Mon, May 19, 10:02 AM (30 days ago)
**Mesa Air Group, Inc. (MESA) Q4 2024 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total operating revenue decreased by 13.1% to $103.2 million, primarily due to fewer aircraft under contract and higher deferred revenue. - **Profit Margins:** Operating loss widened to $110.8 million, compared to $48.4 million in Q4 2023, due to asset impairment and loss on sale of assets. - **Cash Flow:** Net cash used in operating activities was $11.6 million, with significant non-cash items including depreciation, amortization, and asset impairment. - **Earnings Changes:** Net loss increased to $114.6 million, primarily due to a $46.7 million loss on the sale of eight E-175 aircraft and a $65.7 million impairment loss. **Key Metrics:** - **Contract Revenue:** Decreased by 20.2% to $80.7 million due to fewer aircraft under contract and higher deferred revenue. - **Pass-Through Revenue:** Increased by 27.6% to $22.6 million due to increased maintenance-related costs. - **Operating Expenses:** Increased by 28.0% to $214.0 million, driven by asset impairment and loss on sale of assets. - **Block Hours:** Decreased by 16.3% due to reduced scheduled flying on the CRJ fleet. **Trends and Uncertainties:** - **Liquidity Concerns:** The company faces challenges in meeting debt obligations and maintaining liquidity, with $143.3 million in principal maturity payments due within the next twelve months. - **Operational Changes:** United requested the acceleration of CRJ-900 aircraft removal and transition to the E-175 fleet, impacting block hour capabilities and increasing costs. - **Strategic Initiatives:** The company implemented several measures to address financial concerns, including asset sales, debt restructuring, and operational adjustments. **Future Operations Impact:** - **Merger Agreement:** The company entered into a merger agreement with Republic Airways Holdings, subject to various conditions and approvals. - **Three Party Agreement:** Includes the termination of the United CPA, sale of remaining eligible assets, and debt extinguishment. - **Asset Sales:** The company is actively selling surplus assets, including aircraft, engines, and spare parts, to reduce debt and optimize operations. **Ticker:** MESA