Mesa Air Group Reports Q1 Fiscal 2025 Results

Mesa Air Group ( (MESA) ) has released its Q1 earnings. Here is a breakdown of the information Mesa Air Group presented to its investors.

Mesa Air Group, Inc., headquartered in Phoenix, Arizona, operates as a regional air carrier providing scheduled passenger services across the United States, Cuba, and Mexico, primarily under the United Express brand through a capacity purchase agreement with United Airlines.

In its first quarter fiscal 2025 earnings report, Mesa Air Group reported total operating revenues of $103.2 million, alongside a pre-tax loss of $116.3 million and a net loss of $114.6 million. Despite these losses, the company achieved a 100% controllable completion factor for United Airlines flights and continued to generate positive adjusted EBITDA and EBITDAR for the fifth consecutive quarter.

The company’s financial performance was impacted by a reduction in contractual aircraft with United Airlines and a decrease in DHL revenue, contributing to a 13.1% decline in total operating revenues compared to the previous year. Operating expenses rose by 30%, driven by significant asset impairment costs and net losses on asset sales. However, Mesa reported an improved adjusted EBITDA of $11.0 million, up from $5.0 million in the previous year, indicating progress in operational profitability.

Operationally, Mesa maintained strong performance with a 100% controllable completion factor for United Airlines flights, and plans to increase block hour utilization in the coming quarters. The company ended the quarter with $54.1 million in unrestricted cash and reduced its total debt significantly from the previous year.

Looking forward, Mesa Air Group remains focused on enhancing its operational efficiency and financial performance, with expectations of increased block hour utilization and continued collaboration with United Airlines to optimize its network planning.