Republic Airways Raises 2026 EBITDAR Outlook After Third-Quarter Profit

The Tip Desk · November 10, 2026 · 3 min read

Adjusted EBITDAR guidance moved to $410 million to $420 million as third-quarter revenue reached $553.5 million and net income was $0.75 a share.

Republic Airways Holdings Inc. (RJET) raised its full-year 2026 adjusted EBITDAR outlook to $410 million to $420 million from $395 million to $405 million and added adjusted diluted earnings guidance of more than $3.30 a share, leaving revenue, block hours, capital expenditures and debt repayments unchanged.

The regional jet operator reported third-quarter revenue of $553.5 million, up 34.3% from a year earlier, as block-hour production rose 26.2% after the November 2025 merger with Mesa Air Group added 60 Embraer E175 aircraft flying for United Airlines. Pass-through revenue increased $49.1 million, primarily from shop-level maintenance tied to Mesa harmonization.

Operating income was $63.2 million, or an 11.4% operating margin, versus $26.9 million in the year-ago quarter. Adjusted operating income was $69.9 million, with an adjusted operating margin of 12.6%, matching the year-ago adjusted margin. Adjusted EBITDAR was $106.8 million.

Net income was $34.6 million, or $0.75 a share, compared with $6.7 million, or $0.17 a share, a year earlier. Adjusted net income was $0.85 a share. Executive separation and merger-related items were $6.7 million in the quarter, down from $25.0 million a year earlier.

Sequential revenue declined from $571.1 million in the second quarter, and year-over-year revenue growth slowed to 34.3% from 40.8% in that period. Block hours were 215,979, down from 226,815 in the second quarter, and year-over-year block-hour growth slowed to 26.2% from 35.9%. Average daily utilization was 9.5 hours.

The completion factor was 94.59%, down 1.33 points from 95.92% a year earlier and from 98.21% in the second quarter. The controllable completion factor, excluding weather, air traffic control and partner-requested cancellations, was 99.96%. President and Chief Executive Officer Matt Koscal said the company achieved that controllable factor while making progress on Mesa integration.

Operating expenses were $490.3 million, up 27.3% from a year earlier, which the company attributed primarily to flying operations with the 60 E175 aircraft and related associates. Wages and benefits were $231.1 million and maintenance and repair was $133.5 million.

The fleet stood at 314 aircraft as of September 30, 2026, including 31 leased to American Airlines and eight unallocated spares, up 66 aircraft from 248 in the third quarter of 2025. The increase included the 60 United E175s and six new Embraer deliveries. In August the company agreed with American Airlines to place five previously unallocated E170 aircraft into capacity-purchase service in December 2026. Republic has 26 additional E175s on order with Embraer, with deliveries scheduled from 2028 through 2030.

Operating cash flow was $79.0 million in the quarter. Unrestricted cash, cash equivalents and marketable securities were $290.1 million at September 30. Total debt and lease liabilities were $1.2 billion. Adjusted net debt was $863.0 million, and trailing-twelve-month leverage was 2.2 times, versus 2.8 times a year earlier. Capital expenditures inclusive of aircraft, rotable spare parts and pre-delivery deposits were $28.7 million.

The company said core support functions are substantially complete and relocated to Carmel, Indiana, and that harmonization of operational policies with the Federal Aviation Administration is on track. It expects the Mesa integration to conclude in the first half of 2028. Full-year 2026 revenue guidance remains about $2.1 billion and block-hour production about 880,000.