Mesa recorded $121.8 million in revenue during the second quarter of fiscal 2023, down 1.1% year-on-year, as it reported a loss of $35.1 million, or 88 cents per diluted share.
The carrier reported contract revenue decreased $8.2 million, or 7.3%, a fall driven by deferred revenue and lower block hours but partially offset by higher United Airlines block-hour rates for new pilot pay-scales.
Pass-through revenue, driven by maintenance and property taxes, increased by $6.8 million, while operating expenses fell 11.5% to $148.7 million.
"This decrease was primarily due to $22.7 million lower non-cash impairment of assets held for sale versus Q2 2022, an $8.6 million decrease in aircraft rent attributable to the reclassification from operating lease to finance lease for certain CRJ-900s, and a $4.2 million decrease in depreciation primarily driven by the lower depreciable base from the CRJ-900 asset impairment charge in Q4 2022," Mesa said.
However the decrease was offset by a $12.4 million increase in flight operations expense to $54.8 million, in part dsuew to rising pilot pay scales and increased training costs.
Mesa’s adjusted earnings (EBITDA) came to $7.1 million, compared to $15.8 million in Q2 2022, while adjusted EBITDAR was $7.9 million, down on the 25.2 million for the period in 2022.
The company ended the 2023 quarter at $51.4 million in unrestricted cash and equivalents, with $608.7 million in debt secured primarily with aircraft and engines.
Mesa said 55% of revenue was derived from our contracts with United, 40% from American, 4% from DHL, and 1% from leases of aircraft to a third party.
The carrier said it recorded "a controllable completion factor" of 99.6% for United and 99.8% for American, during the period, excluding cancellations due to weather and air traffic control.
During the quarter,, Mesa closed on the sale of 4 of the 11 CRJ-900s agreed to be sold to a third-party and sold United the remaining eight CRJ-550s and ten out of the 30 engines previously agreed upon.