ExpressJet, which provides regional jet service for Continental Airlines, on Wednesday posted lower second-quarter earnings as higher expenses drove down its operating margin.

Net profit fell to USD$23.3 million, from USD$24.3 million a year earlier.

In May, the airline, which operates 274 regional jets, said it will remove 69 regional aircraft it flies for Continental after the two carriers ended a capacity purchase agreement.

The former Continental unit has yet to reach a decision on what to do with the planes. Options include starting a corporate shuttle or charter service, hooking up with another airline in the United States or overseas, or flying under its own brand.

ExpressJet, like other carriers, benefited from a busy summer season during the quarter, seeing more travelers on its flights.

Operating revenue increased 7.9 percent to USD$419.4 million. Capacity at its ExpressJet Airlines unit increased 11.1 percent, while load factor rose 6.9 points to 81.1 percent.

Operating margin fell to 8.5 percent from 10.3 percent in the year-earlier quarter as expenses such as labor and fuel costs increased.

ExpressJet ended the quarter with USD$253.5 million in cash and equivalents, including USD$9.2 million in restricted cash.