Group Also Sees Net Income In Q1 2009
Mesa Air Group announced Wednesday
net income of $15.5 million in the first quarter of FY 2009, on
operating revenues of $265.1 million. That compares to a net loss
of $2.8 million recorded by the regional operator over the same
period in FY 2008.
Perhaps even more amazing, however, was performance by Mesa's
fledging go! Airlines subsidiary. The small Hawaiian inter-island
carrier posted its first-ever profit in the first quarter,
following almost three years of staggering losses.
That profit wasn't much -- a meager $500,000, on $11.6 million
in revenue -- but it still allows Mesa to thumb its nose at
naysayers who questioned whether the loss-leader airline would ever
pay for itself.
"We are encouraged by this quarter's performance and the strides
we have taken to put some difficult hurdles behind us. We are also
very pleased to report go! achieved its first quarterly profit and
we remain committed to our independent inter-island operation,"
said Mesa Chairman and CEO, Jonathan Ornstein.
"We continue to execute our restructuring plan and take steps
needed to improve the financial and operational performance of the
Company. We would like to thank all of our constituents who have
worked with us including our airline partners, vendors and
suppliers, bondholders and our hard working employees and employee
leadership team. While the environment continues to be challenging
we remain confident that working together our company can build
upon the success of this quarter."
Systemwide capacity cuts led to a $61.5 million drop in
operating revenues for the quarter. Total Available Seat Miles for
the first quarter of fiscal 2009 decreased 18.4% from the first
quarter of 2008, primarily due to a reduction in the number of
aircraft flown from 183 as of December 31, 2007 to 151 as of
December 31, 2008.
As ANN reported, Mesa finalized plans to
launch service in Hawaii in 2005... and promptly shook up what had
been relatively stable (some would say "noncompetitive") market
dominated by two airlines -- Aloha, and Hawaiian Airlines. Offering
much lower fares than its rivals -- to the point of operating
routes at steep losses -- go! promptly commanded a large share of
the market, eating into its rivals profits.
Critics say go! brought about the demise of Aloha Airlines,
which ended scheduled passenger service in March 2008 after 61
years serving the Hawaiian airline market. In November 2007, a US
Bankruptcy Court judge ruled Mesa illegally used confidential
information obtained from Hawaiian Airlines to launch its new go!
interisland airline... and ordered Mesa to cough up $80 million in
damages.
To add insult to injury for fans of the former Aloha, go! is now
negotiating with the primary stockholder in Aloha to take over the
"Aloha" brand.