Mesa Air Group Stock Price, News & Analysis

Mesa Air Group (NASDAQ: MESA) has secured a five-year Loan and Guarantee Agreement with the U.S. Treasury, allowing up to $200 million under the CARES Act. On October 30, 2020, Mesa borrowed $43 million, with the option to borrow an additional $157 million, subject to certain conditions. The loan carries an interest rate of Adjusted LIBO Rate plus 3.50%. In exchange, Mesa will issue warrants to the Treasury for shares of common stock. The agreement includes financial covenants and prohibits dividend payments and stock buybacks.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a 40.3% decline in block hours for September 2020, totaling 21,780 hours compared to September 2019, largely due to COVID-19. However, its controllable completion factors remained high at 99.87% for American operations and 99.95% for United operations. Year-to-date, block hours fell 31.4%, while the airline operates a fleet of 145 aircraft, serving 102 cities in 39 states, with about 373 daily departures.

Mesa Air Group (NASDAQ: MESA) has successfully launched its first revenue cargo flight for DHL Express from Cincinnati/Northern Kentucky International Airport. This marks the beginning of a five-year agreement to operate two Boeing 737-400F aircraft for DHL. The initial flight signifies an important milestone in Mesa's operations, especially as it continues to integrate the Boeing 737 into its fleet. The second aircraft is expected to commence service in November 2020.

Mesa Air Group, Inc. (NASDAQ: MESA) has successfully reached an agreement with its pilots, represented by the Air Line Pilots Association, allowing the company to avoid furloughing employees through the end of 2020. Despite the significant impact of COVID-19 on air travel, the company values its strong employee relationships and has worked diligently to prevent furloughs following the expiration of the CARES Act Payroll Support Program. Mesa is hopeful for a congressional extension of the Payroll Support Program to further protect employees amid ongoing travel demand challenges.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant 52.1% decline in block hours for August 2020, totaling 18,747 hours due to reduced schedules amidst the COVID-19 pandemic. The company's controllable completion factors reached 100% for American and 99.97% for United operations. Year-to-date, Mesa's block hours also experienced a 30.6% drop compared to the previous year. Despite the challenges, Mesa operates a fleet of 145 aircraft with approximately 324 daily departures and continues to serve 88 cities in the U.S. and Mexico.

Mesa Air Group, Inc. (MESA) plans to release its third quarter earnings for fiscal year 2020 on August 10, after market close, followed by a conference call at 4:30 PM Eastern Time. Investors can join the call by dialing 888-469-2054 with the passcode PHOENIX. A listen-only webcast will also be available on Mesa's investor relations website, with a recorded version accessible two hours post-call. As of June 30, 2020, Mesa operates 145 aircraft with around 175 daily departures across 66 cities in 29 states and Mexico.

On July 13, 2020, Mesa Air Group (NASDAQ: MESA) announced the addition of two Boeing 737-400F aircraft to its fleet, commencing a five-year cargo service contract with DHL Express. This operation will utilize the Cincinnati/Northern Kentucky International Airport as a hub, with services set to start in October 2020. Mesa's entry into the cargo market aligns with its existing business model and is expected to offer new opportunities for employees, particularly pilots, by allowing them to earn a 737 type rating.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant decline in operating performance for June 2020, with block hours dropping by 75.8% compared to June 2019 due to reduced schedules from the COVID-19 pandemic. The total block hours for June were 9,247, down from 38,240 in June 2019. Despite the decrease, Mesa Airlines achieved a controllable completion factor of 100% for both American and United operations, reflecting efficiency in operations amidst the challenges faced.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a 68.6% decline in block hours for May 2020 compared to May 2019, resulting in 12,077 block hours due to the COVID-19 pandemic's impact on flight schedules. Despite the downturn, the airline achieved a 100% controllable completion factor for its operations with American and United airlines. Year-to-date, block hours are down 18.7% compared to the previous year, with total departures also reflecting similar declines. Mesa currently operates a fleet of 145 aircraft with approximately 226 daily departures.