Mesa Air Group Stock Price, News & Analysis

Mesa Air Group, Inc. (NASDAQ: MESA) announced a strategic agreement with United Airlines and Archer Aviation to invest in sustainable air mobility technologies. Mesa will receive 20% of United's warrant for 14,645,614 shares of Archer's common stock, translating to a Mesa warrant for 2,929,123 shares at $0.01 each. Vesting of these shares is contingent on meeting specific milestones, including investment closure and FAA certification. Additionally, Mesa will purchase 500,000 shares of Atlas' Class A Common Stock for $5 million as part of a PIPE financing transaction.

Mesa Air Group, Inc. (MESA) reported its Q1 fiscal 2021 results, showcasing a net income of $14.1 million or $0.39 per diluted share, up from $10.8 million or $0.31 in Q1 2020. The company achieved a pre-tax income of $18.9 million alongside positive cash flow. Key developments included a 5-year extension with American Airlines for 40 aircraft and launching cargo operations with DHL. Despite a 26% reduction in contract revenue due to COVID-19, Mesa ended Q1 with $181 million in unrestricted cash.

Mesa Air Group, Inc. (NASDAQ: MESA) will announce its fiscal Q1 2021 earnings on February 9, after market close. A conference call will follow at 4:30 PM ET, accessible via phone (888-469-2054, passcode: PHOENIX) or through a listen-only webcast on the company’s website. Mesa Airlines operates a fleet of 161 aircraft, serving 116 cities in 42 states, along with cargo services. As of December 31, 2020, the company had approximately 3,200 employees and conducted about 420 daily departures as American Eagle, United Express, and DHL Express flights.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant 33.9% decline in block hours for December 2020, totaling 25,933 hours compared to December 2019, largely due to reduced operations amid the COVID-19 pandemic. The controllable completion factor stood at 99.87% for American operations and 100% for United operations. Year-to-date fiscal 2021 figures also reflect a downturn, with total block hours dropping 40.1% compared to the previous year. Mesa Airlines operates under American Eagle, United Express, and DHL Express, utilizing a fleet of 161 aircraft.

Mesa Air Group, Inc. (NASDAQ: MESA) has announced an amendment to its Capacity Purchase Agreement with American Airlines, effective at the start of 2021. The new agreement will allow Mesa to operate an additional five aircraft by March 2021, subject to American Airlines retaining the right to withdraw these aircraft with 60 days' notice. Mesa's COO expressed optimism regarding the partnership, highlighting the company's readiness for future opportunities.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant decline in operating performance for November 2020, with 23,144 block hours, down 38.2% from the previous November due to COVID-19 impacts. The airline's operations included 10,643 block hours for American Airlines and 12,302 block hours for United Airlines, reflecting declines of 33.0% and 43.0% respectively. Despite the drop, Mesa achieved a controllable completion factor of 99.62% for American and 99.97% for United. Year-to-date figures also show substantial reductions, indicating ongoing challenges in the aviation sector.

Mesa Air Group, Inc. (NASDAQ: MESA) reported its Q4 and full-year fiscal 2020 results, with a net income of $11.4 million for Q4, translating to $0.32 per diluted share. Year-end cash surged by $34.5 million to $99.4 million. The company saw a 42% revenue decline for Q4, amounting to $108 million, largely due to COVID-19 impacts. Full-year revenue dropped 25% to $545.1 million. Despite these challenges, Mesa managed to maintain a 99.8% controllable completion factor and secured a $195 million loan under the CARES Act. The company has diversified its operations, entering the cargo sector with DHL.

Mesa Air Group (NASDAQ: MESA) has secured a new five-year contract to operate 40 CRJ-900 aircraft for American Airlines, starting January 1, 2021, through December 31, 2025. This agreement replaces a prior contract that included expirations of 30 aircraft in 2021 and another 17 in 2022. The leadership of Mesa expressed gratitude for the partnership, emphasizing that the contract will enhance long-term stability and performance amid industry challenges. As of October 31, 2020, Mesa operated 146 aircraft and provided services to 101 cities.