Mesa continues to post monthly losses

Washington DC
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Mesa Air Group has reported $27.9 million net loss for the month of July, continuing a trend of losses except for January when its net profits were $542,000.

The Phoenix-based holding company, which has been in Chapter 11 bankruptcy since January, is required to report monthly operating results.

Mesa's net loss is the second-worst monthly result this year, after a $275.3 million loss experienced in June.

The company did, however, record a $134,000 operating profit. Operating revenues for the month were $66.3 million.

Mesa's operating fleet continues to shrink. The company reports that it was operating 90 aircraft at the end of July, two less than June and 30 less than February.

United Airlines terminated agreements with Mesa covering the operation of 26 Bombardier CRJ200s and 10 Dash-8s in 2009, with flights ceasing earlier this year. Operations at Mesa's Freedom Airlines subsidiary are also winding down after a legal battle with mainline partner Delta Air Lines ended in Delta's favour.

Mesa reports that 58 aircraft have been abandoned or have had leases rejected, two more than reported a month ago. In January, Mesa abandoned its fleet of 20 Beechcraft 1900Ds that were previously flown by subsidiary Air Midwest.

"The debtors have filed 20 notices of rejection with respect to the leases of 12 aircraft engines and 80 aircraft," says Mesa in the monthly report. In its monthly report with June results, the company said it had filed 18 notices that affected seven engines and 56 aircraft.