ExpressJet Airlines Reports $5 Million Financial Loss During 2nd Quarter
ExpressJet Airlines reported on Wednesday a $5 million loss during the second quarter (2Q) of the current fiscal year, ExpressJet Holdings Inc., the parent company of the airline operator, announced.
The five million financial loss or $.027 per diluted share excluded special items primarily related to non-cash adjustments of deferred tax assets and impairment of fixed assets. Including those special items, the amount loss totaled $18.6 million or $0.99 per diluted share.
After June 30, ExpressJet reported a loss, excluding special items, of $18.2 million or $1 per diluted share. Including the fore mentioned items, the airline operator losses increased to $34.7 million or $1.92 per diluted share for the first six months of the year. In order to reduce further losses, ExpressJet signed a definitive merger agreement with SkyWest Inc.
“Through the hard work of the ExpressJet employees, we made progress during the quarter towards our goals of reducing operating losses and achieving positive operating cash flows,” said Tom Hanley, President and Chief Executive Officer of ExpressJet.
According to the conditions on the merger agreement, SkyWest will acquire all of the outstanding common shares of ExpressJet for $6.75 per share in cash. Following the closure of the transaction and after receiving all required regulatory approvals, SkyWest intends to merge ExpressJet with its subsidiary Atlantic Southeast Airlines.
“We will continue to pursue these goals while we work to close the SkyWest, Inc. transaction and stay focused on our commitment of providing safe and reliable air transportation, while delivering ExpressJet quality service every day,” Hanley added.
ExpressJet generated $207 million in revenues from April to June, in contrast with the $107.6 million from the same period in 2009. For the first semester of the year, the airline operator had $396.3 in revenues versus $340.3 million in 2009.
The progress was possible in part due to its Operation: Green Light Plan, a multi-phase plan aimed at saving up to $0 million in run-rate costs savings by 2012. ExpressJet expects to save between $4 million and $5 million by the end of the year.