Mesa Air Group Q2 results

Mesa Air Group posted a total operating revenue of $131.6 million, and a net income of $11.7 million for the second quarter (Q2) of 2024. The group reported $11.7 million in pre-tax income, and an adjusted net income of $6.3 million, alongside a renegotiation of an operating lease for two CRJ aircraft into a fully amortised buyout lease, reducing payments by $9.5 million over life of the lease. The companies total operating revenue for Q2 2024 was $131.6 million, an 8% increase from $121.8 million in the same period last year. Mesa states that these increases were due to ""higher E-175 block-hour rates with United Airlines"" which came into effect 1 October, 2023. Total operating expenses for Q2 2024 was at $119. 9 million, a 19.3% decrease from Q2 2023. The company also reported a completion rate of 99.85% for United Airlines during Q2 2024, compared to 99.63% in Q2 the previous year. Mesa ends Q2 with $18.5 million in unrestricted cash/cash equivalents, and a total $400 million of debt secured primarily against aircraft and engines. This is a decrease from Q2 2023, where the total debt was $621.6 million. “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,” said Jonathan Ornstein, chairman and CEO of Mesa Air. “Given meaningfully improved block-hour rates on our E-175 flying, coupled with our initiatives to eliminate surplus CRJ assets, we achieved our first GAAP and adjusted net profits in 11 quarters, as well as our best adjusted EBITDAR result over that period. Concurrently, Mesa has reduced its total debt by $221.5 million, or 36%, over the past year. “While we still have work to do as we transition out of our CRJ-900 fleet and build our E-175 flying, we expect to remain cash-flow neutral for the remainder of the fiscal year. With an optimized asset base, our ongoing transition toward higher-margin E-175 flying, and the continued reduction in pilot attrition and strength in our pilot pipeline, we look forward to returning to consistent profitability in the future.”