Regional air carrier ExpressJet Airlines LLC filed for bankruptcy Tuesday and will shut down its business, unable to rebound from the loss of its contract with United Airlines, WSJ Pro Bankruptcy reported. The College Park, Ga.-based regional air carrier ceased operations on Monday in advance of its chapter 11 filing and is now planning to sell off its remaining assets, according to a declaration filed with the U.S. Bankruptcy Court in Wilmington, Del., by ExpressJet’s President, John Greenlee. ExpressJet provided regional flight services for other airlines using aircraft subleased from United Airlines. In January 2019, the company signed a contract with United to fly exclusively for United through 2022. But in 2020, when the COVID-19 pandemic grounded many flights, United scrapped the contract, and ExpressJet was forced to suspend its operations. In an attempt to rebound, ExpressJet launched its own leisure brand, Aha, in the fall of 2021 to connect Reno-Tahoe International Airport and cities along the West Coast, but the company was unable to turn it into a profitable business. In the first seven months of 2022, the company’s estimated gross revenue was $5.5 million, while expenses were $23.3 million, generating an operating loss of $17.7 million.
