Mesa in Q4 and Year-End Loss

Mesa Air Group, Inc. incurred fourth quarter losses from continuing operations of $62.2 million ($2.16 per diluted share) on gross operating revenues of $327.8 million. It also incurred a loss of $81.5 million for its fiscal year ended September 30, compared to a $33.9 million profit in the year-ago period. It’s loss from continuing operations was $71.5 million, compared to a profit of $37.1 million during the last fiscal year.
Its fourth quarter losses compares to earnings from continuing operations of $5.8 million ($0.14 per diluted share) in the fourth quarter of 2006 on gross operating revenues of $348.8 million. Total operating revenues decreased $21.0 million year-over-year, or 6.0 percent, primarily as a result of a year-over-year decrease in aircraft in service. The fourth quarter results include a pre-tax charge of $86.9 million related to the recognition of a legal judgment against the company in its Hawaiian Airlines litigation which is under appeal.
"We are certainly very disappointed with our 2007 earnings results which have been adversely impacted by the judgment rendered in the Hawaiian Airlines litigation. We believe the judgment was wrong and believe an appellate court will ultimately find the sanctions and the judgment should be set aside," said Mesa Chairman and CEO, Jonathan Ornstein. "Further impacting the year's earnings were the significant losses at our Air Midwest subsidiary which were primarily due to the ongoing effects of Federal regulations governing the operation of 19-seat turbo-prop aircraft, inadequate funding of the Essential Air Services program, higher maintenance costs and higher fuel prices. With little prospect of future profitability we have reluctantly begun to liquidate those assets and operations." For a complete analysis see the next issue of Regional Aviation News.