Mesa Air Group (MESA) investor relations material

Executive summary

• Net income of $20.9 million for the quarter ended June 30, 2025, reversing a prior year loss; nine-month net loss of $152.3 million due to asset sales and impairments.

• Operating loss of $0.1 million for the quarter, improved from $9.0 million loss year-over-year; nine-month operating loss worsened to $168.2 million from $48.8 million.

• Achieved single-fleet E-175 operation, retraining 160 pilots, and increased daily block hour utilization by 15.4% year-over-year.

• Closed asset sales totaling $17.2 million in Q3 and $11.7 million post-quarter, using proceeds to repay U.S. Treasury debt.

• Merger with Republic Airways progressing, with regulatory waiting period expired and stockholder consents obtained.

Financial highlights

• Q3 2025 operating revenue decreased 16.3% year-over-year to $92.8 million, driven by reduced contractual aircraft with United and asset dispositions.

• For the nine months, total operating revenue fell 19.5% to $290.8 million; contract revenue down 29.5%, pass-through and other revenue up 41.6%.

• Adjusted EBITDA for the quarter was $6.0 million, down from $6.1 million year-over-year; nine-month Adjusted EBITDA was $25.3 million, down from $40.8 million.

• Cash and cash equivalents at June 30, 2025 were $42.5 million, up from $15.6 million at September 30, 2024.

• Ended Q3 with $113.7 million in total debt, down from $366.4 million a year earlier.

Outlook and guidance

• Management implemented measures to address liquidity, including asset sales, debt reduction, and cost deferrals, and believes these will allow the company to meet obligations for the next twelve months.

• Combined company post-merger expected to generate $1.8B–$2.0B in annual revenue and over $300M in pro forma cash, with $1.1B in debt.

• 60 E-175 aircraft to be supported by a new 10-year capacity purchase agreement with United Airlines post-merger.