April 26 (Reuters) - Republic Airways Holdings Inc. (RJET.O: Quote, Profile , Research) said higher-than-planned pilot attrition rates and mechanical challenges related to its CRJ fleet will results in a slow down in the airline holding company's growth plan for the rest of 2007.
In a conference call with analysts on Thursday, the company said it sees an additional $4 million to $5 million of pretax transition costs in its second quarter.
The company said these costs are related to additional training expense and decreased pretax profits associated with reduced revenue and non-productive aircraft costs.
Republic Airways said it now expects the third quarter to be hurt by $6 million to $7 million, and the fourth quarter by $1 million to $2 million.
The company experienced about 20 percent pilot attrition in the latest first quarter, and said if the attrition rate continues at that level, it could mean additional expenses of $4 million to $5 million, pretax, in calendar year 2008.
Shares of the company fell 8 percent to $21.69 in afternoon trade on the Nasdaq. (Reporting by Sreerupa Mitra in Bangalore)
In a conference call with analysts on Thursday, the company said it sees an additional $4 million to $5 million of pretax transition costs in its second quarter.
The company said these costs are related to additional training expense and decreased pretax profits associated with reduced revenue and non-productive aircraft costs.
Republic Airways said it now expects the third quarter to be hurt by $6 million to $7 million, and the fourth quarter by $1 million to $2 million.
The company experienced about 20 percent pilot attrition in the latest first quarter, and said if the attrition rate continues at that level, it could mean additional expenses of $4 million to $5 million, pretax, in calendar year 2008.
Shares of the company fell 8 percent to $21.69 in afternoon trade on the Nasdaq. (Reporting by Sreerupa Mitra in Bangalore)
