PHOENIX, Dec. 05, 2024 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) ("Mesa” or the "Company”) today announced the Company will significantly increase daily aircraft utilization rates beginning in January 2025.
After working closely with United's Network Planning group, Mesa is scheduled to increase utilization from an average of 8.9 block hours per day in the fourth calendar quarter of 2024 to an average of 9.5 block hours per day, or a 7% increase in the first calendar quarter of 2025. Utilization is planned to reach 9.8 block hours per day by March 2025, or a 10% increase from the fourth calendar quarter of 2024. Further improvement in aircraft utilization is anticipated in the second calendar quarter of 2025.
While still below pre-Covid levels, the increase in utilization is a result of significantly reduced attrition throughout all work groups, more optimal scheduling practices, and improved operational performance. Mesa has experienced only one controllable cancel in the fourth calendar quarter 2024.
"This is an important and long-awaited step in improved financial results. While the recovery took somewhat longer than anticipated, we have begun to see significant progress and are encouraged by the planned increased utilization,” said Jonathan Ornstein, Chairman and CEO. "The additional revenue generated from increased utilization will be instrumental in improving operating results and cash flow going forward.”
"As a result of the increase in flying, Mesa intends to begin to recall previously furloughed pilots beginning in January,” continued Ornstein. "I would like to personally thank all of our people for the hard work and dedication in what has previously been a challenging operating environment.”
About Mesa Air Group, Inc.
Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 62 cities in 31 states, Cuba, and Mexico. As of September 30, 2024, Mesa operated a fleet of 67 aircraft, with approximately 265 daily departures. The Company had approximately 1,800 employees. Mesa operates all its flights as United Express pursuant to the terms of a capacity purchase agreement entered into with United Airlines, Inc.
Important Cautions Regarding Forward-Looking Statements
This Press Release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate”, "estimate”, "expect”, "project”, "plan”, "intend”, "believe”, "may”, "might”, "will”, "should”, "can have”, "likely” and similar expressions are used to identify forward-looking statements. These forward-looking statements are based on the Company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements. These factors include, without limitation, the Company's ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company's ability to regain compliance with Listing Rule, the Company's ability to become current with its reports with the SEC, and the risk that the completion and filing of the Form 10-Qs will take longer than expected. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company's filings with the SEC, including the risk factors contained in its most recent Annual Report on Form 10-K and the Company's other subsequent filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
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