News Release

Republic Airways Holdings Announces First Quarter 2007 Results

INDIANAPOLIS--(BUSINESS WIRE)--April 25, 2007--Republic Airways Holdings Inc. (NASDAQ/NM: RJET) today reported operating revenues of $290.4 million for the quarter ended March 31, 2007, a 12.9% increase, compared to $257.3 million for the same period last year. The Company reported net income of $19.3 million for the quarter ended March 31, 2007, a 14.1% improvement over the $16.9 million reported in the prior year's first quarter. The Company also reported earnings per diluted share of $0.44, compared to $0.39 for the same period last year. The primary items of significance affecting the first quarter of 2007 are outlined below.

First Quarter Highlights

Excluding reimbursement for fuel expense, which is a pass-through cost to our partners, passenger revenues increased 26.7% for the first quarter of 2007. This increase was primarily as a result of a 24.8% increase in available seat miles (ASMs) to 2.5 billion ASMs, up from 2.0 billion ASMs and a 23.1% increase in block hours. These increases reflect the addition of 25 E170/175 regional jet aircraft placed into service since March 31, 2006 and 14 CRJ-200 regional jet aircraft placed into service during the first quarter of 2007.

Total operating expenses for the first quarter of 2007, including interest expense but excluding fuel charges (which are reimbursable by the Company's major partners), of $194.1 million, increased approximately 25.4% from $154.8 million for the same quarter of 2006. Operating cost per ASM (CASM), including interest expense but excluding fuel, remained unchanged at 7.9 cents.

During the quarter the Company took delivery of four new 86-seat E175 regional jets which were placed into fixed-fee service for US Airways. The Company entered into fixed rate debt financing arrangements for these aircraft. The Company also took delivery of ten 50-seat CRJ-200 regional jet aircraft on short-term leases which were placed into service with Continental. At present, the Company is operating 25 regional jets for Continental, 17 CRJ-200s and 8 E145s. Additionally the Company began service for Frontier Airlines with four 70-seat aircraft that had been delivered in 2006. At March 31, 2007, the Company's fleet consisted of 189 regional jets including 95 E145 family aircraft, 76 E170 aircraft, 4 E175 aircraft and 14 CRJ200 aircraft.

On March 13, 2007, the Company amended its agreements with Delta Air Lines. The amendments provide for the cancellation of the Company's warrants of 3,435,000 shares of common stock that had been issued to Delta, a decrease in the Company's block hour reimbursement rates of approximately 3% for the sixteen 70-seat aircraft and the twenty-four 50-seat aircraft operated for Delta, and the early removal of the fifteen 37-seat aircraft between September 2008 and April 2009. The Company was also granted a pre-petition, unsecured general claim in the amount of $91 million. These agreements were approved by the Bankruptcy Court on March 27, 2007.

On March 16, 2007, the Company entered into an agreement with WexAir LLC, the company's former majority stockholder, to purchase two million shares of its Common Stock, par value $.001 per share, at a price of $20.50 per share, for total consideration of $41,000,000. The transaction settled on March 21, 2007.

Recent Developments

In April, the Company sold its $91 million pre-petition unsecured creditor claim against Delta Air Lines for approximately $44.6 million.

In order to reduce operational disruptions resulting from higher than planned pilot attrition and the integration of the CRJ fleet, the Company has reduced scheduled ASMs and block hours by approximately 3-4% for the months of May through September of 2007. The Company's website has been updated with adjusted ASM and block hour forecasts for the remainder of 2007. The Company still expects to add a total of 54 regional jet aircraft to its fixed-fee operations during 2007, but at a more moderate integration pace than was previously planned.

Balance Sheet Information

At March 31, 2007 the Company had $156.5 million in cash and cash equivalents compared to $195.5 million as of December 31, 2006. The Company's long-term debt increased to $1.54 billion as of March 31, 2007, compared to $1.48 billion at December 31, 2006. All of the Company's long-term debt is at 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 $743.5 million as of March 31, 2007.

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 more than 1,000 flights daily to 108 cities in 36 states, Canada, Mexico and the Bahamas through airline services agreements with six U.S. airlines. All flights are operated under the airline partner brand, such as AmericanConnection, Delta Connection, United Express, US Airways Express, Continental Express and Frontier. The airlines currently employ more than 3,800 aviation professionals and operate 189 regional jet aircraft.

The Company will conduct a telephone briefing to discuss its first quarter results tomorrow, April 26th, at 10:30 a.m. EDT. For those wishing to participate please call 866-510-0705 and for international calls please dial 617-597-5363, the password is 59541385. A live Webcast of this briefing will also be available online at - 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.

     (Dollars and Shares in Thousands, Except per Share Amounts)

Financial Highlights                      Three Months Ended March 31,
                                              2007      2006   Change
   Passenger                               $ 284,402 $ 248,176   14.6%
   Other                                       6,041     9,168  -34.1%
        Total operating revenues             290,443   257,344   12.9%

   Wages and benefits                         50,742    40,145   26.4%
   Aircraft fuel                              66,949    76,523  -12.5%
   Landing fees                               12,052     8,594   40.2%
   Aircraft and engine rent                   27,034    20,352   32.8%
   Maintenance and repair                     27,006    22,381   20.7%
   Insurance and taxes                         4,046     4,292   -5.7%
   Depreciation and amortization              24,510    21,418   14.4%
   Other                                      23,275    15,722   48.0%
        Total operating expenses             235,614   209,427   12.5%
OPERATING INCOME                              54,829    47,917   14.4%

   Interest expense                          (25,404)  (21,869)  16.2%
   Other income                                2,786     1,966   41.7%
        Total other income (expense)         (22,618)  (19,903)  13.6%

INCOME BEFORE INCOME TAXES                    32,211    28,014   15.0%

INCOME TAX EXPENSE                            12,931    11,114   16.3%

NET INCOME                                    19,280    16,900   14.1%
PER SHARE, BASIC                           $    0.45 $    0.40   12.5%
PER SHARE, DILUTED                         $    0.44 $    0.39   12.8%
Weighted Average Common Shares
   Basic                                      42,626    41,836    1.9%
   Diluted                                    44,306    42,944    3.2%
     Unaudited Operating Highlights

Operating Highlights                     Three Months Ended March 31,
                                           2007      2006     Change
Passenger Revenues, excluding fuel (000)   217,453   171,653     26.7%
Passengers carried                       3,250,296 2,555,248     27.2%
Revenue passenger miles (000)            1,710,698 1,374,290     24.5%
Available seat miles (000)               2,452,784 1,965,202     24.8%
Passenger load factor                         69.7%     69.9% -0.2 pts
Cost per available seat mile, including
 interest expense (cents)                    10.64     11.77     -9.6%
Fuel cost per available seat mile (cents)     2.73      3.89    -29.8%
Cost per available seat mile, excluding
 fuel expense (cents)                         7.91      7.88      0.4%
Operating Aircraft at period end:
37-50 seat regional jets                       109        95     14.7%
70+ seat regional jets                          80        57     40.4%
Block hours                                149,739   121,632     23.1%
Departures                                  83,098    69,156     20.2%
Average daily utilization of each
 aircraft (hours)                             10.3      10.2      1.0%
Average aircraft stage length (miles)          519       524     -1.0%

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