Mesa Earnings Drop, Tackles UA Performance

Mesa reported it is working with United to mitigate problems associated its slot allocation model that previously disadvantaged small aircraft and has been the subject of complaints by other United Express partners, including SkyWest. In another effort to improve Mesa’s operational performance, United spread some of its flying in the tougher East Coast cities to other regional operators. Mesa used to fly 100 percent of East Coast flying and is now down to 80 percent, said CEO Jonathan Ornstein in reporting first quarter results. United has also helped with smoothing out some of Mesa’s internal functions including dispatch, communities and management of crew resources.
Mesa Air Group, Inc. had net earnings of $8 million on operating revenues of $347.6 million during its fiscal first quarter ending December 31. Total operating revenues increased $24 million, or 7.4%, largely owing to year-over-year increased cost reimbursements under revenue guarantee contracts. During the year-ago quarter it had a net income of $13 million.
"Despite the challenges this quarter's weather presented Mesa's operations, we are satisfied with these results and particularly pleased with our results of go!, whose reliability, as measured by the DOT, was the best of the Hawaiian carriers," said Ornstein. Total available seat miles (ASMs) for the quarter increased 1.8% over the year-ago period despite the addition of aircraft during 2006. The slight rise was attributed to changes in fleet utilization flying shorter stage lengths. It also reduced active aircraft for repainting as they transitioned to USAirway’s new livery.