Mesa Air Group (MESA) Q4 2024 earnings summary

Executive summary

• Mesa Air Group reported a net loss of $58.6 million for Q2 2025, compared to net income of $11.7 million in Q2 2024, driven by asset sales, impairments, and lower contract revenue.

• Operating revenue fell 28% year-over-year to $94.7 million, with contract revenue down 39.9% due to fewer aircraft under contract and higher deferred revenue.

• The company entered into a merger agreement with Republic Airways Holdings and a Three Party Agreement with United and Republic, involving major asset sales, debt extinguishment, and a 3% CPA block hour rate increase.

Financial highlights

• Q2 2025 operating loss was $57.3 million, compared to operating income of $11.6 million in Q2 2024.

• Net loss for the six months ended March 31, 2025 was $173.2 million, up from a $46.2 million loss in the prior year period.

• Asset impairment charges totaled $46.2 million in Q2 and $111.8 million for the six months, mainly related to held-for-sale assets and E-175 aircraft write-downs.

• Loss on sale of assets was $7.7 million in Q2 and $54.4 million for the six months, primarily from aircraft sales.

• Adjusted EBITDA for Q2 2025 was $8.3 million, down from $26.8 million in Q2 2024.

Outlook and guidance

• Management implemented measures to address liquidity, including asset sales, debt reduction, and deferral of major maintenance spending.

• The company expects to meet its cash obligations for the next twelve months through these initiatives, but notes that assumptions may change.

• A 3% increase in CPA block hour rates and extended performance incentives are expected to support revenue through March 2026.