Let me be clear. Mesa did not report an operating profit. They reported an operating loss for the 1st quarter 2008 as they have for several quarters in a row now. Here is a copy of what I posted on another thread.
Originally Posted by hdale
Dont know where you got the info but over on yahoo finance it is reported that MAG had a 9.4 million dollar profit! Probably creative accounting but that is what was reported!
You are right. Creative accounting. They are accounting for a one time gain of 27.5 million dollars related to the Hawaiian lawsuit that Mesa lost. They posted a bond for $80 million, and only had to pay $52.5 million, so they are counting the 27.5 million dollars as a profit.
Gotta love Mesa. It's funny because they never included the $80 million dollars in any of their quarterly losses, but they can suddenly report this 27.5 million dollars as income.
The bottom line is Mesa has had an operating loss for many quarters in a row now, and the most important fact is their unrestricted cash position, which is down to only $55 million dollars. In the airline industry, cash is time. Therefore, Mesa does not have very much time. BTW, that $55 million was over 90 days ago (back when oil was still $100/barrel). My guess is their cash position is much lower than that. Now let's wait and see what happens with their Delta contract. The end is near.