Mesa Air Group posts US$1.9 million profit

United Express operated by Mesa Air Group ©AirTeamImages

Mesa Air Group reported second-quarter fiscal 2020 financial and operating results. Mesa’s second-quarter 2020 results reflect net income of US$1.9 million, compared to net income of US$13.2 million the previous year.  Mesa’s pre-tax income was US$3.2 million, compared to US$17.3 million for the second-quarter of 2019. 

In addition, Mesa’s Adjusted EBITDA for the second-quarter was US$35.3 million, compared to US$53.7 million the previous year and Adjusted EBITDAR was US$47.6 million, compared to US$67.8 million in the second-quarter of 2019.

The primary reason for the US$14.1 million reduction in pre-tax income from was the anticipated increase in airframe and engine heavy maintenance of US$10.1 million and US$4.0 million in reduced revenue in March as a result of COVID-19.

Mesa ended the quarter at US$52.4 million in unrestricted cash and equivalents compared to US$57.8 in the second-quarter 2019. During the quarter the company drew down the line of credit facility by US$23 million, paid US$11 million in deposits in connection with previously ordered engines, paid US$3 million in capital expenditures, paid US$8 million in property tax for prior periods and had US$6 million in cash lease payments in excess of book lease amounts.

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