Mesa Air Group reports 2nd quarter FY 2009 results
For the second quarter of its financial year, Mesa Air Group has announced a pre-tax operating profit of $27.2 million from continuing operations and a net loss after tax of $37.3 million from continuing operations on operating revenues of $233.0 million. The company's financial year ends runs from 1 October to 30 September.
The significant after tax net loss is the result of recording $64.5 million income tax expense primarily driven by an IRC Section 382 tax provision affecting Net Operating Loss (NOL) carryforwards. Total operating revenues for FY2Q09 decreased by $87.3 million, or 27.3%, primarily resulting from a year-over-year decrease in capacity and lower fuel revenue. The net loss of $37.3 million compares to net gain from continuing operations of $17.5 million for the same period of fiscal 2008.
Total available seat miles (ASM’s) for FY2Q09 decreased 14.2% from the second quarter of 2008. The decrease was primarily due to a reduction in the number of aircraft flown from 178 as of 31 March 2008 to 151 at 31 March 2009, when the company’s operating fleet comprised 77 50-seat regional jets, 38 86-seat regional jets, 20 66-seat regional jets, and 16 37-seat turboprops. As of 31 March 2009, the company operated 48 RJs and six turboprops on a codeshare basis with US Airways, 46 RJs and 10 turboprops for United, 28 RJs for Delta, and had eight operational spares. The company also flew five regional jets in Hawaii, operating as go!
During the second quarter, Mesa Air Group divested its indirect interest in Kunpeng Airlines. The company recorded an after tax loss on equity method investment of $2.7 million and $1.6 million of other expenses which includes a reserve for bad debt in the second quarter of 2009.
“We are pleased to have made progress during the second quarter. Most significantly, we restructured our debt and concluded a new agreement with our pilots,” said Mesa chairman and CEO, Jonathan Ornstein. “We would like to thank our airline partners, vendors, suppliers, bondholders and hardworking employees for their continued support. While the economic environment continues to be challenging and Mesa’s position is particularly difficult, we remain diligent in our efforts to improve the financial and operational performance of the company.”