Republic Airways (RJET) 8-K Republic Airways Holdings Announces Third Quarter 2008 Results

Exhibit 99.1

For Immediate release:

Contact: Timothy P. Dooley

Republic Airways Holdings

Tel. (317) 487-4308

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Republic Airways Holdings Announces Third Quarter 2008 Results

Indianapolis, Indiana,(October 29, 2008) – Republic Airways Holdings Inc. (NASDAQ/NM: RJET) today reported operating revenues of $385.2 million for the quarter ended September 30, 2008, a 16.7% increase, compared to $330.1 million for the same period last year.  The Company reported net income of $17.0 million compared to $20.2 million reported in the prior year’s third quarter and earnings per diluted share was $0.50, compared to $0.49 for the same period last year. 

Third Quarter Highlights

Excluding reimbursement for fuel expense, which is a pass-through cost to our partners, regional airline service revenues increased 11.5% for the third quarter of 2008.  This increase was primarily a result of an 8.2% increase in available seat miles (ASMs) and a 3.8% increase in block hours.  The Company also recognized approximately $7.9 million of deferred revenue related to the removal of the E135 fleet from Delta.

Total operating expenses for the third quarter of 2008, including interest expense but excluding fuel charges (which are reimbursable by the Company’s major partners), of $261.2 million, increased approximately 14.6% from $227.9 million for the same quarter of 2007.  Operating cost per ASM (CASM), including interest expense but excluding fuel was 7.94¢ for the third quarter of 2008.  During the quarter the Company incurred expenses totaling $7.4 million including an accrual for the estimated return costs of the E135 aircraft and an adjustment to the carrying value of these assets to their future sales price.  The Company also incurred carrying costs on unallocated E170 aircraft of approximately $8.0 million.  Excluding these two items, CASM decreased to 7.48¢ for the third quarter of 2008, from 7.50¢ for the same quarter of 2007.  As discussed below, all but one of the 17 aircraft previously under contract with Frontier Airlines will be redeployed to Midwest Airlines and Mokulele Airlines.

During the quarter the Company took delivery of six new E175 regional jets.  One was placed into fixed-fee service for US Airways and five have been placed into fixed-fee service for Delta.   The Company entered into fixed-rate debt financing arrangements for these aircraft.  The Company also returned one 37-seat E135 aircraft to the lessor during the quarter.  At September 30, 2008, the Company’s fleet consisted of 233 regional jet aircraft.

In July 2008, the Company received notice from United Air Lines that United was exercising its right to early terminate the United Express Agreement that provides for the Company to operate seven 50-seat E145 aircraft.  The termination will be effective December 31, 2009.  The agreement to operate 38 E170 aircraft is unaffected by United's termination letter and there is no early termination provision in the E170 agreement.

Also in July 2008, the Company announced that it and Delta Air Lines had reached agreement to remove the final eleven 37-seat E135 aircraft from service effective September 30, 2008. The aircraft were originally scheduled to be removed between November 2008 and April 2009.  All eleven of the E135 aircraft removed are under agreement to be sold by April 2009 at a specified price.

In August 2008, the Company agreed to participate with two other creditors in providing a debtor-in-possession (DIP) firm financing commitment of $30 million to Frontier, subject to customary closing conditions. The Company’s portion of this commitment was $12.5 million.  Any additional funding is at the sole discretion of the lenders.

In September 2008, the Company announced that it had reached an agreement with Midwest Airlines to provide 12, 76-seat E170 jets operating as Midwest Connect with initial service beginning October 1, 2008.  All 12 aircraft will be in operation by November 15, 2008.  The Company also made available to Midwest a one year term loan facility in the amount of $25 million, which has been fully drawn, including $10 million that was funded today.

Recent Developments

On October 15, 2008, the Company announced that it had reached an agreement with Mokulele Airlines of Hawaii to operate four, 70-seat E170 jets under a 10-year capacity-purchase agreement beginning November 19, 2008. The Company will provide up to $8.0 million in direct financing to Mokulele in the form of a line of credit, which can be converted, at the Company's option, for up to 45% of the common stock of Mokulele.

On October 23, 2008, the Company announced that it had entered into a loan agreement with US Airways to provide up to $35 million in two tranches.  The first tranche of $10 million has been funded.  At US Airways’ option and subject to certain other conditions, the second tranche of $25 million may be funded on March 31, 2009.

On October 24, 2008, the Company announced that it had reached an agreement with American to amend its airline services agreement.  The Company will lower its reimbursement paid by American by approximately 3%, effective April 1, 2009 and will also reduce the number of aircraft operated under the agreement by two to 13, effective June 1, 2009.  Also, the amendment includes an extension of the date on which American may early terminate the agreement by three years, to March 2012.

Balance Sheet Information

At September 30, 2008 the Company had $134.2 million in cash and cash equivalents compared to $164.0 million as of December 31, 2007.  The Company’s long-term debt increased to $2.16 billion as of September 30, 2008, compared to $1.91 billion at December 31, 2007. All of the Company’s long-term debt is at fixed interest rates and is secured by the aircraft.  The Company also has significant long-term operating lease obligations.  At a 7% discount factor, the present value of these lease obligations was approximately $700 million as of September 30, 2008.

Corporate Information

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 99 cities in 34 states, Canada, Mexico and Jamaica through airline services agreements with six U.S. airlines. All of the airlines' flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, Midwest Connect, United Express and US Airways Express. The airlines currently employ approximately 4,500 aviation professionals and operate 234 regional jet aircraft.

The Company will conduct a telephone briefing to discuss its third quarter results tomorrow, October 30th, at 11:00 a.m. EDT. For those wishing to participate please call 800-638-5439 and for international calls please dial 617-614-3945, the password is 47577200.  A live Webcast of this briefing will also be available online at www.rjet.com - investor relations.

Additional Information

In addition to historical information, this release contains forward-looking statements.  Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events.  Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements.  All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date.  Republic Airways assumes no obligation to update any forward-looking statement.  Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.

REPUBLIC AIRWAYS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and Shares in Thousands, Except per Share Amounts)
(Unaudited)
Financial Highlights	Three Months Ended September 30,									Nine Months Ended September 30,
	2008			2007			Change			2008			2007			Change
OPERATING REVENUES
Regional airline services	$	381,121		$	325,974			16.9	%	$	1,127,681		$	926,861			21.7	%
Other		4,127			4,108			0.5	%		12,823			13,977			-8.3	%
Total operating revenues		385,248			330,082			16.7	%		1,140,504			940,838			21.2	%
OPERATING EXPENSES
Wages and benefits		61,898			58,187			6.4	%		190,627			163,685			16.5	%
Aircraft fuel		97,613			71,682			36.2	%		279,974			216,815			29.1	%
Landing fees		15,340			14,140			8.5	%		45,085			39,376			14.5	%
Aircraft and engine rent		33,422			33,706			-0.8	%		101,319			91,037			11.3	%
Maintenance and repair		45,630			36,115			26.3	%		124,723			95,601			30.5	%
Insurance and taxes		6,255			5,567			12.4	%		18,295			14,216			28.7	%
Depreciation and amortization		35,666			27,061			31.8	%		99,149			77,729			27.6	%
Other		29,220			26,197			11.5	%		89,553			75,577			18.5	%
Total operating expenses		325,044			272,655			19.2	%		948,725			774,036			22.6	%
OPERATING INCOME		60,204			57,427			4.8	%		191,779			166,802			15.0	%
OTHER INCOME (EXPENSE)
Interest expense		(33,762	)		(26,903	)		25.5	%		(96,572	)		(78,435	)		23.1	%
Other income		1,280			3,108			-58.8	%		11,167			9,030			23.7	%
Total other income (expense)		(32,482	)		(23,795	)		36.5	%		(85,405	)		(69,405	)		23.1	%
INCOME BEFORE INCOME TAXES		27,722			33,632			-17.6	%		106,374			97,397			9.2	%
INCOME TAX EXPENSE		10,715			13,462			-20.4	%		40,786			38,906			4.8	%
NET INCOME		17,007			20,170			-15.7	%		65,588			58,491			12.1	%
PER SHARE, BASIC	$	0.50		$	0.50			0.0	%	$	1.87		$	1.41			32.6	%
PER SHARE, DILUTED	$	0.50		$	0.49			2.1	%	$	1.86		$	1.38			34.8	%
Weighted Average Common Shares
Basic		34,169			40,583			-15.8	%		35,084			41,502			-15.5	%
Diluted		34,169			40,868			-16.4	%		35,196			42,315			-16.8	%

Unaudited Operating Highlights
Operating Highlights	Three Months Ended September 30,									Nine Months Ended September 30,
	2008			2007			Change			2008			2007			Change
Regional airline services revenue, excluding fuel (000)		283,508			254,292			11.5	%		847,707			710,046			19.4	%
Passengers carried		4,884,439			4,435,108			10.1	%		14,418,453			11,820,385			22.0	%
Revenue passenger miles (000)		2,456,925			2,343,771			4.8	%		7,394,022			6,248,072			18.3	%
Available seat miles (000)		3,290,132			3,039,510			8.2	%		9,957,376			8,293,452			20.1	%
Passenger load factor		74.7	%		77.1	%	-2.4		pts		74.3	%		75.3	%	-1.0		pts
Cost per available seat mile, including interest expense (cents)		10.91			9.86			10.6	%		10.50			10.27			2.2	%
Fuel cost per available seat mile (cents)		2.97			2.36			25.8	%		2.81			2.61			7.7	%
Cost per available seat mile, including interest and excluding fuel expense (cents)		7.94			7.50			5.9	%		7.69			7.66			0.4	%
Operating Aircraft at period end:
37-50 seat regional jets		114			118			-3.4	%		114			118			-3.4	%
70+ seat regional jets		119			93			28.0	%		119			93			28.0	%
Block hours		183,293			176,623			3.8	%		565,208			492,241			14.8	%
Departures		107,072			100,168			6.9	%		321,268			276,532			16.2	%
Average daily utilization of each aircraft (hours)		10.0			10.3			-2.9	%		10.2			10.3			-1.0	%
Average length of aircraft flight (miles)		496			523			-5.2	%		508			522			-2.7	%