Republic Airways Holdings Inc. reported fourth-quarter and full-year 2025 financial results and provided guidance for full-year 2026.

Republic Airways Holdings Inc. (NASDAQ: RJET) (the "Company") today reported financial results for the fourth-quarter and full year 2025 and provided its outlook for the full year 2026.

As a result of the Merger, all operational and financial information presented herein includes 36 days of results related to Mesa operations.

For full year 2025, Republic Airways reported an 18.2% increase in block hour production over the prior year, resulting in total revenues of approximately $1.7 billion, a 13.7% increase over the same period. Pre-tax income was $113.4 million and net income per diluted share was $1.87 compared to $1.62 in 2024. Excluding executive separation and Merger-related items, adjusted pre-tax income1 was $160.5 million and adjusted net income per diluted share1 was $2.80 compared to $1.61 in the corresponding 2024 period.

As of December 31, 2025, the Company maintained a fleet of 311 E175 family aircraft up 68 aircraft, expanding its partnerships with American Airlines and United Airlines, while sustaining its strong commercial relationship with Delta Air Lines.

Commenting on the results, David Grizzle, Chief Executive Officer and Chairman of the Board of Directors said, "2025 was a transformational year for Republic. Despite the challenges of the U.S. government shutdown and disruptive weather events, our team of over 8,400 aviation professionals delivered fleet growth, exceptional operational reliability, and strong financial performance, culminating in the closing of the milestone merger with Mesa in the fourth quarter. I want to warmly welcome the over 1,600 new associates from Mesa to the Republic family."

Despite widespread disruption caused by the U.S. government shutdown and an increase in cancellations due to weather, the Company achieved revenue growth of 20.6% to $464.1 million in Q4 2025, which includes 36 days of Mesa operations, over the comparative prior year period. Pre-tax income was $16.9 million and net income per diluted share was $0.12. Adjusted pre-tax income1, excluding executive separation and Merger-related items, was $32.2 million and adjusted net income per diluted share1 was $0.54.

Other highlights

During Q4 2025, the Company recorded additional income tax expense of $8.1 million related to non-deductible items, resulting in an increase in the Company's effective tax rate for Q4 and the full year 2025.

Balance sheet, cash, and liquidity

Republic Airways generated $322.0 million of operating cash flow during the full year 2025. Republic had $296.5 million in cash and cash equivalents and marketable securities at December 31, 2025.

The Company took delivery of 12 E175 aircraft during the full year 2025, which included three aircraft deliveries in Q4 2025. The Company has 29 additional E175 aircraft on order with Embraer, with scheduled deliveries expected through 2029. Total capex inclusive of aircraft, rotable spare parts and pre-delivery deposits for the remaining aircraft on order totaled $410.7 million for the full year 2025.

Total debt and operating lease liabilities at December 31, 2025 were $1.2 billion. The Company secured financing of $299.4 million and made mandatory scheduled debt repayments of $231.6 million for the full year 2025. As of December 31, 2025, the Company's adjusted net debt1 was $928.8 million, the full year 2025 adjusted EBITDAR1 was $342.4 million, resulting in leverage ratio1 of 2.7x.

Mesa Merger

On November 25, 2025, the Company completed the Merger with Mesa Air Group, Inc. continuing as the surviving corporation. Upon closing, Mesa Air Group, Inc. was renamed Republic Airways Holding Inc. As a result of the Merger, Republic began operating 60 United-owned E175 aircraft that will fly under the United Express brand and a new multi-year operating agreement. As a result of the debt-free Merger, the Company has incurred, and expects to continue to incur, significant Merger-related costs as it continues to integrate and harmonize the Mesa Airlines and Republic Airways operations across its combined fleet. The Company incurred $26.3 million and $3.2 million in Merger-related costs in 2025 and 2024, respectively. The surviving corporation is led by the Republic Airways' leadership team.

Matt Koscal, President and Chief Commercial Officer said, "We enter 2026 with clarity and integration momentum and believe we are uniquely positioned to deliver exceptional value to our airline partners, employees, and shareholders. This new chapter strengthens our ability to perform consistently, grow strategically, and create long-term value as a leading regional airline. As we execute the Mesa integration throughout 2026 and beyond, we are focused on harmonizing our operations, strengthening our airline partnerships, and positioning Republic Airways for sustainable long-term growth."

2026 outlook

The Company is providing the following full year 2026 guidance:

Total revenues of approximately $2.0 billion

Block hour production of at least 865,000 block hours

Adjusted EBITDAR exceeding $380.0 million

Capital expenditures of approximately $90 million

Debt extinguishment of approximately $165 million

A reconciliation of the foregoing guidance for the non-GAAP metric of Adjusted EBITDAR cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.

Earnings call

The Company will host a live webcast to discuss fourth quarter and full year 2025 financial results on Wednesday, March 4, 2026, at 8:30 a.m. EST.

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