Republic Airways (RJET) Q1 2026 earnings summary

Executive summary

• Q1 2026 was the first full quarter post-merger with Mesa Air Group, driving significant revenue and fleet growth, and marking a return to public markets.

• Revenue rose 34% year-over-year to $527.4 million, driven by increased block hour production and expanded fleet.

• Net income was $26.9 million, nearly flat compared to the prior year, as higher operating expenses offset revenue gains.

• Leadership transitions were announced, including a new CEO and executive appointments.

• The company remains focused on integration, operational excellence, and delivering value to partners and shareholders.

Financial highlights

• Q1 2026 revenue reached $527.4 million, up 33.6% year-over-year, with adjusted EBITDAR of $100.1 million.

• Adjusted net income per diluted share was $0.73; GAAP net income was $26.9 million (net margin 5.1%).

• Operating income increased to $54.2 million; operating expenses rose 38.4% to $473.2 million, including $9.5 million in merger-related costs.

• Generated $58 million in operating cash flow; capital expenditures were $95 million, mainly for aircraft acquisitions.

• Ended quarter with $273.4 million in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Reaffirmed 2026 guidance: revenues above $2 billion, adjusted EBITDAR above $380 million, and block hour production of at least 865,000 hours.

• Capital expenditures for 2026 expected at $170 million, with $165 million in principal repayments and $75 million in new debt proceeds.

• Net leverage targeted below 2.2x by year-end 2026, with a longer-term goal below 1.5x.

• Aircraft delivery schedule with Embraer deferred, next delivery now expected in April 2028.

• Management expects cash flow from operations and existing liquidity to be sufficient for at least the next 12 months.