Republic Airways Faces Some Turbulence on Flight Disruptions
Republic Airways HoldingsRepublic Airways Holdings Inc. (NASDAQ: RJET) is under the gun of the U.S. Federal Aviation Administration (FAA). The organization has boosted the required flight experience for first officers by a multiple of six to a total of 1,500…
Republic Airways Holdings Inc. (NASDAQ: RJET) is under the gun of the U.S. Federal Aviation Administration (FAA). The organization has boosted the required flight experience for first officers by a multiple of six to a total of 1,500 hours. The FAA also set new limits on duty times, according to Republic Airways.
However this is exacerbating an already-unstable situation within the company. Existing workers have not been able to reach a new labor contract at competitive rates. This has the makings of something potentially catastrophic for Republic Airways.
Separately, Republic Airways said it expects to report second-quarter net income of $4 million to $5 million, or earnings per share (EPS) of $0.08 to $0.10. There are consensus analyst estimates from Thomson Reuters that call for $0.28 in EPS on $349.93 million in revenue in the second quarter.
In terms of the full year, consensus estimates call for $1.12 in EPS on $1.42 billion in revenue. Considering this recent development these could drastically change as the near-term guidance will most likely provoke a change in estimates as well.
Shares of Republic Airways closed Monday down 55.7% at $3.77 on a 52-week trading range of $3.56 to $15.36. The stock has a consensus analyst price target of $14.75. However the company has gotten some of it back in the after-hours trading session, shares were up about 1.3% at $3.82 after the close.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
