ExpressJet reports third QTR earnings...

[TEXAN AVIATOR]

http://www.expressjet.com/press/2005%20XJT%203Q%2005%20Earnings.pdf

 

[1973Arrow]

...good for them. They seem like a good group.

 

[TNPILOT]

Not as rosey as it sounds...need to look beneath the surface. Depsite posting $25 mil in earnings, that is a 17% decrease in the 3rd quarter.

From the WSJ

ExpressJet 3Q Net Falls 17%; Recovers From Hurricanes

DOW JONES NEWSWIRES
October 20, 2005 10:24 a.m.

HOUSTON -- ExpressJet Holdings Inc. (XJT) posted a 17% drop in third quarter earnings, although revenue increased even after five ExpressJet stations and its operations in Continental's Houston hub were affected by Hurricanes Katrina and Rita.
"The company maintained its strong fianancial performance and adapted quickly to recover from unprecedented weather interruptions," ExpressJet said about operations during the quarter.
In a news release, the company said earnings in the third quarter fell to $25.5 million or 43 cents a share from $30.8 million or 51 cents a year earlier. Operating revenue for the quarter rose to $393.8 million from $385.7 million.
The company said its ExpressJet Airlines subsidiary achieved a 15% increase in block hours, flew 12,335 more departures compared to the year-earlier quarter and operated at a 99.1% controllable completion factor, which excludes cancellations due to weather and air traffic control.
Capacity at ExpressJet Airlines was up 16% in the quarter to 3.1 billion available seat miles, while revenue passenger miles were up 19%.
ExpressJet said capital spending in the third quarter totaled about $7.2 million, down from $19.1 million a year earlier. It said it estimates capital spending of about $7 million for the rest of the year.
ExpressJet Holdings has strategic investments in the air transportation sector, including ExpressJet Airlines Inc. and ExpressJet Services LLC.
Company Web Site: http://www.expressjet.com
XpressJet Holdings Inc. - Houston 3rd Quar Sept. 30: 2005 2004Revenue $393,789,000 $385,666,000Net income 25,494,000 30,764,000Avg shares 61,717,000 61,781,000Shr earns Net income .43 .51

 

[SkyBoy1981]

All things considered (fuel prices and hurricanes) compared to the same quarter last year, an earnings drop of $5 mill is not bad.

 

[boxjockey]

You people need to do some more research before you try to spread doom and gloom. The reason our earnings are down from same quarter last year is because of renegotiated rates with CAL in summer 04. We are pegged at a 10% operating profit, and everything else has to be refunded to CAL. I think prior to the renegotiation, we were able to make up to 10-13%. Not exactly sure how it was laid out, incentives, etc. Same as with the CPA. Doesn't end in 2007, only the exclusivity period.

box :beer:

 

[erj-145mech]

Continental buys the fuel that ExpressJet burns, so that isn't an issue there. The hurricane is another thing though. Hotel rooms are a premium in Houston, and Continental Express is having to deadhead crews to places like Knoxville and Corpus Christi just to get a room for the night.

 

[Superpilot92]

Some people just act like they cant stand to hear good news. Everyone just needs to calm down!!!

 

[BigHangar]

Continental buys the fuel that ExpressJet burns, so that isn't an issue there. The hurricane is another thing though. Hotel rooms are a premium in Houston, and Continental Express is having to deadhead crews to places like Knoxville and Corpus Christi just to get a room for the night.

Not totally true. XJT recently voluntarily started paying for a portion of every gallon of fuel. This is another reason for the slight reduction of year-over-year decrease in profit.

 

[sgu]

I think XJT contributes .66 cents/gallon

 

[gkrangers]

.......

 

[Flechas]

Not totally true. XJT recently voluntarily started paying for a portion of every gallon of fuel. This is another reason for the slight reduction of year-over-year decrease in profit.

Not totally true either, as per the CPA XJT pays something like 60 cents per gallon. I don't have the CPA with me and don't remember the numbers right, but it's not a voluntary action.

 

[Flechas]

And Congrats to Jeremy for passing training...hes now officially sitting reserve as an FO.

Who's Jeremy? Was that your instructor? I thought he was going to PSA or ASA?

 

[Superpilot92]

i believe that we are paying some above what the CPA states for the gas. Staying on CALs goodside. Remember do your part to savewhat you can.

 

[Flechas]

i believe that we are paying some above what the CPA states for the gas. Staying on CALs goodside. Remember do your part to savewhat you can.

The best way to be on their good side is to save fuel. With the CPA we make moremoney if we use more fuel...

 

[flatspin7]

CAL should have to pay for Xjet's fuel... They price the product and they dictate where and when the airplanes are flown. XJET doesnt make a dime more or less if the airplane is completely full or if there is no one on it.

 

[Superpilot92]

I am Just saying to reduce costs if at all possible. Where did you see the CPA want to take a look at it also.

 

[Flechas]

I am Just saying to reduce costs if at all possible. Where did you see the CPA want to take a look at it also.

A captain I flew with a few months ago had a copy of it, so I spent a 4 day reading it.

 

[Flechas]

CAL should have to pay for Xjet's fuel... They price the product and they dictate where and when the airplanes are flown. XJET doesnt make a dime more or less if the airplane is completely full or if there is no one on it.

It's not a matter of should or should not, just a matter of a contract agreement. CAL could pay for it but then pay XJT less for their services. Or the other way around.

 

[BluDevAv8r]

A captain I flew with a few months ago had a copy of it, so I spent a 4 day reading it.

I highly doubt you or your captain had a copy of the CPA. It is a confidential corporate document that is not public in any way, shape, or form. What you most likely were reading was a public SEC filing like a 10K or 10Q that explains certain aspects of the CPA...but it isn't the actual CPA.

-Neal

 

[BluDevAv8r]

The rates were adjusted to reflect a new target operating margin of 10% (brought the cap down significantly) and that is the reason for the lower profit despite higher capacity and block hours. This was forecast and expected. Our fuel provision with CAL has not changed. However, it is in our best interests to tighten our fuel usage as much as possible obviously...as that is a cost passed through to CAL and will be looked it when other carriers are begging for CAL's business in the near future.

-Neal