Mesa Air Q3 revenue $92.8mln, pre-tax income $20.6mln.

• Mesa Air Group reported Q3 FY25 revenues of $92.8mln • Pre-tax income of $20.6mln and net income of $20.9mln • Adjusted net loss of $0.6mln and adjusted EBITDAR of $6.1mln • Operated at a 99.99% controllable completion factor • Scheduled utilization of 9.8 block hours per day • Achieved single fleet operation with E-175 fleet • Closed on asset sales for gross proceeds of $17.2mln • Repaid U.S. Treasury debt with proceeds • Digital data not specifically mentioned in the article.

Mesa Air Group, Inc. (NASDAQ: MESA), a holding company for Mesa Airlines, reported its third-quarter fiscal 2025 (FY25) financial results, showcasing a significant improvement in operational and financial performance. The company's third-quarter results reflect a robust recovery following a period of restructuring.

Financial Highlights

- Total operating revenues in Q3 FY25 were $92.8 million, a decrease of $18.0 million, or 16.3%, compared to $110.8 million in Q3 2024. This decrease was primarily driven by a reduction in contractual aircraft with United Airlines, Inc. (United) and the disposition of certain Embraer 175 aircraft.
- Pre-tax income for the quarter was $20.6 million, while net income was $20.9 million, or $0.50 per diluted share. This represents a significant turnaround from the net loss of $19.9 million, or $(0.48) per diluted share, reported in Q3 2024.
- Adjusted net loss for the quarter was $0.6 million, or $(0.01) per diluted share, compared to an adjusted net loss of $9.4 million, or $(0.23) per diluted share, in Q3 2024. Adjusted EBITDA was $6.0 million, compared to $8.9 million in Q3 2024. Adjusted EBITDAR was $6.1 million, compared to $10.6 million in Q3 2024.
- The company reported an adjusted net loss of $0.6 million, primarily excluding a $25.1 million gain on the write-off of warrant liabilities.

Operational Performance

- Mesa Air Group operated at a 99.99% controllable completion factor for United during Q3 FY25, compared to 99.94% in Q3 2024. This indicates a high level of operational efficiency.
- The company achieved single fleet operation with the E-175 fleet, simplifying its operations and reducing pilot training costs.
- Scheduled utilization for the quarter was 9.8 block hours per day, an increase of 15.4% year-over-year and 5.1% sequentially.

Asset Transactions

- During the June 2025 quarter, Mesa closed on the sales of 13 spare engines and 6 surplus CRJ-900 airframes for gross proceeds of $17.2 million, all of which was used to repay U.S. Treasury debt.
- Subsequent to the June 2025 quarter end, the company entered into purchase agreements for 1 spare engine and 1 surplus CRJ-900 airframe and closed on the sales of 8 spare engines and 5 surplus CRJ-900s airframes for gross proceeds of $11.7 million, also used to repay U.S. Treasury debt.

Merger Update

- The waiting period under the HSR Act with respect to filings by Mesa and Republic expired on June 16, 2025. Following the declaration of the effectiveness of the previously filed registration statement by the SEC, Mesa will file with the SEC a definitive proxy statement/prospectus for a vote by Mesa stockholders.
- Republic has obtained sufficient consents from its stockholders to approve the Merger. The combined company is expected to have a twelve-month run-rate annual revenue in the range of approximately $1.8 billion to $2.0 billion. For the first six months of calendar year 2025, Republic generated approximately $169 million in adjusted EBITDA, and Mesa generated $14 million in adjusted EBITDA, for a total of $183 million.

Conclusion

Mesa Air Group's Q3 FY25 results demonstrate a strong recovery from the previous year, driven by operational efficiency, single fleet operation, and asset sales. The company continues to strengthen its balance sheet and reduce interest expense. The proposed merger with Republic Airways Holdings Inc. is expected to enhance the financial performance of the combined company, with a projected twelve-month run-rate annual revenue of approximately $1.8 billion to $2.0 billion.

References

[1] https://www.marketscreener.com/news/mesa-air-group-reports-third-quarter-fiscal-2025-results-and-provides-update-on-proposed-merger-with-ce7c51dbdc88f527