Mesa Air Group - MESA STOCK NEWS

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.

Mesa Air Group, Inc. (NASDAQ: MESA) has completed a second closing on its five-year Loan and Guarantee Agreement under the CARES Act. The airline borrowed an additional $152 million, following an initial $43 million drawn on October 30, 2020. These funds are designated for general corporate purposes and operating expenses. In connection with the loan, Mesa issued warrants to the U.S. Treasury for 3,819,095 shares of common stock, valid for five years. This funding is intended to support Mesa during the ongoing challenges posed by the pandemic.

Mesa Air Group, Inc. (NASDAQ: MESA) is set to announce its fourth quarter earnings for fiscal year 2020 on December 9, following the market close. A conference call will take place on the same day at 4:30 PM Eastern Time to discuss the results. Interested parties can join the call by dialing 888-469-2054 with the passcode PHOENIX (7463649). A listen-only webcast will also be available on Mesa's website, with a recorded version accessible two hours post-call.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant decline in operating performance for October 2020, with total block hours falling by 48.2% year-over-year to 20,167 hours due to the COVID-19 pandemic's impact on flight schedules. Block hours for American and United airlines decreased by 50.0% and 47.1% respectively. Despite the drop in hours and departures, Mesa maintained a high controllable completion factor of 99.96% for American and 99.95% for United, reflecting operational efficiency amidst challenges.

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.