Mesa’s monthly losses widen

Washington DC
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Mesa Air Group posted a $2.6 million loss for the month of May, a 62.5% jump from the $1.6 million loss posted in April.

Phoenix-based Mesa entered Chapter 11 bankruptcy protection in January of this year, and US bankruptcy code requires the reporting of monthly financial performance. In February and March of this year Mesa lost $246 million and $2.3 million, respectively.

May was also the first month since filing Chapter 11 that Mesa posted an operating loss, which totalled $341 million. The company in March posted $1.6 million in operating revenue followed by $1.5 million in April.

Mesa's operating expenses for the Month of May were $66 million compared with $69 million in April and $71.5 million in March.

The company's revenues have fallen from $73 million in March to $66 million in May.

Mesa's losses in May are the largest for a single month since the carrier's bankruptcy filing, since entering Chapter 11 it has posted total losses of roughly $6.3 million.

At the end of May Mesa had cash balances of $61 million.

Mesa is in the midst of exiting operations as Delta Connection by its Freedom Airlines subsidiary. After a protracted litigation, Delta secured the right to terminate the contract, which currently covers 22 Embraer ERJ-145. Previously Mesa has said it would return the aircraft to lessors.