Even as Republic Airways Holdings Inc. reported net income of $19.3 million for the first quarter -- a 14.1 percent improvement -- it is facing increasing crew shortages that have forced it to ground aircraft. The upshot is not only lost revenue and reimbursement from partners, but the increased carrying costs for non-productive aircraft. Such costs are normally reimbursed by partners, but not when they are not flying. Indeed, its flying will be reduced by two to three percent. In addition, the attrition problem has dramatically increased the transition costs for both the Continental and USAirways programs. It originally predicted that first and second quarter costs for the transition would be $6 million. Now, however, it has adjusted its predictions adding between $11.4 million and $14.4 million. In addition, it is projecting 2008 training costs to rise to $4.5 million. Its normal attrition rate was about nine percent, but that jumped to 21 percent in the first quarter as many pilots who had been hired as part of its new deal with USAirways to fill half its classes with furloughed mainline pilots, did not show up for the January class but went back to USAirways instead. CEO Brian Bedford said that network carriers are finding that many of the pilots on its furlough rosters have left the industry entirely.