Mesa Air Group Reports Third Quarter Fiscal 2021 Results

Mesa Air Group has reported third-quarter fiscal 2021 financial and operating results.

Highlights for the quarter (3-months ended June 30, 2021):

Pre-tax income of $5.8 million, net income of $4.3 million or $0.11 per diluted share1

Took delivery of the last four E175LLs for a total of 80 E175s with United

85,162 block hours, up 169.3% year-over-year and 15.2% above last quarter

Leased 6 additional, 12 total CRJ-700s to GoJet with 8 scheduled for future delivery

Subsequent to quarter-end, invested in second electric aircraft company, Heart Aerospace (“Heart”)

Mesa's Q3 2021 results reflect net income of $4.3 million, or $0.11 per diluted share, compared to net income of $3.4 million, or $0.10 per diluted share for Q3 2020.

Mesa's Q3 2021 pre-tax income was $5.8 million, compared to $4.9 million for Q3 2020. Mesa’s Q3 2021 results include, per GAAP, the deferral of $1.9 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts.

Mesa's Adjusted EBITDA1 for Q3 2021 was $35.3 million, compared to $35.9 million in Q3 2020, and Adjusted EBITDAR1 for Q3 2021 was $44.9 million, compared to $51.5 million in Q3 2020.

Jonathan Ornstein, Chairman and CEO, said, “We had a strong quarter as a result of the rebound in air traffic that led to a sharp increase in block hours compared to the prior year period, as well as last quarter. This time last year we faced a more difficult environment due to the pandemic that led to a significant reduction in air travel. I am proud of our team’s ability to work through these challenges, as evidenced by our fiscal third quarter results. While travel demand remains below pre-pandemic levels and supply chain disruptions have compounded the challenges we face in the current environment, we continue to press forward.” He continued, “We are also committed to ushering in the next generation of sustainable air travel. This is already beginning with new ventures such as our recent one with Heart Aerospace.”

Mesa Airlines’ operating performance for June 2021.

Mesa Air Group, Inc. has just reported Mesa Airlines’ operating performance for June 2021.

Mesa Airlines reported 30,015 block hours in June 2021, a 224.6 percent increase from June 2020 as a result of increased flying due to industry recovery from the COVID-19 pandemic. The Company also reported a controllable completion factor of 98.58 percent and 99.97 percent for its American and United operations, respectively.

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

Mesa orders 100 Heart Aerospace All-Electric Aircraft

 Mesa Air Group, Inc. announces that it has made an investment in electric aircraft company, Heart Aerospace (“Heart”), a company that plans to be the first to produce the world’s first electric nineteen-seat ES-19 aircraft, alongside Breakthrough Energy Ventures and United Airlines Ventures. Subject to certain terms, Mesa also plans to add 100 ES-19 aircraft to its regional fleet, revolutionizing air service to small markets as one of the first network air carriers to help decarbonize air travel through the use of electric aircraft. This announcement expands on the efforts that Mesa has made in the emerging transition to electric-powered flight with airlines such as United Airlines – first with the announcement of an investment in Archer Aviation and its eVTOL aircraft, and now with the ES-19, a fully electric nineteen-seat regional aircraft.

“As we continue to explore opportunities in electric aviation, we are excited to expand our efforts to reduce the reliance on fossil fuels in the airline industry and are proud to work with Heart to launch the world’s first electric regional aircraft. Mesa intends to continue its expansion through the introduction of revolutionary technology that benefits our passengers and the environment. We are delighted to take this important step in the de-carbonization of air travel through our co-investment with Breakthrough Energy Ventures and United Airlines Ventures in Heart”, said Jonathan Ornstein, Chairman and Chief Executive Officer. “These technological innovations are good for the environment, will expand the national transportation system, and provide significant growth opportunities for Mesa. We look forward to reconnecting with communities and passengers we previously served.”

Electric aircraft set to take flight by 2026 says United Airlines.................United signs agreement to acquire 100 of Heart Aerospace's ES-19 aircraft

United signs the deal for 100 aircraft and United Express regional partner, Mesa Airlines, also signs an agreement to acquire 100 of the electric aircraft.

United Airlines Ventures (UAV) -  the airline's corporate venture capital fund, confirmed today it, along with Breakthrough Energy Ventures (BEV) and Mesa Airlines, has invested in electric aircraft startup Heart Aerospace.

Heart Aerospace is developing the ES-19, a 19-seat electric aircraft that has the potential to fly customers up to 250 miles before the end of this decade. In addition to UAV's investment, United Airlines has conditionally agreed to purchase 100 ES-19 aircraft, once the aircraft meet United's safety, business and operating requirements. Mesa Airlines, United's key strategic partner in bringing electric aircraft into commercial service, has also agreed to add 100 ES-19 aircraft to its fleet, subject to similar requirements.

UAV is building a portfolio of companies that focus on innovative sustainability concepts and create the technologies and products necessary to build a carbon-neutral airline and reach United's net-zero greenhouse gas emissions goals. With this new agreement, United is deepening its bold commitment to reduce its greenhouse gas emissions 100% by 2050 without relying on traditional carbon offsets, as well as enabling the growth of Heart Aerospace and participating in the development of aircraft that will reduce greenhouse gas emissions from flying.

"Breakthrough Energy Ventures is the leading voice of investors who are supporting clean-energy technology creation. We share their view that we have to build companies who have real potential to change how industries operate and, in our case, that means investing in companies like Heart Aerospace who are developing a viable electric airliner," said Michael Leskinen, United's Vice President Corp Development & Investor Relations, as well as UAV's President. "We recognize that customers want even more ownership of their own carbon emissions footprint. We're proud to partner with Mesa Air Group to bring electric aircraft to our customers earlier than any other US airliner.  Mesa's long serving CEO, Jonathan Ornstein has shown visionary leadership in the field of electric-powered flight."

UAV and BEV are among the first investors in Heart Aerospace, demonstrating confidence in Heart's design and creating potential for Heart to fast track the ES-19 introduction to market as early as 2026.

"Aviation is such a critical piece of our global economy. At the same time, it's a major source of carbon emissions and one of the most difficult sectors to decarbonize," said Carmichael Roberts, Breakthrough Energy Ventures. "We believe electric aircraft can be transformational in reducing the emissions of the industry, and enable low cost, quiet and clean regional travel on a broad scale. Heart's visionary team is developing an aircraft around its proprietary electric motor technology that will allow airlines to operate at a fraction of the cost of today and has the potential to change the way we fly."

By utilizing electric motors instead of jet engines, and batteries instead of jet fuel, Heart's ES-19 aircraft will have zero operational emissions. Seating 19 passengers, the ES-19 aircraft will also be larger than any of its all-electric competitors and will be designed to operate on the same types of batteries used in electric cars.  Once operational, the ES-19 could operate on more than 100 of United's regional routes out of most of its hubs. Some of these routes include Chicago O'Hare International Airport (ORD) to Purdue University Airport (LAF) and San Francisco International Airport (SFO) to Modesto City-County Airport (MOD).  

"Electric aircraft are happening now—the technology is already here," said Anders Forslund CEO of Heart Aerospace. "We couldn't be prouder to be partnering with United, Mesa and BEV on taking our ES-19 aircraft to market. I can't imagine a stronger coalition of partners to advance our mission to electrify short-haul air travel."

Once operational, Heart's ES-19 could give customers access to the convenience of flight without contributing to carbon emissions that cause climate change.

"We expect the short-haul regional air travel market to play a key role in the evolution of the electric aircraft.  As battery technology improves, larger-gauge aircraft should become viable but we're not going to wait to begin the journey," Leskinen said. "That's why we're looking forward to beginning our work with Heart, so that, together, we can scale the availability of electric airliners and use them for passenger flights within the next five years."

It's electric! ⚡️

Together with @Breakthrough and @MesaAirlines, we're working with @heartaerospace to decarbonize regional air travel. We plan to acquire the ES-19 electric aircraft, set to take flight in 2026. https://t.co/3HpnhLZ1lZ pic.twitter.com/TdxHEqlT51

— United Airlines (@united) July 13, 2021

More top stories you might be interested in.....

Follow this site here.

June 2021 operating performance for Mesa Air Group

Mesa Air Group, Inc. has reported Mesa Airlines’ operating performance for June 2021.

Mesa Airlines reported 30,015 block hours in June 2021, a 224.6 percent increase from June 2020 as a result of increased flying due to industry recovery from the COVID-19 pandemic. The Company also reported a controllable completion factor of 98.58 percent and 99.97 percent for its American and United operations, respectively.

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

	Jun-21		Jun-20		% Change			YTD FY2021		YTD FY2020		% Change
Block Hours
American	12,610		3,000		320.4	%		98,549		111,199		-11.4	%
United	17,184		6,248		175.0	%		128,129		144,289		-11.2	%
DHL	221		n/a		N/A			1,673		n/a		N/A
Total	30,015		9,247		224.6	%		228,351		255,488		-10.6	%
	Jun-21		Jun-20		% Change			YTD FY2021		YTD FY2020		% Change
Departures
American	7,020		1,699		313.2	%		51,934		63,693		-18.5	%
United	7,712		3,550		117.2	%		59,984		72,559		-17.3	%
DHL	144		n/a		N/A			1,086		n/a		N/A
Total	14,876		5,249		183.4	%		113,004		136,252		-17.1	%
	Jun-21		Jun-20		% Change			YTD FY2021		YTD FY2020		% Change
Controllable Completion Factor*
American	98.58	%	100.00	%	-1.42	%		99.67	%	99.75	%	-0.08	%
United	99.97	%	100.00	%	-0.03	%		99.98	%	99.98	%	0.00	%
Total Completion Factor**
American	96.83	%	100.00	%	-3.17	%		97.00	%	93.27	%	4.00	%
United	98.76	%	99.83	%	-1.07	%		97.62	%	94.72	%	3.06	%

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

	Jun-21		May-21		% Change			QTD FY2021		QTD FY2020		% Change
Block Hours
American	12,610		11,741		7.4	%		35,417		14,532		143.7	%
United	17,184		16,300		5.4	%		49,127		17,090		187.5	%
DHL	221		223		-1.1	%		617		n/a		N/A
Total	30,015		28,264		6.2	%		85,162		31,622		169.3	%
	Jun-21		May-21		% Change			QTD FY2021		QTD FY2020		% Change
Departures
American	7,020		6,368		10.2	%		19,586		8,316		135.5	%
United	7,712		7,482		3.1	%		22,397		9,776		129.1	%
DHL	144		143		0.7	%		407		n/a		N/A
Total	14,876		13,993		6.3	%		42,390		18,092		134.3	%
	Jun-21		May-21		% Change			QTD FY2021		QTD FY2020		% Change
Controllable Completion Factor*
American	98.58	%	99.84	%	-1.3	%		99.42	%	100.00	%	-0.6	%
United	99.97	%	100.00	%	0.0	%		99.98	%	100.00	%	-0.02	%
Total Completion Factor**
American	96.83	%	97.22	%	-0.4	%		97.57	%	78.50	%	24.3	%
United	98.76	%	99.27	%	-0.5	%		99.21	%	84.77	%	17.0	%

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

More top stories you might be interested in.....

Follow this site here.

Mesa Air Group's Second Quarter 2021 Results

U.S. regional airline Mesa has reported its second quarter fiscal 2021 financial and operating results showing a pre-tax income of $7.6 million, net income of $5.7 million.

Highlights for the quarter:

Pre-tax income of $7.6 million, net income of $5.7 million or $0.14 per diluted share1

Adjusted pre-tax income of $12.1 million, adjusted net income of $9.1 million or $0.23 per diluted share 1

Letter of Intent to lease an additional 737-400F cargo aircraft

Invested in Archer Aviation’s eVTOL electric aircraft along with United Airlines

Letter of Intent with Gramercy Partners to develop a European-based regional airline

Named to Forbes’ list of America’s Best Midsize Employers for 2021

Mesa's Q2 2021 results reflect net income of $5.7 million, or $0.14 per diluted share, compared to net income of $1.9 million, or $0.05 per diluted share for Q2 2020. Mesa’s results include a one-time non-cash $4.5 million lease termination expense resulting from the purchase of a previously leased CRJ-900 aircraft. Adjusting for this, Mesa’s Q2 2021 quarterly net income per diluted share would have increased to $0.231.

Mesa Air Group records March 2021 operating performance.

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 31st, 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.

Top award for Mesa Air Group

Mesa Air Group, has been named in Forbes’ list of America’s Best Midsize Employers for 2021.

It is Mesa’s first time on the list and as the only regional airline, it shows the resilience of the company during one of the toughest years yet. “We are excited to be recognized by Forbes as one of the best midsize employers, especially given the impact COVID has had on our industry and business,” said Jonathan Ornstein, Chairman and Chief Executive Officer. “We hope to continue this momentum and remain at the top of our class.”

Forbes partnered with Statista to select America's Best Employers 2021 through an independent survey from a vast sample of more than 50,000 American employees working for large or midsize companies. Survey participants were asked to anonymously rate their willingness to recommend their own employers to friends and family. Employee evaluations also included other employers in their respective industries that stood out either positively or negatively. The survey has been conducted on companies across 25 industry sectors employing more than 1,000 employees in the United States.

More top stories you might be interested in.....

Mesa is looking to fly in Europe

The U.S regional carrier Mesa Air Group confirmed this week that it is looking to grow internationally!  The firm wants to embark on a joint venture with Gramercy Associates Ltd, based in London, that could see Mesa aircraft flying in Europe.

The joint venture will apply for a new Air Operator’s Certificate (AOC) in the European Union using CRJ-900 aircraft with the goal of introducing a Capacity Purchase Agreement or ACMI (Aircraft, Crew, Maintenance, and Insurance) in passenger or cargo services in Europe. 

Under the agreement, Mesa will own 49% of the partnership once the Air Operator’s Certificate is obtained. The current plan is to begin operations by the end of 2021.

“We are very excited at the potential to expand our regional business overseas. As Mesa continues to diversify, we are looking forward to working with Gramercy on this new European venture,” said Jonathan Ornstein, Chairman and Chief Executive Officer.

“We are looking forward to teaming up with Mesa to help bring the CPA and ACMI models that have been so successful in the US to Europe,” said Tony Davis, Managing Director of Gramercy.

With a European market saturated with airlines with more than half their fleets grounded due to lack of demand and travel restrictions,  it might not be the best time to start operating a new ACMI business. Only time will tell if the demanded is there for small capacity aircraft in the volatile European market, many have tried and failed during times where there wasn't a pandemic when demand was high.   

Recommended for you...

Mesa to get another 737-400 cargo plane for DHL

Mesa Air Group, has confirmed that it  seeks to further enhance its cargo operations with a signed letter of intent to lease an additional Boeing 737-400F cargo aircraft.  The plan will see the freighter delivered in May this year and will further compliment the two 737-400F aircraft Mesa already operates for DHL.

“This 737-400F will be a great addition to the cargo fleet. The investment in a third 737 aircraft demonstrates our focus on cargo operations and our commitment to DHL,” said Brad Rich, Chief Operating Officer. “This aircraft will provide Mesa pilots with additional career advancement opportunities and provide flexibility to better meet the demands of the current cargo environment.”

Recommended for you...

Mesa Air Group Reports First Quarter Fiscal 2021 Results

The Mesa Air Group, Inc.the regional airline that  provides scheduled flight service to 116 cities in 42 states, the District of Columbia, the Bahamas, and Mexico as well as Cargo services out of Cincinnati/Northern Kentucky International Airport, has reported its latest results.

As of December 31, 2020, Mesa operated a fleet of 159 aircraft with approximately 420 daily departures and 3,200 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights.

Highlights for the quarter:

• $18.9 million in pretax income and positive cash flow
• Signed 5-year extension with American Airlines for 40 aircraft
• Received $195 million loan under the CARES Act
• Launched cargo operations for DHL with two 737-400F aircraft
• Placed 12 new E-175 aircraft into service with United Airlines
• Continued improvement in operational performance
• No furloughs despite expiration of Payroll Support Program (PSP)
  

Mesa and United Airlines to Invest in Archer Aviation to Decarbonize Air Travel

Mesa Air Group, working with United Airlines, has reached an agreement in principle with air mobility company, Archer Aviation, as part of the airline’s effort to invest in emerging technologies that decarbonize air travel.

In connection with the agreement, which remains subject to final documentation, Mesa will receive 20% of United’s warrant to purchase 14,645,614 shares of Archer’s common stock with a $0.01 per share exercise price such that Mesa will receive a warrant exercisable for 2,929,123 shares (the “Mesa Warrant”). The Mesa Warrant will be subject to vesting upon the achievement of certain milestones and conditions. Vesting occurs as follows, subject to vesting acceleration under certain circumstances:

More CRJ-900s for Mesa Airlines to service American routes

Headquartered in Phoenix, Arizona, Mesa Airlines, the regional air carrier providing scheduled passenger service to 104 cities in 39 states, the District of Columbia, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport, has confirmed it will be adding more aircraft to its fleet.

The airline is amending its new Capacity Purchase Agreement with American Airlines, which will see it picking up more flights and increase its fleet by 5 Bombardier CRJ-900 aircraft.

"We appreciate the opportunity to add this additional capacity at the request of American Airlines," said Brad Rich, Executive Vice President and Chief Operating Officer. "We remain optimistic about our relationship with American Airlines and are well prepared to respond positively to future opportunities."

Recommended for you...

Mesa Air Group's November performance

                                                                              Mesa Air Group, the ragional air carrier based in Phoenix, Arizona, that specialiseses in operating flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, United Airlines and DHL has released its latest figures for November,

Mesa Air Group, operates scheduled passenger service to 104 cities in 39 states, the District of Columbia, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of November 30th, 2020, Mesa operated a fleet of 146 aircraft with approximately 384 daily departures and 3,200 employees. 

Mesa Airlines reported 23,144 block hours in November 2020, a 38.2 percent drop from November 2019 as a result of reduced schedules during the COVID-19 pandemic. The company also reported a controllable completion factor of 99.62 percent and 99.97 percent for its American and United operations, respectively.

Recommended for you...

Mesa Air Group Reports Fourth Quarter and Full-Year Fiscal 2020 Results

 Mesa Air Group has reported fourth-quarter and full-year fiscal 2020 financial and operating results.

Fiscal 2020 Q4 Highlights

EPS of $0.32, Full Year $0.78

Year-end cash increased by $34.5 million to $99.4 million

Recent Updates

Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term

Commenced cargo operations for DHL with two Boeing 737-400F  

Added 10 new E175 aircraft to our United fleet in November and December

Entered into a $195 million loan under the CARES Act with the U.S. Treasury

Mesa Air gets contract extension from American Airlines - Operating 40 CRJ-900s for five years

Photo Mesa Air

The Phoenix, Arizona, based airline Mesa Air Group has confirmed that it has finalized a new contract with American Airlines to operate 40 CRJ-900s for a five-year term beginning January 1, 2021.

Under the previous contract 30, CRJ-900 aircraft were set to expire in 2021 with an additional 17 expiring in 2022, however, this new contract takes over from that contract. 

“I want to express my appreciation to the American Eagle team leaders who worked with us on this new contract,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “This new contract will position Mesa for long term stability and improved performance on our American operation. This year has been difficult for our entire industry, but I’m thankful that despite the obstacles, American has chosen to continue its long-standing relationship with Mesa.”

Mesa Air Group Reports October 2020 Operating Performance

Mesa Air Group, Inc reported Mesa Airlines’ operating performance for October 2020, the firm reported 20,167 block hours in October 2020, a 48.2 percent drop from October 2019 as a result of reduced schedules during the COVID-19 pandemic. The company also reported a controllable completion factor of 99.96 percent and 99.95 percent for its American and United operations, respectively.

Recommended for you...