Mesa Air Group Reports March 2021 Operating Performance

Rhea-AI Summary

Mesa Air Group, Inc. (NASDAQ: MESA) reported a 15.9% decrease in block hours for March 2021, totaling 28,127 hours, impacted by the COVID-19 pandemic and operational disruptions from a major winter storm in February. The controllable completion factors remained high at 99.86% for American operations and 100% for United. Year-to-date figures show significant reductions, with a 36.0% overall decline in block hours compared to FY2020. Notably, the company faced nearly 1,300 flight cancellations, incurring crew costs despite reduced operations.

Positive

• Controllable completion factors of 99.86% (American) and 100% (United) indicate operational reliability.
• Block hours increased by 38% month-over-month from February 2021.

Negative

• Block hours decreased by 15.9% year-over-year, indicating reduced operational capacity.
• Q2 YTD block hours down 36.0% compared to FY2020, reflecting ongoing pandemic challenges.
• Almost 1,300 flight cancellations led to incurring crew costs without revenue.

PHOENIX, April 12, 2021 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported Mesa Airlines’ operating performance for March 2021.

Mesa Airlines reported 28,127 block hours in March 2021, a 15.9 percent drop from March 2020 as a result of reduced schedules during the COVID-19 pandemic. The company also reported a controllable completion factor of 99.86 percent and 100 percent for its American and United operations, respectively.

For Q2 of fiscal year 2021 ending March 31^st, total block hours were 73,942 on 35,270 departures. These block hours are well below our guidance provided on our Q1 fiscal year 2021 Earnings Release. The reduced block hours and departures were the result of the mid-February major winter storm and subsequent Texas power outages impacting our major operations in both Dallas and Houston. During that period, we cancelled almost 1,300 flights representing close to 3,000 block hours while still incurring crew costs.

Operating statistics for March 2021 and fiscal year 2021 YTD are included in the table below.

	Mar-21		Mar-20		% Change			YTD FY2021		YTD FY2020		% Change
Block Hours
American	11,989		15,063		-20.4	%		63,132		96,667		-34.7	%
United	15,983		18,401		-13.1	%		79,001		127,199		-37.9	%
DHL	155		n/a		N/A			1056		n/a		N/A
Total	28,127		33,464		-15.9	%		143,189		223,866		-36.0	%
	Mar-21		Mar-20		% Change			YTD FY2021		YTD FY2020		% Change
Departures
American	6,240		8,391		-25.6	%		32,348		55,377		-41.6	%
United	7,162		8,718		-17.8	%		37,587		62,783		-40.1	%
DHL	100		n/a		N/A			679		n/a		N/A
Total	13,502		17,109		-21.1	%		70,614		118,160		-40.2	%
	Mar-21		Mar-20		% Change			YTD FY2021		YTD FY2020		% Change
Controllable Completion Factor*
American	99.86	%	99.85	%	0.01	%		99.82	%	99.71	%	0.11	%
United	100.00	%	99.99	%	0.01	%		99.98	%	99.98	%	0.00	%
Total Completion Factor**
American	98.13	%	85.67	%	14.54	%		96.65	%	95.98	%	0.70	%
United	99.58	%	81.39	%	22.35	%		96.70	%	96.48	%	0.23	%

Operating statistics month over month for the second quarter of fiscal year 2021 and QTD are included in the table below.

	Mar-21		Feb-21		% Change			QTD FY2021		QTD FY2020		% Change
Block Hours
American	11,989		8,688		38.0	%		31,764		47,244		-32.8	%
United	15,983		11,571		38.1	%		41,612		61,061		-31.9	%
DHL	155		198.4		-22.1	%		566		n/a		N/A
Total	28,127		20,457		37.5	%		73,942		108,305		-31.7	%
	Mar-21		Feb-21		% Change			QTD FY2021		QTD FY2020		% Change
Departures
American	6,240		4230		47.5	%		15,967		26,364		-39.4	%
United	7,162		5221		37.2	%		18,943		29,071		-34.8	%
DHL	100		121		-17.4	%		360		n/a		N/A
Total	13,502		9,572		41.1	%		35,270		55,435		-36.4	%
	Mar-21		Feb-21		% Change			QTD FY2021		QTD FY2020		% Change
Controllable Completion Factor*
American	99.86	%	99.62	%	0.2	%		99.83	%	99.91	%	-0.1	%
United	100.00	%	99.97	%	0.0	%		99.99	%	99.97	%	0.0	%
Total Completion Factor**
American	98.13	%	87.78	%	11.8	%		95.01	%	94.03	%	1.0	%
United	99.58	%	83.01	%	20.0	%		94.22	%	93.19	%	1.1	%

*Controllable Completion Factor excludes cancellations due to weather and air traffic control
**Total Completion Factor includes all cancellations

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 112 cities in 38 states, the District of Columbia, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of March 31st, 2021, Mesa operated a fleet of 163 aircraft with approximately 440 daily departures and 3,100 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc., United Airlines, Inc., and DHL.

Investor Relations
Susan Donofrio
Investor.Relations@mesa-air.com

Media
Megan Bilbao
Media@mesa-air.com

FAQ

What were Mesa Air Group's block hours in March 2021?

Mesa Airlines reported 28,127 block hours in March 2021, a 15.9% decrease from March 2020.

How did the winter storm affect Mesa's operations in March 2021?

The winter storm in mid-February caused nearly 1,300 flight cancellations, impacting operations significantly.

What is the controllable completion factor for Mesa Airlines in March 2021?

The controllable completion factor was 99.86% for American operations and 100% for United operations.

How did Mesa's block hours in Q2 fiscal year 2021 compare to the previous year?

YTD block hours for Q2 FY2021 were down 36.0% compared to YTD FY2020.

What impacted Mesa Air Group's performance in March 2021?

Mesa's performance was heavily affected by the COVID-19 pandemic and operational disruptions due to weather conditions.