Republic Airways Holdings (RJET) risk factors, FY2025 10-K

Risks Related to Disruption of our Operations

1. 01Various negative economic or industry conditions may result in reductions to our flight schedules, which could materially and adversely affect our operations and financial condition
2. 02We may experience disruption in service due to delays from key third-party service providers
3. 03We currently depend on Embraer, General Electric (“GE ” ) Aviation, and other original equipment manufacturers (“OEMs”) to support our fleet of aircraft
4. 04It is possible that one or more of our commercial passenger aircraft or general aviation aircraft may be involved in an accident in the future, causing death or serious injury to individual air travelers and our employees, destroying our aircraft, and the property of third parties
5. 05Interruptions or disruptions in service at one of our hub airports, due to weather, system malfunctions, security closures, or for any other reason, could have an adverse impact on our operations

Risks Related to the Merger and Integration with Mesa Air Group, Inc

1. 06We may be unable to integrate Mesa’s business with ours successfully and realize any anticipated benefits of the Merger, which could negatively impact our stock price and our future business and financial results
2. 07We are expected to incur substantial expenses related to the Merger and the integration of Mesa Airlines’ business

Risks Related to our Capacity Purchase Agreements with our Partner Airlines

1. 08Our business is dependent on our CPAs with our Partner Airlines
2. 09Reduced utilization levels of our aircraft under CPAs with our Partner Airlines would adversely impact our revenues, earnings, and liquidity
3. 10If the financial strength of any of our Partner Airlines decreases, our financial strength, in turn, is at risk
4. 11Our Partner Airlines may choose to operate their own regional aircraft, thus limiting the opportunity for expansion of our relationships with them
5. 12Our Partner Airlines may be restricted in increasing the level of business that they conduct with us, thereby limiting our growth
6. 13Disagreements regarding the interpretation of the CPAs with our Partner Airlines could have an adverse effect on our operating results and financial condition
7. 14The residual value of our owned aircraft may be less than estimated in our depreciation policies

Risks Related to our Operating Costs and Personnel

1. 15We may experience difficulty hiring, training, and retaining qualified aviation professionals
2. 16Increases in our labor costs, which constitute a substantial portion of our total operating costs, will directly impact our earnings and ability to compete for new fixed-fee business
3. 17Our maintenance expenses will increase as our fleet ages and may be higher than we anticipate
4. 18We have a significant amount of debt and other contractual obligations that could impair our liquidity and thereby harm our business, results of operations, financial condition, and the price of our common stock
5. 19Our business could be harmed if we are unable to attract, develop, and retain the services of our key personnel

Risks Related to Regulation and Litigation

1. 20We may become involved in litigation that may have a material and adverse effect on our business and financial condition
2. 21Regulatory changes or tariffs could negatively impact our business and financial condition
3. 22We are subject to various environmental and noise laws and regulations, which could negatively impact our business and financial condition

Risks Related to our Industry

1. 23The airline industry is heavily regulated
2. 24Additional laws, regulations, taxes, and increased airport rates and charges have been proposed from time to time that could significantly increase the cost of airline operations or reduce the demand for air travel
3. 25The airline industry is highly competitive and has undergone a period of consolidation and transition leaving fewer potential partners, which could adversely affect our operating results and financial condition
4. 26In addition to traditional competition among airlines, the industry faces competition from videoconferencing and other methods of electronic communication. New advances in technology may add a new dimension of competition to the industry as business travelers seek lower-cost substitutes for air travel
5. 27Terrorist activities or warnings have dramatically impacted the airline industry and will likely continue to do so
6. 28We are increasingly dependent on technology, and if our technology fails, we do not adequately continue to invest in new technology or we are the subject of any cybersecurity incidents of our information technology infrastructure, our business may be adversely affected
7. 29Our ability to obtain financing or access capital markets may be limited
8. 30Our business strategy includes making investments that complement our existing business. These investments could be unsuccessful or consume significant resources, which could adversely affect our operating results

Risks Related to Owning Our Common Stock

1. 31The market price of our common stock may be volatile, which could cause the value of an investment in our stock to decline
2. 32Provisions in our charter documents might deter acquisition bids for us, which could adversely affect the price of our common stock
3. 33We currently do not intend to pay dividends on our common stock and, consequently, your only opportunity to achieve a return on your investment is if the price of our common stock appreciates