Mesa Air Group, Inc. - MESA STOCK NEWS

Mesa Air Group, Inc. (NASDAQ: MESA) has completed a second closing on its five-year Loan and Guarantee Agreement under the CARES Act. The airline borrowed an additional $152 million, following an initial $43 million drawn on October 30, 2020. These funds are designated for general corporate purposes and operating expenses. In connection with the loan, Mesa issued warrants to the U.S. Treasury for 3,819,095 shares of common stock, valid for five years. This funding is intended to support Mesa during the ongoing challenges posed by the pandemic.

Mesa Air Group, Inc. (NASDAQ: MESA) is set to announce its fourth quarter earnings for fiscal year 2020 on December 9, following the market close. A conference call will take place on the same day at 4:30 PM Eastern Time to discuss the results. Interested parties can join the call by dialing 888-469-2054 with the passcode PHOENIX (7463649). A listen-only webcast will also be available on Mesa's website, with a recorded version accessible two hours post-call.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant decline in operating performance for October 2020, with total block hours falling by 48.2% year-over-year to 20,167 hours due to the COVID-19 pandemic's impact on flight schedules. Block hours for American and United airlines decreased by 50.0% and 47.1% respectively. Despite the drop in hours and departures, Mesa maintained a high controllable completion factor of 99.96% for American and 99.95% for United, reflecting operational efficiency amidst challenges.

Mesa Air Group (NASDAQ: MESA) has secured a five-year Loan and Guarantee Agreement with the U.S. Treasury, allowing up to $200 million under the CARES Act. On October 30, 2020, Mesa borrowed $43 million, with the option to borrow an additional $157 million, subject to certain conditions. The loan carries an interest rate of Adjusted LIBO Rate plus 3.50%. In exchange, Mesa will issue warrants to the Treasury for shares of common stock. The agreement includes financial covenants and prohibits dividend payments and stock buybacks.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a 40.3% decline in block hours for September 2020, totaling 21,780 hours compared to September 2019, largely due to COVID-19. However, its controllable completion factors remained high at 99.87% for American operations and 99.95% for United operations. Year-to-date, block hours fell 31.4%, while the airline operates a fleet of 145 aircraft, serving 102 cities in 39 states, with about 373 daily departures.

Mesa Air Group (NASDAQ: MESA) has successfully launched its first revenue cargo flight for DHL Express from Cincinnati/Northern Kentucky International Airport. This marks the beginning of a five-year agreement to operate two Boeing 737-400F aircraft for DHL. The initial flight signifies an important milestone in Mesa's operations, especially as it continues to integrate the Boeing 737 into its fleet. The second aircraft is expected to commence service in November 2020.

Mesa Air Group, Inc. (NASDAQ: MESA) has successfully reached an agreement with its pilots, represented by the Air Line Pilots Association, allowing the company to avoid furloughing employees through the end of 2020. Despite the significant impact of COVID-19 on air travel, the company values its strong employee relationships and has worked diligently to prevent furloughs following the expiration of the CARES Act Payroll Support Program. Mesa is hopeful for a congressional extension of the Payroll Support Program to further protect employees amid ongoing travel demand challenges.

Mesa Air Group, Inc. (NASDAQ: MESA) reported a significant 52.1% decline in block hours for August 2020, totaling 18,747 hours due to reduced schedules amidst the COVID-19 pandemic. The company's controllable completion factors reached 100% for American and 99.97% for United operations. Year-to-date, Mesa's block hours also experienced a 30.6% drop compared to the previous year. Despite the challenges, Mesa operates a fleet of 145 aircraft with approximately 324 daily departures and continues to serve 88 cities in the U.S. and Mexico.

Mesa Air Group, Inc. (MESA) plans to release its third quarter earnings for fiscal year 2020 on August 10, after market close, followed by a conference call at 4:30 PM Eastern Time. Investors can join the call by dialing 888-469-2054 with the passcode PHOENIX. A listen-only webcast will also be available on Mesa's investor relations website, with a recorded version accessible two hours post-call. As of June 30, 2020, Mesa operates 145 aircraft with around 175 daily departures across 66 cities in 29 states and Mexico.