hagen
Jetlink Jerk
- Joined
- Dec 10, 2001
- Posts
- 154
http://www.bizjournals.com/triangle/stories/2008/03/10/daily2.html
The high cost of fuel and a struggling strategy of flying under its own brand led ExpressJet to swing to a fourth-quarter loss, the company said.
The Houston air carrier said it lost $31.7 million, or 60 cents per diluted share, in the quarter. A year earlier, it earned $22.8 million, or 39 cents per share.
Revenue increased 2 percent, to $436 million.
ExpressJet (NYSE: XJT) was once a so-called "commuter carrier" subsidiary of Continental Airlines, flying between larger cities and smaller ones under the Continental umbrella. But it spun out of its parent in 2002 and recently began flying between regional airports under its own brand.
The high cost of setting up such a service, combined with record costs for fuel and difficulty filling planes, has hamstrung ExpressJet in those efforts. The company launched service under its own brand at Raleigh-Durham International Airport in 2007, vowing to fly nonstop to a half-dozen destinations. But it recently pulled back on those plans, saying it will operate just four daily flights out of RDU starting April 1.
In the fourth quarter, ExpressJet said, "load factor" - the percentage of available seats that are filled - was 61 percent on its branded flights. That compares to 77 percent on the flights it still provides for other companies, including Continental and Delta Air Lines.
The company also is dealing with the high cost of fuel. Its expenses for fuel and related taxes increased 71 percent to $97.2 million in the quarter, it said.
Excluding one-time charges related to investments and employees' medical coverage, the company lost $27.6 million, or 52 cents per share. Analysts polled by Thomson Financial had expected, on average, losses of 30 cents a share.
1-3 month COLAs as well due to cut in block hours..
The high cost of fuel and a struggling strategy of flying under its own brand led ExpressJet to swing to a fourth-quarter loss, the company said.
The Houston air carrier said it lost $31.7 million, or 60 cents per diluted share, in the quarter. A year earlier, it earned $22.8 million, or 39 cents per share.
Revenue increased 2 percent, to $436 million.
ExpressJet (NYSE: XJT) was once a so-called "commuter carrier" subsidiary of Continental Airlines, flying between larger cities and smaller ones under the Continental umbrella. But it spun out of its parent in 2002 and recently began flying between regional airports under its own brand.
The high cost of setting up such a service, combined with record costs for fuel and difficulty filling planes, has hamstrung ExpressJet in those efforts. The company launched service under its own brand at Raleigh-Durham International Airport in 2007, vowing to fly nonstop to a half-dozen destinations. But it recently pulled back on those plans, saying it will operate just four daily flights out of RDU starting April 1.
In the fourth quarter, ExpressJet said, "load factor" - the percentage of available seats that are filled - was 61 percent on its branded flights. That compares to 77 percent on the flights it still provides for other companies, including Continental and Delta Air Lines.
The company also is dealing with the high cost of fuel. Its expenses for fuel and related taxes increased 71 percent to $97.2 million in the quarter, it said.
Excluding one-time charges related to investments and employees' medical coverage, the company lost $27.6 million, or 52 cents per share. Analysts polled by Thomson Financial had expected, on average, losses of 30 cents a share.
1-3 month COLAs as well due to cut in block hours..
