Mesa Air Group Reports First Quarter Fiscal 2025 Results

Core Viewpoint - Mesa Air Group reported a net loss of $114.6 million for Q1 2025, reflecting ongoing challenges despite operational improvements and positive adjusted EBITDA for the fifth consecutive quarter [7][8]. Financial Performance - Total operating revenues for Q1 2025 were $103.2 million, a decrease of $15.5 million or 13.1% compared to $118.8 million in Q1 2024 [4]. - Contract revenue fell to $80.7 million, down by $20.4 million or 20.2% from $101.1 million in Q1 2024, primarily due to reduced contractual aircraft with United Airlines and the wind-down of DHL revenue [4]. - Pass-through revenue increased by $4.9 million or 27.6%, mainly due to higher maintenance expenses [5]. - Total operating expenses rose to $214.0 million, an increase of $46.8 million or 30.0% compared to Q1 2024, driven by asset impairment costs and losses on asset sales [6]. Operational Highlights - The company achieved a controllable completion factor of 100.00% for United in Q1 2025, compared to 99.92% in Q1 2024 [9]. - Mesa operated 62 large jets under its capacity purchase agreement with United, consisting of 54 E-175s and eight CRJ-900s [9]. Adjusted Financial Metrics - Adjusted EBITDA for Q1 2025 was $11.0 million, up from $5.0 million in Q1 2024 [8]. - Adjusted EBITDAR was $12.6 million for Q1 2025, compared to $6.3 million in Q1 2024 [8]. Balance Sheet and Liquidity - As of March 31, 2025, Mesa had $54.1 million in unrestricted cash and cash equivalents, with total debt of $230.6 million, significantly reduced from $481.0 million a year earlier [11]. - The company paid down $79.8 million in debt during the quarter, including $69.0 million related to the sale of E175 aircraft [11]. Employee and Fleet Information - Mesa operates a fleet of 60 aircraft with approximately 238 daily departures, serving 82 cities across 32 states, the District of Columbia, Cuba, and Mexico [14].