Mesa Airlines(US:MESA)2024-06-18 11:15Financial Performance - Total operating revenues for Q2 2024 were $131.6 million, an increase of $9.7 million, or 8.0%, from $121.8 million in Q2 2023[4] - Net income for Q2 2024 was $11.7 million, or $0.28 per diluted share, compared to a net loss of $35.1 million, or $(0.88) per diluted share, in Q2 2023[6] - Adjusted EBITDA for Q2 2024 was $26.8 million, compared to $7.1 million in Q2 2023[7] - Total operating expenses in Q2 2024 were $119.9 million, a decrease of $28.8 million, or 19.3%, from $148.7 million in Q2 2023[5] - Mesa achieved its first GAAP and adjusted net profits in 11 quarters, along with the best adjusted EBITDAR result over that period[3] - GAAP net income for the three months ended March 31, 2024, was $11,660, compared to a net loss of $35,122 in the same period last year[24] - Adjusted EBITDA increased to $26,758 from $7,065 year-over-year[24] - Adjusted EBITDAR rose to $28,166 from $7,900 in the previous year[25] - For the six months ended March 31, 2024, the company reported a GAAP net loss of $45.3 million, compared to a net loss of $47.2 million for the same period in 2023[28] - Adjusted EBITDA for the six months ended March 31, 2024, was $31.9 million, an increase from $28.9 million in the prior year, reflecting a growth of approximately 6.9%[28] - The company reported an adjusted net loss of $13.3 million for the six months ended March 31, 2024, compared to an adjusted net loss of $25.6 million in the prior year, representing an improvement of approximately 48.0%[28] Debt and Expenses - Mesa reduced its total debt by $221.5 million, or 36%, over the past year, ending Q2 2024 with $400.0 million in total debt[3] - Interest expense for the three months ended March 31, 2024, was $10,640, compared to $13,030 in the same period last year[24] - The company incurred an interest expense of $21.8 million for the six months ended March 31, 2024, down from $24.3 million in the same period of 2023, indicating a reduction of about 10.3%[28] - Aircraft rent expenses decreased to $2.6 million for the six months ended March 31, 2024, from $4.9 million in the same period of 2023[28] - The company experienced a $3.2 million in non-recurring third-party costs associated with the sale of assets and retirement of debt during the six months ended March 31, 2024[31] - A $3.0 million gain on extinguishment of debt was recorded during the six months ended March 31, 2024[32] Operational Metrics - Approximately 98% of total revenue in Q2 2024 was derived from the contract with United Airlines[10] - The controllable completion factor for United during Q2 2024 was 99.85%, compared to 99.63% in Q2 2023[9] - Mesa's fleet mix in Q2 2024 comprised 56 E-175s and 24 CRJ-900s[10] - Available seat miles decreased by 9.8% to 961,761 thousands compared to 1,065,771 thousands in the same period last year[22] - Block hours declined by 10.2% to 43,270 from 48,186 year-over-year[22] - Total passengers transported fell by 7.9% to 1,422,702 from 1,545,489 in the previous year[22] - The controllable completion factor for United was 99.85%, up from 99.63% year-over-year[22] - Total completion factor for United decreased to 97.15% from 98.48% in the previous year[22] Gains and Losses - The company reported a $7.2 million gain on the transfer of investments in equity securities during the three months ended March 31, 2024[26] - There was a $45.5 million impairment loss on held for sale accounting treatment on seven CRJ 900 aircraft during the six months ended March 31, 2024[29] - The company recognized a $10.5 million gain on debt forgiveness during the six months ended March 31, 2024[30] - A $4.0 million loss was recorded due to changes in the fair value of the company's investments in equity securities for the six months ended March 31, 2024[30] Future Outlook - The company expects to remain cash-flow neutral for the remainder of the fiscal year[4]