Mesa Airlines' holding company Mesa Air Group reported a net loss of $114.6 million for the first quarter of 2025, widening further from $57.9 million last year.
The result comes after total operating revenues fell 13.1% to $103.2 million. Contract revenue was down 20.2% to $80.7 million. The decrease was driven by the reduction in contractual aircraft with United Airlines, the reduction in DHL revenue due to the wind-down of the FSA, and higher deferred revenues. The company said higher E-175 block-hour rates had partially offset these decreases in revenues.
The company operates a fleet of E175 aircraft under United Airlines' United Express brand.
Total operating expenses were up 30% to $214 million. The increase primarily reflects a net loss on asset sales of $46.7 million during the quarter, as well as asset impairment costs increasing by $25.3 million. The increases were partially offset by flight operations expenses declining 31.9%, which was due to fewer contracted aircraft and lower pilot training costs.
“We continue to make financial progress and generated positive adjsuted EBITDA and adjusted EBITDAR for the fifth consecutive quarter, highlighting improving operating profitability as we continued to wind down our CRJ operations,” said MESA chairman and CEO Jonathan Ornstein.
Adjusted EBITDA totalled $11 million for the quarter, increasing from $5 million a year prior. Adjusted EBITDAR was $12.6 million for the first quarter, up from $6.3 million last year.
Ornstein continued: “Working closely with United’s network planning group, Mesa anticipates block hour utilization will be 9.8 in the June quarter, up from 9.4 in the March quarter, and 8.9 in the December quarter.”
As of the end of March, the company $54.1 million in unrestricted cash and cash equivalents. The company had a total debt of $230.6 million, secured primarily with aircraft and engines. During the quarter, the company paid $79.8 million in debt, of which $69 million was related to the sale of E175 aircraft.