Mesa Air Group has reported a net loss of $14.3 million for the first quarter fiscal of 2022, compared to net income of $14.1 million for Q1 FY21. Mesa’s Q1 FY22 adjusted net loss of $9.3 million was down compared to net income of $13.2 million in Q1 FY21. Mesa has attributed this $22.5 million decrease to the impacts related to Covid, such as cancelled flights, a catch up in deferred heavy maintenance expense, and a spike in sick-related absence rates.
Revenue in Q1 2022 was $147.8 million, a decrease of $2.6 million (1.7%) from $150.4 million for Q1 2021. While contract revenue increased $9.7 million due to more flying on all fleets relative to the prior period, this increase was offset by fewer aircraft flown for American.
For the three months ended December 31, 2021, 49% of the company’s total revenue was derived from contracts with United, 45% from American, 1% from DHL, and 5% from leases of aircraft to a third party.
“Mesa’s results reflect the impact of Covid to our quarter’s operations and financials,” said Jonathan Ornstein, Chairman and CEO. “Its effect on this quarter was significant and unlike anything we have seen in twenty years. This was further impacted by elevated pilot attrition as the major and national airlines have accelerated hiring. Looking ahead, we are cautiously optimistic that we are already seeing a decrease in Covid-related absence rates. Managing through the challenges of pilot attrition in our core regional operation remains our team’s top priority.”
Mesa is taking delivery of its third 737-400F aircraft this month. Mesa ended the quarter with $102.3 million in unrestricted cash and equivalents. As of December 31, 2021, the company had $678.6 million in total debt secured primarily with aircraft and engines.