ExpressJet Holdings CEO: Company may go private
ExpressJet Holdings, Inc. (NYSE: XJT) shares jumped after the operator of regional flights said it may go private and investors hoped for a renewed contract with Continental Airlines, Inc. (NYSE: CAL). Before the opening, the firm reported a net loss of $22.3 million, or $0.41 per share, below analyst expecting a loss of $0.25 per share and compared with a profit of $22.7 million, or $0.38 per share, a year earlier.
"We have a lot of interest in that. We've got a lot of folks that are contacting us, and we're having some of those conversations," CEO Jim Ream said during a conference call in response to an analyst’s question about going private. "That may in fact be something that the board considers."
Operating revenues rose slightly to $441.3 million, above analyst estimates of $407.3 million and compared with $428.6 million during the same period of 2006.
"We finished our transition of aircraft during the third quarter and continue to be pleased with how well the ExpressJet employees did in delivering the very best customer service,” CEO Jim Ream said in a statement. “The quarter reflects the anticipated market development challenges associated with all of the new flying and the operational inefficiencies that come from a very rapid deployment into all of our new markets.”
Houston-based ExpressJet’s were negatively impacted after Continental canceled a capacity purchase agreement the company had with 69 of its aircraft. ExpressJet was spun off from Continental Airlines in 2002.
Shares of XJT closed up 16.28%, or $0.49, at $3.50. Over the last 52 weeks, shares have ranged from $2.65 to $9.61.
