News Release

Republic Airways Holdings Announces Third Quarter 2006 Results

INDIANAPOLIS--(BUSINESS WIRE)--Oct. 25, 2006--Republic Airways Holdings Inc. (NASDAQ:RJET) today reported operating revenues of $306.1 million for the quarter ended September 30, 2006, a 33.0% increase, compared to $230.2 million for the same period last year. The Company reported net income of $21.9 million for the quarter ended September 30, 2006, a 57.0% improvement over the $14.0 million reported in the prior year's third quarter (the prior year's third quarter results included an after tax expense of $2.0 million for payments made to AMR Corporation related to the operation of 70-seat aircraft on the Chautauqua operating certificate). The Company also reported earnings per diluted share of $0.50 for the quarter, an increase of 42.9% compared to $0.35 for the same period last year.

The primary items of significance affecting the third quarter of 2006 are outlined below.

Third Quarter Highlights

Total operating revenues for the third quarter of 2006 increased primarily as a result of a 46.5% increase in available seat miles (ASMs) to 2.5 billion ASMs, up from 1.7 billion ASMs, and a 23.9% increase in block hours. These increases reflect the addition of 40 E170 regional jet aircraft, which were placed into service since September 30, 2005, offset by the removal of seven E145 regional jet aircraft during the same time period.

Total operating expenses for the third quarter of 2006, including interest expense but excluding fuel charges (which are reimbursable by the Company's partners), of $182.8 million, increased 32.6% from $137.8 million for the same quarter of 2005. Operating cost per ASM (CASM), including interest expense but excluding fuel, decreased 9.5% to 7.37 cents compared to the prior year's 8.14 cents.

During the quarter the Company took delivery of four new E170 aircraft and entered into 15-year, fixed rate debt financing arrangements for all four aircraft. During the quarter the Company also purchased five of its E145 aircraft that were under long-term leases and entered into 10-year, fixed rate debt financing arrangements for the five aircraft. At September 30, 2006, the Company's fleet consisted of 170 regional jets including 75 E170 aircraft.

On July 21st, the Company announced that it had reached an agreement to operate forty-four, 50-seat regional jets for Continental Airlines. Twenty of the aircraft will be E145 regional jets that will be transitioned from the Company's current US Airways Express operations. The Company has also entered into definitive agreements to lease 12 used CRJ-200 regional jets and has a letter of intent to lease 12 additional used CRJ-200 regional jets under terms and conditions consistent with the Company's agreement with Continental. All 44 of the aircraft are expected to be placed into service for Continental between January and July 2007 and will be operated for terms that vary from two years to five years. Under certain conditions Continental may extend the term on the aircraft up to five additional years.

Also in July, the Company announced that it had reached agreements with US Airways and Embraer to take delivery of thirty, 86-seat E175 aircraft and to place these aircraft into service for US Airways between February 2007 and the summer of 2008. The new, twelve-year agreement with US Airways also included the removal of the twenty, 50-seat E145 aircraft which will be repositioned to operate under the new Continental agreement.

Balance Sheet Information

At September 30, 2006 the Company had $172.8 million in cash and cash equivalents compared to $162.0 million as of December 31, 2005. The Company made $41.6 million in aircraft deposits during the quarter, bringing its aircraft deposit balance to $48.9 million as of September 30, 2006. The Company's long-term debt increased to $1.57 billion as of September 30, 2006, compared to $1.41 billion at December 31, 2005. All of the Company's long-term debt carry fixed interest rates, and is secured by the aircraft. The Company also has significant long-term operating lease obligations. At a 7% discount factor, the present value of these lease obligations was approximately $735 million as of September 30, 2006.

Corporate Information

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on over 1,000 flights daily to 91 cities in 36 states, Canada, Mexico and the U.S. Virgin Islands through airline services agreements with four major U.S. airlines. Substantially all flights are operated under a major airline partner brand, consisting of AmericanConnection, Delta Connection, United Express and US Airways Express. As of September 30, 2006, the airlines employed more than 3,500 aviation professionals and operated 170 regional jet aircraft including 75 E170 aircraft.

The Company will conduct a telephone briefing to discuss its third quarter results tomorrow, October 26th at 1:00 p.m. EDT. For those wishing to participate please call 866-831-6272 and for international calls please dial 617-213-8859; the pass code is 34170344. A live Web cast of this briefing will also be available online at www.rjet.com - investor relations.

Additional Information

In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways' beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.

           REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF INCOME
     (Dollars and Shares in Thousands, Except per Share Amounts)
                             (Unaudited)
----------------------------------------------------------------------
                        Three Months Ended       Nine Months Ended
Financial Highlights      September 30,            September 30,
                     ------------------------ ------------------------
                       2006     2005   Change   2006     2005   Change
--------------------------------------------- ------------------------
OPERATING REVENUES
--------------------------------------------- ------------------------
   Passenger         $301,314 $227,365  32.5% $828,920 $643,402  28.8%
--------------------------------------------- ------------------------
   Other                4,818    2,873  67.7%   18,869    9,843  91.7%
--------------------------------------------- ------------------------
        Total
         operating
         revenues     306,132  230,238  33.0%  847,789  653,245  29.8%
--------------------------------------------- ------------------------

--------------------------------------------- ------------------------
OPERATING EXPENSES
--------------------------------------------- ------------------------
   Wages and benefits  46,415   38,679  20.0%  130,155  105,482  23.4%
--------------------------------------------- ------------------------
   Aircraft fuel       89,766   71,193  26.1%  248,426  199,540  24.5%
--------------------------------------------- ------------------------
   Landing fees        11,382    8,183  39.1%   30,468   22,961  32.7%
--------------------------------------------- ------------------------
   Aircraft and
    engine rent        25,130   19,849  26.6%   69,876   57,508  21.5%
--------------------------------------------- ------------------------
   Maintenance and
    repair             28,953   19,004  52.4%   75,856   56,580  34.1%
--------------------------------------------- ------------------------
   Insurance and
    taxes               4,710    4,363   8.0%   13,980   12,479  12.0%
--------------------------------------------- ------------------------
   Depreciation and
    amortization       23,824   15,945  49.4%   67,322   43,944  53.2%
--------------------------------------------- ------------------------
   Other               19,398   15,597  24.4%   54,675   45,818  19.3%
--------------------------------------------- ------------------------
        Total
         operating
         expenses     249,578  192,813  29.4%  690,758  544,312  26.9%
--------------------------------------------- ------------------------
OPERATING INCOME       56,554   37,425  51.1%  157,031  108,933  44.2%
--------------------------------------------- ------------------------

--------------------------------------------- ------------------------
OTHER INCOME
 (EXPENSE)
--------------------------------------------- ------------------------
   Interest expense   (22,942) (16,217) 41.5%  (66,772) (42,508) 57.1%
--------------------------------------------- ------------------------
   Other income         2,633    1,792  46.9%    7,247    3,184 127.6%
--------------------------------------------- ------------------------
        Total other
         income
         (expense)    (20,309) (14,425) 40.8%  (59,525) (39,324) 51.4%
--------------------------------------------- ------------------------

--------------------------------------------- ------------------------
INCOME BEFORE INCOME
 TAXES                 36,245   23,000  57.6%   97,506   69,609  40.1%
--------------------------------------------- ------------------------

--------------------------------------------- ------------------------
INCOME TAX EXPENSE     14,313    9,029  58.5%   38,419   27,418  40.1%
--------------------------------------------- ------------------------

--------------------------------------------- ------------------------
NET INCOME            $21,932  $13,971  57.0%  $59,087  $42,191  40.0%
--------------------------------------------- ------------------------
PER SHARE, BASIC        $0.52    $0.36  44.4%    $1.41    $1.25  12.8%
--------------------------------------------- ------------------------
PER SHARE, DILUTED      $0.50    $0.35  42.9%    $1.36    $1.22  11.5%
--------------------------------------------- ------------------------
Weighted Average
 Common Shares
--------------------------------------------- ------------------------
   Basic               42,205   39,284   7.4%   41,996   33,886  23.9%
--------------------------------------------- ------------------------
   Diluted             43,539   40,150   8.4%   43,297   34,625  25.0%
----------------------------------------------------------------------
                    Unaudited Operating Highlights
----------------------------------------------------------------------
                  Three Months Ended           Nine Months Ended
Operating
 Highlights          September 30                 September 30
----------------------------------------- ----------------------------
               2006      2005     Change    2006      2005     Change
----------------------------------------- ----------------------------
Passengers
 carried     3,456,979 2,385,522    44.9% 9,340,356 6,769,088    38.0%
----------------------------------------- ----------------------------
Revenue
 passenger
 miles (000) 1,808,115 1,153,478    56.8% 4,918,382 3,243,887    51.6%
----------------------------------------- ----------------------------
Available
 seat miles
 (000)       2,479,659 1,692,544    46.5% 6,702,458 4,705,310    42.4%
----------------------------------------- ----------------------------
Passenger
 load factor      72.9%     68.2% 4.7 pts      73.4%     68.9% 4.5 pts
----------------------------------------- ----------------------------
Cost per
 available
 seat mile,
 including
 interest
 expense
 (cents)         10.99     12.35  (11.0%)     11.30     12.47   (9.4%)
----------------------------------------- ----------------------------
Fuel cost per
 available
 seat mile
 (cents)          3.62      4.21  (14.0%)      3.71      4.24  (12.5%)
----------------------------------------- ----------------------------
Cost per
 available
 seat mile,
 excluding
 fuel expense
 (cents)          7.37      8.14   (9.5%)      7.59      8.23   (7.8%)
----------------------------------------- ----------------------------
Block hours    149,288   120,454    23.9%   407,540   345,061    18.1%
----------------------------------------- ----------------------------
Departures      86,093    72,342    19.0%   234,123   207,394    12.9%
----------------------------------------- ----------------------------
Average daily
 utilization
 of each
 aircraft
 (hours)          10.6      10.5     1.0%      10.4      10.6   (1.9%)
----------------------------------------- ----------------------------
Average
 length of
 aircraft
 flight
 (miles)           512       479     6.9%       517       471     9.8%
----------------------------------------- ----------------------------

    CONTACT: Republic Airways Holdings
             Warren R. Wilkinson, 317-484-6042

    SOURCE: Republic Airways Holdings
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Republic Airways Holdings's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.