Mesa Air Group 2024 Q4 Earnings Narrows Net Loss by 12.1%

Mesa Air Group (MESA) reported its fiscal 2024 Q4 earnings on May 14th, 2025. The company narrowed its net loss to $24.92 million, representing a 12.1% improvement compared to the $28.34 million net loss in the same quarter last year. Mesa anticipates increased utilization for the June 2025 quarter, aiming for enhanced operational performance. The merger with Republic Airways is expected to create one of the largest operators of Embraer 170/175 aircraft.

Revenue

The total revenue for Mesa Air Group in Q4 2024 was $115.26 million, marking a slight increase of 0.8% from the previous year's $114.37 million.

Earnings/Net Income

Mesa Air Group reported a loss of $0.60 per share in Q4 2024, an improvement from the $0.69 loss per share in Q4 2023. Although the company narrowed its losses, the EPS remains negative, indicating ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of purchasing Mesa Air Group shares following a revenue dip on the financial report release date and holding them for 30 days has consistently resulted in significant financial losses. Over the past five years, this approach has yielded an annualized return of -24.5%, culminating in a total loss of $1.7 billion. This indicates that such a strategy has been ineffective in generating positive returns and has been detrimental to investors. The data suggest that relying solely on buying after revenue declines without considering other market factors or financial health indicators can be a risky investment approach.

CEO Commentary

"As we announced, we are moving forward with a merger with Republic Airways to create one of the world’s largest operators of Embraer 170/175 aircraft," said Jonathan Ornstein, Chairman and CEO. "We think this combination will create value for our shareholders as well as greater opportunity for our people. For fiscal full-year 2024, we produced positive adjusted EBITDAR, and we have continued to take steps to improve our financial performance over the past several months. Our scheduling and utilization have been increasing sequentially, and we plan to continue to strengthen our operational and financial performance ahead of the closing of our transaction with Republic."

Guidance

Mesa anticipates that utilization will increase again for the June 2025 quarter, following an average of 9.4 block hours per day in March 2025 and an expected 9.8 block hours per day in the upcoming quarter. Additionally, the company expects to recognize the remaining deferred revenue of $9.6 million as flights are completed over the remaining term of the United contract. With the transition to exclusively flying E-175s, Mesa aims to enhance efficiency and operational performance, aligning with their strategic focus on improving financial outcomes prior to the Republic merger.

Additional News

In recent developments, Mesa Air Group has entered into a definitive merger agreement with Republic Airways Holdings Inc. to create a leading regional airline company. This merger is expected to close in late Q3 or early Q4 2025, subject to regulatory and shareholder approvals. Additionally, Mesa Air Group has been actively involved in asset transactions, including the sale of 18 E-175 aircraft to United Airlines for $227.7 million. The company also completed the sale of surplus CRJ-900 airframes and engines to reduce its U.S. Treasury debt. Furthermore, Mesa has received a notice from Nasdaq regarding non-compliance with listing requirements due to delayed financial filings, and the company is working to regain compliance within the stipulated timeframe.