Mesa defers revenue from mainlines amid $27m first-quarter profit

The parent company of Mesa Airlines reported an operating profit of $27m during its Q1 2021 as it plans to continue to allow its mainline customers to defer payments to aid their recovery during the ongoing coronavirus pandemic. The Phoenix-based regional carrier’s operating profit was roughly flat compared with the $27m it generated during Q1 2020, which on Mesa’s earnings calendar ends 31 December. Mesa and other regional carriers have been somewhat insulated during the coronavirus pandemic because mainline customers American Airlines and United pay a fixed amount each month to operate regional flights on their behalf. Since the start of the pandemic travel downturn, Mesa has allowed these payments to be deferred and counted as revenue at the end of their contract terms. During Q1 Mesa deferred $5m in revenue from United and American. It forecasts that $33m in total revenue will be deferred for both fiscal 2020 and 2021.<br/>