Mesa Air Group 2025 Q3 Earnings Remarkable Turnaround with 204.8% Net Income Surge

Mesa Air Group reported its fiscal 2025 Q3 earnings on Aug 13th, 2025. The company delivered a strong turnaround, reporting a net income of $20.86 million with an EPS of $0.50, a significant improvement from a net loss of $19.91 million and a loss per share of $0.48 in the same period in 2024. The results reflect a strategic shift that has boosted operational efficiency and profitability.

Revenue
The company’s total revenue declined by 16.3% to $92.78 million in 2025 Q3 compared to $110.79 million in 2024 Q3. Contract revenue contributed the bulk of the earnings at $69.94 million, with pass-through and other revenue making up the remaining $22.84 million.

Earnings/Net Income
Mesa Air Group achieved a remarkable turnaround with net income of $20.86 million in Q3 2025, representing a 204.8% positive swing from the net loss of $-19.91 million in the prior-year period. The company also reported an EPS of $0.50, reversing a loss of $0.48 per share in Q3 2024, representing a 204.2% positive change. The strong earnings reflect the benefits of the company’s strategic transition and improved operational performance.

Price Action
The stock price of Mesa Air Group rose 1.85% during the latest trading day, 2.80% during the most recent full trading week, and climbed 4.76% month-to-date. Despite this positive short-term movement, the stock underperformed in a post-earnings strategy.

Post-Earnings Price Action Review
The strategy of buying Mesa Air Group shares after a revenue raise quarter-over-quarter on the earnings report date and holding for 30 days resulted in a return of -52.27%, significantly underperforming the benchmark return of 46.32%. This resulted in an excess return of -98.60%. The strategy's CAGR was -22.54% over three years, and it had a maximum drawdown of 0.00% and a Sharpe ratio of -0.22, indicating a high-risk profile with no returns during the backtested period.

CEO Commentary
Jonathan Ornstein, Chairman and CEO of Mesa Air Group, emphasized that the company is in the final stages of its strategic transition, now operating as a single-fleet Embraer 175 operator, which has improved efficiency. He noted daily block hour utilization increased by 15.4% year-over-year and praised employees for maintaining operational performance and customer satisfaction during the transition. The CEO highlighted Q3 2025 net income of $20.9 million, or $0.50 per diluted share, and adjusted EBITDA of $6.0 million, with near-breakeven adjusted net loss excluding CRJ-related costs.

Guidance
The CEO expressed optimism about the future through the planned merger with Republic Airways, stating the combined entity will offer a clearer, data-driven path forward. While the call included forward-looking statements related to the merger, no specific financial guidance for future quarters was provided. The CEO noted that historical performance does not reflect the new entity’s trajectory.

Additional News
Mesa Air Group announced its merger with Republic Airways, marking a significant strategic move that aims to enhance efficiency and competitive positioning. No executive changes or dividend-related news were reported within the 3 weeks following the earnings release.