ExpressJet, SkyWest Hit By Falling Travel Demand

US regional airlines, ExpressJet and SkyWest said Wednesday their first-quarter results were weakened by shrinking travel demand in the recession.

ExpressJet, which provides regional flights for Continental Airlines, said its first-quarter net loss shrank to USD$11.4 million, or 67 cents per share, from a USD$35.7 million loss, or $6.96 a share, a year ago.

Excluding items, the company posted a loss of 62 cents per share. Revenue fell 62.1 percent to USD$1.7 billion.

ExpressJet operates more than 87 percent of its fleet through Houston-based Continental.

SkyWest, which flies for Delta Air Lines and United Airlines, posted a smaller quarterly profit, hurt by falling travel demand and the grounding of some flights at its Atlanta hub.

The company reported net income of USD$9.4 million or 16 cents per share, compared with a profit of USD$29.1 million or 47 cents per share a year ago.

Revenue declined 22 percent to USD$673 million.

The carrier warned last month that results would trail expectations after its Atlantic Southeast Airlines unit grounded 60 jets for engine inspections.

The unit also experienced "significant" weather-related cancellations in Atlanta, the company said.

(Reuters)