Mesa Air Group has announced its financial and operational results for the first quarter of fiscal year 2025 (Q1 FY2025).
Total operating revenues for Q1 FY2025 were US$103.2 million, a decline of US$15.5 million or 13.1% compared to US$118.8 million in Q1 2024. Contract revenue dropped to US$80.7 million, down by US$20.4 million or 20.2% from US$101.1 million in the same period last year. This decline was primarily due to a reduction in contractual aircraft with United Airlines, Inc. (United), lower DHL revenue owing to the wind-down of the FSA, and an increase in deferred revenue. These impacts were partially offset by higher E-175 block-hour rates.
Pass-through revenue rose by US$4.9 million or 27.6%, largely due to increased pass-through maintenance expenses.
Under GAAP, Mesa's Q1 FY2025 results reflect the deferral of US$5.6 million in revenue, in contrast to the recognition of US$3.0 million in previously deferred revenue in Q1 2024. The remaining deferred revenue balance of US$15.3 million is expected to be recognised as flights are completed over the remainder of the United contract.
Total operating expenses for Q1 2025 stood at US$214.0 million, an increase of US$46.8 million or 30.0% compared to Q1 2024. The rise is mainly attributable to a net loss on asset sales of US$46.7 million and asset impairment costs that were US$25.3 million higher than the previous year. These increases were partially mitigated by a US$16.5 million or 31.9% reduction in flight operations expenses, due to fewer contracted aircraft and reduced pilot training costs. Depreciation and amortisation expenses also declined by US$5.3 million or 40.0%, largely as a result of the retirement and sale of CRJ aircraft and engines.
For Q1 2025, Mesa reported a net loss of US$114.6 million, compared to a net loss of US$57.9 million, in Q1 2024. The adjusted net loss was US$4.0 million, versus an adjusted net loss of US$21.8 million in the prior year.
Adjusted EBITDA for Q1 FY2025 was US$11.0 million, compared to US$5.0 million in Q1 2024. Adjusted EBITDAR stood at US$12.6 million, up from US$6.3 million in the same quarter last year.
