Mesa Air plunges 8.0% in pre-market on weak quarterly results

Mesa Air (MESA.US) shares fell sharply before the opening bell after the regional carrier posted a wider quarterly loss and weak revenue numbers.

• Company said it had a loss of $3.18. Losses, adjusted for non-recurring costs, came to 37 cents per share. Zacks analysts expected loss of 33 cents per share

• Total operating revenues in Q4 2022 were $125.6 million, a decrease of $5.1 million (3.9%) from $130.8 million for Q4 2021.

• Mesa Air reached agreements with United Airlines for capacity purchase agreement expansion for CRJ-900 flying and rate increase,  a loan agreement, and an engine purchase agreement

• Company also renegotiated certain aircraft debt and lease obligations

• Jonathan Ornstein, Chairman and CEO, said, “Building on our relationship with United Airlines that began in 1992, we are delighted to announce our new and expanded agreements with United, allowing us to expand United's reach into cities that have seen reductions or loss of flight service created by the industry-wide pilot shortage. After the transition, Mesa will be the only exclusive regional carrier for United operating large regional jets. We believe our strong relationship with United will provide significant opportunities for growth in the future. In particular, we believe Mesa's participation in the Aviate program, combined with United's industry-leading growth plan, will provide the most reliable, fastest path for aviators to transition to a major commercial carrier. Combined with the significant liquidity United is providing, this agreement represents a transformational step for our business as we aim to resolve the impacts of the industry-wide pilot shortage that we faced in fiscal 2022. With our pilot pipeline now filled thanks to our new pay scale and enhanced opportunities with United through Aviate, Mesa is in a superior position to meet the significant demand for regional flying.”