Mesa Air Group Reports $91M Net Loss for Fiscal Year Ending September 30, 2024

Mesa Air Group, Inc. reported a net loss of $91.0 million for the fiscal year ending September 30, 2024, a decrease from the $120.1 million loss recorded in the previous year. Total operating revenues for the year were $476.4 million, reflecting a 4.3% decline from $498.1 million in fiscal 2023. The decrease in revenue was primarily attributed to a reduction in block hours flown and fewer aircraft under contract, particularly following the wind-down of the DHL Flight Services Agreement. The company operated a fleet of 67 regional aircraft, consisting of 55 E-175 and 12 CRJ-900 aircraft, with approximately 265 daily departures.

Operationally, Mesa experienced a 6.7% decrease in completed block hours, totaling 176,236 hours, and a 5.2% decline in passenger counts, which fell to approximately 5.98 million. The company’s contract revenue per available seat mile increased to 10.37 cents, up from 9.95 cents in the previous year, indicating improved efficiency in revenue generation despite the overall decline in passenger traffic. The company’s financial performance was further impacted by a significant impairment expense of $73.7 million related to assets held for sale.

In terms of strategic developments, Mesa entered into a merger agreement with Republic Airways Holdings, Inc. on April 4, 2025, which is subject to various conditions including shareholder approvals and regulatory clearances. This merger is expected to enhance Mesa's operational capabilities and financial stability. Additionally, the company has been actively restructuring its operations, including the sale of aircraft and engines, to improve liquidity and reduce debt. Notably, Mesa sold 18 E-175 aircraft to United Airlines for gross proceeds of $227.7 million, which will significantly aid in debt reduction.

As of September 30, 2024, Mesa had total assets of $596.9 million and total liabilities of $486.6 million, resulting in stockholders' equity of $110.2 million. The company had $50.5 million in principal maturity payments on long-term debt due within the next twelve months, alongside $113.7 million under its UST Loan, which is due in a single installment on October 30, 2025. Mesa's management has implemented several measures to address liquidity concerns, including entering into a three-party agreement with United Airlines and Republic, which includes provisions for debt forgiveness and increased block hour rates.

Looking ahead, Mesa Air Group's management remains cautiously optimistic about its financial outlook, contingent on the successful execution of its merger with Republic and the continued support from United Airlines. The company is focused on enhancing operational efficiencies and maintaining compliance with its financial covenants to ensure it can meet its obligations and sustain operations in the coming year.