Republic Airways (RJET) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 40.8% year-over-year to $571.1 million, driven by a 35.9% increase in block hour production and the Mesa merger, with strong partner demand and improved operational performance.

• Net income for Q2 2026 was $31.2 million (5.5% margin), down 16.6% from Q2 2025, reflecting higher operating and integration costs.

• Adjusted net income per diluted share was $0.89, with adjusted EBITDAR of $109.6 million and a margin of 18.8%.

• Integration of Mesa Air Group is ahead of schedule, with substantial progress in regulatory, IT, and operational harmonization.

• Matt Koscal was appointed President and CEO in June 2026, with David Grizzle transitioning to non-executive Chairman.

Financial highlights

• Q2 2026 revenues: $571.1 million (+40.8% YoY); adjusted EBITDAR: $109.6 million; adjusted pre-tax income: $57.4 million.

• Net income: $31.2 million (5.5% margin); adjusted net income: $41.3 million ($0.89 per diluted share).

• Operating expenses increased 45.9% YoY, mainly from higher wages, maintenance, and merger-related costs.

• Unrestricted cash and marketable securities stood at $277.6 million as of June 30, 2026; total debt and lease liabilities were $1.2 billion.

• Adjustments included $13.6 million in executive separation and merger-related items.

Outlook and guidance

• Full-year 2026 revenue guidance raised to ~$2.1 billion (from ~$2.0 billion); block hour production guidance increased to at least 880,000.

• Adjusted EBITDAR guidance for 2026 increased to $395–$405 million.

• Capital expenditures for 2026 expected to be ~$90 million, with ~$165 million in debt repayments.

• 26 additional Embraer E175 aircraft on order, with deliveries scheduled from 2028 to 2030.

• Anticipates becoming a cash tax-paying entity in 2028 as NOLs are utilized.