Shares in Republic Airways Holdings Inc. shot up nearly 9 percent this morning, to $14.54 each, after the Indianapolis-based regional carrier reported profit that beat analysts' expectations.
Republic said late yesterday that it earned $17 million in the third quarter, down 16 percent from a year earlier on higher expenses. Still, the 50-cents-per-share rise outpaced the 47 cents expected by analysts surveyed by Thomson Financial.
Republic had $7.4 million in additional expenses related to the return of smaller aircraft in its fleet. Operating revenue rose 17 percent, to $385.2 million.
Earlier this month, Republic announced it would accept a lower reimbursement from American Airlines and operate two fewer aircraft for the carrier. Republic also agreed to loan long-time customer US Airways up to $35 million.