Mesa Air Group Inc (MESA)

[OldAIMGuy]

Off topic.....

In college we had the
"So Happy It's Thursday" Face Club!
It was somewhat self explanatory as to what we did!

OAG

[eastunder]

Here are MESA last reporting days. They stay consistent
Last reports were...
DEC 9 (Fri)
FEB 9 (Thurs)
MAY 9 (Tue)
AUG 8 (Tue) and current day...
DEC 14 (Thurs) (The 9th was a Sat this year)

I wish a Thursday meant something! ;)

[jasmin8192]

RE: earnings. Anything is possible.

Interesting timing for after-hours on a Thursday. Perhaps there is some good news here to drive up the close of the week on Friday?

[eastunder]

Hopefully today will be day 4 closing above a dollar. Six more to go after that.

Mesa reports after hours on 12/14 which would be day 7 above a dollar if we stay in this range but I can't imagine any good news regarding earnings at this point.

Can you?

[eastunder]

Day 1

😉

[OldAIMGuy]

That's a nice finish for the Day.
OAG

[OldAIMGuy]

Good morning E, Re: Moving Above and Beyond...........................

Getting back above a buck a share is heartening.

I'm sure there will still be some turbulence but seeing the selling pressure decline is nice.
Seeing the price/share zoom through your two SMAs is pretty, too.

W%R looking healthy after a long downward period. Accumulation/Distribution starting to look better also.
https://schrts.co/BuTqWXuk

Best wishes,
OAG

[eastunder]

Another strong move this morning on above ave volume

If we close up here - Day 1 over a buck. Let the countdown begin. ;)

[eastunder]

I think a lot of that was due to HA rising. It lifted all the airlines.

I would have loved to see Mesa close above the dollar mark and start that 10 day count down....

Gap is at .78 Should it retract

Cute chart, right?

[OldAIMGuy]

Yes, and a break above $1 intra day.
Nice to see this wounded bird start to recover.
Best wishes,
OAG Tom

[jasmin8192]

I like where this is heading. I was worried for a while. The 14th will shed light on things but I am cautiously optimistic that this will continue to move upward.

[eastunder]

Mesa Air Group Announces Fourth Quarter and Fiscal Year 2023 Earnings Release and Conference Call Date
5:00 PM ET, 11/29/2023 - GlobeNewswire
PHOENIX, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) will release its 2023 fourth quarter and fiscal year end earnings after the market closes on Thursday, December 14th. The Company will also host a conference call to discuss the results on December 14th at 4:30 pm Eastern Time.

[eastunder]

That's a nice little move today.

$0.93$0.15(+19.23%)

Today's volume so far?
711.7K and on Above Avg volume

[eastunder]

You'll like this one:

CRJ-900 Operating For United Airlines Found Without Nose Gear Tire In Denver

https://www.msn.com/en-us/travel/news/crj-900-operating-for-united-airlines-found-without-nose-gear-tire-in-denver/ar-AA1ko5gp

CRJ-900 Operating For United Airlines Found Without Nose Gear Tire In Denver
© Provided by SimpleFlying

Mesa Airlines flight UA6244 experienced a missing nose gear tire during a flight between Grand Junction and Denver International on November 20.

The incident was discovered during a post-flight inspection upon landing in Denver. It is unclear if the tire was flat or lost during the flight.
Despite the tire issue, the aircraft remained in service and continued to operate multiple flights afterwards. Mesa Airlines has had other minor incidents in 2023.

On November 20, a Mesa Airlines Canadair CRJ-900 operating on behalf of United Airlines flight UA6244 between Grand Junction (GJT) and Denver International (DEN) in Colorado missed a nose gear tire during the flight.
What happened?

The Federal Aviation Administration (FAA) released a report on Mesa Airlines’ incident. It said: “POST FLIGHT INSPECTION REVEALED MISSING NOSE GEAR TIRE.” The incident took place on November 20. Mesa Airlines employed a Canadair CRJ-900, registration N938LR, to operate flight UA6244.

The flight departed from Grand Junction’s runway 29, climbed to FL250, and landed on Denver’s runway 34R about one hour after departure and taxied to the apron. It was then that the inspection revealed the loss of a nose gear tire in the aircraft. No one was hurt due to the incident, and it was unclear if the tire was simply flat or if it fell through the flight operation and was lost somewhere.

Per Dunlop Aircraft Tyres, the CRJ900 has two different types of tires. The main tires are H36X12.0-18, while the nose tires (like the one in this incident) are 20.5x6.75-10.

About the aircraft

Mesa Airlines’ aircraft involved in this incident is an 18.47-year-old plane operating for United Express. It has the capacity to carry 79 passengers in a two-class configuration, with 70 seats in economy and nine in business.

The plane was delivered to Mesa Airlines in June 2005 and has remained in the company’s fleet ever since. According to data from ch-aviation, the aircraft has totaled about 41,444.00 flight hours and 33,555 cycles throughout its life.

Mesa Airlines has a fleet of 141 aircraft operating flights for United Airlines and DHL. The carrier has three Boeing 737-400(SF)s, one B737-800(BDSF), 13 CRJ900s, 32 CRJ900ERs, 13 CRJ900LRs, as well as 79 Embraer E170s.

Despite losing the tire, this Mesa Airlines CRJ900 was not taken out of commercial service, according to data from Flightradar24. After landing in Denver, the plane stayed there the night before departing on November 21 to Oklahoma City, operating flight UA6236. Since then, it has operated five additional flights. However, the aircraft was not scheduled for commercial service on November 23, resuming operations on November 24 with four scheduled flights (Harlingen-Houston, Houston-Tulsa, Tulsa-Denver, and Denver-El Paso).

Other incidents for Mesa Airlines

Mesa Airlines has had four minor incidents in 2023 so far, according to data from Aero Inside. The Aviation Herald has a fifth incident on record.

Mesa’s first incident took place on February 24, 2023. On that date, a Skywest Embraer ERJ-175 had a runway incursion at Bob Hope Burbank Airport and forced a Mesa Airlines CRJ900 to execute a go-around as it was inbound for landing on the same runway. No damage or injuries were reported, and it was one of the many near-misses in the United States throughout the year.

In May, a Mesa Airlines operating flight UA6217 from LaGuardia to Houston Intercontinental encountered severe turbulence, causing a serious injury to a passenger. Another Mesa Airlines operating flight UA6035 between Houston Intercontinental and Milwaukee had to stop the climb at FL180 due to problems with the bleed air and ultimately returned to Houston. Finally, a Mesa Airlines CRJ900 operating flight UA6137 from Dallas Fort Worth to Denver had an engine shut down in flight. No injuries were reported.

[eastunder]

Looks like that was in 2010

https://en.wikipedia.org/wiki/List_of_airline_bankruptcies_in_the_United_States

[Nighthawk_1]

Looks like MESA heading to another bankruptcy just like in 2008...LOL. AND, they didn't even let anyone know ahead of time.

[OldAIMGuy]

Nice volume spikes Frida AM.

[eastunder]

May 1, 2024 is a long time away. I'm not worried about being delisted for being under a buck.

Now BK? That scares me more than anything. They have threatened it in the past and they are probably closer to it now, financially, than they were back then.

I am very curious to see what they report in December

[OldAIMGuy]

The threat of MESA being delisted sure didn't help the share price much.
In the 'olden days' I used to call my broker at this point and ask to have a stock certificate delivered to me. That way, I at least had a pretty bit of investment art to hang on the wall to remind me that things don't always go as planned!

OAG

[eastunder]

MESA - .5439 close 11/7

Tracking pps after 30 days under a buck (11/2) and the deficiency notice received (11/8).

May 1, 2024, to regain compliance

[eastunder]

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

http://archive.fast-edgar.com/20231108/A626L222ZZ22A99222TS2Z42N7GMZK22B252/

On November 3, 2023, Mesa Air Group, Inc. (the “Company”) received a notice in the form of a letter (“Deficiency Letter”) from the Nasdaq Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1) because the bid price for the Company’s shares of common stock had closed below $1.00 per share for the previous 30 consecutive business days (the “Minimum Bid Price Requirement”). The Deficiency Letter has no immediate impact on the listing of the Company’s shares of common stock, which will continue to be listed and traded on The Nasdaq Global Select Market under the symbol “MESA” at this time, subject to the Company’s compliance with the other continued listing requirements.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been given 180 calendar days, or until May 1, 2024, to regain compliance with the Minimum Bid Price Requirement. If at any time before May 1, 2024, the bid price of the Company’s shares of common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Staff will provide written confirmation that the Company has achieved compliance.

If the Company does not regain compliance with the Minimum Bid Price Requirement by May 1, 2024, the Company may be afforded a second 180 calendar day period to regain compliance. To qualify, the Company would be required to transfer to The Nasdaq Capital Market and meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the Minimum Bid Price Requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the deficiency during the second compliance period. Following a transfer to The Nasdaq Capital Market, the Company expects that it would be afforded the second 180 calendar day period to regain compliance, unless it does not appear to Nasdaq that it is possible for the Company to cure the deficiency. If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the compliance period (or the second compliance period, if applicable), the Company’s common stock will become subject to delisting. In the event that the Company receives notice that its common stock is being delisted, the Nasdaq listing rules permit the Company to appeal a delisting determination by the Staff to a hearings panel.

The Company intends to actively monitor the closing bid price for the Company’s shares of common stock and may, if appropriate, evaluate available options to resolve the deficiency and regain compliance with the Minimum Bid Price Requirement. While the Company is exercising diligent efforts to maintain the listing of its shares of common stock on Nasdaq, there can be no assurance that the Company will be able to regain or maintain compliance with Nasdaq’s listing standards.

The Company, by filing this Form 8-K, discloses its receipt of the Deficiency Letter regarding the Minimum Bid Price Requirement in accordance with Nasdaq Listing Rule 5810(b).

[eastunder]

This was a quote from the movie "Airplane"

Most certainly not worth repeating. 😉

Sorry about that!

[eastunder]

MESA - 30 days under 1.00

[OldAIMGuy]

This less-than-positive note is from Yahoo Finance:

https://finance.yahoo.com/news/7-airline-stocks-sell-amid-195640645.html

Mesa Air Group (NASDAQ:MESA) revenues are declining while losses deepen. Those losses were particularly acute in the second quarter at $40 million whereas the company eked out a $213k net gain a year earlier.

Consider that Mesa Air Group has less than $50 million in cash on hand and eyebrows should rise. The simple math indicates that the company cannot continue to operate its business for that much longer. MESA shares will remain volatile and for day traders there’s plenty to like for that reason. However, any long-term investor should stay away. Management offers no guidance and increasing fuel costs could spike its losses again. It’s very difficult to gauge the shares as a result.

It's in my IRA, so there's no benefit in "tax loss selling" here. I'll probably just let it whither here. Even JETS is off from its 2023 high of $22 to just $15 right now. So, contrary investors might be tempted by the industry ETF. A 33% haircut on the industry ETF shouldn't be ignored.

Best wishes,
OAG

[eastunder]

Depends.

“Is There Anyone On Board Who Knows How To Fly A Plane?"

[eastunder]

Depends.

“Is There Anyone On Board Who Knows How To Fly A Plane?"

[OldAIMGuy]

Will it ever get airborne again????

OAG

[eastunder]

MESA .65 10/23/23

[Monksdream]

MESA new 52 week low

[eastunder]

Bias suit filed by air passengers of Egyptian/Jordanian origin reinstated
Judy Greenwald

October 16, 2023

https://www.businessinsurance.com/article/20231016/NEWS06/912360454/Bias-suit-filed-by-air-passengers-of-EgyptianJordanian-origin-reinstated-Issam-

A federal appeals court on Friday reinstated a discrimination lawsuit filed by air passengers of Egyptian/Jordanian origin whose flight was canceled after a flight attendant said she had “gut” feeling they posed a safety concern.

The flight attendant, who was on a Mesa Airlines flight scheduled to leave Birmingham, Alabama, for Dallas Fort Worth International Airport, grew concerned about two passengers, Issam Abdallah and Abderraouf Alkhawaldeh, who are American citizens, according to the ruling by the 5th U.S. Circuit Court of Appeals in New Orleans in Issam Abdallah; Abderraouf Alkhawaldeh v. Mesa Air Group, Inc.; Mesa Airlines Inc.

Her suspicions were based on factors including another passenger’s complaint that Mr. Abdallah had bullied him when he mistakenly asked for Mr. Abdallah’s seat, that Mr. Abdallah had waved to Mr. Alkhawaldeh, and because Mr. Abdallah had “preemptively” agreed to assist in an emergency.

The steward spoke with the plane’s captain, who discussed the situation with airport security. Although the ground security coordinator concluded there was no safety risk, the pilot delayed takeoff until the point where passengers had to deplane.

As Mr. Abdallah and Mr. Alkhawaldeh waited in line to reschedule their flights, they were interrogated and surveilled by police officers.

The men sued Phoenix-based Mesa for racial and national origin discrimination. The airline argued it had immunity under federal law, which allows an airline to remove passengers it fears might be dangerous. The U.S. District Court in Fort Worth granted the airline summary judgment.

The ruling was overturned by a three-judge appeals court panel. “The contention is that because all passengers experienced the same cancellation, no disparate treatment occurred….We disagree,” the ruling said.

Plaintiffs allege that but for their protected classes (race and national origin), the flight would not have been canceled. That is an allegation of disparate treatment,” the ruling said.

The federal law that permits airlines to remove passengers they feel are a threat to safety does not provide immunity for a discrimination claim “if a passenger’s protected status is the but-for cause of the airline’s decision to remove that passenger, thus rendering the airline’s action… ‘capricious or arbitrary,’” the panel said, in citing an earlier decision, and remanding the case for further proceedings.

Justin Sadowsky, an attorney with the Washington-based Council on American-Islamic Relations, who represented the plaintiffs, said in a statement, “The 5th Circuit found that a pilot refusing to fly someone because of their race violates the law. As we will show at trial, that is exactly what happened here.”

Mesa’s attorneys did not respond to a request for comment.

[eastunder]

Thanks Tom!

I look forward to it!

I always appreciate your feedback!

[OldAIMGuy]

Hi EastUnder, Re: Article.........................

One thing I've been watching since starting my "investment" in MESA has been their book value per share. It's been cheap for quite a long time as the share price has declined - far cheaper than any airline I've studied. However, as they sell off assets, their book value will be dropping. I'd have to factor in their equipment sales to their current stated book value and see if the BV/Sh is still looking like a bargain. I'll report back when I study that more.

Generally I'm a long term investor and my MESA is in an IRA where tax loss selling isn't overly useful! So, it warrants further study on my part. The share price is now just below where it bottomed in late Q4, 2022. It's a very long way off its Q1, 2023 high of $3.64.

More later after my review,
OAG

[eastunder]

What's your opinion on the statistic's in this piece? It was written a month ago on Aug 22 when the pps was 1.52 at close.

On 9/25 Mesa closed at .88, a 42% drop since written, and now sits below a dollar- day one below a dollar )

Mesa Air Group: Unattractive Or Speculative Buy?
Aug. 22, 2023 1:45 PM ETMesa Air Group, Inc. (MESA)AAL, UAL7 Comments


Dhierin Bechai
Investing Group Leader
https://seekingalpha.com/article/4630320-mesa-air-group-unattractive-or-speculative-buy

Summary
Mesa Air Group has experienced a significant decline in stock value due to continued pilot shortages and a transition period.
The company is still losing money despite transitioning to a profitable agreement with United Airlines.
Mesa Air Group is focused on reducing debt and improving liquidity through the sale of aircraft and engines.

In a previous report, I said that Mesa Air Group (NASDAQ:MESA) remained infused with risk, and it was not a buy due to an uncertain ramp up trajectory in the flights for United Airlines. Perhaps that was an understatement because the stock lost almost a third of its value since then. In this report, I will be revisiting the rating for Mesa Air Group and put a price target on the name.

A Turn Around Year For Mesa Air Group

I could spend various paragraphs discussing the most recent results, but right now the reality for Mesa is that despite transitioning from a loss-making capacity purchase agreement with American Airlines (AAL) to a profitable one for United Airlines (UAL), the business was still losing money.

Total contract revenues decreased by 20.6% on a 28.6% decrease in block hours. So, the contract revenue per block hour did improve by around 11% excluding pass through revenues, which in some way shows the better revenue structure for the flight activity for United Airlines. The operating expenses increased by 15.5% or $20.737 million, but this was driven by $30.5 million in asset impairments. Excluding the asset impairment and gains on sale, the operating income would have dropped from a $213,000 profit to a $16.5 million loss, mostly reflecting lower contract revenues.

So, while initially the transition from flying for American Airlines to United Airlines was presented as swapping loss-making block hours for profitable ones, the reality is that due to the ramp up and a somewhat conservative scheduling from United, the business has become even more loss making. That is also driven by the continued pilot shortage. Perhaps the positive is that Mesa needs another 150 pilots to allow the company to get to the targeted utilization, which will generate margins of 7 to 10 percent, which the company expects to achieve in fiscal year 2024.

Mesa’s Focus On Debt And Liquidity

As Mesa transitions the business and improves utilization, the company has to rightsize in more than one aspect. Currently, the company has a surplus of 36 airplanes and has associated debts on the books. So, the key right now is to sell those assets, take out the associated debt and improve liquidity. The company has $48.3 million in cash and burns $13.8 million in operations quarterly. So, while the company won’t run out of cash imminently, it has to do something to keep liquidity at acceptable levels to run the business because the company also has $24 million maturing this year and $122.2 million maturing in the next fiscal year. So, the position is far from comfortable with $577.5 million in gross debt.

The company intends to sell aircraft and engines to improve liquidity and efficiency and reduce debt:

14 CRJ-900s will be sold, saving the company $3 million per quarter.
15 CRJ-900s are currently subject to negotiations, which will yield $2 million in savings per quarter.
Seven CRJ-900s are not subject of negotiations, but could result in $2 million in savings per quarter.
The sale of 12 engines held for sale will also result in $2 million in cost savings.
Overall, shaving excess capacity would result in $15 million in savings, but that is not the most important element, in my view, as these quarterly savings are largely non-cash. The important part is the debt reduction associated with the sales. The 14 CRJ-900s will reduce debt by $74.3 million and provide $18 million in cash. The debt reduction will be around 13% of the outstanding debt, while the cash would cover a quarter of the operational cash burn. We don’t know what the other 22 airplanes will do to the debt profile once sold, but scaling it to the 14 sold jets, it would mean $116.7 million in debt reduction and $28.3 million in cash. If we scale that to the quarterly savings, the numbers would be closer to $77.8 million and $18.9 million.

Is MESA Stock A Buy?

Mesa doesn’t quite sound attractive. The business has $48.3 million in cash, $13.8 million in operating cash burn and expected normalization of efficiency in FY2024. Apart from that, the company has $23.9 million in maturities in FY2023 and $122.2 million next year and one can really wonder where the money will be coming from since there is a negative cash flow and only $90 million in assets held for sale.

With FY2023 earnings in mind, Mesa Air Group stock without a doubt is a sell, but 2024 provides some upside with potentially even more upside in 2025. It should, however, be pointed out that the business needs to significantly increase its cash generation in the years to come. As it stands, by 2025, the company could actually be short of cash. However, it is not certain whether this will be the case as the company will be selling off assets, which could take out some principal maturities that are currently scheduled for 2025. Nevertheless, the Mesa Air Group stock does not seem attractive to buy at all.

Conclusion: Mesa Air Group Remains A High Risk Name

The only reason why one would or could consider buying Mesa Air Group is the upside it offers in the 2024-2025 timeframe and in that case buying the stock would be speculative. Just looking at this year’s expectations, the stock would be a sell, but we should point out that 2023 is a transition year and that transition will continue in 2024. Keeping the potential upside in mind as well as the challenges for the business, I would consider Mesa a hold for people looking to recover some of their losses.

[eastunder]

Hey Tom!

I wondered what you were up to!

Mesa is questionable. I'm hoping it survives. But It's a tough sector right now!

I recently harvested some losses in MESA so I'm still in a wash period on those sets but will be watching it once that period ends!

.





.

[OldAIMGuy]

Hi E,
We may get a chance to buy MESA under a buck a share. The whole industry has been down with the blues for all of Q3 so far.


MESA's been 'over-contributing' to this downtrend, I feel!!!


I've not decided whether I'll continue averaging down here. Maybe Q3 results will be good enough to get MESA airborne again.

Best wishes,
OAG Tom

[OldAIMGuy]

It would appear from the Accumulation/Distribution line that MESA's share ownership has stabilized.
https://schrts.co/GTDxtMPk
Maybe the price/share will bounce here a bit. Even so, the price swings should be trade-able for profits.
Best wishes,
OAG

[OldAIMGuy]

Hi J,
As a proxy for the airlines JETS is moving upward as well. It was up over 4% earlier today.

It appears to me that MESA is more the 'victim of circumstances' rather than a poorly run business. That said, they need to bring the earnings back up and make their quarterly statements look a bit prettier.

Best wishes,
OAG Tom

[eastunder]

Indeed!

Thanks for alerting me the other day and keeping an eye on it for us.

I would have missed my buy back start, So I owe ya one, Tom!

I hope this is the end of the shenanigans!

J

[OldAIMGuy]

Another nice up-tick today.
OAG

[OldAIMGuy]

Hi EU,

MESA Fundamentals as of today:

Price/Book Value = 0.1735
Price/Sales = 0.1570
Book Value/Share = $8.24
Market Cap = $57.8MM
Short Interest Float = 2.44%
52 Week Low = $1.03/sh

Who's gonna step up and buy MESA? It's a bargain by appearance.

OAG

[eastunder]

This is a smack down. For a stock that never trades any volume (202,634 10 day average)

805,973 shares so far is huge.

cpps 1.52 (Down -.5324 or -26.21%)

Oddly - I find that drop attractive. ;)

What do you think? Is she going to survive Tom?

Interesting where the pps sits right now. Right on support (until its not)

[eastunder]

Mesa Air Group Reports Second Quarter Fiscal 2023 Results
May 09, 2023 17:34 ET | Source: Mesa Air Group, Inc.

https://www.globenewswire.com/news-release/2023/05/09/2665098/0/en/Mesa-Air-Group-Reports-Second-Quarter-Fiscal-2023-Results.html

PHOENIX, May 09, 2023 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported second quarter fiscal 2023 financial and operating results.

Fiscal Second Quarter Update:

Total operating revenues of $121.8 million
Pre-tax loss of $37.2 million, net loss of $35.1 million or $(0.88) per diluted share
Adjusted net loss1 of $21.3 million or $(0.53) per diluted share
Adjusted net loss excludes $13.8 million primarily related to impairment of assets held for sale
Initiated CRJ-900 transition to United Airlines in March, with last American Airlines flight operated April 3rd
Experiencing pilot attrition below pre-COVID levels
Reduced debt by approximately $80 million primarily with proceeds from asset sales
Jonathan Ornstein, Chairman and CEO, said, “While our financial results reflect the ongoing transition of CRJ flying to United, we believe these actions will prove to be the right long-term strategic decision for the company. We began operating CRJ-900 flights for United Airlines in March, representing the culmination of months of diligent preparation and coordination between Mesa and United teams. We have already started to realize significantly improved pilot retention and attraction as a result of our expanded agreement with United. While we were ultimately more conservative in the timing of our transition than we had projected through second-quarter end, we have now transitioned 24 CRJ-900s.”

Fiscal Second Quarter Details:

Total operating revenues in Q2 2023 were $121.8 million, a decrease of $1.4 million, or 1.1%, from $123.2 million for Q2 2022. Contract revenue decreased $8.2 million, or 7.3%. These decreases were driven by deferred revenue and lower block hours, partially offset by higher United block-hour rates for new pilot payscales. Pass-through revenue, driven by maintenance and property taxes, increased by $6.8 million. Mesa’s Q2 2023 results include, per GAAP, the deferral of $5.7 million, versus the recognition of $0.8 million of previously deferred revenue in Q2 2022. The remaining deferred revenue balance of $24.5 million will be recognized as flights are completed over the remaining term of the United contract.

Total operating expenses in Q2 2023 were $148.7 million, a decrease of $19.3 million, or 11.5%, versus Q2 2022. 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. The decrease was partially offset by a $12.4 million increase in flight operations expense to $54.8 million, reflecting higher pilot pay scales and increased training costs as we continue to drive pilot throughput, as well as a $5.7 million increase in general and administrative expense, reflecting higher pass-through property tax costs. Total adjusted operating expenses, excluding one-time items, were $132 million, an increase of 2.7% compared to the prior year period.

Mesa’s Q2 2023 results reflect a net loss of $35.1 million, or $(0.88) per diluted share, compared to a net loss of $42.8 million, or $(1.19) per diluted share for Q2 2022. Mesa’s Q2 2023 adjusted net loss1 was $21.3 million, or $(0.53) per diluted share, versus an adjusted net loss1 of $10.3 million, or $(0.29) per diluted share, in Q2 2022.

Mesa’s Adjusted EBITDA1 for Q2 2023 was $7.1 million, compared to $15.8 million in Q2 2022, and Adjusted EBITDAR1 was $7.9 million for Q2 2023, compared to $25.2 million in Q2 2022.

Operationally, the Company reported a controllable completion factor of 99.6% for United and 99.8% for American during Q2 2023. This is compared to a controllable completion factor of 96.7% for United and 96.8% for American during Q2 2022. This excludes cancellations due to weather and air traffic control.

With respect to a total completion factor that includes all cancellations, Mesa reported a total completion factor of 98.5% for United and 94.7% for American during Q2 2023. This is compared to a total completion factor of 93.7% for United and 93.5% for American during Q2 2022.

For Q2 2023, 55% of the Company’s total revenue was derived from our contracts with United, 40% from American, 4% from DHL, and 1% from leases of aircraft to a third party. Upon our completion of the transition of the American CRJ-900s to United, our contracted regional fleet will consist of 80 large (70/76 seats) jets, comprising a mix of E-175s and CRJ-900s. Additionally, we will continue to operate four 737-400/800s at DHL.

Balance Sheet and Cash Flow:

Mesa ended the quarter at $51.4 million in unrestricted cash and equivalents. As of March 31, 2023, the Company had $608.7 million in total debt secured primarily with aircraft and engines.

During the quarter, the Company closed on the sale of 4 of the 11 CRJ-900s agreed to be sold to a third-party. Mesa also sold to United the remaining eight CRJ-550s and ten out of the 30 engines previously agreed upon. Net proceeds from these transactions were used to pay down $52 million of debt. Additionally, we made $28 million of scheduled debt payments in the quarter.

[eastunder]

Mesa Air Group Announces Second Fiscal Quarter 2023 Earnings Release and Conference Call Date

PHOENIX, April 25, 2023 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) will release its second quarter earnings results for fiscal year 2023 after the market closes on Tuesday, May 9th. The company will also host a conference call to discuss the results on May 9th at 4:30 pm Eastern Time.

The call can be accessed by dialing 888-469-2054 and entering the passcode: PHOENIX (7463649).

There will also be a listen-only webcast on Mesa’s website (found here). A recorded version will be available on Mesa’s website approximately two hours after the call (http://investor.mesa-air.com).

[OldAIMGuy]

I added 12% to my MESA position this AM at $2.095. That's a 44% discount from my latest sale about 2 weeks ago.

Best wishes,
OAG

[OldAIMGuy]

Today Mesa shares traded down over a buck/share from my selling price last week. That's almost a 30% discount from last week's price.

Best regards,
OAG Tom

[OldAIMGuy]

This AM MESA traded at my target sell price of $3.76. I liberated 10% of the position and stored the proceeds in my cash reserve. My best buy was at $1.38 but my starting price was $7.20. As of this sale the holding has recovered all but 10% of the initial starting amount. I still have over 3X the starting number of shares, so if MESA continues its climb-out to cruising altitude the holding should do well over time.

Best wishes,
OAG

[OldAIMGuy]

Getting closer!
OAG

[OldAIMGuy]

MESA's stock price is now only about 10% away from where my GTC Limit order is. That order will sell 10% of my current share inventory. I don't use moving averages to determine 'next buy' and 'next sell' targets but it is interesting to note that MESA is currently above both the 130 Day and the 20 Day EMA in price/share.



Share inventory management has been almost all on the Accumulation side for me since starting this investment. If/When this share distribution occurs it will only be the 4th one since August of 2021.

Best wishes,
OAG

[eastunder]

Mesa Air Group Reports First Quarter Fiscal 2023 Results
Mesa Air Group, Inc.

Thu, February 9, 2023 at 2:00 PM MST·

https://finance.yahoo.com/news/mesa-air-group-reports-first-210000108.html

PHOENIX, Feb. 09, 2023 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported first quarter fiscal 2023 financial and operating results.

Fiscal First Quarter Update:

Total operating revenues of $147.2 million

Pre-tax loss of $10.0 million, net loss of $9.1 million or $(0.25) per diluted share

Adjusted net loss1 of $4.3 million or $(0.12) per diluted share

Adjusted net loss excludes a $3.7 million impairment related to intangible assets and $1.7 million related to investments in equity securities

As previously reported, closed on United Airlines, American Airlines, and aircraft-related transactions

Subsequent to quarter end, closed sale of 8 remaining CRJ-550s to United Airlines

Jonathan Ornstein, Chairman and CEO, said, “The first quarter was an important one for Mesa, as we executed several key agreements that will materially enhance our operational and financial position and alleviate significant issues that we have faced. While block hour production continued to be challenged by the industry-wide pilot shortage during the quarter, we believe all the pieces are in place to begin restoring capacity across our fleets. We are preparing for the transition of our CRJ-900 operation to United next month. Our pilot pipeline continues to strengthen and pilot attrition has remained significantly lower since we have enhanced our payscales and expanded our participation in the Aviate program with United.”

Fiscal First Quarter Details:

Total operating revenues in Q1 2023 were $147.2 million, a decrease of $0.6 million (0.4%) from $147.8 million for Q1 2022. Contract revenue decreased $8.4 million, or 6.2%. These decreases were driven by lower block hours, offset by increased block-hour revenue for new pilot payscales. Mesa’s Q1 2023 results include, per GAAP, the recognition of $5.3 million, versus the recognition of $4.2 million of previously deferred revenue in Q1 2022. The remaining deferred revenue balance of $18.8 million will be recognized as flights are completed over the remaining terms of the contracts.

Mesa’s Adjusted EBITDA1 for Q1 2023 was $21.8 million, compared to $17.0 million in Q1 2022, and Adjusted EBITDAR1 was $25.9 million for Q1 2023, compared to $26.6 million in Q1 2022.

Mesa’s Q1 2023 results reflect a net loss of $9.1 million, or $(0.25) per diluted share, compared to a net loss of $14.3 million, or $(0.40) per diluted share for Q1 2022. Mesa’s Q1 2023 adjusted net loss1 was $4.3 million, or $(0.12) per diluted share, versus an adjusted net loss1 of $9.3 million, or $(0.26) per diluted share, in Q1 2022. The year over year increase in adjusted net income of $5.0 million was primarily due to increased block-hour revenue for new pilot payscales and lower maintenance, D&A, and aircraft rent expenses, partially offset by higher expenses for flight operations due to increased costs for training and employee wages.

Operationally, the Company ran a controllable completion factor of 99.4% for American and 99.9% for United during Q1 2023. This is compared to a controllable completion factor of 97.7% for American and 98.3% for United during Q1 2022. This excludes cancellations due to weather and air traffic control.

With respect to a total completion factor that includes all cancellations, Mesa reported a total completion factor of 97.9% for American and 99.2% for United during Q1 2023. This is compared to a total completion factor of 95.8% for American and 95.8% for United during Q1 2022.

For Q1 2023, 50% of the Company’s total revenue was derived from our contracts with United, 45% from American, 3% from DHL, and 2% from leases of aircraft to a third party.

1 See Reconciliation of non-GAAP financial measures

Balance Sheet and Cash Flow:

Mesa ended the quarter at $56.1 million in unrestricted cash and equivalents. As of December 31, 2022, the Company had $701.3 million in total debt secured primarily with aircraft and engines. This amount includes $64.2 million corresponding to the reclassification from operating lease to finance lease on 15 CRJ-900s. Additionally, we borrowed $25.5 million in the form of a term loan from United, of which $15 million is forgivable upon the meeting of certain performance criteria.

[OldAIMGuy]

MESA touched $3 today.


Let the healing continue!

Best wishes,
OAG Tom