Mesa Air Group has reported pre-tax income of $5.8 million for the third quarter fiscal 2021, compared to $4.9 million for Q3 2020. Mesa's Q3 2021 results reflect net income of $4.3 million, or $0.11 per diluted share, compared to net income of $3.4 million. Total operating revenue increased by $52.1 million, or 71.2%, to $125.2 million for the three months ended June 30, 2021 as compared to the three months ended June 30, 2020. Contract Revenue increased by $38.0 million, or 53.0%, to $109.7 million. Total operating expense increased by $52.9 million, or 91.4%, to $110.8 million for the three months ended June 30, 2021
During the quarter, Mesa took delivery of the last four E175LLs for a total of 80 E175s with United; and leased six additional, 12 total CRJ-700s to GoJet with eight scheduled for future delivery
Mesa has also invested in second electric aircraft company, Heart Aerospace (Heart)
Jonathan Ornstein, Chairman and CEO, said, “We had a strong quarter as a result of the rebound in air traffic that led to a sharp increase in block hours compared to the prior year period, as well as last quarter. This time last year we faced a more difficult environment due to the pandemic that led to a significant reduction in air travel…While travel demand remains below pre-pandemic levels and supply chain disruptions have compounded the challenges we face in the current environment, we continue to press forward.” He continued, “We are also committed to ushering in the next generation of sustainable air travel. This is already beginning with new ventures such as our recent one with Heart Aerospace.”
Brad Rich, Mesa’s Chief Operating Officer, added, “During the quarter, we saw a 15.2% sequential increase in block hours. Daily aircraft utilization for the month of June increased 67.4% to 8.7 hours versus 5.2 hours a year ago. We remain focused on operational performance and continuing to provide flexibility to our partners. We are also committed to maintaining a safe and healthy environment for our employees and passengers.”
The increase is expenses for the airline was primarily due to a substantial increase in block hours compared to the prior year period, which was impacted by the COVID-19 pandemic and associated lockdowns, as well as increased maintenance costs. Specifically, flight operations expense increased in the three months ended June 30, 2021 due to additional crew costs associated with more flying and training, and maintenance expense increased primarily due to additional C-checks in preparation for the anticipated increase in summer flying.
Mesa stresses that it continues to respond to its partner requests for additional flying but is being hampered by shortages of spare parts causing aircraft to remain in 'C' checks 2x as long as they should. Mesa has opportunities to grow for American, United and its cargo operation, which is performing well. They continue to pursue a JV in Europe to add incremental flying in that market.
Mesa forecast September quarter block hours for its partners will be about 89K. Pass through maintenance, which has no P&I impact is forecast to be $9.0 million in the current quarter, compared to $12.6 million in the June quarter.