Mesa Air Group Announces Third Quarter Fiscal 2025 Results and Provides Detailed Update on Proposed Merger with Republic Airways Holdings Inc.
Mesa Air Group, Inc. a leading U.S. regional airline operator, today announced its financial and operational performance for the third quarter of fiscal year 2025, while also sharing the latest developments in its planned merger with Republic Airways Holdings Inc. (“Republic”).
The results reflect a period of transformation for the company, marked by a streamlined fleet, improved operational efficiency, and continued asset sales aimed at reducing debt. Mesa’s management emphasized that these achievements position the airline on a stronger footing ahead of its integration with Republic, subject to regulatory and shareholder approvals.
Third Quarter Fiscal 2025 Financial and Operating Highlights
For the quarter ended June 30, 2025, Mesa reported:
- Total operating revenues of $92.8 million.
- Pre-tax income of $20.6 million and net income of $20.9 million, translating to $0.50 per diluted share.
- Adjusted net loss of $0.6 million, a figure that primarily excludes a one-time, non-cash gain of $25.1 million from the write-off of warrant liabilities.
- Adjusted EBITDAR of $6.1 million.
- An exceptional 99.99% controllable completion factor, reflecting near-perfect reliability on flights under Mesa’s direct operational control.
- Scheduled utilization of 9.8 block hours per day, showing substantial improvement from prior periods.
- Successful transition to a single fleet type—the Embraer 175 (E-175)—with 160 pilots trained to move from the CRJ aircraft to the E-Jet platform.
Mesa’s single fleet strategy, achieved during the quarter, is a major milestone in the company’s operational restructuring efforts. Consolidating around the E-175 eliminates the complexities and costs associated with maintaining multiple aircraft types, improves crew scheduling flexibility, and allows for better utilization of resources.
Operational Transformation and Pilot Utilization Gains
Mesa’s Chairman and Chief Executive Officer, Jonathan Ornstein, described the third quarter as a turning point for the airline.
“Mesa’s third-quarter results reflect the significant operational and financial restructuring that we have undergone,” Ornstein said. “We now operate a single fleet type of Embraer 175s, simplifying our operations. Along with the normalization of pilot resources since last year, we increased our daily block hour utilization in the third quarter to 9.8 hours, up 15.4% year-over-year and 5.1% sequentially—levels consistent with our regional peers.”
Ornstein highlighted that all former CRJ crews have now been retrained on E-Jet operations, which supports the airline’s goal of stable utilization going forward. He further noted that by removing excess fleet types and redeploying pilots, Mesa is better positioned to deliver consistent, reliable service to its partners and customers.
Asset Transactions and Balance Sheet Strengthening
During the June 2025 quarter, Mesa executed a series of asset sales designed to generate cash and reduce debt obligations, particularly those owed to the U.S. Treasury.
Completed in the quarter:
- Sale of 13 spare engines previously agreed for disposal.
- Sale of 6 surplus CRJ-900 airframes.
- These transactions yielded gross proceeds of $17.2 million, all of which were applied toward repayment of U.S. Treasury debt.
Post-quarter developments:
- Entered into purchase agreements for 1 spare engine and 1 surplus CRJ-900 airframe.
- Closed sales of 8 spare engines and 5 surplus CRJ-900 airframes.
- These post-quarter transactions brought in $11.7 million in gross proceeds, also used entirely to pay down U.S. Treasury debt.
Mesa’s ongoing sale of surplus CRJ aircraft and parts is a key element of its deleveraging strategy. The company expects these sales to not only lower interest expense but also remove the remaining costs of maintaining equipment no longer in active service.
Financial Perspective on Results
While Mesa’s GAAP net income for the quarter was $20.9 million, management noted that adjusted results presented a more nuanced picture. The adjusted net loss of $0.6 million excludes the significant $25.1 million gain from the warrant liability write-off.
Ornstein explained:
“Our near-breakeven adjusted net loss would have been a profit if not for continuing costs of CRJ-900 aircraft and engines that have already been agreed upon for sale but have not yet closed. We are confident that once these sales are fully completed, the cost burden will be removed, further strengthening our financial position.”
Merger with Republic Airways Holdings Inc.
Mesa also provided an update on its proposed merger with Republic Airways Holdings Inc., a move that is expected to reshape the U.S. regional aviation landscape. The merger aims to combine the strengths of two established regional carriers, creating a larger, more competitive operation with a unified fleet strategy and broader market reach.
The integration plan, still subject to customary closing conditions, is designed to leverage the operational synergies of the two companies. This includes optimizing route networks, pooling maintenance and training resources, and increasing negotiating power with suppliers and partners.
Ornstein stated:
“This performance makes us increasingly optimistic about the enhanced path forward for Mesa’s people and stockholders under our proposed merger with Republic. Together, we will be better equipped to meet the evolving needs of our airline partners and passengers while maintaining a disciplined financial approach.”
Outlook and Strategic Priorities
Looking ahead, Mesa’s management outlined several strategic priorities for the remainder of fiscal 2025 and beyond:
- Complete the sale of remaining surplus CRJ assets to eliminate related maintenance and storage costs.
- Enhance block hour utilization further by capitalizing on the efficiencies of a single fleet type.
- Integrate operations with Republic Airways once the merger is approved, ensuring a smooth transition for employees, partners, and customers.
- Continue strengthening the balance sheet through disciplined capital allocation and debt reduction.
- Maintain industry-leading controllable completion factors to preserve Mesa’s reputation for reliability.
The third quarter of fiscal 2025 marked a period of significant operational progress and financial stabilization for Mesa Air Group. By completing its transition to a single E-175 fleet, retraining its pilot workforce, and monetizing surplus assets, the company has positioned itself for greater efficiency and profitability.
The proposed merger with Republic Airways, if completed, is expected to amplify these gains by creating a stronger regional airline with enhanced scale, network capabilities, and operational synergies.
Mesa’s leadership remains confident that these strategic moves will deliver long-term value for shareholders, improve career prospects for employees, and enhance service quality for airline partners and passengers alike.
Mesa Air Group, Inc. is a U.S.-based regional airline holding company that operates flights for major airline partners under capacity purchase agreements. The company is headquartered in Phoenix, Arizona, and serves destinations across the United States. Mesa operates a modern fleet of Embraer 175 regional jets, delivering safe, reliable, and efficient air travel solutions