Mesa Airlines finalises new deal with United, reports dismal Q4 results

Amid the upheaval of severing its contract with longtime operating partner American Airlines and finalising a new deal with United Airlines, Mesa Air Group reported a $115.6 million loss during its fiscal Q4. For comparison, the parent company of Mesa Airlines lost $7.5m during its fiscal fourth quarter - which ends on 30 September - in 2021. For the full fiscal year, Mesa reported a $183m loss, compared to a profit of $16.6m in fiscal 2021. Mesa finalised a five-year capacity purchase agreement with United on 27 December that covers up to 38 Bombardier CRJ900s depending on how many Embraer E175s the airline operates, CE Jonathan Orstein said during the company’s earnings call on 29 December. “This is an important momentum reversal for the regional airline industry as we work to restore service to neglected smaller and rural markets – three quarters of which have seen service reductions in the past three years – by adding over 100 daily regional jet flights to the United network,” Ornstein says. Mesa will operate its current schedule with American through 28 February 2023, then reduce flights by half until it stops flying for American on 3 April. Mesa plans to begin transitioning aircraft to United in March. Mesa’s total revenue during the three months ending 30 September was $126m, compared with $131m during the same quarter of 2021, the company says. Its unprofitable Q4 was due in part to losing $5m monthly while operating for American, which penalizes Mesa for not flying enough block hours, Ornstein adds. The company also felt pressure from higher pilot pay. Story has more.<br/>