The US second-largest regional carrier says aircraft utilisation should increase as maintenance programmes combine.
Republic Airways raised its financial outlook for 2026 as it works to incorporate rival Mesa Airlines, which it acquired last year.
The second-largest regional US carrier reported net income of $31.2 million for the period ending 30 June on revenue of $571 million. It now expects full-year revenue to be around $2.1 billion, an increase from previous guidance of $2 billion.
Margins should continue to improve as Republic fully integrates Mesa’s fleet of aircraft by combining maintenance schedules to increase utilisation rates and reduce turn times, executives say. Eight aircraft remain unallocated, as well, and are available to meet any increase in demand from partners.
“Our partners want to continue to try to squeeze as much utilisation as they can out of the fleet, so we’re ready to respond, and we’re positioning the fleet to be able to capture that utilisation when available,” says chief financial officer Joe Allman.
The full financial effects of that integration should kick in by late 2027 and into 2028, he says.
Republic has 26 additional Embraer 175 aircraft on order, with the deliveries expected in 2028.
Completion factor, a measure of how many flights reach their destination without cancellation or diversion, came in at 98% for the quarter, up from 94% in the first quarter.
Republic also holds a 40% stake in Cape Air, a regional carrier serving the US Northeast, especially New England and Boston. It also has a stake in Eve Air Mobility, an electric vertical take-off and landing (eVTOL) spin-off from Embraer.
“We said 2026 would be a transformational year for Republic”, says chief executive Matt Koscal, who took over in June. “It is proving to be exactly that.”
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