
to 7.6% from 0.7% last year, primarily because of a $52.5 million litigation settlement Hawaiian collected from Mesa Air Group MESA during the second quarter. Due to global economic turmoil and its potential effect on Hawaiian tourism, we are maintaining
DAL, Northwest NWA, and US Airways LCC under review in anticipation of material downward revisions. We are also placing Mesa Air Group MESA and ExpressJet Holdings XJT under review while we re-evaluate our modeling assumptions. Although AMR announced drastic
latest carrier to file for bankruptcy protection, and perhaps not the last during this phase of the cycle (regional carriers Mesa Air Group MESA and ExpressJet Holdings XJT are walking a fine line right now), as rising jet fuel prices and slowing passenger demand
are placing Hawaiian Holdings HA under review. On March 27, Hawaiian disclosed that the inter-island fare war stoked by Mesa Air Group MESA had a material affect on first-quarter yields, which are now expected to drop by 11%-12% from the prior-year
Delta Air Lines DALRQ on March 14 announced amended capacity purchase agreements with Mesa Air Group MESA and Republic Airways RJET. With respect to Mesa, the bankrupt carrier will immediately add six ERJ-145s to the joint agreement
miles, while yield (a common measure of unit prices) actually declined 2%. Hawaiian is facing direct competition from Mesa Air Group 's MESA go! regional unit, which is offering inter-island flights below cost. As a result, operating margins excluding
affiliates against each other in order to extract further contract concessions. Incumbent carriers Republic Airways RJET and Mesa Air Group MESA, which currently handle the now-up-for-bid capacity, face the greatest potential loss, while competing regional
cheaper deal from the carrier in late December 2005. Continental is currently seeking bids from other rival feeders such as Mesa Air Group MESA, SkyWest, and Republic to replace the lost capacity. This trend of legacy airlines pitting smaller carriers against