Shares of regional airline Republic plunge on warning about pilot shortage, flight disruptions

IndustrialsAssociated Press

Republic Airways is warning the biggest U.S. airlines that the regional service it provides for them may be disrupted because of a pilot shortage and labor dispute.

The company says it's talking with the airlines about reducing their reliance on Republic planes through the first half of next year.

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Shares of Republic Airways lost half of their value Monday.

The Indianapolis company disclosed late Friday that it faces possible disruptions in the service it provides for American, United, Delta and US Airways. The company says it's facing a pilot shortage because of rules that raised training requirements for new pilots and a standoff in contract talks with the Teamsters, which represents Republic pilots.

Shares of Republic Airways Holdings Inc. are $4.40, or 51.8 percent, to $4.10 in midday trading.