ExpressJet Files Chapter 11 Bankruptcy, Furloughs 1,300 Pilots

The airline has ceased operations after failing to turn a profit.

Wednesday, August 24, 2022 at 05:55 PM ET

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The company rebranded itself as “Aha!” Based in Reno, Nevada, the airline started with only four airplanes, targeting the boom in leisure travel. [Courtesy: Aha! Airlines]

Key Takeaways:

Regional carrier ExpressJet Airlines, operating as Aha!, has filed for Chapter 11 bankruptcy, ceasing all flight operations and furloughing approximately 1,300 pilots.
The airline initially suffered a major blow by losing its United Express contract in 2020 but attempted a relaunch as "Aha!" in 2021, focusing on regional leisure travel.
Despite reporting strong operational performance, ExpressJet operated at significant losses ($17 million in July 2022), citing factors like limited aircraft availability, low revenue impacted by COVID-19 variants, and inability to offset rising fuel costs.
The Chapter 11 filing is intended for the liquidation of assets to repay creditors, including substantial debts to the Small Business Administration and the Department of Treasury.

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Regional carrier ExpressJet Airlines, once among the fastest-growing airlines in the western U.S., announced Tuesday it has filed for Chapter 11 bankruptcy protection, planning to cease all flight operations and furlough approximately 1,300 pilots.

Despite reporting “exceptional operating performance for July 2022” earlier this month, the airline has done an about-face. In a statement, ExpressJet chairman and CEO Subodh Karnik said, “A combination of conditions led us to this decision,” in which, despite their best efforts, “termination of operations was in the best interest of our stakeholders.”