Posted on: 27 July 2015 by Ross McSweeny
Republic Airways Holdings has announced it expects to report a net income of between four and five million US dollars for the second quarter of 2015 (2Q15) due to 4% fewer block hours than forecasted as a result of operational disruption caused by regulatory changes and further intensified by the airline’s ongoing pilot labour dispute.
The carrier has also predicted pre-tax margins of 2.5% to 3.0% on operating revenues of $338 to $340 million.
Republic’s ongoing labour dispute with the International Brotherhood of Teamsters (IBT) – the union which represents the bargaining rights of all Republic pilots – is currently being negotiated under the supervision of the National Mediation Board.
A spokesperson for the airline commented, “The lack of a new agreement for our pilots requires the company to maintain its below market contract and is contributing to increased levels of attrition and an inability for the company to attract new pilots.”
A lack of timeline for the resolution means Republic anticipates continued operational disruption. As a result, the airline has initiated discussions with its mainline partners to take the necessary actions to both temporarily and permanently reduce scheduled flying commitments for the remainder of 2015 and the first half of 2016. In light of the anticipated fleet reductions, Republic is rescinding all previously issued financial and operational guidance.