Mesa Airlines reports fiscal Q1 loss, braces for breakup with American Airlines
Mesa Airlines Group, parent of US regional carrier Mesa Airlines, reports a modest loss in the first quarter of its fiscal year as it prepares to separate from longtime partner American Airlines in favour of a new deal with United Airlines. The Phoenix-based company, which operates regional routes for United and American and flies cargo for DHL Express, says on 9 February that it lost $9m during the three months ended 31 December, its fiscal Q1 2022, compared to $14m loss in the same quarter a year ago. The company’s revenues also stagnated during the final three months of 2022 as it generated $147m, down slightly from the previous year when it reported revenue of $148m. “It’s fair to say we’ve clearly gone through a rough patch,” Jonathan Ornstein, Mesa’s CE, said during the company’s quarterly earnings call on 9 February. “I believe that over time we’ll start to see the benefit of all this, and it will all come together in terms of a much more stable operating platform and renewed profitability.” Mesa’s 50,940 block hours in the last three months of 2022 represented a 44% decrease from the 86,097 block hours it flew during the same period of 2021. Looking ahead, Mesa anticipates that its block hours will remain flat in its fiscal second quarter. “Mesa, like many regional airlines, continues to contend with the challenges of the industry-wide pilot shortage on our block hour production,” says Brad Rich, Mesa’s COO. “However, we finally have a line of sight to relief.” Mesa’s pilot-attrition rate has “come down materially” in recent months to a rate close to pre-pandemic 2019, Rich says, adding that its classes are “filled with a combination of new hires and captain upgrades”. The regional is also positioning itself as a pilot pathway to United. After severing its contract in December, Mesa will cease operating on behalf of American on 3 April 2023. It will operate its current schedule with American through 28 February, then reduce flights by half. <br/>
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Mesa Airlines reports fiscal Q1 loss, braces for breakup with American Airlines
Mesa Airlines Group, parent of US regional carrier Mesa Airlines, reports a modest loss in the first quarter of its fiscal year as it prepares to separate from longtime partner American Airlines in favour of a new deal with United Airlines. The Phoenix-based company, which operates regional routes for United and American and flies cargo for DHL Express, says on 9 February that it lost $9m during the three months ended 31 December, its fiscal Q1 2022, compared to $14m loss in the same quarter a year ago. The company’s revenues also stagnated during the final three months of 2022 as it generated $147m, down slightly from the previous year when it reported revenue of $148m. “It’s fair to say we’ve clearly gone through a rough patch,” Jonathan Ornstein, Mesa’s CE, said during the company’s quarterly earnings call on 9 February. “I believe that over time we’ll start to see the benefit of all this, and it will all come together in terms of a much more stable operating platform and renewed profitability.” Mesa’s 50,940 block hours in the last three months of 2022 represented a 44% decrease from the 86,097 block hours it flew during the same period of 2021. Looking ahead, Mesa anticipates that its block hours will remain flat in its fiscal second quarter. “Mesa, like many regional airlines, continues to contend with the challenges of the industry-wide pilot shortage on our block hour production,” says Brad Rich, Mesa’s COO. “However, we finally have a line of sight to relief.” Mesa’s pilot-attrition rate has “come down materially” in recent months to a rate close to pre-pandemic 2019, Rich says, adding that its classes are “filled with a combination of new hires and captain upgrades”. The regional is also positioning itself as a pilot pathway to United. After severing its contract in December, Mesa will cease operating on behalf of American on 3 April 2023. It will operate its current schedule with American through 28 February, then reduce flights by half. <br/>
