ExpressJet Holdings CEO "pleased" with March bookings
ExpressJet Holdings, Inc. (NYSE: XJT) CEO James Ream the company is “pleased” with the quantity and quality of bookings during March. Ream made the comments during a morning conference call.
Before the opening, ExpressJet reported an adjusted fourth-quarter loss of $27.6 million, or $0.52 per share, down from adjusted earnings of $22.8 million, or $0.39 per share, a year earlier. Wall Street analysts, on average, predicted a loss of $0.31 per share.
The chief executive said the air carrier was negatively affected by a lack of functionality on its online booking system during the heavy travel periods of the fourth quarter. He said the Houston-based firm fixed the functionality and the firm’s market share has begun to improve.
Higher fuel costs, a strategy of flying airplanes under its own brand name and a reduction in passenger capacity in a contract with Continental Airlines, Inc. hurt earnings for the three-month period ended Dec. 31. Houston-based ExpressJet formerly operated as a subsidiary of Continental, flying under the Continental name to smaller cities. ExpressJet was spun out of Continental in 2002 and began flights between regional airports under its own brand name.
“Like all carriers, the issue is becoming fuel and we’re going to continue to monitor that and, as we come into the summer months, we’re going to verify that we’re generating more cash operating the aircraft than not,” Ream said.
Expenses for aircraft fuel and related taxes soared 71% to $97.2 million, from $56.8 million during the same period of 2006.
Quarterly revenue rose 2.3% to $436 million, compared with $426.4 million in the year-ago period. Analysts expected $417.7 million.
In midday trading, XJT shares are down 17.04%, or $0.38, at $1.85. Over the last 52 weeks, shares have ranged from $1.85 to $6.63.
About the Author
Reporter Will Atkinson is based in SmallCapInvestor.com's Washington, D.C. bureau.
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