Republic Airways Holdings Inc. hit the mark late last month when it warned investors that second quarter financial results would be worse than expected due to an ongoing labor dispute with pilots.
The $3.85 million project would allow the regional carrier to train as many as 5,000 employees per year.
Republic Airways Holdings Inc. shares soared Wednesday morning to their biggest-ever intraday gain, clawing back from a record plunge earlier this week caused by concern that a pilot shortage will disrupt the regional flying it does for bigger U.S. carriers.
Republic Airways Holdings Inc. stock dove Monday morning after the Indianapolis-based company slashed its profit outlook and warned of more flight interruptions from an ongoing labor dispute with pilots.
The Teamsters sued Republic, Shuttle America and parent Republic Airways Holdings Inc. last week in federal district court in Indianapolis. The union, which has been negotiating for a new contract since 2007, said the extra pay undercuts its bargaining position.
Republic CEO Bryan Bedford told investors that crew-related flight cancellations rose throughout the first quarter and continued at a high level in April and May. The labor shortage will reduce revenue by an estimated $15 million this year, the company said.
Indianapolis-based Republic Airways Holdings Inc. has spent the past year since selling its passenger service, Frontier Airlines, getting back to its basics of contract flying and trying to ramp up profit in part by transitioning to a fleet of larger planes.
Indianapolis-based Republic Airways Holdings Inc. on Tuesday reported higher revenue and profit in the third quarter.
Indianapolis-based Republic Airways Holdings Inc. provides scheduled passenger services on approximately 1,390 flights daily to 118 cities in the U.S. and Canada through flights operated under airline partner brands including American Eagle, Delta Connection, United Express and US Airways Express.
Republic’s CEO said he was pleased to see improved results despite “the most severe weather events in a single quarter” he’s seen in his 27-year career. The company’s shares surged more than 9 percent Thursday morning.
The nation's regional airlines are having trouble hiring enough pilots, the government says, suggesting one reason may be that they simply don’t pay enough. The average starting salary for co-pilots at regional airlines is $22,400 a year.
Indianapolis-based Republic said full-year profit fell from $51.3 million in 2012 to $26.7 million in 2013 after a loss from discontinued operations of $21.6 million.
On-time statistics for such carriers as United, American and Delta don’t include tardy flights by their regional partners, such as Indianapolis-based Republic Airways.