PHOENIX , Aug. 18 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc.
(Nasdaq: MESA) (the "Company") today announced third quarter after tax income
of
(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)
Total Available Seat Miles ("ASMs") for the third quarter of fiscal 2008 decreased 10.9 % from the third quarter of 2007 primarily due to a decrease in the number of aircraft flown from 199, as of June 30, 2007 to 161 as of June 30, 2008 . At June 30, 2008 Mesa's operating fleet was comprised of 80 50-seat regional jets, 38 86-seat regional jets, seven 76-seat regional jets, 20 66-seat regional jets and 16 37-seat turboprops. Under the US Airways contract, the Company operated 51 regional jets and six turboprops. Under the United contract the Company operated 46 regional jets and ten turboprops. Mesa operated 41 regional jets for Delta. The Company also flew seven regional jets in Hawai'i, operating as go!
As of June 30, 2008 the Company's cash, cash equivalents, restricted cash
and marketable securities were approximately
Events during the third quarter included:
-- Fleet Changes: On May 16, 2008 , Mesa Air Group, Inc. returned 14 of
its 34 Beechcraft 1900D aircraft to Raytheon Aircraft Company. Raytheon
accepted the return of the aircraft and the subleases associated with four of
them. One result of the agreement was the elimination of approximately
-- Delta: Mesa won a preliminary injunction in the Federal Court in Atlanta on May 29, 2008 , enjoining Delta Air Lines from its attempt to terminate Freedom Airlines' ERJ-145 contract. Delta is appealing the decision and a court date is yet to be set.
-- go!: Mesa's go! operation in Hawai'i increased capacity to meet the
market's decrease in supply. Available Seat Miles increased 61% from the
prior quarter. Operating revenue increased
-- Hawaiian Settlement: A settlement was reached with Hawaiian Airlines
concerning a lawsuit over Mesa's inter-island flight services operating under
the go! brand name. In the second quarter Mesa received
-- Air Midwest: Air Midwest ceased all operation on June 30th, 2008 . This was consistent with prior announcements made in the previous fiscal year and in prior quarters.
-- China : In June 2008 , the Company entered into a Letter of Intent with
Shenzhen Airlines. The agreement details the Company's intent to sell its
interest in Kunpeng Airlines, the Chinese joint-venture, to Shenzhen Airlines,
the majority owner. As a result of the Letter of Intent, the Company wrote
down its investment in Kunpeng Airlines by approximately
"While the airline industry in general, and Mesa in particular, face a number of challenges in today's exceptionally difficult operating environment we remain resolutely committed to returning the company to sustained profitability and delivering the best service possible to our passengers and airline partners," said Mesa Air Group Chairman and CEO, Jonathan Ornstein . "We wish once again to thank our people for their continued dedication and commitment," Mr. Ornstein added.
OPERATING DATA Operating Data Operating Data Three Months Ended Nine Months Ended June 30, June 30, 2008 2007 2008 2007 Passengers 3,461,067 4,286,136 10,314,737 12,044,813 Available seat miles ("ASM") (000's) 2,032,769 2,280,883 6,137,096 6,800,902 Revenue passenger miles (000's) 1,564,790 1,824,980 4,544,107 5,176,698 Load factor 77.0% 80.0% 74.0% 76.1% Yield per revenue passenger mile (cents) 0.23 0.19 0.22 0.19 Revenue per ASM (cents) 0.17 0.15 0.16 0.14 Operating cost per ASM (cents) 0.18 0.14 0.16 0.14 Average stage length (miles) 402.6 387.8 400.4 391.3 Number of operating aircraft in fleet 161 199 161 199 Gallons of fuel consumed 39,186,545 50,724,944 120,628,063 157,307,916 Block hours flown 120,424 142,885 369,800 429,653 Departures 78,448 96,784 241,605 287,638 MESA AIR GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Nine Months Ended June 30, June 30, 2008 2007 2008 2007 (Unaudited) (In thousands, except per share data) Operating revenues: Passenger $350,598 $337,905 $990,641 $988,058 Freight and other 3,316 2,468 10,194 7,486 Total gross operating revenues 353,914 340,373 1,000,835 995,544 Impairment of contract incentives - - - (25,324) Net operating revenues 353,914 340,373 1,000,835 970,220 Operating expenses: Flight operations 90,545 95,757 273,323 286,455 Fuel 149,185 116,577 383,863 331,803 Maintenance 58,286 64,413 197,180 186,961 Aircraft and traffic servicing 20,602 20,876 60,512 61,659 Promotion and sales 1,724 1,180 3,427 2,966 General and administrative 27,208 15,658 63,184 47,704 Depreciation and amortization 9,523 9,772 28,879 29,927 Reversal of litigation accrual - - (34,100) - Bankruptcy and vendor settlement - 2,527 (27) 434 Impairment of long-lived assets - - - 12,367 Total operating expenses 357,073 326,760 976,241 960,276 Operating income (loss) (3,159) 13,613 24,594 9,944 Other income (expense): Interest expense (7,999) (10,462) (27,399) (28,995) Interest income 1,122 2,984 5,641 11,410 Gain on extinguishment of debt 7,326 - 14,680 - Gain (loss) from equity method investments 1,269 307 (289) (3,280) Other income (expense) 4,284 (116) 10,483 (4,502) Total other income (expense) 6,002 (7,287) 3,116 (25,367) Income (loss) from continuing operations before taxes 2,843 6,326 27,710 (15,423) Income tax provision (benefit) 1,025 1,960 11,187 (6,041) Net income (loss) from continuing operations 1,818 4,366 16,523 (9,382) Loss from discontinued operations, net of taxes (5,578) (1,761) (15,070) (3,987) Net income (loss) $(3,760) $2,605 $1,453 $(13,369) Basic income (loss) per common share: Income (loss) from continuing operations $0.07 $0.15 $0.61 $(0.29) Loss from discontinued operations (0.21) (0.06) (0.55) (0.13) Net income (loss) per share $(0.14) $0.09 $0.05 $(0.42) Diluted income (loss) per common share: Income (loss) from continuing operations $0.07 $0.13 $0.55 $(0.29) Loss from discontinued operations (0.21) (0.05) (0.43) (0.13) Net income (loss) per share $(0.14) $0.08 $0.12 $(0.42) Pro Forma Items Three Months Ended Nine Months Ended June 30, June 30, 2008 2007 2008 2007 NET INCOME(LOSS) - CONTINUING OPERATIONS $1,818 $4,366 $16,523 $(9,382) Net (gain) loss on securities (1,189) (712) (5,441) 4,261 (Gain)/loss on disposal (264) - 180 (Gain) on extinguishment of debt (4,514) - (9,046) Interest cap fees - - 452 (Gain)/loss associated with the return of aircraft (1,271) 1,357 3,865 1,357 Vendor Settlement - 1,730 - 1,730 Code Share Partner Settlement 1,878 - 1,878 go! legal expenses 778 - 1,822 Lease return costs 330 - 2,129 Start up costs associated with China joint venture 706 109 1,741 109 Loss contingency - - (21,012) (Gain)/Loss from equity method investments (782) - 177 Impairment Charges 23,445 PRO FORMA NET INCOME (LOSS) $(2,510) $6,850 $(6,732) $21,520 Pro Forma Income (Loss) per common share: Basic $(0.09) $0.23 $(0.25) $0.68 Diluted $(0.09) $0.21 $(0.25) $0.54This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or expected.
Mesa currently operates 159 aircraft with over 750 daily system departures to 129 cities, 39 states, the District of Columbia , Canada , the Bahamas and Mexico . Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go!. In June 2006 Mesa launched inter-island Hawaiian service as go! This operation links Honolulu to the neighbor island airports of Hilo , Kahului , Kona and Lihue . The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 5,000 employees and was awarded Regional Airline of the Year by Air Transport World magazine in 1992 and 2005. Mesa is a member of the Regional Airline Association and Regional Aviation Partners.
SOURCE Mesa Air Group, Inc.