Mesa reports fiscal Q1 loss as Omicron and pilot attrition hit earnings

Regional carrier Mesa Airlines reported a loss for Q1 of its fiscal year as the company struggled with staffing issues stemming from the Omicron variant of Covid-19 as well as pilots leaving for larger carriers. The Phoenix-based airline, which operates regional routes for United Airlines and American Airlines and flies cargo for DHL, says on 9 February that it lost $14.3m during the three months that ended in December, the company’s fiscal Q1 2022, compared to a profit of $14.1m in the same quarter a year ago. Revenue in the quarter was $147.8m, down 1.7% from $150.4m the carrier reported in the same period in 2020. “Mesa’s results reflect the impact of Covid to our quarter’s operations and financials,” says CE Jonathan Ornstein. “Its effect on this quarter was significant and unlike anything we have seen in twenty years. This was further impacted by elevated pilot attrition as the major and national airlines have accelerated hiring.” Pilot attrition is an increasing problem at regional carriers, which fly smaller aircraft and pay lower salaries than the legacy carriers. Since passenger demand began to rebound last summer, demand for pilots has grown across the board, and regional airlines are taking the biggest blows. Pilots are leaving the regionals in greater numbers to fill seats left vacant by pilots who retired from legacy carriers amid the coronavirus-driven aviation slump of 2020-2021. “Looking ahead, we are cautiously optimistic that we are already seeing a decrease in Covid-related absence rates. Managing through the challenges of pilot attrition in our core regional operation remains our team’s top priority,” he adds.<br/>