Analysis: ExpressJet posted smaller fourth quarter and year-end profits due to higher expenses and new terms in its Continental operating agreement. While expenses were up 10 percent in the fourth quarter, ExpressJet's revenue was up less than 5 percent. Under the terms of its operating pact, ExpressJet was limited last year to a 10 percent profit margin compared to 14 percent in 2004. As a result, ExpressJet returned $23.4 million to Continental. The regional unit ended the year with a cash balance of $236.5 million.

Analysis: Mesa's net income for its first quarter dipped by about $900,000 as the regional carrier made one-time charges due to a debt refinancing. Revenue was up 22 percent as available seat miles grew by 16 percent. The carrier is now flying 145 RJs compared to 132 a year ago. Expenses were up 24 percent for the quarter. Mesa paid $37 million more in fuel costs. The average price in the most recent quarter was $2.03 per gallon whereas a year ago it was $1.39 per gallon. The larger fleet consumed 6 million additional gallons. Mesa's contract with America West does not permit passing on 100 percent of the fuel bill. In addition, Air Midwest - which lacks capacity-purchase code-share agreements - must cover its entire fuel bill.

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Source: Company reports