Mesa Air Group, Inc. - MESA STOCK NEWS

Mesa Air Group reported Q3 fiscal 2024 results with total operating revenues of $110.8 million, an 8.0% increase in United Express contract revenue year-over-year. The company reported a pre-tax loss of $20.7 million and a net loss of $19.9 million, or $(0.48) per diluted share. Adjusted net loss was $9.4 million, or $(0.23) per diluted share.

Key updates include:

• Extended increased block-hour rate on E-175 flying with United through August 31, 2025
• Agreed to transition fleet to all E-175s by March 1, 2025
• Entered agreements to sell 23 CF34-8C engines for $33.5 million
• Generated $9.6 million from sale of Archer Aviation shares

Mesa ended the quarter with $16.3 million in unrestricted cash and $366.4 million in total debt.

Mesa Air Group (NASDAQ:MESA) has received a notice from Nasdaq on August 16, 2024, stating that the company is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Quarterly Report on Form 10-Q for the period ended June 30, 2024. The notice does not immediately affect Mesa's listing or trading on the Nasdaq Capital Market.

Mesa has 60 calendar days to submit a compliance plan to Nasdaq. If accepted, Nasdaq may grant up to 180 calendar days (until February 10, 2025) for Mesa to file the Form 10-Q. The company is working to complete and file the Form 10-Q well before the 60-day notice period to regain compliance. The filing delay is not due to any financial restatement or auditor disagreement.

Mesa Air Group (NASDAQ: MESA) announced the furlough of 12 pilots and the deferral of training for 41 pilot trainees, effective July 12, 2024. This decision stems from a significant reduction in pilot attrition. The company expects to save approximately $750,000 monthly in operating expenses. Jonathan Ornstein, Mesa's Chairman and CEO, noted that the decline in attrition is partly due to a hiring slowdown across airlines and the increased availability of pilots meeting the FAA's 1,500-hour requirement. Despite the furloughs, Mesa anticipates an increase in Embraer-175 block hours with United and plans to start recalling pilots by year-end.

Mesa Air Group (NASDAQ: MESA) reported its second quarter fiscal 2024 results, showing significant improvements. Operating revenues reached $131.6 million, an 8% increase from Q2 2023.

The company achieved a pre-tax and net income of $11.7 million, or $0.28 per diluted share, and an adjusted net income of $6.3 million, or $0.15 per diluted share.

Mesa's adjusted EBITDAR was $28.2 million, up from $7.9 million in Q2 2023. The company reduced its total debt by $221.5 million over the past year and expects to remain cash-flow neutral for the rest of the fiscal year.

Operationally, Mesa achieved a 99.85% controllable completion factor. The fleet mix for Q2 2024 included 56 E-175s and 24 CRJ-900s.

Mesa Air Group (NASDAQ: MESA) announced the completion of the sale of six CRJ-900 airframes and ten CRJ engines from its surplus inventory. This is part of its Regional Aircraft Securitization Program (RASPRO) finance lease. Originally, Mesa faced a $50.4 million obligation to purchase these assets by March 2024. Through a series of transactions from May to September 2024, Mesa has reduced this obligation to $27.3 million as of May 31, 2024. Mesa plans to eliminate the remaining obligation by completing further sales in the near future. Mesa’s CEO Jonathan Ornstein emphasized the importance of addressing the RASPRO lease and highlighted the company’s focus on returning to profitability and executing strategic actions.

Mesa Air Group provided details on its holdings in XTI Aerospace, which is developing the TriFan 600, a VTOL aircraft that can transport up to six passengers. XTI Aerospace began trading on the Nasdaq (symbol: XTIA) on March 13, 2024, following a merger with Inpixon. Mesa received 283,734 shares of XTI Aerospace upon exercising warrants and holds additional warrants for 189,156 shares subject to vesting milestones. Mesa's obligations for purchasing 100 TriFan 600 aircraft are contingent on FAA certification and future agreements. The TriFan 600 offers a range of 700 miles and a cruising speed of 345 mph, with the potential for sustainable aviation fuel.

Mesa's chairman, Jonathan Ornstein, emphasized the aircraft's benefits for urban and rural communities and its potential impact on the Essential Air Service markets. Mesa holds investments in other innovative aviation companies like Archer Aviation and Heart Aerospace, reflecting its commitment to regional aviation innovation.

XTI Aerospace announced Mesa Airlines' investment and conditional pre-order for up to 100 TriFan 600 aircraft. The order, if fully exercised, could generate up to $1 billion in revenue for XTI Aerospace. Mesa Airlines has also taken warrants and a minority stake in common stock shares of XTI Aerospace.

Jonathan Ornstein, CEO of Mesa Air Group, highlighted the unique capabilities of the TriFan 600, including VTOL capabilities, longer range, and higher speed, which align with advancements in sustainable aviation. Scott Pomeroy, CEO of XTI Aerospace, emphasized the market potential of the TriFan 600, citing its 345 mph speed and 700-mile range as competitive advantages.

Ornstein compared the TriFan 600 to a

Mesa Air Group (NASDAQ: MESA) announced it has regained compliance with the NASDAQ's minimum bid price requirement.

On November 3, 2023, Mesa was informed by NASDAQ that its common stock had not met the minimum bid price of $1.00 per share for 30 consecutive business days.

To regain compliance, Mesa was required to maintain a closing bid price of $1.00 or more for at least 10 consecutive business days. From May 20, 2024, to June 3, 2024, Mesa achieved this criterion.

On June 4, 2024, NASDAQ confirmed that Mesa met the requirement, closing the matter.

Mesa Air Group reported Q1 fiscal 2024 results with total operating revenues at $118.8 million, down 19.3% from Q1 2023. The company posted a pre-tax loss of $57.0 million and a net loss of $57.9 million or $(1.41) per diluted share. Adjusted net loss stood at $21.8 million or $(0.53) per diluted share. Mesa paid down $39.2 million in debt through asset sales and noted a 5% increase in block hours over Q4 2023. Following the quarter, Mesa agreed to higher block-hour rates with United Airlines and terminated its cargo operation with DHL. Mesa expects to turn a net profit in Q2 2024 and break even in cash flow for the fiscal year. The company also reported a decrease in operating expenses and reduced pilot attrition.