So I just listened to the conference call for Mesa’s Q1. There was a lot of good notes I wanted to share with those of you that couldnt listen in.
- Mesa beat expectations by 400%, leading to a +$0.05 dividend per share.
- Mesa is currently Breaking-Even on day to day cost and expects to Break-even for 2020
- Mesa is still expecting to take on 20 new EJets for United
- Mesa is willing to keep crj700s if United decides to not want to convert anymore 550s and to add to the flying for Mesa (if UA wants)
- Mesa is currently using Grant Cares Act to give labor cost break to UA and AA
- Mesa is currently renegotiating new contract with AA (but no guarantees if AA goes BR)
- Mesa is expected to be able to cover all its debts and loan payments during 2020
- Mesa is expecting to receive roughly $175 million from Care Act Loan
- Extra crj900 that were reduced from the AA fleet earlier this year are expected to be held on to until value rises back to pre-covid then be sold for over $1.5 million each
- Cargo is full steam ahead to start in Sep (3 a/c)
-Cargo a/c will be provided from DHL/Amazon (not leased or bought)
- They are willing to renegotiate min guarantee in Oct, like the one before Cares Act, in order not to furlough any pilots in Oct
If I missed anything let me know. But that was most of the important info I got. I think honestly Mesa is built to last better than its competitors during this time period (except maybe SKW). Overall I think it was a lot of good news. Hope this was helpful for understanding Mesa’s current position.