Mesa Air Group has reported a fiscal third quarter 2023 net loss of $47.6 million or ($1.17) per diluted share on a year-over-year decrease in revenue of 14.7 percent to $114.7 million. The carrier ended the period with cash and cash equivalents totaling $48.3 million.
On Wednesday (August 9, 2023), Mesa Air Group reported their fiscal third quarter financial results for the period ending June 30, 2023. The Group reported a fiscal Q3 net loss of $47.6 million or ($1.17) per diluted share on a 14.7 percent year-over-year decline in revenue to $114.7 million. Contract revenues for the period decreased $24.5 million or 20.6 percent compared to Q3 FY2022, largely attributable to a 50 percent reduction in CRJ-900 block hours and fewer aircraft under contract. At June 30, 2023, Mesa Air Group had had $48.3 million in cash and cash equivalents, and $566.3 million in total debt primarily secured with aircraft and engines.
In Wednesday’s announcement, Mesa Air Group’s Chairman and CEO, Jonathan Ornstein, said,
“As expected, Fiscal 2023 has been a transformative year as we ended our agreement with American Airlines and transitioned all of our regional capacity to United. While we are pleased with the progress we have made in some areas, we have more work to do in others. One of our key initiatives remains the disposition of excess CRJ-900 aircraft and related assets. To date, we have entered into agreements to sell 18 excess CRJ-900s, four of which we closed earlier this year, with the remaining 14 expected to close by calendar-year end. We are currently in active negotiations for the sale of additional aircraft. We also continue to focus on maximizing aircraft utilization with our existing pilot resources through more productive scheduling of our fleet in cooperation with United.
“The CRJ-900 transition from American to United was a complex process and our people have done an amazing job. With little incremental regional capacity available industry-wide, we were pleased to fly almost half a million passengers for United on our CRJ fleet during our third quarter. With United’s continued support, we believe, based on current pilot staffing outlook, we will be at United’s target block-hour utilization rate by the end of fiscal-year 2024.
“Mesa has been a long-time Express carrier for United, and we believe United will ensure we remain an integral part of their regional portfolio. While Mesa’s primary service to United is providing valuable feed traffic, we also assist in the creation of future United pilots through our participation in Aviate, help maintain competitiveness among their regional portfolio, and share co-investments in advanced aviation technology and electric aircraft. In return, United has been an invaluable partner, helping us create additional liquidity through a number of initiatives, which we expect will continue through to the completion of our transformation and return to profitability.”
Phoenix Arizona-based Mesa Air Group, Inc. (NASDAQ: MESA) is the holding company of Mesa Airlines which offers scheduled service throughout the U.S., Canada, Mexico, Cuba and the Bahamas. The carrier operates around 610 daily departures with a fleet of 145 aircraft and operates out of domiciles at Phoenix (PHX), Dallas (DFW), Houston (IAH), Washington-Dulles (IAD), and Louisville (SDF). Mesa Air operates flights as United Express or DHL Express, pursuant to capacity purchase and flight service agreements with the mainline passenger and cargo carriers.
In trading Thursday afternoon (August 10, 2023), shares in Mesa Air Group, Inc. (NASDAQ: MESA) were 4.68% lower at $1.83/share (2:32 PM EDT).
Source: Mesa Air Group