Republic Airways Holdings, Inc.OTCPK - Current
Handicapping The Volatile Republic Airways
Thu, Nov. 17, 5:02 AM
- After seeking Chapter 11 protection in February, Republic Airways (OTCPK:RJETQ) plans to emerge from bankruptcy in the first quarter of 2017 under the name Republic Airline.
- The regional carrier, which feeds flights to American Airlines, Delta and United Continental, has renegotiated and extended its capacity purchase agreements with the three companies.
Thu, Mar. 10, 11:30 AM
- U.S. airline stocks aren't reaping the benefits of low fuel costs as concerns over capacity outweigh attractive valuation (the median sector forward P/E ratio is around 9.5). A bulk of the sector is in negative territory for the year.
- Recently-released traffic reports from February indicate fare pressure could increase this year.
- Airline execs have been on the hot seat about the increase in flights, but so far haven't dialed back growth plans for 2016. The closest thing to capitulation comes from JetBlue CEO Robin Hayes. "Clearly if these pricing trends continue, we will look at more of our [marginal] capacity," said Hayes.
- Despite record earnings, the problem for investors is that the sector is overrepresented by "higher turnover" investors focused on the PRASM metric, notes Wolfe Research's Hunter Keay. There's also a new focus on baggage fees and a DOJ probe on collusion in the mix.
- Capacity growth in February (Y/Y): Virgin America +21%, United Continental +7% (U.S.), Allegiant Travel +23%, American Airlines +8% (U.S.), JetBlue +20%, Southwest Airlines +14%, Delta Air Lines +11% (U.S.).
- Related stocks: AAL, LUV, HA, ALK, SAVE, VA, JBLU, UAL, RJET, ALGT, DAL.
- Related ETF: JETS.
Wed, Mar. 9, 1:56 PM
- Democratic Senators Richard Blumenthal (Conn.) and Ed Markey (Mass.) introduced a bill earlier today designed to curb excessive baggage and cancellations fees charged by airlines.
- The proposed legislation aims to limit baggage fees to only cover the costs of the baggage handlers, ticket agents, the baggage processing, or other direct costs tied to checking a bag.
- Airlines collected over $3B last year in baggage fees and ticket cancellation charges to represent almost 25% of all revenue.
- Data from the Bureau of Labor Statistics indicates that Delta Air Lines (NYSE:DAL) collects more in baggage fees than any other U.S. airline.
- Related stocks: AAL, LUV, HA, ALK, SAVE, VA, JBLU, UAL, RJET, ALGT.
- Related ETF: JETS.
- Full text of Fair Fees Act (.pdf)
Fri, Mar. 4, 6:13 PM
- Republic Airways (NASDAQ:RJET) -- up 72% in a high-volume spike yesterday -- gave a chunk of that back, falling 19.4% today, all in the wake of last week's Chapter 11 bankruptcy filing.
- The company says that Jason Secore, its VP, Finance & Treasurer, has resigned from the airline to take a similar position with airline supplier AAR.
- Secore's duties will be reassigned as part of Republic's internal reorg. The company's stock had tumbled 73% last Friday after its filing, the first major bankruptcy in U.S. airlines since 2011.
- The company said it had sufficient liquidity to continue operations during a restructuring.
Fri, Feb. 26, 6:39 PM
- California Water Service Group (NYSE:CWT) is up 4.5% after hours as it's set to join the S&P SmallCap 600 after the close on Monday, March 7.
- It'll replace New Jersey Resources (NJR, up 0.7% after hours) in that index. NJR itself is moving to the MidCap 400 to replace StanCorp Financial (NYSE:SFG), being acquired about that time by Meiji Yasuda Life Insurance.
- Also, Vera Bradley (NASDAQ:VRA) is up 4.2% in postmarket trading after it's set to join the SmallCap 600 after the close on Monday. It will replace Republic Airways (NASDAQ:RJET), which has filed for bankruptcy and is ineligible to stay in the index.
Fri, Feb. 26, 12:45 PM
Fri, Feb. 26, 9:17 AM
- Gainers: RRM +49%. SUNE +31%. AMTG +31%. SGMS +27%. STMP +26%. GOL +19%. SPLK +17%. JCP +16%. HLF +13%. BIDU +11%. SYN +10%. GLBL +8%. WLL +9%. FCX +7%. CHK +7%. PANW +8%. NRF +6%. TCK +6%. MRO +6%. KHC +6%. GRPN 5%. HLT 5%.
- Losers: RJET -83%. PPHM -60%. CARA -36%. WTW -28%. SWN -14%. GG -11%. FOLD -9%. RBS -8%. MNKD -6%. ARI -5%.
Fri, Feb. 26, 7:46 AM
- Shares of Republic Airways Holdings (NASDAQ:RJET) are down 74% to $0.90 after the company filed for bankruptcy due chiefly to pilot turmoil.
- The carrier offers feeder flights for Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL), and United (NYSE:UAL). Those flights are expected to operate as normal while the bankruptcy case proceeds.
- Republic's filing is the first major bankruptcy in the U.S. airline industry since American filed back in 2011.
- Previously: Republic Airways files for Chap. 11 bankruptcy (Feb. 25 2016)
Thu, Feb. 25, 5:13 PM
- Republic Airways (NASDAQ:RJET) has filed for Chap. 11. bankruptcy with a Southern New York U.S. bankruptcy court.
- CEO Bryan Bedford: "Over the last several months, we've attempted to restructure the obligations on our out-of-favor aircraft made so by a nationwide pilot shortage and to increase our revenues. Its become clear that this process has reached an impasse and that any further delay would unnecessarily waste valuable resources of the enterprise. Our filing today is a result of our loss of revenue during the past several quarters associated with grounding aircraft due to a lack of pilot resources, combined with the reality that our negotiating effort with key stakeholders shows no apparent prospect of a near term resolution."
- Republic says it has "sufficient assets and liquidity to meet its working capital and operating expenses during the restructuring process." Shares have been halted.
Fri, Feb. 19, 9:28 AM
- Republic Airways Holdings (NASDAQ:RJET) is up 53% over the last five trading sessions and still gaining altitude.
- Labor issues and a high level of short interest has kept volatility high on the airline stock.
- SA contributor David Sims called out RJET as a value play before the big run.
- RJET +5.44% premarket to $3.10. Shares are still down sharply YTD.
Fri, Feb. 19, 9:15 AM
Fri, Feb. 19, 9:05 AM
- Airline fares rose 1.2% M/M in January, according to the Bureau of Labor Statistics.
- The average fare during the month was 1.7% lower than the level from a year ago on an unadjusted basis.
- The bump in fares coincides with fuel costs still sitting at depressed levels for airline companies. Recent reports from carriers suggest that pricing has picked back up on the high end, while some markets remain highly competitive (Virgin America reported Q4 fares were down 9%).
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
- Related ETF: JETS.
- BLS CPI data
Fri, Feb. 12, 2:23 PM
- Republic Airways (RJET -1.9%) reports revenue passenger miles fell 12% to 738.04M in January.
- Capacity was down 15% to 1.015B available seat miles.
- Load factor +300 bps to 73%.
Tue, Feb. 9, 10:22 AM
- Airline stocks are on a rush after getting caught up in the global market sell-off.
- There are plenty of traders and analysts banging the drum that the sector isn't getting the attention it deserves for sub-$30 crude oil prices.
- Leading gainers include Spirit Airlines (SAVE +7.1%), Alaska Air Group (ALK +4%), Hawaiian Holdings (HA +2.7%), Republic Airways (RJET +4.1%), and JetBlue (JBLU +3.3%).
Wed, Jan. 20, 10:32 AM
- Nervous trading surrounds airline stocks even with oil prices reaching new lows. There was also some data released today on fares.
- Airline fares fell 1.1% M/M in December as promotional activity increased in key markets, according to the Bureau of Labor Statistics.
- The average fare in December was 3.0% lower than the level from a year ago on an unadjusted basis.
- There's been reports from industry watchers that fares have moved lower in January as carriers scrap for market share.
- Early reports from Delta and Spirit on Q4 results were strong, but the sector is sharply lower on overriding macro concerns: Southwest Airlines (LUV -4.3%), United Continental (UAL -5.1%), Delta Air Lines (DAL -4.6%), American Airlines Group (AAL -4.7%), JetBlue (JBLU -2.5%), Alaska Air Group (ALK -2.9%), Hawaiian Holdings (HA -5.7%), Spirit Airlines (SAVE +1.9%), Allegiant Travel (ALGT -0.3%), Republic Airways (RJET -6.5%), Virgin America (VA -3.4%), SkyWest (SKYW -5.8%).
- Related ETF: JETS.
- BLS CPI data
Tue, Jan. 19, 8:04 AM| Tue, Jan. 19, 8:04 AM | 2 Comments