\nRepublic Airways Holdings Inc. (NASDAQ: RJET) (the \u201cCompany\u201d or \u201cRepublic\u201d) today reported financial results for the third quarter of 2026 and raised its outlook for the full year 2026.<\/p>\n
\n\u201cWe delivered strong third quarter financial results with revenues increasing 34% and strong profit margins,\u201d said Matt Koscal, President and Chief Executive Officer. \u201cI want to thank our team for their continued dedication and execution throughout an eventful summer travel season, achieving a 99.96% controllable completion factor while making meaningful progress on the integration and harmonization of Mesa. With strong cash generation, improved leverage, and our full-year outlook improved, we remain focused on disciplined execution and delivering long-term value for our shareholders.\u201d<\/p>\n
\nThe Company\u2019s consolidated results reported in the third quarter of 2026 include the results of Mesa Airlines, Inc. (\u201cMesa\u201d), while comparable prior periods exclude any Mesa results because the merger of Republic Airways Holdings Inc. and Mesa Air Group, Inc. was consummated on November 25, 2025 (the \u201cMerger\u201d).<\/p>\n
Third quarter 2026 GAAP financial highlights:<\/i><\/b><\/p>\n Third quarter 2026 Non-GAAP financial highlights:<\/i><\/b><\/p>\n Strategic and operational highlights:<\/i><\/b><\/p>\n 1<\/sup> Operating margin %, pre-tax margin %, and net income margin % are expressed as the related metric as a percentage of revenues.<\/p>\n<\/td>\n<\/tr>\n 2<\/sup> Adjusted operating income and margin %, adjusted pre-tax income and margin %, adjusted net income, EBITDAR, adjusted EBITDAR, adjusted net debt, and leverage are non-GAAP financial measures. Adjusted operating margin % and adjusted pre-tax margin % are expressed as the related metric as a percentage of revenues. For additional information about the non-GAAP financial measures used in this press release and a reconciliation to the most comparable U.S. GAAP measure, see the \u201cNon-GAAP Financial Information\u201d section within this press release.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Financial results \nRevenues were $553.5 million, up $141.5 million, or 34.3%. The increase is primarily attributable to the 26.2% increase in block hour production, driven by the addition of 60 E175 aircraft operating for United Airlines, following the Merger. Additionally, pass-through revenues increased $49.1 million, primarily due to shop-level maintenance for the Mesa harmonization.<\/p>\n \nOperating expenses were $490.3 million, up $105.2 million, or 27.3%. The increase is primarily attributable to the expenses associated with the increase in flying operations with the 60 E175 aircraft and related associates following the Merger.<\/p>\n Balance sheet, cash, and liquidity<\/i><\/b><\/p>\n \nThe Company generated $79.0 million of operating cash flow during the third quarter of 2026. As of September 30, 2026, the Company had $290.1 million in unrestricted cash and cash equivalents and marketable securities.<\/p>\n \nTotal capital expenditures inclusive of aircraft, rotable spare parts, and pre-delivery deposits for aircraft on order totaled $28.7 million for the third quarter of 2026. The Company has 26 additional E175 aircraft on order with Embraer, with scheduled deliveries expected from 2028 through 2030.<\/p>\n \nTotal debt and operating lease liabilities at September 30, 2026 were $1.2 billion. As of September 30, 2026, the Company\u2019s adjusted net debt2 <\/sup>was $863.0 million, and Q3 2026 adjusted EBITDAR2<\/sup> was $106.8 million, resulting in trailing twelve-month leverage2<\/sup> of 2.2x.<\/p>\n Mesa Merger integration update<\/i><\/b><\/p>\n \nThe Company made significant progress integrating key support functions including maintenance and supply chain operations during the third quarter of 2026. In addition, we moved Mesa\u2019s operations center to Carmel, Indiana and continued our work to streamline several operational workstreams that will pave the way for operations under a single operating certificate.<\/p>\n \nWe expect the integration process to conclude in the first half of 2028.<\/p>\n 2026 guidance<\/i><\/b><\/p>\n \nThe Company is updating the following full year 2026 guidance, previously provided in the Q2 2026 update on July 30, 2026:<\/p>\n\n
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<\/i><\/b>Results are compared to the prior year quarterly period unless otherwise<\/i>noted.<\/i><\/p>\n
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