Mesa Air Group Reports First Quarter Fiscal 2025 Results
- 100% controllable completion factor achieved for United Airlines operations
- Fifth consecutive quarter of positive adjusted EBITDA and EBITDAR
- Significant debt reduction from $481.0M to $230.6M year-over-year
- Expected increase in block hour utilization to 9.8 in June quarter from 8.9 in December
- Higher E-175 block-hour rates
- Net loss of $114.6M, including $112.4M loss from aircraft impairment and sales
- Revenue declined 13.1% year-over-year to $103.2M
- Contract revenue decreased 20.2% to $80.7M
- Reduction in contractual aircraft with United Airlines
- Operating expenses increased 30% compared to Q1 2024
Insights
Mesa Air Group reports Q1 operational improvements amid significant financial challenges, with a $114.6M net loss largely due to aircraft impairments.
Mesa Air Group's Q1 fiscal 2025 results reveal a company in transition, with total operating revenues of
Looking past these one-time items, the adjusted metrics paint a different picture. The company reported an adjusted net loss of
The revenue decline stems primarily from the planned reduction in the United Airlines fleet and the wind-down of the DHL agreement. Contract revenue fell
On the operational front, Mesa achieved a perfect
The balance sheet shows
The winding down of CRJ operations appears to be a strategic shift toward a more efficient, focused operation built around its E-175 fleet. This transition is painful financially in the short term due to impairments but seems aimed at creating a more sustainable business model with United as its primary partner.
PHOENIX, May 19, 2025 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) (“Mesa” or the “Company”) today reported first quarter fiscal 2025 financial and operating results.
First Quarter Fiscal 2025 Update:
- Total operating revenues of
$103.2 million - Pre-tax loss of
$116.3 million , net loss of$114.6 million , or$(2.77) per diluted share - Adjusted net loss1 of
$4.0 million 2 excludes a$112.4 million loss related to the impairment and loss on sale of aircraft - Adjusted EBITDAR1 of
$12.6 million - Operated at a
100.00% controllable completion factor3 - Scheduled utilization for the quarter of 8.9 block hours per day
“Mesa continued to have strong operational performance during the December 2024 quarter,” said Jonathan Ornstein, Mesa Chairman and CEO. “We are pleased to have flown a
“Working closely with United’s network planning group, Mesa anticipates block hour utilization will be 9.8 in the June quarter, up from 9.4 in the March quarter, and 8.9 in the December quarter.”
First Quarter Fiscal 2025 Details
Total operating revenues in Q1 2025 were
Pass-through revenue increased by
Total operating expenses in Q1 2025 were
Mesa’s Q1 2025 results reflect a net loss of
Mesa’s adjusted EBITDA1 for Q1 2025 was
First Quarter Fiscal 2025 Operating Performance
Operationally, the Company reported a controllable completion factor of
For Q1 2025, the Company operated 62 large (70/76 seats) jets under its CPA with United, comprising 54 E-175s and eight CRJ-900s.
Balance Sheet and Liquidity
Mesa ended the December 2024 quarter with
As of March 31, 2025, Mesa had
Form 10-Q
The Company is working diligently to complete the Form 10-Q for the period ended March 31, 2025 and plans to file it as soon as possible.
About Mesa Air Group, Inc.
Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 82 cities in 32 states, the District of Columbia, Cuba, and Mexico. As of March 31, 2025, Mesa operated a fleet of 60 aircraft, with approximately 238 daily departures. The Company had approximately 1,650 employees. Mesa operates all its flights as United Express pursuant to the terms of a capacity purchase agreement entered into with United Airlines, Inc.
Important Cautions Regarding Forward-Looking Statements
This Press Release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “might”, “will”, “should”, “can have”, “likely” and similar expressions are used to identify forward-looking statements. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements. These factors include, without limitation, the ability to complete the proposed merger with Republic on the proposed terms or on the anticipated timeline, or at all, including the risks and uncertainties related to securing the necessary stockholder approval and satisfaction of other closing conditions to consummate the proposed transaction, the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company’s ability to regain compliance with Listing Rule, the Company’s ability to become current with its reports with the SEC, and the risk that the completion and filing of the Form 10-Q will take longer than expected. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company’s filings with the SEC, including the risk factors contained in its most recent Annual Report on Form 10-K and the Company’s other subsequent filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
Contact:
Mesa Air Group, Inc.
Media
media@mesa-air.com
Investor Relations
investor.relations@mesa-air.com
MESA AIR GROUP, INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(In thousands, except per share amounts) (Unaudited)
| Three months ended December 31, | ||||||
| 2024 | 2023 | |||||
| Operating revenues: | ||||||
| Contract revenue | $ | 80,678 | $ | 101,100 | ||
| Pass-through and other revenue | 22,555 | 17,677 | ||||
| Total operating revenues | 103,233 | 118,777 | ||||
| Operating expenses: | ||||||
| Flight operations | 35,273 | 51,818 | ||||
| Maintenance | 46,527 | 48,627 | ||||
| Aircraft rent | 1,616 | 1,204 | ||||
| General and administrative | 9,519 | 12,009 | ||||
| Depreciation and amortization | 7,979 | 13,293 | ||||
| Asset impairment | 65,665 | 40,384 | ||||
| Loss on sale of assets | 46,691 | 386 | ||||
| (Gain) on extinguishment of debt | — | (2,954 | ) | |||
| Other operating expenses | 760 | 2,458 | ||||
| Total operating expenses | 214,030 | 167,225 | ||||
| Operating income/(loss) | (110,797 | ) | (48,448 | ) | ||
| Other income (expense), net: | ||||||
| Interest expense | (7,064 | ) | (11,160 | ) | ||
| Interest income | 17 | 14 | ||||
| Unrealized gain/(loss) on investments, net | (42 | ) | 2,451 | |||
| Gain on debt forgiveness | 4,500 | — | ||||
| Other income, net | (2,900 | ) | 157 | |||
| Total other expense, net | (5,489 | ) | (8,538 | ) | ||
| Income (loss) before taxes | (116,286 | ) | (56,986 | ) | ||
| Income tax expense (benefit) | (1,728 | ) | 864 | |||
| Net income (loss) | $ | (114,558 | ) | $ | (57,850 | ) |
| Net income (loss) per share attributable to common shareholders | ||||||
| Basic | $ | (2.77 | ) | $ | (1.41 | ) |
| Diluted | $ | (2.77 | ) | $ | (1.41 | ) |
| Weighted-average common shares outstanding | ||||||
| Basic | 41,332 | 40,940 | ||||
| Diluted | 41,332 | 40,940 | ||||
MESA AIR GROUP, INC.
Consolidated Balance Sheets
(In thousands) (Unaudited)
| December 31, 2024 | September 30, 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 39,980 | $ | 15,621 | ||||
| Restricted cash | 3,004 | 3,009 | ||||||
| Receivables, net | 5,250 | 5,263 | ||||||
| Expendable parts and supplies, net | 29,172 | 28,272 | ||||||
| Assets held for sale | 80,723 | 5,741 | ||||||
| Prepaid expenses and other current assets | 2,577 | 3,371 | ||||||
| Total current assets | 160,706 | 61,277 | ||||||
| Property and equipment, net | 203,567 | 426,351 | ||||||
| Lease and equipment deposits | 524 | 1,289 | ||||||
| Operating lease right-of-use assets | 6,588 | 7,231 | ||||||
| Deferred heavy maintenance, net | 5,351 | 6,396 | ||||||
| Assets held for sale | — | 86,605 | ||||||
| Other assets | 6,829 | 7,709 | ||||||
| TOTAL ASSETS | $ | 383,565 | $ | 596,858 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt and finance leases | $ | 143,275 | $ | 50,455 | ||||
| Current portion of deferred revenue | 4,955 | 3,932 | ||||||
| Current maturities of operating leases | 1,430 | 1,681 | ||||||
| Accounts payable | 60,932 | 72,096 | ||||||
| Accrued compensation | 6,705 | 12,797 | ||||||
| Customer deposits | 962 | 1,189 | ||||||
| Other accrued expenses | 34,819 | 32,308 | ||||||
| Total current liabilities | 253,078 | 174,458 | ||||||
| NONCURRENT LIABILITIES: | ||||||||
| Long-term debt and finance leases, excluding current portion | 83,786 | 259,816 | ||||||
| Noncurrent operating lease liabilities | 6,484 | 6,863 | ||||||
| Deferred credits | 2,036 | 3,020 | ||||||
| Deferred income taxes | 5,214 | 8,173 | ||||||
| Deferred revenue, net of current portion | 10,329 | 5,707 | ||||||
| Other noncurrent liabilities | 26,675 | 28,579 | ||||||
| Total noncurrent liabilities | 134,524 | 312,158 | ||||||
| Total liabilities | 387,602 | 486,616 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 41,331,719 (2025) and 41,331,719 (2024) shares issued and outstanding, 4,899,497 (2025) and 4,899,497 (2024) warrants issued and outstanding | 272,655 | 272,376 | ||||||
| Accumulated deficit | (276,692 | ) | (162,134 | ) | ||||
| Total stockholders' equity | (4,037 | ) | 110,242 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 383,565 | $ | 596,858 | ||||
MESA AIR GROUP, INC.
Operating Highlights
(Unaudited)
| Three months ended | |||||||||
| December 31, | |||||||||
| 2024 | 2023 | Change | |||||||
| Available seat miles (thousands) | 873,214 | 1,026,800 | (15.0 | )% | |||||
| Block hours | 39,035 | 46,658 | (16.3 | )% | |||||
| Average stage length (miles) | 549 | 535 | 2.6 | % | |||||
| Departures | 21,351 | 26,254 | (18.7 | )% | |||||
| Passengers | 1,303,641 | 1,608,170 | (18.9 | )% | |||||
| Controllable completion factor* | |||||||||
| United | 100.00 | % | 99.92 | % | 0.1 | % | |||
| Total completion factor** | |||||||||
| United | 99.55 | % | 99.20 | % | 0.4 | % | |||
*Controllable completion factor excludes cancellations due to weather and air traffic control
**Total completion factor includes all cancellations
Reconciliation of non-GAAP financial measures
Although these financial statements are prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"), certain non-GAAP financial measures may provide investors with useful information regarding the underlying business trends and performance of Mesa's ongoing operations and may be useful for period-over-period comparisons of such operations. The tables below reflect supplemental financial data and reconciliations to GAAP financial statements for the three months ended December 31, 2024 and December 31, 2023. Readers should consider these non-GAAP measures in addition to, not a substitute for, financial reporting measures prepared in accordance with GAAP. These non-GAAP financial measures exclude some, but not all items that may affect the Company's net income or loss. Additionally, these calculations may not be comparable with similarly titled measures of other companies.
Reconciliation of GAAP versus non-GAAP Disclosures
(In thousands) (Unaudited)
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||||||||||
| Income (Loss) Before Taxes | Income Tax (Expense) Benefit | Net Income (Loss) | Net Income (Loss) per Diluted Share | Income (Loss) Before Taxes | Income Tax (Expense) Benefit | Net Income (Loss) | Net Income (Loss) per Diluted Share | ||||||||||||||||||
| GAAP income (loss) | $ | (116,286 | ) | $ | 1,728 | $ | (114,558 | ) | $ | (2.77 | ) | $ | (56,986 | ) | $ | (864 | ) | $ | (57,850 | ) | $ | (1.41 | ) | ||
| Adjustments(1)(2)(3)(4)(5)(6)(7)(8)(9) | 112,266 | (1,668 | ) | 110,598 | $ | 2.68 | 37,640 | (1,566 | ) | 36,074 | $ | 0.88 | |||||||||||||
| Adjusted income (loss) | (4,020 | ) | 60 | (3,960 | ) | $ | (0.10 | ) | (19,346 | ) | (2,430 | ) | (21,776 | ) | $ | (0.53 | ) | ||||||||
| Interest expense | 7,064 | 11,160 | |||||||||||||||||||||||
| Interest income | (17 | ) | (14 | ) | |||||||||||||||||||||
| Depreciation and amortization | 7,979 | 13,293 | |||||||||||||||||||||||
| Adjusted EBITDA | 11,006 | 5,093 | |||||||||||||||||||||||
| Aircraft rent | 1,616 | 1,204 | |||||||||||||||||||||||
| Adjusted EBITDAR | $ | 12,622 | $ | 6,297 | |||||||||||||||||||||
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Source: Mesa Air Group, Inc.
______________________________________
1 See Reconciliation of GAAP versus non-GAAP Disclosures
2 Adjusted net loss primarily excludes
3 Excludes cancellations due to weather and air traffic control
FAQ
What were Mesa Air Group's (MESA) key financial results for Q1 2025?
How did MESA's operational performance with United Airlines fare in Q1 2025?
What is Mesa Air Group's (MESA) current debt and cash position?
How much did Mesa Air Group's (MESA) revenue decline in Q1 2025?
What caused Mesa Air Group's (MESA) significant net loss in Q1 2025?
