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