Branded Service Drags Down Republic’s Earnings

Republic Airways Holdings reported a $3.3 million net profit for the third quarter, despite the poor performance of Republic’s branded service. Republic said Midwest Airlines and Mokulele Airlines combined to post a before-tax loss of $15.9 million for the third quarter.

Midwest was on Republic’s books in August and September, as Republic closed on the Midwest acquisition on July 31. Republic also owns Frontier Airlines, but Republic didn’t close on the Frontier deal until Oct. 1.

Republic’s main business is fixed-fee flying under an airline partner’s brand. Excluding fuel reimbursements, Republic’s revenue from fixed-fee flying decreased 6.2 percent for the third quarter.

Republic said the removal of 22 jets from Continental Express operations accounted for the revenue decrease.