Mesa Posts $17.5M Profit

Despite all its troubles, Mesa Air Group, Inc. today announced second quarter after tax profit of $17.5 million from continuing operations on operating revenues of $320.3 million. The profit represents $20 million swing from the $22.6 million loss posted in the year-ago period. Total operating revenues for the second quarter increased $24.0 million, or 8.1 percent from the same quarter in 2007. Even so, Mesa posted a pro forma net loss for the quarter of $4.1 million or $0.15 per diluted share. Pro forma net adjustments on an after tax basis were the following: $21.0 million benefit as a result of a negotiated settlement with Hawaiian Airlines, $4.5 million gain on repurchase of convertible notes, $1.9 million gain on securities, lease return costs of $3.3 million, startup costs associated with the Chinese joint venture of $0.9 million, go! legal costs of $0.6 million and $1.1 million of other expenses.
Total Available Seat Miles ("ASM's") for the second quarter of fiscal 2008 decreased 10.4 percent from the second quarter of 2007 primarily after aircraft dropped from 201 March 31, 2007 to 178 March 31, 2008, when it had 84 50-seat regional jets, 41 86-seat regional jets, two 76-seat regional jets and 20 66-seat regional jets, 16 37-seat turboprops and 15 19-seat turboprops. As of March 31, 2008, the Company operated 50 regional jets and 15 turboprops on a codeshare basis with US Airways, 53 regional jets and ten turboprops for United and 39 regional jets for Delta. The company also flew six turboprops at Mesa Airlines and five regional jets in Hawaii operating as go!
As of March 31, 2008, the Company's cash, cash equivalents, restricted cash and marketable securities were approximately $158.1 million, which includes $102.8 million in restricted cash.