ExpressJet posts third-quarter loss
NEW YORK (Reuters) - Regional carrier ExpressJet Holdings Inc (XJT.N) suffered a second-consecutive quarterly loss on Friday, burdened by costs from starting up its own scheduled service.
ExpressJet, which operates regional flights for Continental Airlines Inc (CAL.N) and began flying under its own brand in April, posted a net loss of $22.3 million, or 41 cents per share, against a year-earlier profit of $22.7 million, or 38 cents per share.
Wall Street analysts, on average, were expecting a loss of 20 cents per share for the third quarter, Reuters Estimates show.
Operating revenue rose 3 percent to $441.3 million. Analysts were expecting revenue of $407.3 million, according to Reuters Estimates.
ExpressJet was forced to find new ventures for 69 planes, or about a quarter of its fleet, after Continental canceled a capacity purchase agreement last year.
Its largest and riskiest venture is its own scheduled service with about 42 of its 50-seat aircraft, connecting secondary cities such as Oklahoma City and San Diego.
The service has struggled to attract passengers.
ExpressJet ended the quarter with 534 million revenue passenger miles and a load factor of 61 percent.
ExpressJet shares, which closed up 11.07 percent to $3.01 on Friday, have fallen about 60 percent so far this year.
(Reporting by Robert MacMillan)
