The carrier reported a full fiscal year net profit of $27.5 million or $0.78 per diluted share compared to net income of $47.6 million or $1.36 per diluted share in FY19. Mesa Air Group ended the fiscal year with $99.4 million in cash, an increase of $34.5 million.
On Wednesday (December 9, 2020), Phoenix Arizona-based Mesa Air Group reported their fourth quarter and full fiscal year 2020 financial results. The airline reported a fourth quarter net income of $11.4 million or $0.32 per diluted share compared to a net income of $12.2 million or $0.35/share during the same period last year. Mesa’s Q4 results include the deferral of $7.8 million of revenue billed and paid by American and United during the quarter, which will be recognized over the remaining terms of the contracts. The company’s adjusted EBITDA for the quarter was $44.6 million compared to $50.8 million in Q4 2019, while adjusted EDITDAR was $54.2 million, compared to $60.9 million during the same period last year. Fourth quarter revenue declined 42% to $108 million, largely attributable to the COVID-19 pandemic.
For the full fiscal year 2020, Mesa reported a net income of $27.5 million or $0.78 per diluted share, compared to a net income of $47.6 million or $1.36/share for FY 19. The company’s FY20 includes the deferral of $23.8 million in revenue billed and paid by American and United during the year, which will be recognized over the terms of the contracts. Adjusted EBITA for FY20 was $163.3 million, compared to $208.7 million in FY19, while Adjusted EBITDAR was $212.1 million, compared to $260.9 million in FY19. Full fiscal year revenue for 2020 declined 25% to $545.1 million, primarily as a result of the impact of the pandemic. In Wednesday’s announcement, Mesa Air Group’s Chief Executive officer, Jonathan Ornstein, said,
“Our industry was among the hardest hit by COVID-19 and the global impact that followed. Despite a significant reduction in flying, we were able to find creative ways to reduce costs, operate profitably, generate positive cash-flow, and protect our employees from involuntary furloughs. We also entered the cargo market through our new agreement with DHL - diversifying our revenue sources and creating new opportunities for our company. I can’t thank our hardworking employees enough - their dedication and professionalism truly went above and beyond this year.”
Also commenting on the company’s fourth quarter and full year financial results, Mesa Air Group’s President and Chief Financial Officer, Mike Lotz, added,
“Given the impact of the pandemic, our financial performance exceeded our early expectations. We also improved our liquidity and closed on a $195 million five-year loan under the CARES Act.”
Mesa Air Group’s Executive Vice President and Chief Operating Officer, Brad Rich, further commented,
“Despite the global pandemic, our employees showed up day after day to safely and efficiently keep our operation moving. Our operational performance coupled with our low-cost model helped Mesa extend our relationship with American; flying 40 CRJ-900 aircraft for a five-year term. We also took delivery of 10 of our 20 new E175 aircraft for United and added two 737-400F cargo aircraft to our fleet operating for DHL.”
Phoenix Arizona-based Mesa Air Group, Inc. is the holding company of Mesa Airlines which offers scheduled service to 101 cities in 39 states, Washington D.C., Canada and Mexico. As of October 31st, 2020, the carrier operated around 342 daily departures with a fleet of 146 aircraft. The company currently has approximately 3,200 employees. Mesa Air operates flights as American Eagle, United Express or DHL Express, pursuant to capacity purchase agreements with the mainline passenger and cargo carriers.
Source: Mesa Air Group