Republic Airways Holdings Inc. (NASDAQ: RJET)

Republic Airways Holdings Inc. is the second largest independent regional airline in the United States based on total fleet and daily departures. The airline operates a fleet of 275 regional jet aircraft and provides scheduled passenger service on approximately 1,300 daily flights to about 130 cities in the United States, Canada, Mexico, and the Caribbean. All flights are flown under Capacity Purchase Agreements with American Airlines, Delta Air Lines, and United Airlines and are branded as American Eagle, Delta Connection, or United Express.

Revenue is generated primarily through fixed payments received under Capacity Purchase Agreements with partner airlines. These payments include a monthly fee per aircraft in service plus additional amounts for each departure flight hour or block hour flown. The company also receives reimbursement for certain direct operating expenses such as insurance and property taxes while the partner airlines bear the cost of fuel landing fees and gate access. Because the partner airlines pay fuel costs directly the company’s revenue is not materially affected by changes in ticket prices, passenger load factors, or fuel prices.

Republic Airways Holdings Inc. ranks as the second largest independent regional airline in the United States trailing only SkyWest Airlines in fleet size and daily departures. Its main competitors include Endeavor Air, Envoy Air, PSA Airlines, and Piedmont Airlines. The company holds a competitive advantage through long duration contracts with American Airlines, Delta Air Lines, and United Airlines that extend into the 2030s providing revenue visibility and reducing exposure to volatile factors such as fuel prices and fare fluctuations. Operational excellence is highlighted by a controllable completion factor of 99.99% for the year ended December 31, 2025 indicating high reliability. Additionally the airline’s diversified customer base across three major carriers helps mitigate reliance on any single partner.

The company’s customers are the major airlines with which it holds Capacity Purchase Agreements namely American Airlines, Delta Air Lines, and United Airlines. Under these agreements Republic Airways Holdings Inc. operates flights branded as American Eagle, Delta Connection, or United Express and the partner airlines sell tickets to the traveling public. The airline does not directly serve end user passengers but provides capacity to the partner airlines who bear the revenue risk from ticket sales.