Mesa posts quarterly adjusted profit for first time in almost three years

Struggling Mesa Air Group has posted its first adjusted quarterly profit in almost three years as it continues to regain its financial footing. The Phoenix-based parent of regional carrier Mesa Airlines said on 18 June that its profit during the fiscal second quarter, which ended on 31 March, was $11.7m, compared to a loss of $35.1m in the same quarter in 2023. Adjusted net profit was $6.3m, up from a loss of $21.3m in the fiscal second quarter last year. That marks the first profit in 11 quarters, the company adds. “Our second-quarter results have begun to demonstrate an improvement in our business and reflect our efforts over the past year-and-a-half to restructure and strengthen our operations, P&L, and balance sheet,” CE Jonathan Ornstein says. Revenue during the quarter was $131.6m, up 8% from the same period a year earlier. Expenses fell to $120m, down 19.3%, reflecting lower asset impairment losses, lower depreciation and amortisation expense, and lower flight operations expense as the company divested of its surplus CRJ fleet, Mesa says. Over the past year, the airline has been selling off its excess Bombardier CRJ-900s in order to pay off debts and return to a stable financial state. Mesa says that it has reduced its total debt by $221.5m, or 36%, in that time period. The airline currently flies regional routes for United Airlines as United Express under a capacity purchase agreement which was sealed in December 2023, after the carrier had operated for competitor American Airlines for three decades. As part of the deal, United took a 10% stake in the company, which at the time was valued at $10.5mv.<br/>