Mesa Air Group disclosed a first quarter 2024 net loss of $57.9 million compared to a net loss of $9.1 million for the prior-year quarter. Mesa’s Q1 2024 adjusted net loss was $21.8 million, versus an adjusted net loss of $4.3 million, in Q1 2023.
Total operating expenses in Q1 2024 were $167.2 million, an increase of $22.5 million, or 15.6%, versus Q1 2023, primarily reflecting $40.4 million of asset impairment losses related to assets held for sale. Excluding asset impairment losses, operating expenses were $126.8 million, compared to $141.0 million in Q1 2023.
For Q1 2024, approximately 96% of the Company’s total revenue was derived from its contract with United. The Company’s CPA with United provides for 80 large (70/76 seats) jets, comprising a mix of E-175s and CRJ-900s. In Q1 2024, Mesa’s fleet mix comprised 54 E-175s and 26 CRJ-900s, as well as four 737 cargo aircraft.
The Q1 earnings report also showed that Mesa and DHL have “mutually agreed to wind down cargo operation as of February 2024” and that DHL will “reimburse certain costs associated with wind-down”.
Mesa ended the December quarter with $16.1 million in unrestricted cash and cash equivalents, and $481.0 million in total debt, secured primarily with aircraft and engines. Mesa made $41.3 million of debt payments related to CRJ asset sale transactions, repaid $11.4 million of United States Treasury debt, and made $7.7 million in scheduled debt payments during the quarter. In addition, $3.0 million of the company’s MHI debt was forgiven, and it drew $5.0 million from its revolving credit facility.
Mesa shows loss for the first quarter
