Republic Airways Holdings (RJET) reported a $16.9 million profit for the first quarter ended March 31, a 14 percent improvement over the $14.8 million it posted in the first 2005 quarter. Total operating revenues of $257 million increased 22.7 percent primarily because of a dramatic jump in available seat miles (ASMs) to two billion. ASMs were up 36.5% while block hours jumped 11.2 percent for the quarter. The airline added 42 Embraer 170 RJs to its fleet since March 31, 2005, some of which was offset by the removal of seven Embraer 145s and 10 Saab 340s during the same period.

Republic Holdings also reached an agreement for its subsidiary Chautauqua to operate up to 69 regional jets for Continental. However, the current operator - Express Jet (XJT) - announced last week it was retaining the jets. Calyon Analyst Ray Neidl indicated that the loss of these aircraft put the new Continental contract at serious risk since it was contingent on XJT returning the aircraft. Calls to RJET were not returned as of press time. Indeed, he indicated, since Continental will have to find planes elsewhere, it may chose to fill the void through a lesser number of 50-seat RJs. That, he said, would put the entire contract back into play.