DOW JONES NEWSWIRES
August 6, 2008 8:02 a.m.
ExpressJet Holdings Inc.'s (XJT) second-quarter loss widened amid soaring fuel prices and continued restructuring plans.
"Given the economic realities of this business and the savings provided to Continental to secure a long-term agreement, we are going to undertake a significant restructuring of our fleet and a corresponding cost reduction initiative in order to survive the current environment," said President and Chief Executive Jim Ream.
Meanwhile the regional airline partner of Continental Airlines Inc. (CAL) said it is seeking about $36 million in wage and benefit reductions from all employees. ExpressJet instituted a 5% reduction in wages and benefits on July 15.
The company reported a net loss of $31.7 million, or 62 cents a share, compared with a year-ago net loss of $26.4 million, or 49 cents a share. The latest quarter included 35 cents in write-downs.
Revenue rose 13% to $447.2 million.
ExpressJet's system revenue passenger miles - a measure of traffic that includes both contracted and ExpressJet-branded results - rose 12%, while seat capacity increased 7%. Load factor fell to 74.1% from 78%.
ExpressJet's relationship with Continental is crucial to ExpressJet's operations since about 75% of its fleet supports Continental's network. Last month, ExpressJet agreed to terminate its agreements with Delta Air Lines Inc. (DAL) effective Sept. 1 and cease its branded commercial passenger flight operations Sept. 2.
In April, SkyWest Inc. (SKYW) made an unsolicited bid to buy ExpressJet for $3.50 a share in cash, but ExpressJet rejected the offer in favor of a new capacity agreement with Continental.
Last month, ExpressJet received notice from the New York Stock Exchange that it was not complying with the minimum listing price of $1. ExpressJet shares, which have fallen nearly 95% in the past year, closed Tuesday at 30 cents and on Wednesday were up 3 cents to 33 cents a share in premarket trading.
August 6, 2008 8:02 a.m.
ExpressJet Holdings Inc.'s (XJT) second-quarter loss widened amid soaring fuel prices and continued restructuring plans.
"Given the economic realities of this business and the savings provided to Continental to secure a long-term agreement, we are going to undertake a significant restructuring of our fleet and a corresponding cost reduction initiative in order to survive the current environment," said President and Chief Executive Jim Ream.
Meanwhile the regional airline partner of Continental Airlines Inc. (CAL) said it is seeking about $36 million in wage and benefit reductions from all employees. ExpressJet instituted a 5% reduction in wages and benefits on July 15.
The company reported a net loss of $31.7 million, or 62 cents a share, compared with a year-ago net loss of $26.4 million, or 49 cents a share. The latest quarter included 35 cents in write-downs.
Revenue rose 13% to $447.2 million.
ExpressJet's system revenue passenger miles - a measure of traffic that includes both contracted and ExpressJet-branded results - rose 12%, while seat capacity increased 7%. Load factor fell to 74.1% from 78%.
ExpressJet's relationship with Continental is crucial to ExpressJet's operations since about 75% of its fleet supports Continental's network. Last month, ExpressJet agreed to terminate its agreements with Delta Air Lines Inc. (DAL) effective Sept. 1 and cease its branded commercial passenger flight operations Sept. 2.
In April, SkyWest Inc. (SKYW) made an unsolicited bid to buy ExpressJet for $3.50 a share in cash, but ExpressJet rejected the offer in favor of a new capacity agreement with Continental.
Last month, ExpressJet received notice from the New York Stock Exchange that it was not complying with the minimum listing price of $1. ExpressJet shares, which have fallen nearly 95% in the past year, closed Tuesday at 30 cents and on Wednesday were up 3 cents to 33 cents a share in premarket trading.