Mesa Air Group Q3 revenue drops 16.3% on reduction in contractual aircraft with United Airlines
Overview
Mesa fiscal Q3 2025 rev falls 16.3% yr/yr, driven by reduced United contracts
Co reports GAAP net income of $20.9 mln, reflecting operational restructuring
Proposed merger with Republic Airways expected to enhance financial profile
Outlook
Mesa expects combined annual revenue of $1.8 bln to $2.0 bln post-merger
Company anticipates pro forma cash balance to exceed $300 mln post-merger
Mesa expects pro forma debt balance of approximately $1.1 bln post-merger
New 10-year capacity purchase agreement with United Airlines post-merger
Result Drivers
REVENUE DECLINE - Reduced contractual aircraft with United Airlines led to lower contract revenue
OPERATIONAL EFFICIENCY - Achieved 99.99% controllable completion factor and increased block hour utilization
ASSET SALES - Sale of surplus CRJ assets contributed to debt repayment and reduced interest expenses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Operating Revenue |
| $92.80 mln |
|
Q3 Adjusted Net Income |
| -$600,000 |
|
Q3 Net Income |
| $20.90 mln |
|
Q3 Adjusted EBITDA |
| $6.10 mln |
|
Q3 Operating Expenses |
| $92.90 mln |
|
Q3 Pretax Profit |
| $20.60 mln |
|
Press Release: ID:nGNX9V5cTL
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