Tag Archives: United Express

Mesa Air Group reports a fiscal year net loss of $182.7 million, finalizes its new agreement with United

Mesa Air Group, Inc. (Mesa Airlines) reported its fourth quarter and fiscal full-year 2022 financial and operating results.

Fiscal Fourth Quarter Update:

  • Total operating revenues of $125.6 million
  • Pre-tax loss of $148.6 million, net loss of $115.6 million or $(3.18) per diluted share
  • Adjusted net loss1 of $13.5 million or $(0.37) per diluted share
  • Adjusted net loss excludes a $132.3 million non-cash (pre-tax) impairment loss related to the CRJ fleet
  • New industry-leading pilot pay agreement effective September 15th
  • Agreed to sell 18 CRJ-550s to United Airlines, 10 of which closed during the quarter
  • Launched the Mesa Pilot Development (“MPD”) Program
  • Negotiated a new two-year flight attendant agreement
  • Subsequent to quarter end:
    • Initiated and concluded wind-down agreement with American Airlines
    • Reached agreements with United Airlines for (i) capacity purchase agreement expansion for CRJ900 flying and rate increase, (ii) a loan agreement, and (iii) an engine purchase agreement
    • Renegotiated certain aircraft debt and lease obligations
    • Agreed to sell 11 CRJ900s, expected to close in Q1 CY2023

Fiscal Full-Year 2022 Update:

  • Total operating revenues of $531.0 million
  • Pre-tax loss of $234.7 million, net loss of $182.7 million or $(5.06) per diluted share
  • Adjusted net loss1 of $40.2 million or $(1.12) per diluted share
  • Adjusted net loss excludes a $171.8 million non-cash (pre-tax) impairment loss related to the CRJ fleet

Jonathan Ornstein, Chairman and CEO, said, “Building on our relationship with United Airlines that began in 1992, we are delighted to announce our new and expanded agreements with United, allowing us to expand United’s reach into cities that have seen reductions or loss of flight service created by the industry-wide pilot shortage. After the transition, Mesa will be the only exclusive regional carrier for United operating large regional jets. We believe our strong relationship with United will provide significant opportunities for growth in the future. In particular, we believe Mesa’s participation in the Aviate program, combined with United’s industry-leading growth plan, will provide the most reliable, fastest path for aviators to transition to a major commercial carrier. Combined with the significant liquidity United is providing, this agreement represents a transformational step for our business as we aim to resolve the impacts of the industry-wide pilot shortage that we faced in fiscal 2022. With our pilot pipeline now filled thanks to our new pay scale and enhanced opportunities with United through Aviate, Mesa is in a superior position to meet the significant demand for regional flying.”

Fiscal Fourth Quarter Details:

Total operating revenues in Q4 2022 were $125.6 million, a decrease of $5.1 million (3.9%) from $130.8 million for Q4 2021. Contract revenue decreased $5.3 million, or 4.6%. These decreases were driven by lower block hours, offset by the expiration of temporary rate reductions related to the PSP program. Mesa’s Q4 2022 results include, per GAAP, the deferral of $1.3 million, versus the recognition of $1.3 million of previously deferred revenue in Q4 2021. The remaining deferred revenue balance of $24.1 million will be recognized as flights are completed over the remaining terms of the contracts.

Mesa’s Adjusted EBITDA1 for Q4 2022 was $13.8 million, compared to $25.8 million in Q4 2021, and Adjusted EBITDAR1 was $22.4 million for Q4 2022, compared to $35.5 million in Q4 2021.

Mesa’s Q4 2022 results reflect a net loss of $115.6 million, or $(3.18) per diluted share, compared to a net loss of $7.5 million, or $(0.21) per diluted share for Q4 2021. Mesa’s Q4 2022 adjusted net loss1 was $13.5 million, or $(0.37) per diluted share, versus an adjusted net loss1 of $2.1 million, or $(0.06) per diluted share, in Q4 2021. The year over year decrease in adjusted net income of $11.4 million was primarily due to lower block hours, the net impact of the PSP program, and a decrease in maintenance expense.

For Q4 2022, 48% of the Company’s total revenue was derived from our contracts with United, 45% from American, 2% from DHL, and 5% from leases of aircraft to a third party.

1 See Reconciliation of non-GAAP financial measures

Fiscal Full-Year 2022 Details:

For fiscal year 2022, total operating revenues were $531.0 million, an increase of $27.4 million (5.4%) from $503.6 million for fiscal year 2021. Contract revenue increased $44.0 million, or 10.1%. This was primarily due to the return to normal rates from our partners, which were temporarily reduced last year related to the PSP program, and recognition of higher deferred revenue, partially offset by a reduction in block hours and partner utilization penalties. Mesa’s fiscal year 2022 results include, per GAAP, the recognition of $10.4 million of previously deferred revenue, versus the deferral of $10.7 million of revenue in fiscal 2021.

Mesa’s Adjusted EBITDA1 for fiscal year 2022 was $66.6 million, compared to $150.0 million in fiscal year 2021, and Adjusted EBITDAR1 was $103.6 million for fiscal year 2022, compared to $189.3 million in fiscal year 2021.

Mesa’s fiscal year 2022 results reflect a net loss of $182.7 million, or $(5.06) per diluted share, compared to net income of $16.6 million, or $0.43 per diluted share, for fiscal year 2021. Mesa’s fiscal year 2022 adjusted net loss1 was $40.2 million, or $(1.12) per diluted share, versus adjusted net income of $24.6 million, or $0.64per diluted share, in fiscal year 2021. The year over year decrease in adjusted net income of $64.8 million was primarily due to lower block hours, the net impact of the PSP program, change in deferred revenue, and higher pilot training expense.

American Airlines Agreement:

On December 19, 2022, we announced a final agreement with American Airlines to wind-down our contract by April 3, 2023. The wind-down with American Airlines was primarily the result of ongoing losses within the American operation as a result of higher pilot wages, which American would not agree to compensate Mesa for, and utilization penalties.

United Airlines Agreements:

On December 27, 2022, we finalized an amendment and restatement of our capacity purchase agreement with United Airlines. Under the agreement, Mesa will add up to 38 CRJ900 aircraft, dependent on the number E-175s Mesa is operating. Mesa will begin flying CRJ900s on behalf of United in March of 2023 and utilize all of the crew and maintenance locations currently operated for American Airlines in Phoenix, Dallas, El Paso, and Louisville, as well as open a CRJ900 crew base in Houston and a pilot base in Denver. As part of the final agreement, United will also pay Mesa increased block-hour rates to cover the incremental pilot wage increases instituted by Mesa in September 2022, which will remain in effect through September 2025. United will receive a 10% equity position in Mesa and a seat on the Mesa Board of Directors.

Additionally, on December 27, 2022, we finalized an agreement with United for a $41.2 million liquidity facility, including the refinancing of $15.7 million outstanding under our CIT revolving credit facility maturing December 31, 2022, and an additional $25.5 million term loan, of which $15.0 million is forgivable if Mesa achieves certain aircraft utilization thresholds. The collateral for the loan is a combination of aircraft parts and a pledge of our equity investment in Archer Aviation, Inc. and Heart Aerospace Incorporated.

United also agreed to purchase 30 GE-CF34-8 spare engines from Mesa for $80 million, which is expected to provide over $50 million of net cash proceeds and close in Q1 CY2023.

Note: United Airlines has confirmed that it will park up to 38 Embraer E175s due to the Mesa Bombardier CRJ900s joining the United Express fleet according to FlightGlobal. United does not want to violate its scope agreement with its pilots.

Aircraft, Debt, and Lease Activities:

On December 15, 2022, Mesa entered into an agreement with Export Development Canada (“EDC”) to, subject to certain conditions, reduce debt service on seven CRJ-900 aircraft for the period of January 2023 through December 2024, providing approximately $14 million of incremental liquidity during this period. These debt service reductions will be repaid at maturity in December 2027. Additionally, the junior noteholder, MHIRJ, agreed to forgive 50% of its outstanding note balance if the notes are fully repaid prior to December 31, 2023.

On December 16, 2022, Mesa entered into an agreement with RASPRO Trust 2005 (“RASPRO”), which reduces the effective purchase price at or prior to lease termination in March 2024 on 15 CRJ-900s by approximately $25 million.

On December 23, 2022, Mesa entered into an agreement with US Treasury, enabling Mesa to sell certain aircraft and engines, which will provide approximately $24 million of incremental liquidity in Q1 CY2023. These sales include 8 CRJ-550s sold to United, which we expect to close in January 2023, 11 CRJ-900s agreed to be sold to a third party by March 31, 2023, and 6 spare GE CF34 engines. These sales are expected to reduce Mesa’s US Treasury debt by approximately $65 million and reduce annual interest expense by approximately $4.5 million at current rates.

Pilot Initiatives:

The increase in pilot pay implemented during the quarter has significantly reduced attrition and increased our pilot applicant pool. We currently have approximately 400 pilots in our training pipeline.

Liquidity and Capital Resources:

Mesa ended the quarter at $57.7 million in unrestricted cash and equivalents. As of September 30, 2022, the Company had $599.7 million in total debt secured primarily with aircraft and engines.

Mesa Airlines route map (American Eagle routes in red, United Express routes in blue):

Top Copyright Photo: United Express-Mesa Airlines Embraer ERJ 170-200LR (ERJ 175) N89362 (msn 17000856) IAH (Jarrod Wilkening). Image: 957974.

United Express-Mesa Airlines aircraft photo gallery:

GoJet and United reach two-year flow agreement to combat pilot shortage Inbox News for Blog

GoJet Airlines has announced the launch of a Direct-Entry Captain Path to United Airlines that will offer highly qualified Direct Entry Captain candidates the best overall package in terms of compensation and career opportunity.
Participants in this program will have a direct flow to United’s flight deck in two years. For a limited time, GoJet is recruiting Captain-qualified individuals that have a minimum of 1000 hours of Part 121 or Part 135 flying time. In addition, GoJet is honoring this experience with longevity pay matching at a 1:1 rate, up to 18 years.
GoJet is ready to help pilots with this level of skill who are looking to advance their career goals and move to a legacy carrier. Offering immediate GoJet class availability with no training delays.
Top Copyright Photo: United Express-GoJet Airlines Bombardier CRJ550 (CL-600-2C10) N508GJ (msn 10045) DCA (Brian McDonough). Image: 952615.
United Express-GoJet Airlines aircraft photo gallery:

Mesa Air sells 18 Bombardier CRJ700s to United Airlines

Mesa Air Group (Mesa Airlines) has agreed to sell 18 Bombardier CRJ700s to United Airlines.

Mesa had retired the aircraft last year and leased them to GoJet Airlines.

The last flight by Mesa for United of the type was operated on February 9, 2021 between Portland, ME and Washington (Dulles) by N508MJ.

The company filled this report on the transaction:

Mesa Air Group, Inc., its wholly owned subsidiary, Mesa Airlines, and United Airlines, Inc. entered into an Aircraft Purchase Agreement, which provides for the sale of 18 CRJ700 aircraft owned by Mesa to United. The Company expects the net proceeds from the sale of such aircraft will be approximately $50,000,000.

The Purchase Agreement provides that each aircraft will be delivered “as is, where is” subject to and with the benefit of a related lease agreement.

Under the terms of the Purchase Agreement, the Company is providing customary representations and warranties for a transaction of this type including authorization, no conflicts, validity of agreement, regulatory matters, good and marketable title, airworthiness, no liens, aircraft records, manufacturer warranties, and no brokers’ fees.

United has agreed to deposit a specified sum per aircraft with FAA counsel, to be applied toward the purchase of each aircraft.

The closing of the sale of each aircraft is subject to certain customary closing conditions, including the execution of mutually acceptable sale and lease assignment and assumption documentation, and United’s satisfactory inspection of the aircraft.

The Purchase Agreement provides for a downward adjustment in the purchase price based on a formula set forth therein if the closing date in respect of an aircraft occurs after January 31, 2023.

Top Copyright Photo: United Express-Mesa Airlines Bombardier CRJ700 (CL-600-2C10) N504MJ (msn 10066) CLT (Jay Selman). Image: 404184.

United Express – Mesa Airlines aircraft photo gallery:

United is considering a new widebody aircraft order, considers the Airbus A350 and additional Boeing 787 Dreamliners

United Airlines is reportedly considering another new aircraft order, this time to replace its aging Boeing 767-300ER widebody fleet and the Boeing 777-200 widebody fleet.

United’s oldest widebodies are the 38 Boeing 767-300ERs with an average age of almost 26 years, and its 19 777-200s with almost 25 years average age.

United’s 16 Boeing 767-400ERs and 55 Boeing 777-200ERs are also on average more than 20 years old.

United Airlines fleet plans:

Previously the airline annouced orders for 200 Boeing 737 MAX aircraft and 70 Airbus A321neo aircraft for its narrowbody fleet renewal.

When combined with the current orders, United expects to add more than 500 new narrow-body aircraft: 40 in 2022, 138 in 2023 and as many as 350 in 2024 and beyond.

That means in 2023 alone, the United narrowbody fleet could add about one new narrowbody aircraft every three days.


[youtube https://www.youtube.com/watch?v=CHiWaewCl_8&w=560&h=315%5D

United Airlines Fleet Information

United aircraft

Boeing 777 200

Boeing 777


Boeing 777-2003D view available for this aircraft
Boeing 777-300ER3D view available for this aircraft
Cruise Speed: 550-560 mph
Capacity: 276-350 passengers
Propulsion: Two General Electric GE90 or two Pratt & Whitney PW4077/4090 engines, rated up to 115,300 pounds thrust each
Wingspan: Up to 212 feet, 7 inches


Boeing 767-300

Boeing 767


Boeing 767-300ER3D view available for this aircraft
Boeing 767-400ER
Cruise Speed: 540 mph
Capacity: 167-240 passengers
Propulsion: Two General Electric CF6-80C2B or two Pratt & Whitney PW4060 engines, rated up to 63,300 pounds thrust each
Wingspan: Up to 170 feet, 4 inches


Boeing 757-200

Boeing 757


Boeing 757-200
Boeing 757-300
Cruise Speed: 540 mph
Capacity: 142-234 passengers
Propulsion: Two Rolls-Royce RB211-535 or two Pratt & Whitney PW2040 engines, rated up to 43,700 pounds thrust each
Wingspan: 134 feet, 7 inches


Airbus 319



Airbus 3193D view available for this aircraft
Airbus 3203D view available for this aircraft

Cruise Speed: 530 mph
Capacity: 126-150 passengers
Propulsion: Two IAE V2500-A5 engines, rated up to 27,000 pounds thrust each
Wingspan: 111 feet, 11 inches


Air Wisconsin

Air Wisconsin





Mesa airlines

Mesa Airlines

republic airlines

Republic Airways

skywest airlines

Skywest Airlines

Embraer EMB 170

EMB 170 & 175


EMB 170
EMB 175
Cruise Speed: 530 mph
Capacity: 70-76 passengers
Propulsion: Two jet engines
Wingspan: Up to 76 feet, 3 inches


Embraer 145

EMB 145


EMB 145
Cruise Speed: 530 mph
Capacity: 50 passengers
Propulsion: ERJs powered by two Rolls-Royce AE3007 rated up to 8,900 pounds thrust each
Wingspan: 69 feet, 7 inches

United Airlines aircraft photo gallery:

Air Wisconsin to go back to American Airlines feeding the Chicago O’Hare hub

Air Wisconsin Airlines is switching sides again. The company is dropping United Airlines as an United Express carrier and will go back to American Airlines as an American Eagle carrier.

The move will take no longer than March 2023.

Derek Kerr of American Airlines wrote in an internal memo:

“We’re taking another important step to strengthen our network by welcoming Air Wisconsin Airlines to the American Eagle portfolio of regional airline partners,”

“Air Wisconsin’s fleet of up to 60 Bombardier CRJ200 aircraft will start to enter service no later than March 2023, with most of the flying focused on connecting customers to our Chicago O’Hare hub,”

Air Wisconsin operated as an American Eagle carrier from 2015 to February 14, 2018.

Air Wisconsin currently operates as an United Express carrier with crew bases in Chicago O’Hare (ORD) and Milwaukee (MKE).

The company is also celebrating its 57th anniversary.

United Express-Air Wisconsin aircraft photo gallery:

American Eagle-Air Wisconsin aircraft photo gallery:

Air Wisconsin historic photo gallery:


CommutAir pilots sign new letter of agreement for their long-term contract

CommutAir leadership and ALPA are excited to announce sweeping increases to our shared pilot compensation program. Incoming first officers will now start at $72.00/hr and Captains will start at $100.00/hr. Additionally, new sign-on & retention bonuses are now available up to a total of $25,000 for First Officers and $50,000 for Captain qualified pilots.

The opportunities offered by these updates will enable sustained growth for all of our employees. CommutAir pilots will now receive enhanced levels of scheduling, commuting expenses, health insurance, vacation, sick leave and 401k benefits that are among the best in the industry:

Compensation benefits of the agreement include:

  • Increase in starting First Officer wages – $72/hr
  • Increase in starting Captain wages – $100/hr
  • Pilot sign-on bonuses and incentives – $25,000for First Officers and $50,000 for Captain Qualified pilots
  • Significant increase to pay override for instructors (Ground, SIM, Line Check Pilots, and Designated Examiners)
  • Annual retention bonuses totaling $25,000 for First Officers and $50,000 for Captains for full contract duration
  • New Minimum Monthly duty period Guarantee – 76 hours
  • Full Compensation for Experience – Longevity credit of 1:1 up to 20 yrs for new hires with prior FAR 121 industry experience
  • Increased Commuter hotel allotment for reserve pilots
  • Industry leading Commuter travel program including flights from home to base
  • Direct flow to United Airlines through the Aviate Program

United Express-CommutAir aircraft photo gallery:

United realigns its East Coast regional network due to a regional pilot shortage

United Airlines is being forced to realign its East Coast United Express services due to an on-going regional pilot shortage made worst by COVID.

According to Skift Airline Weekly and The Points Guy, United is dropping 11 regional routes in March 2022 from the Washington Dulles hub (IAD) while others will be shifted to the Newark hub (EWR). No markets will be completely dropped as some routes to the Chicago O’Hare (ORD) or Newark (EWR) will continue.

Routes dropped from IAD:

Akron/Canton (continues from ORD)

Asheville (continues from EWR)

Bangor (continues from EWR)

Erie (continues from ORD)

Grand Rapids (continues from EWR)

Greensboro (continues from EWR)

Greenville/Spartanburg (continues from EWR)

Harrisburg (shifted to EWR)

Ithaca (shifted to EWR)

Milwaukee (continues from EWR)

Philadelphia (shifted to EWR)

Scranton/Wilkes Barre (shifted to EWR)

State College, PA (shifted to EWR)

Wilmington, NC (continues from EWR)

United’s regional partners:

Previously United Airlines CEO Scott Kirby announced at a Senate hearing its United Express partners had grounded over 100 regional aircraft due to the on-going pilot shortage.

Ad at CommutAir:

Ad at GoJet Airlines:

Air Wisconsin routes operated for United Airlines:

CommutAir announces Embraer ERJ145 fleet interior refresh program

CommutAir is pleased to announce the launch of an expansive effort to update and replace the interiors of its entire fleet of Embraer 145XR 50-seat aircraft with the support of United Airlines.

The upgraded aircraft will provide a more modernized and comfortable travel experience for customers flying with CommutAir. Heading into 2022, customers can expect to see new sidewalls, overhead bins, bulkhead finishes, LED cabin and reading lights, and a completely redesigned lavatory on CommutAir’s entire fleet of ERJ145 aircrafts.

CommutAir is hiring in all areas to continue to support the expansive growth the carrier has experienced in recent years. The carrier offers pilot programs that include:

  • Career path program through United AVIATE partnership – the fastest path to a United flight deck
  • Attractive sign-on bonus for Direct-Entry Captains ($50,000)
  • Rapid position upgrades for qualified applicants
  • Top-tier benefits including 401K matching
  • Unparalleled Commuter Policy

United to end service to regional destinations in January

United Airlines is reviewing its domestic network as a result of COVID-19 traffic disruptions.

United will end United Express service to these stations in January 2022 due to low demand:

College Station, TX

Colombia, MO

Evansville, IN

Kalamazoo, MI

Killeen, TX

Lansing, MI

Monroe, LA

Pierre, SD

Watertown, SD

Wausau, WI

Other stations could also be eliminated.