).

Who is going to buy you out? All the regionals are suffering since their partners have gone through BK or forced new contracts.

Bailey

 

[Avpilot]

Who is going to buy you out? All the regionals are suffering since their partners have gone through BK or forced new contracts.

Bailey

Yeah, there's probably no firm out there who has a lot of cash to spend....there's probably nobody interested in a company with almost no debt, 300 mil in cash, and a asset valuation around $20/share that is trading for $5. You're probably right.

 

[ApocketA's_145]

You are right. Our financials are good right now. My concern is us getting bought out. We have little to no debt and lots of cash in the bank (almost 400 million). The loads really are picking up most of the flights i have done are pretty close to full. The loss was mostly because of the initial start up costs and getting the tickets sold on all the sales sites. Time will tell but i am cautiously optimistic. Also I think you will see more flying for Delta and possibly another carrier in the near future. Just a hunch.

quick question?? im not a genius here, but would being bought out by a major be all that bad for XJT? you guys would be all the sudden over night employeed by a major... it would suck for another regional like skywest to buy you out though. u know what im trying to say? just shoot with ur thoughts

 

[Whiskerbizkit]

Most majors are slowly doing away with 50 seat rjs so dont see the attraction. Plus Express doesn't own their airplanes, CAL leases them and sub-leases them to XJT so if they are bought, what are they getting?

 

[Superpilot92]

Most majors are slowly doing away with 50 seat rjs so dont see the attraction. Plus Express doesn't own their airplanes, CAL leases them and sub-leases them to XJT so if they are bought, what are they getting?

If we were bough hypothetically speaking by a Major, (which i don't think would happen, it would be an investment firm IMHO) 1. We wouldn't be merged with the major. 2. Where ever XJT goes so do the leases as long as we make the payments. Just because CAL sub leases the planes to us doesn't mean jack. For instance, We are flying those planes for Delta now. Pretty much no airline these days owns newer aircraft. They own the leases. Also you don't see the attraction but CAL does, Delta Does and wants more, oh and pay attention because another company wants them also (My guess is UAL).

 

[dojetdriver]

HA! I heard that one at IDE.

But, it sure was one hel of a ride!

As an I-Air/ACA refugee my self, I can tell you that some things are similar at XJET and it creeps me out. And I'm not a kool-aid drinker.

However, some things are COMPLETELY different than I-AIR. I recently flew 5 legs on the branded side, every flight was 80% full, or more. I don't know what they are charging for seats, but I know it's not the 29.99 fares that I-Air was trying, with a connection in IAD. Also, if you remove the arbitration, the loss isn't THAT bad, and was expected. At I-Air, we were bleeding what, 1 million a day I seem to remember?

And I agree, I-Air was a good ride.

 

[homerjdispatch]

Yeah, there's probably no firm out there who has a lot of cash to spend....there's probably nobody interested in a company with almost no debt, 300 mil in cash, and a asset valuation around $20/share that is trading for $5. You're probably right.

SKYW? Hmmmmmm

 

[Scrapdog]

And your point of posting this was.....?

Well, I didn't know you needed a "point" to post. However, my point was to inform folks of what was going on in the current regional marketplace. As folks get on here and look for data points on which airlines to apply for, etc...nuggets like this can clue them in on whether they want to go down that avenue or not. I guess we'll have to ask the last 10 to 20 posters who posted profits/loses from various other airlines in the past what their "point" was as well.