Unassociated Document

For Immediate release:

Republic Airways Holdings

Media Contact: Carlo Bertolini

Tel. (317) 484-6069

IR Contact: Timothy Dooley

Tel. (317) 487-4308

Republic Airways Holdings Announces Third Quarter 2009 Results

Indianapolis, Indiana, (November 4, 2009) – Republic Airways Holdings Inc. (NASDAQ/NM: RJET) today reported operating revenues of $359.6 million for the quarter ended September 30, 2009, a 6.7% decrease, compared to $385.2 million for the same period last year. The Company reported net income of $3.3 million for the quarter ended September 30, 2009, compared to $17.0 million reported in the prior year’s third quarter. The Company also reported earnings per diluted share of $0.09, compared to $0.50 for the same period last year. The third quarter 2009 results include August and September results for Midwest Airlines, which was acquired on July 31, 2009.

Third Quarter Financial Highlights

Total fixed-fee service revenues declined $99.7 million from prior year’s third quarter. However, excluding fuel reimbursement from our partners, fixed-fee service revenues decreased $17.6 million, or 6.2% for the third quarter of 2009 due to a reduction in block hour activity, which is the result of removing 22 aircraft from operations under our fixed-fee agreement with Continental. Seventeen of the aircraft removed were returned to the lessor, three were subleased offshore and two are expected to be subleased offshore in the first quarter of 2010. Income before taxes on the fixed-fee operations was $20.4 million for the quarter. Fixed-fee operating cost per ASM (CASM), including interest expense but excluding fuel, increased to 7.61¢ for the third quarter of 2009, from 7.57¢ for the same quarter of 2008.

Total revenues flown on our branded airlines were $73.9 million for the quarter. Load factor was 78.2% for the quarter and total revenue per ASM (TRASM) was 12.83¢. The branded operations posted a loss before taxes of $15.9 million for the third quarter. Operating cost per ASM (CASM), excluding fuel, was 10.64¢ for the third quarter of 2009.

During the quarter, the Company added five E190 and five E135 aircraft on short-term leases. These aircraft will be operated in the Company’s branded business replacing B717 and CRJ aircraft. At September 30, 2009, the Company’s fleet consisted of 228 aircraft, including six B717 aircraft that are expected to be returned to the lessor by the end of 2009.

Balance Sheet Information

At September 30, 2009 the Company had $148.7 million in cash, of which $63.2 million was restricted. This compares to $130.9 million in cash, of which $1.2 million was restricted as of December 31, 2008. The Company’s long-term debt decreased to $2.23 billion as of September 30, 2009, compared to $2.28 billion at December 31, 2008. As of September 30, 2009 all of the Company’s aircraft-related debt is at fixed interest rates and is secured by the aircraft. The Company has significant long-term lease obligations for aircraft that are classified as operating leases and are not reflected as liabilities on the Company’s consolidated balance sheets. At a 7.0% discount factor, the present value of these lease obligations was approximately $690 million as of September 30, 2009 compared to approximately $685 million reported as of December 31, 2008.

Business Developments

On July 31, 2009 the Company completed its acquisition of Milwaukee-based Midwest Airlines from TPG Capital, a Ft. Worth, Texas-based private equity firm. Republic paid TPG $6 million in cash and has issued a $25 million five-year, interest-only note, which may be converted to RJET stock at $10 per share.

On August 13, 2009 the Company announced that it had been declared the winning bidder in the auction to acquire Frontier Airlines. Pursuant to the investment agreement, Republic agreed to purchase 100% of the stock of Frontier Holdings upon its emergence from bankruptcy for $108.75 million. On October 1, 2009 the Company completed its acquisition of Frontier.

On October 14, 2009 the Company announced that it will acquire 10 Embraer 190AR jets from US Airways. Republic applied the full balance of its $35 million unsecured loan to US Airways toward the purchase of the aircraft and assumed the existing variable-rate debt on the aircraft. The aircraft are expected to enter into branded service between November 2009 and the second quarter of 2010.

On October 16, 2009 the Company entered into an agreement with Mesa Air Group, Inc. ("Mesa") to form Mo-Go, LLC, a new business partnership that will provide inter-island commercial airlines services in Hawaii. Pursuant to the Agreement, Mesa now owns 75% of Mo-Go and the former Mokulele shareholders own the remaining 25%. Additionally, the partners have agreed to capitalize the new business with up to $6.0 million, $1.5 million of which would be funded by Mokulele’s former shareholders. Republic, which was the majority shareholder of Mokulele, cancelled Mokulele’s $3.1 million outstanding debt to Republic, net of surrendered aircraft deposits. The Company expects to record a non-cash charge of approximately $5-$6 million in the 4th quarter to deconsolidate its investment in Mokulele.

Corporate Information

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Frontier Airlines, Lynx Aviation, Midwest Airlines, Republic Airlines and Shuttle America, collectively “the airlines.” The airlines offer scheduled passenger service on approximately 1,600 flights daily to 118 cities in 43 states, Canada, and Mexico under branded operations at Frontier and Midwest, and through fixed-fee airline services agreements with five major U.S. airlines. The fixed-fee flights are operated under an airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, and US Airways Express. The airlines currently employ over 11,000 aviation professionals and operate 286 aircraft.

The Company will conduct a telephone briefing to discuss its third quarter results tomorrow, November 5th, at 10:00 a.m. EST. For those wishing to participate please call 866-804-6925 and for international calls please dial 857-350-1671, the passcode is 76791934. A live Webcast of this briefing will also be available online at www.rjet.com - investor relations.

Additional Information

In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars and Shares in Thousands, Except per Share Amounts)

(Unaudited)

Financial Highlights	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Change			2009			2008			Change
OPERATING REVENUES
Fixed-fee service	$	281,415		$	381,121			-26.2	%	$	913,524		$	1,127,681			-19.0	%
Passenger service		64,876			-		NM				70,388			-		NM
Cargo and other		13,336			4,127			223.1	%		20,982			12,823			63.6	%
Total operating revenues		359,627			385,248			-6.7	%		1,004,894			1,140,504			-11.9	%

OPERATING EXPENSES
Wages and benefits		76,864			61,898			24.2	%		207,446			190,627			8.8	%
Aircraft fuel		39,477			97,613			-59.6	%		100,179			279,974			-64.2	%
Landing fees and airport rents		20,026			15,340			30.5	%		55,434			45,085			23.0	%
Aircraft and engine rent		33,592			33,422			0.5	%		95,400			101,319			-5.8	%
Maintenance and repair		58,852			45,630			29.0	%		151,487			124,723			21.5	%
Insurance and taxes		6,648			6,255			6.3	%		19,930			18,295			8.9	%
Depreciation and amortization		38,398			35,666			7.7	%		112,002			99,149			13.0	%
Promotion and sales		5,341			-		NM				5,341			-		NM
Goodwill Impairment		-			-			0.0	%		13,335			-		NM
Other		43,834			29,220			50.0	%		109,340			89,553			22.1	%
Total operating expenses		323,032			325,044			-0.6	%		869,894			948,725			-8.3	%
OPERATING INCOME		36,595			60,204			-39.2	%		135,000			191,779			-29.6	%

OTHER INCOME (EXPENSE)
Interest expense		(34,862	)		(33,762	)		3.3	%		(105,246	)		(96,572	)		9.0	%
Other income		2,779			1,280			117.1	%		10,418			11,167			-6.7	%
Total other income (expense)		(32,083	)		(32,482	)		-1.2	%		(94,827	)		(85,405	)		11.0	%

INCOME BEFORE INCOME TAXES		4,512			27,722			-83.7	%		40,172			106,374			-62.2	%

INCOME TAX EXPENSE		1,864			10,715			-82.6	%		23,894			40,786			-41.4	%

NET INCOME (INCLUDING NONCONTROLLING INTERESTS)		2,648			17,007			-84.4	%		16,278			65,588			-75.2	%

Net loss (income) attributable to noncontrolling interest in MFSI		(623	)		-		NM				(3,270	)		-		NM

NET INCOME OF THE COMPANY		3,271			17,007			-80.8	%		19,548			65,588			-70.2	%
PER SHARE, BASIC	$	0.09		$	0.50			-82.0	%	$	0.57		$	1.87			-69.5	%
PER SHARE, DILUTED	$	0.09		$	0.50			-82.0	%	$	0.57		$	1.86			-69.4	%
Weighted Average Common Shares
Basic		34,449			34,169			0.8	%		34,449			35,084			-1.8	%
Diluted		34,529			34,169			1.1	%		34,462			35,196			-2.1	%

Unaudited Operating Highlights

Operating Highlights – Fixed Fee	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Change			2009			2008			Change
Fixed-fee service revenues, excluding fuel (000)	$	265,899		$	283,508			-6.2	%	$	839,473		$	847,707			-1.0	%
Passengers carried		4,881,571			4,884,439			-0.1	%		14,365,238			14,418,453			-0.4	%
Revenue passenger miles (000)		2,510,784			2,456,925			2.2	%		7,359,971			7,394,022			-0.5	%
Available seat miles (000)		3,242,019			3,290,132			-1.5	%		9,930,228			9,957,376			-0.3	%
Passenger load factor		77.4	%		74.7	%	2.7		pts		74.1	%		74.3	%	-0.2		pts
Cost per available seat mile, including interest expense (cents) ¹		8.09			10.54			-23.2	%		8.55			10.26			-16.7	%
Fuel cost per available seat mile (cents)		0.48			2.97			-83.8	%		0.75			2.81			-73.3	%
Cost per available seat mile, including interest and excluding fuel expense (cents) ¹		7.61			7.57			0.5	%		7.80			7.45			4.7	%
Operating Aircraft at period end: ³
37-50 seat jets		79			101			-21.8	%		79			101			-21.8	%
70-86 seat jets		113			119			-5.0	%		113			119			-5.0	%
Block hours		165,779			183,293			-9.6	%		518,255			565,208			-8.3	%
Departures		97,897			107,072			-8.6	%		304,905			321,268			-5.1	%
Average daily utilization of each aircraft (hours)		9.4			10.0			-6.0	%		9.8			10.2			-3.9	%
Average length of aircraft flight (miles)		500			496			0.8	%		495			508			-2.6	%
Average seat density		66			62			6.5	%		66			61			8.2	%

Operating Highlights – Branded ²	Three Months Ended September 30,			Nine Months Ended September 30,
	2009			2009
Total revenues		73,892			79,904
Passengers carried		669,901			757,933
Revenue passenger miles (000)		450,437			462,598
Available seat miles (000)		575,785			607,183
Passenger load factor		78.2	%		76.2	%
Total revenue per ASM (cents)		12.83			13.16
Passenger revenue per ASM (cents)		11.27			11.59
Cost per available seat mile (cents) ¹		14.78			15.67
Fuel cost per available seat mile (cents)		4.14			4.26
Cost per available seat mile, excluding fuel expense (cents) ¹		10.64			11.41
Operating Aircraft at period end: ³
37-50 seat jets (including ten aircraft operated by regional partner)		12			12
70-99 seat jets		25			25
Block hours		23,346			25,660
Departures		15,422			18,695
Average daily utilization of each aircraft (hours)		10.0			10.0
Average length of aircraft flight (miles)		551			476
Average seat density		68			68

¹ Costs (in all periods) exclude expenses not attributable to either fixed-fee or branded segments (e.g. subleased aircraft and amortization of slots).

² Includes Mokulele from April 2009 to September 2009 and Midwest from August and September 2009.

³ Excludes six idle 37-50 seat aircraft and three idle 70-99 seat aircraft.