Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 27, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | false | |||
Document Period End Date | Sep. 30, 2023 | |||
Document Fiscal Year Focus | 2023 | |||
Document Fiscal Period Focus | FY | |||
Trading Symbol | MESA | |||
Entity Registrant Name | MESA AIR GROUP, INC. | |||
Entity Central Index Key | 0000810332 | |||
Current Fiscal Year End Date | --09-30 | |||
Entity Filer Category | Accelerated Filer | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Current Reporting Status | Yes | |||
Entity Voluntary Filers | No | |||
Entity Interactive Data Current | Yes | |||
Entity Shell Company | false | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
ICFR Auditor Attestation Flag | true | |||
Entity Public Float | $ 96,267,679 | |||
Entity Common Stock, Shares Outstanding | 40,940,326 | |||
Entity File Number | 001-38626 | |||
Entity Incorporation, State or Country Code | NV | |||
Entity Tax Identification Number | 85-0302351 | |||
Entity Address, Address Line One | 410 NORTH 44TH STREET | |||
Entity Address, Address Line Two | SUITE 700 | |||
Entity Address, City or Town | PHOENIX | |||
Entity Address, State or Province | AZ | |||
Entity Address, Postal Zip Code | 85008 | |||
City Area Code | 602 | |||
Local Phone Number | 685-4000 | |||
Document Annual Report | true | |||
Document Transition Report | false | |||
Title of 12(b) Security | Common Stock, no par value | |||
Document Financial Statement Error Correction [Flag] | true | |||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | |||
Security Exchange Name | NASDAQ | |||
Auditor Name | RSM US LLP | Ernst & Young LLP | ||
Auditor Firm ID | 49 | 42 | ||
Auditor Location | Phoenix, Arizona | Phoenix, Arizona | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant's definitive proxy statement relating to its 2024 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Registrant’s definitive proxy statement for its 2024 annual meeting of shareholders will be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year to which this report relates. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 32,940 | $ 57,683 |
Restricted cash | 3,132 | 3,342 |
Receivables, net ($4,016 and $85 from related party) | 8,253 | 3,978 |
Expendable parts and supplies, net | 29,245 | 26,715 |
Assets held for sale | 57,722 | |
Prepaid expenses and other current assets | 7,294 | 6,616 |
Total current assets | 138,586 | 98,334 |
Property and equipment, net | 698,022 | 865,254 |
Intangible assets, net | 3,842 | |
Lease and equipment deposits | 1,630 | 6,085 |
Operating lease right-of-use assets | 9,709 | 43,090 |
Deferred heavy maintenance, net | 7,974 | 9,707 |
Assets held for sale | 12,000 | 73,000 |
Other assets | 30,546 | 16,290 |
Total assets | 898,467 | 1,115,602 |
Current liabilities: | ||
Current portion of long-term debt and finance leases ($20,500 and $0 from related party) | 163,550 | 97,218 |
Current portion of deferred revenue | 4,880 | 385 |
Current maturities of operating leases | 3,510 | 17,233 |
Accounts payable | 58,957 | 59,386 |
Accrued compensation | 10,008 | 11,255 |
Other accrued expenses | 27,001 | 29,000 |
Total current liabilities | 267,906 | 214,477 |
Noncurrent liabilities: | ||
Long-term debt and finance leases, excluding current portion ($30,630 and $0 from related party) | 364,728 | 502,517 |
Noncurrent operating lease liabilities | 8,077 | 16,732 |
Deferred credits ($4,617 and $2,193 from related party) | 4,617 | 3,082 |
Deferred income taxes | 8,414 | 17,719 |
Deferred revenue, net of current portion | 16,167 | 23,682 |
Other noncurrent liabilities | 28,522 | 29,219 |
Total noncurrent liabilities | 430,525 | 592,951 |
Total liabilities | 698,431 | 807,428 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 40,940,326 (2023) and 36,376,897 (2022) shares issued and outstanding, 4,899,497 (2023) and 4,899,497 (2022) warrants issued and outstanding | 271,155 | 259,177 |
(Accumulated deficit)/Retained Earnings | (71,119) | 48,997 |
Total stockholders' equity | 200,036 | 308,174 |
Total liabilities and stockholders' equity | $ 898,467 | $ 1,115,602 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Non current portion of long-term debt from related party | $ 28,522 | $ 29,219 |
Deferred credits from related party | $ 4,617 | $ 2,193 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 40,940,326 | 36,376,897 |
Common stock, shares outstanding | 40,940,326 | 36,376,897 |
Common stock, warrants issued | 4,899,497 | 4,899,497 |
Common stock, warrants outstanding | 4,899,497 | 4,899,497 |
Related Party [Member] | ||
Recievables from related party | $ 4,016 | $ 85 |
Current portion of long-term debt from related party | 20,500 | 0 |
Non current portion of long-term debt from related party | $ 30,630 | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating revenues: | |||
Contract revenue | $ 498,065 | $ 531,001 | $ 503,591 |
Operating expenses: | |||
Flight operations | 216,748 | 177,038 | 162,137 |
Maintenance | 199,648 | 201,930 | 217,646 |
Aircraft rent | 6,200 | 36,989 | 39,345 |
General and administrative | 48,765 | 43,966 | 49,855 |
Depreciation and amortization | 60,359 | 81,508 | 82,847 |
Lease termination | 233 | 4,508 | |
Asset impairment | 54,343 | 171,824 | |
(Gain) on sale of assets | (7,162) | (4,723) | 78 |
Other operating expenses | 3,510 | 7,238 | 3,536 |
Government grant recognition | (119,479) | ||
Total operating expenses | 582,411 | 716,003 | 440,395 |
Operating (loss)/income | (84,346) | (185,002) | 63,196 |
Other income (expense), net: | |||
Interest expense | (49,921) | (35,289) | (34,730) |
Interest income | 146 | 139 | 365 |
Unrealized gain/(loss) on investments, net | 5,408 | (13,715) | (6,816) |
Other (expense)/income, net | (148) | (801) | 401 |
Total other expense, net | (44,515) | (49,666) | (40,780) |
(Loss)/income before taxes | (128,861) | (234,668) | 22,416 |
Income tax (benefit)/expense | (8,745) | (51,990) | 5,828 |
Net (loss)/income and comprehensive (loss)/income | $ (120,116) | $ (182,678) | $ 16,588 |
Net loss per share attributable to common shareholders | |||
Basic | $ (3.04) | $ (5.06) | $ 0.46 |
Diluted | $ (3.04) | $ (5.06) | $ 0.43 |
Weighted-average common shares outstanding | |||
Basic | 39,465 | 36,133 | 35,713 |
Diluted | 39,465 | 36,133 | 38,843 |
Contract Revenue | |||
Operating revenues: | |||
Contract revenue | $ 421,298 | $ 478,482 | $ 434,518 |
Pass Through and Other Revenue | |||
Operating revenues: | |||
Contract revenue | $ 76,767 | $ 52,519 | $ 69,073 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party [Member] | |||
Contract revenue, Related party | $ 294,129 | $ 207,003 | $ 198,212 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Number of Warrants [Member] | Common Stock and Additional Paid-In Capital [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2020 | $ 457,859 | $ 242,772 | $ 215,087 | ||
Beginning balance, shares at Sep. 30, 2020 | 35,526,918 | ||||
Stock compensation expense | 3,126 | 3,126 | |||
Payment of tax withholding for RSUs | (1,486) | (1,486) | |||
Payment of tax withholding for RSUs, shares | (155,174) | ||||
Issuance of warrants, net of issuance costs | 11,489 | 11,489 | |||
Issuance of warrants, net of issuance costs, shares | 4,899,497 | ||||
Restricted shares issued, shares | 492,465 | ||||
Employee share purchases | 471 | 471 | |||
Employee share purchases, shares | 94,550 | ||||
Net (loss) income | 16,588 | 16,588 | |||
Ending balance at Sep. 30, 2021 | 488,047 | 256,372 | 231,675 | ||
Ending balance, shares at Sep. 30, 2021 | 35,958,759 | 4,899,497 | |||
Stock compensation expense | 2,761 | 2,761 | |||
Payment of tax withholding for RSUs | (455) | (455) | |||
Payment of tax withholding for RSUs, shares | (147,108) | ||||
Restricted shares issued | 100 | 100 | |||
Restricted shares issued, shares | 455,303 | ||||
Employee share purchases | 399 | 399 | |||
Employee share purchases, shares | 109,943 | ||||
Net (loss) income | (182,678) | (182,678) | |||
Ending balance at Sep. 30, 2022 | 308,174 | 259,177 | 48,997 | ||
Ending balance, shares at Sep. 30, 2022 | 36,376,897 | 4,899,497 | |||
Stock compensation expense | 2,275 | 2,275 | |||
Payment of tax withholding for RSUs | (363) | (363) | |||
Payment of tax withholding for RSUs, shares | (204,486) | ||||
Restricted shares issued, shares | 585,401 | ||||
United Stock Issuance | 9,782 | 9,782 | |||
United Stock Issuance, Shares | 4,042,061 | ||||
Employee share purchases | 284 | 284 | |||
Employee share purchases, shares | 140,453 | ||||
Net (loss) income | (120,116) | (120,116) | |||
Ending balance at Sep. 30, 2023 | $ 200,036 | $ 271,155 | $ (71,119) | ||
Ending balance, shares at Sep. 30, 2023 | 40,940,326 | 4,899,497 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net (Loss)/Income | $ (120,116) | $ (182,678) | $ 16,588 |
Adjustments to reconcile net loss to net cash flows provided by (used in)) operating activities: | |||
Depreciation and amortization | 60,359 | 81,508 | 82,847 |
Stock compensation expense | 2,275 | 2,761 | 3,126 |
Unrealized (gain)/loss on investments, net | (5,408) | 13,715 | 6,816 |
Deferred income taxes | (9,304) | (52,221) | 5,665 |
Amortization of deferred credits | 1,535 | (852) | (2,357) |
Amortization of debt discount and issuance costs and accretion of interest into long-term debt | 6,324 | 9,681 | 11,379 |
Asset impairment | 54,343 | 171,824 | |
(Gain) on sale of assets | (7,162) | (4,723) | 78 |
Loss/(Gain) on extinguishment of debt | 1,505 | 397 | (950) |
Other | 2,236 | 867 | 4,888 |
Changes in assets and liabilities: | |||
Receivables | (4,275) | (811) | 10,545 |
Expendable parts and supplies | (2,530) | (2,882) | (1,865) |
Prepaid expenses and other operating assets and liabilities | (769) | (679) | (56) |
Accounts payable | 496 | (2,772) | 7,861 |
Deferred heavy maintenance, net | (1,382) | (8,066) | (3,857) |
Deferred revenue | (3,020) | (10,432) | 10,742 |
Accrued expenses and other liabilities | (3,938) | (3,175) | (8,911) |
Operating lease right-of-use assets and liabilities | 4,740 | 1,900 | (9,668) |
Net cash (used in) provided by operating activities | (24,091) | 13,362 | 132,871 |
Cash flows from investing activities: | |||
Capital expenditures | (36,641) | (40,814) | (17,149) |
Investments in equity securities | (200) | (10,000) | |
Proceeds from sale of aircraft and engines | 178,644 | 50,000 | |
Refund (payment) of equipment and other deposits | 282 | (7,621) | (6,322) |
Net cash provided by (used in) investing activities | 142,285 | 1,365 | (33,471) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 60,878 | 39,811 | 195,000 |
Principal payments on long-term debt and finance leases | (203,029) | (114,910) | (271,033) |
Payments of debt and warrant issuance costs | (917) | (2,414) | (1,326) |
Proceeds from issuance of common stock under ESPP | 284 | 399 | 471 |
Payment of tax withholding for RSUs | (363) | (455) | (1,486) |
Net cash used in financing activities | (143,147) | (77,569) | (78,374) |
Net change in cash, cash equivalents and restricted cash | (24,953) | (62,842) | 21,026 |
Cash, cash equivalents and restricted cash at beginning of period | 61,025 | 123,867 | 102,841 |
Cash, cash equivalents and restricted cash at end of period | 36,072 | 61,025 | 123,867 |
Supplemental cash flow information | |||
Cash paid for interest | 38,410 | 24,895 | 32,767 |
Cash paid for income taxes, net | 419 | 487 | 404 |
Operating lease payments in operating cash flows | 9,476 | 36,262 | 47,612 |
Supplemental non-cash operating activities | |||
Right-of-use assets obtained in exchange for lease liabilities | 2,919 | 6,286 | 4,309 |
Supplemental non-cash financing activities | |||
Finance lease obtained in exchange for lease liability | 65,481 | ||
Acquisition of finance leases | 15,122 | 15,122 | |
Investments in warrants to purchase common stock | 3,260 | 21,964 | |
Accrued capital expenditures | $ 196 | $ 1,121 | 439 |
Debt issuance cost related to loan agreement with U.S. Department of the Treasury | $ (1,887) |
Organization and Operations
Organization and Operations | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | 1. Organization and Operations The Company Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa", the "Company", "we", "our", or "us") is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 86 cities in 36 states, the District of Columbia, Canada, Cuba, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. Under the United CPA and DHL FSA, Mesa operated or maintained as operational spares a fleet of 120 aircraft with approximately 296 daily departures and 2,303 employees as of September 30, 2023. Mesa’s fleet were conducted under the Company’s Capacity Purchase Agreements (“CPAs”) and Flight Services Agreement (“FSA”), leased to a third party, held for sale or maintained as operational spares. Mesa operates all of its flights as either United Express or DHL Express flights pursuant to the terms of the CPA entered into United Airlines, Inc. (“United”) and FSA with DHL Network Operations (USA), Inc. (“DHL”) (each, our “major partner”). Prior to the wind-down and termination of the Company's CPA with American Airlines, Inc. ("American") on April 3, 2023, Mesa also operated flights as American Eagle. All of the Company’s consolidated contract revenues for the twelve months ended September 30, 2023 and September 30, 2022 were derived from operations associated with the American CPA prior to April 3, 2023, the United CPA, FSA, and leases of aircraft to a third party. The United CPA involves a revenue-guarantee arrangement whereby United pays fixed-fees for each aircraft under contract, departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time), and reimbursement of certain direct operating expenses in exchange for providing flight services. United also pays certain expenses directly to suppliers, such as fuel, ground operations and landing fees. Under the terms of the CPA, United controls route selection, pricing, and seat inventories, reducing our exposure to fluctuations in passenger traffic, fare levels, and fuel prices. Under our FSA with DHL, we receive a fee per block hour with a minimum block hour guarantee in exchange for providing cargo flight services. Ground support expenses including fueling and airport fees are paid directly by DHL. Impact of Pilot Shortage and Attrition During our fiscal year ended September 30, 2023 , the severity of the pilot shortage and attrition and increasing costs associated with pilot wages adversely impacted our financial results, cash flows, financial position, and other key financial ratios. These conditions and events raised substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. One of the primary factors contributing to the pilot shortage and attrition is the demand for pilots at major carriers, which are hiring at an accelerated rate to backfill the thousands of pilots whom they offered early retirements to at the beginning of the pandemic. These airlines now seek to increase their capacity to meet the growing demand for air travel as the global pandemic has moderated. A primary source of pilots for the major US passenger and cargo carriers are the US regional airlines. As a result of the pilot shortage and attrition, the Company has increased overall hourly pay of nearly 118 % for captains and 172 % for new-hire first officers. As a result of pilot shortage and attrition, we produced less block hours to generate revenues and incurred penalties for operational shortfalls under our CPAs. During the twelve months ended September 30, 2023, these challenges resulted in a negative impact on the Company’s financial results highlighted by cash flows used in operations of $ 24.1 million and net loss of $ 120.1 million including a non-cash impairment charge of $ 54.3 million related to the Company designating 14 CRJ-900 aircraft as held for sale and our customer relationship intangible asset. These conditions and events raised substantial doubt about our ability to continue to fund our operations and meet our debt obligations over the next twelve months. To address such concerns, management developed and implemented several material changes to our business designed to ensure the Company could continue to fund its operations and meet its debt obligations over the next twelve months. The Company implemented the following measures during the year ended September 30, 2023, and through the date of the issuance of the financial statements. • We have 15 aircraft under the RASPRO finance lease with a buyout obligation of $ 50.3 million at the end of March 2024. We entered into purchase agreements with two separate parties to purchase the RASPRO aircraft and related engines. One agreement is for 30 engines for a total of $ 19.5 million. The second agreement is for 15 airframes (without engines) for a total of $ 18.8 million. Both of these transactions are expected to be completed by the end of March 2024, with net cash from these transactions expected to be approximately $( 12.1 ) million. • We entered into an agreement to sell 11 CRJ-900 aircraft to a third party. The Company has closed the sale of seven of the aircraft which generated $ 21.0 million in gross proceeds and approximately $ 1.5 million in net proceeds after partial debt reduction on the UST Loan. Subsequent to September 30, 2023, we closed the sale of the remaining four CRJ-900 aircraft to the third party for gross proceeds of $ 12.0 million. Net proceeds from the sale of all four aircraft was $ 6.5 million after partial debt reduction of our UST Loan. • We entered into an agreement with Export Development Bank of Canada (EDC), reducing debt and interest payments on seven CRJ-900 aircraft which began January 2023 through December 2024, providing approximately $ 14.0 million of liquidity. Additionally, the junior noteholder, MHIRJ, agreed to forgive approximately $ 5.0 million in principal contingent upon the repayment of $ 4.2 million in principal by December 31, 2023. • We entered into an agreement to sell seven surplus CRJ-900 aircraft to American. The Company has closed the sale of three of the aircraft which generated approximately $ 29.7 million in gross proceeds and approximately $ 2.4 million in net proceeds after partial debt reduction. Subsequent to September 30, 2023, the Company closed the sale of the remaining four CRJ-900 aircraft to American for gross proceeds of $ 41.5 million. Net proceeds from the sale of all four aircraft was $ 5.7 million after the retirement of the EDC Loan and MHIRJ junior note. $ 0.6 million in proceeds from the sale of each aircraft was repaid to MHIRJ for a total of $ 4.2 million, and we achieved approximately $ 5.0 million of forgiveness on the MHIRJ junior note. • We established and drew upon a new line of credit with United totaling $ 25.5 million. The United line of credit contains an additional deemed prepayment of $ 15 million with potential forgiveness upon the achievement of a certain number of block hours flown as well as maintaining a 99.3 % controllable completion factor ("CCF") over any rolling four-month period from April 2023 through December 2024. As of November 2023, the foregoing milestones have been achieved for such rolling four-month period. As a result, $ 9 million of the $ 15 million will be deemed prepaid one business day following the repayment of the Effective Date Bridge Loan discussed elsewhere herein. We consider it likely that we will achieve additional forgiveness in fiscal year 2024. Subsequently, this facility was amended to permit the Company to re-draw approximately $ 7.9 million of the Effective Date Bridge Loan previously repaid and increased the amount of Revolving Commitments from $ 30.7 million to $ 50.7 million. See Note 10 for a discussion of the line of credit and amount drawn as well as discussion on the deemed prepayment. • On January 11, 2024 and January 19, 2024, we entered into the First Amendment to our Third Amended and Restated United CPA and the Second Amendment to our Third Amended and Restated United CPA (the "January 2024 United CPA Amendments"), respectively. The January 2024 United CPA Amendments provide additional liquidity and certain other amendments described below o Increased CPA rates, retroactive to October 1, 2023 through December 31, 2024, which are projected to generate approximately $ 63.5 million in incremental revenue over the next twelve months. o Amended certain notice requirements for removal by United of up to eight CRJ-900 Covered Aircraft (as defined in the United CPA) from the United CPA. o Extended United's existing utilization waiver for the Company's operation of E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA) to June 30, 2024. • On January 11, 2024 and January 19, 2024, we entered into Amendment No. 4 to our Second Amended and Restated Credit and Guaranty Agreement, Amendment No. 1 to Stock Pledge Agreement and Limited Waiver of Conditions to Credit Extension United and Waiver and Amendment No. 5 to our Second Amended and Restated Credit and Guaranty Agreement (collectively, the "January 2024 Credit Agreement Amendments"), respectively. The January 2024 Credit Agreement Amendments provide for the following: o The repayment in full of the Company's $ 10.5 million Effective Date Bridge Loan obligations, and the prepayment (and corresponding reduction) of approximately $ 2.1 million in Revolving Loans (as defined therein), with the proceeds from the sale, assignment, or transfer of the Company's vested investment in Heart Aerospace Incorporated. o As a result of the repayment of the Effective Date Bridge Loan and pay down of the Revolving Loans, the shares of capital stock of Archer Aviation, Inc. held by the Company are being released as collateral for the United credit facility, subject to certain conditions. o The waiver of certain financial covenant defaults with respect to the fiscal quarters ended June 30, 2023, September 30, 2023, and December 31, 2023 and the waiver of projected financial covenant defaults with respect to the fiscal quarter ending March 31, 2024. o An increase in the Applicable Margin (as defined in the United credit facility) during a specified period of time for borrowings under the Credit Agreement. o Loan prepayment requirements in connection with the sale of four specified aircraft engines and the addition of such engines as collateral for the United credit facility for a specified period of time. • On December 1, 2023, we entered into an agreement with a third party to sell 12 surplus GE model CF34-8C aircraft engines and related parts. The gross proceeds of $ 56.0 million will be used to retire approximately $ 40.0 million in associated debt and provide additional liquidity to fund operations and current debt obligations as they come due. The transaction is expected to close by the end of March 2024. • Subsequent to September 30, 2023, we entered into a purchase agreement with a third party which provides for the sale of 23 engines for gross proceeds of $ 11.5 million which will be used to pay down our UST Loan. The transaction is expected to close by the end of December 2024. • In addition to already executed agreements to sell aircraft, the Company is actively seeking arrangements to sell other surplus assets primarily related to the CRJ fleet including aircraft, engines, and spare parts to reduce debt and optimize operations. • We have delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity. The Company believes the plans and initiatives outlined above have effectively alleviated the substantial doubt and will allow the Company to meet its cash obligations for the next twelve months following the issuance of its financial statements. The forecast of undiscounted cash flows prepared to determine if the Company has the ability to meet its cash obligations over the next twelve months was prepared with significant judgment and estimates of future cash flows based on projections of CPA and FSA block hours, maintenance events, labor costs, and other relevant factors. Assumptions used in the forecast may change or not occur as expected. As of September 30, 2023 , the Company has $ 163.6 million of principal maturity payments on long-term debt due within the next twelve months. We plan to meet these obligations with our cash on hand, ongoing cashflows from our operations, as well as the liquidity created from the additional measures identified above. If our plans are not realized, we intend to explore additional opportunities to create liquidity by refinancing and deferring repayment of our principal maturity payments that are due within the next twelve months. The Company continues to monitor covenant compliance with its lenders as any noncompliance could have a material impact on the Company’s financial position, cash flows and results of operations. Correction of Immaterial Misstatement Subsequent to the issuance of the Company's 2022 consolidated financial statements, management determined that there was an error regarding the classification of a $ 4.7 million gain on sale of assets for the year ended September 30, 2022. The gain on sale of assets was previously reported as a non-operating gain when it should have been reported as part of operations. We have now reported the prior year gain on sale of assets as part of operations, consistent with the current period classification. The error had no effect on the Company's previously reported net income, earnings per share, or net cash flows from operating, investing, or financing activities for the year ended September 30, 2022. Management evaluated the error considering both quantitative and qualitative factors and concluded it was immaterial to previously issued financial statements. Correction of Error (Unaudited) Subsequent to the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, and in connection with the preparation of our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, the Company identified an approximately $ 30.6 million balance sheet error associated with the classification of debt on the condensed consolidated balance sheet as of June 30, 2023. The error was due to certain covenant requirements that were not met under our Second Amended and Restated Credit and Guaranty Agreement dated as of June 30, 2022, with United. The debt covenants consisted of the 12-month rolling consolidated interest and rental coverage ratio covenants for the quarter ended June 30, 2023. As a result, approximately $ 30.6 million should have been classified as current portion of long-term debt and finance leases on the condensed consolidated balance sheet as opposed to long-term debt and finance leases, excluding current portion. In addition, the Company incorrectly stated in the going concern disclosures within the footnotes to our financial statements included in the 3 rd Quarter 10-Q that, as of June 30, 2023, the Company was in compliance with all of its debt covenants. Except as discussed above, the error had no impact on the Company's condensed consolidated balance sheet as of June 30, 2023. The error also had no impact on the Company's condensed consolidated statements of operations, stockholders' equity, and cash flows for the three-month and nine-month periods ended June 30, 2023. The following table shows the original reported balances and restated balances reflecting the correction. June 30, 2023 (Unaudited) Reported Adjustment Restated Current liabilities: Current portion of long-term debt and finance leases $ 124,341 $ 30,630 $ 154,971 Total current liabilities 222,114 30,630 252,744 Noncurrent liabilities: Long-term debt and finance leases, excluding current portion $ 441,941 $ ( 30,630 ) $ 411,311 Total noncurrent liabilities 511,990 ( 30,630 ) 481,360 Total liabilities 734,104 — 734,104 American Capacity Purchase Agreement In December 2022, we entered into Amendment No. 11 (the “American Amendment”) to the American CPA. The American Amendment provided for the termination and wind-down of the American CPA by April 3, 2023 (the “Wind-down Period”), at which time all Covered Aircraft (as defined in the American CPA) were removed from the American CPA. In March 2023, we began to transition aircraft operated under the American CPA to the United CPA. The American CPA was previously set to expire by its terms on December 31, 2025. Under the terms of the American Amendment, during the Wind-down Period (i) we continued to receive a fixed minimum monthly amount per aircraft covered by the American CPA, plus additional amounts based on the number of flights and block hours flown during each month, subject to adjustment based on the Company’s controllable completion rate and certain other factors, and (ii) American agreed not to exercise certain termination or withdrawal rights under the American CPA if we failed to meet certain operational performance targets for the three consecutive month period ending January 31, 2023. No Material Breach (as defined in the American CPA) occurred that would have required the payment of liquidated damages. Pursuant to the American Amendment, as no material breaches occurred during the wind-down period, American agreed to waive Mesa’s failure to meet certain past operational performance targets and other requirements, which triggered termination and withdrawal rights for American pursuant to the terms of American CPA. All CCF targets were met during the Wind-down Period, and there were no penalties associated with that performance metric. The parties executed a written mutual release of all claims and acknowledgment that no Material Breaches occurred. United Capacity Purchase Agreement Under the United CPA, we have the ability to fly up to 80 aircraft for United. The aircraft can be a mix of any number of E-175 or CRJ-900 aircraft so long as the number of aircraft operating at any given time does not exceed 80 . As of September 30, 2023 we operated 54 E-175 and 26 CRJ-900 aircraft under our Third Amended and Restated CPA with United dated December 27, 2022, which amended and restated the Second Amended and Restated CPA dated November 4, 2020 (as amended, the “United CPA” or the "Amended and Restated United CPA"). Under the United CPA, United owns 42 of our 60 E-175 aircraft. The E-175 aircraft owned by United and leased to us have terms expiring between 2024 and 2028 , and the 18 E-175 aircraft owned by us have terms expiring in 2028 . Additionally, United leased 20 E-175LL aircraft to us at nominal amounts during the year ended September 30, 2023. The E-175LL aircraft were removed from the CPA beginning in February 2023, with the last E-175LL aircraft being removed in April 2023. In exchange for providing flight services under our United CPA, we receive a fixed monthly minimum amount per aircraft under contract plus certain additional amounts based upon the number of flights and block hours flown and the results of passenger satisfaction surveys. United also reimburses us for certain costs on an actual basis, including property tax per aircraft and passenger liability insurance. Other expenses, including fuel and certain landing fees, are directly paid to suppliers by United. United reimburses us on a pass-through basis for certain costs related to heavy airframe and engine maintenance, landing gear, auxiliary power units ("APUs") and component maintenance for the aircraft owned by United. Our United CPA permits United, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the agreement in its discretion, or remove aircraft from service, by giving us notice of 90 days or more . If United elects to terminate our United CPA in its entirety or permanently remove select aircraft from service, we are permitted to return any of the affected aircraft leased from United at no cost to us. In addition, if United removes any of our 18 owned E-175 aircraft from service at its direction, United would remain obligated, at our option, to assume the aircraft ownership and associated debt with respect to such aircraft through the end of the term of the United CPA. On December 27, 2022, we entered into the Amended and Restated United CPA, which provides, among other things, for the following amended terms: • The addition of up to 38 CRJ-900 aircraft to be operated by the Company on behalf of United under the Amended and Restated United CPA, dependent on the number of E-175 aircraft the Company is operating. As of September 30, 2023, we operated 24 CRJ-900 aircraft under our Amended and Restated United CPA; • An increase in rates to cover the Company’s pilot pay increases instituted in September 2022, effective through September 2025; • United to be responsible for all costs associated with converting the CRJ-900 aircraft for operation in United’s network; • Terms providing that United may remove the CRJ-900 aircraft from the scope of the United CPA, subject to certain notice and other requirements; • United’s existing utilization waiver for the Company’s operation of E-175LL Covered Aircraft (as defined in the United CPA) to be extended to December 31, 2023; • The extension of existing monthly operational performance incentives; and • An agreement by the Company to not enter into new regional air carrier service agreements, excluding the Company’s existing agreement with DHL, and provided that this restriction shall not apply from and after the earlier to occur of (i) January 1, 2026 and (ii) the Company's satisfaction of certain Performance Milestones (as defined in the Amended and Restated United CPA). Additionally, in January 2023, in consideration for entering in the Amended and Restated United CPA and providing the revolving line of credit, discussed in Note 10, the Company (i) granted United the right to designate one individual to the Company's board of directors (the "United Designee"), which occurred effective May 2, 2023 with the appointment of Jonathan Ireland and (ii) issued to United 4,042,061 shares of the Company’s common stock equal to approximately 10 % of the Company’s issued and outstanding capital stock on such date (the "United Shares"). United's board designee rights will terminate at such time as United's equity ownership in the Company falls below five percent (5%) of the Company's issued and outstanding stock. United was also granted pre-emptive rights relating to the issuance of any equity securities by the Company and certain registration rights, set forth in a definitive registration rights agreement with United, granting United customary demand registration rights in respect of publicly registered offerings of the Company, subject to usual and customary exceptions and limitations. See also Note 18 for a discussion regarding the amendment to the Company's bylaws as it relates to the Amended and Restated United CPA. Pursuant to the United CPA, we agreed to lease our CRJ-700 aircraft to another United Express service provider for a term of nine years . We ceased operating our CRJ-700 fleet in February 2021 in connection with the transfer of those aircraft into a lease agreement. During August of 2022, we committed to a formal plan to sell 18 of our CRJ-700 aircraft and terminated the leases on the 18 CRJ-700 aircraft, which have all subsequently been sold. Our United CPA is subject to early termination prior to its expiration in various circumstances including: • If certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances; • If we fail to perform the material covenants, agreements, terms or conditions of our United CPA or similar agreements with United, subject to 30 days' notice and cure rights; • If either United or we become insolvent, file bankruptcy, or fail to pay debts when due, the non-defaulting party may terminate the agreement; • If we merge with, or if control of us is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier; • United, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E-175 aircraft from service, by giving us notice of 90 days or more; and • If United elects to terminate our United CPA in its entirety or permanently remove aircraft from service, we are permitted to return any of the affected E-175 aircraft leased from United at no cost to us. DHL Flight Services Agreement On December 20, 2019, we entered into a FSA with DHL (the “DHL FSA”). Under the terms of the DHL FSA, we operate four Boeing 737 aircraft to provide cargo air transportation services as of September 30, 2023. In exchange for providing cargo flight services, we receive a fee per block hour with a minimum block hour guarantee. We are eligible for a monthly performance bonus or subject to a monthly penalty based on timeliness and completion performance. Ground support expenses including fueling and airport fees are paid directly by DHL. Under our DHL FSA, DHL leases two Boeing 737-400F aircraft and one 737-800F and subleases them to us at nominal amounts. DHL reimburses us on a pass-through basis for all costs related to heavy maintenance including C-checks, off-wing engine maintenance and overhauls including life limited parts (“LLPs”), landing gear overhauls and LLPs, thrust reverser overhauls, and APU overhauls and LLPs. Certain items such as fuel, de-icing fluids, landing fees, aircraft ground handling fees, en-route navigation fees, and custom fees are paid directly to suppliers by DHL or otherwise reimbursed if incurred by us. A third Boeing 737-400F aircraft is leased to us under an operating lease by a third party. The DHL FSA expires five years from the commencement date of the first aircraft placed into service, which was in October 2020. DHL has the option to extend the agreement with respect to one or more aircraft for a period of one year with 90 days’ advance written notice. Our DHL FSA is subject to the following termination rights prior to its expiration: • If either party fails to comply with the obligations, warranties, representations, or undertakings under the DHL FSA, subject to certain notice and cure rights; • If either party is declared bankrupt or insolvent; • If we are unable to legally operate the aircraft under the DHL FSA for a specified number of days; • At any time after the first anniversary of the commencement date of the first aircraft placed in service with 90 days' written notice. • If we fail to comply with performance standards for three consecutive measurement periods. • If we are subject to a labor incident that materially and adversely affects our ability to perform services under the DHL FSA for a specified number of days; • Upon a change in control or ownership of the Company; and • DHL may terminate the agreement for a specific aircraft if it is subject to a total loss and the Company does not provide alternate services at our expense, or if the aircraft becomes unavailable for more than 30 days due to unscheduled maintenance. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ( " GAAP " ) and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ( " ASC " ) and Accounting Standards Update (" ASU ") of the Financial Accounting Standards Board (" FASB "). All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company generated a net loss of $ 120.1 million and cash flow used in operations of $ 24.1 million for the year ended September 30, 2023. As of September 30, 2023 , the Company had a working capital deficit of $ 129.3 million, an accumulated deficit of $ 71.1 million, and cash and cash equivalents of $ 32.9 million. The Company is evaluating strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, obtaining equity financing, issuing debt, entering into other financing arrangements, restructuring of operations to grow revenues and decrease expenses, or selling the aircraft held for sale and our equity investments. Use of Estimates The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280, " Segment Reporting, " we are not organized around specific services or geographic regions. We currently operate in one service line providing scheduled flying services in accordance with our CPAs and FSAs. While we operate under a CPA and a FSA, we do not manage our business based on any performance measure at the individual contract level. As of September 30, 2023 , our chief operating decision maker ("CODM") was the Chief Executive Officer. Our CODM uses consolidated financial information to evaluate our performance, which is the same basis on which he communicates our results and performance to our Board of Directors. Our CODM bases all significant decisions regarding the allocation of our resources on a consolidated basis. Based on the information described above and in accordance with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Restricted Cash Restricted cash primarily includes deposits in trust accounts to collateralize letters of credit and to fund workers' compensation claims, landing fees, and other business needs. Restricted cash is stated at cost, which approximates fair value. The Company has an agreement with a financial institution for a $ 6.0 million letter of credit facility to issue letters of credit for landing fees, workers' compensation insurance, and other business needs. Pursuant to such agreement, $ 3.1 million and $ 3.3 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2023 and 2022, respectively, which are classified as restricted cash. Expendable Parts and Supplies Expendable parts and supplies are stated at cost, less an allowance for obsolescence. The Company provides an allowance for obsolescence for such parts and supplies over the useful life of its aircraft after considering the useful life of each aircraft fleet, the estimated cost of expendable parts expected to be on hand at the end of the useful life, and the estimated salvage value of the parts. This allowance for expendable parts account was $ 4.1 million and $ 3.8 million as of September 30, 2023 and 2022, respectively. Property and Equipment Property and equipment are stated at cost, net of manufacturer incentives, and depreciated over their estimated useful lives to their estimated salvage values, which are 20 % for aircraft and rotable spare parts, using the straight-line method. Estimated useful lives of the various classifications of property and equipment are as follows: Property and Equipment Estimated Useful Life Buildings 30 years Aircraft 25 years from the manufacture date Flight equipment 7 - 20 years Equipment 5 - 9 years Furniture and fixtures 3 - 5 years Vehicles 5 years Rotable spare parts Life of the aircraft or term of the lease, whichever is less Leasehold improvements Life of the aircraft or term of the lease, whichever is less Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if (i) the undiscounted future cash flows are found to be less than the carrying amount of the asset or asset group, and (ii) the carrying amount of the asset or asset group exceeds its fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. To determine whether impairments exist for aircraft and other related assets used in operations, we group assets at the CPA and FSA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase or FSA, block hours, maintenance events, labor costs and other relevant factors. If an asset group is impaired, the impairment loss recognized is the amount by which the asset group's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available. Due to operating losses and the transition of operations from American to United, we evaluated our United fleet as of September 30, 2023 , and determined that future cash flows from the operation of our fleet through the respective remaining useful life exceeded the carrying value of the fleet. As such, no impairment charges were recorded to our fleet. The Company recognized impairment charges of zero , 109.7 million, and zero on property and equipment and other long-lived assets for the years ended September 30, 2023 , 2022, and 2021 respectively. Assets Held for Sale We classify assets as held for sale when (i) our management approves and commits to a formal plan of sale that is probable of being completed within one year; (ii) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (iii) an active program to locate a buyer has been initiated; (iv) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (v) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets designated as held for sale are recorded at the lower of their current carrying value or their fair market value, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale. If the market value, less costs to sell, is lower than the current carrying value, an impairment loss is recorded on the asset designated as held for sale. The Company recognized impairment charges of $ 50.6 million, $ 62.1 million, and zero on assets designated as held for sale for the years ended September 30, 2023, 2022, and 2021, respectively. See Note 7 – “Assets Held for Sale” for further discussion of our assets classified as held for sale as of September 30, 2023 Fair Value Measurements The Company accounts for assets and liabilities in accordance with accounting standards that define fair value and establish a consistent framework for measuring fair value on either a recurring or a nonrecurring basis. Fair value is an exit price representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Accounting standards include disclosure requirements relating to the fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: • Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 – Unobservable inputs in which there is little or no market data, requiring an entity to develop its own assumptions. Debt Financing Costs Debt financing costs consist of payments made to issue debt related to the purchase of aircraft, flight equipment, and certain flight equipment maintenance costs. The Company defers the costs and amortizes them to interest expense over the term of the debt agreement. Debt financing costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of the related long-term debt on the consolidated balance sheet. Debt financing costs with no related recognized debt liability are presented as assets, with the current portion included in prepaid expenses and other current assets and the noncurrent portion included in other assets on the consolidated balance sheet. Intangible Assets Customer relationships are amortized over their estimated useful lives. In accordance with ASC 360, Property, Plant, and Equipment, an intangible asset with a finite life that is being amortized is reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if the undiscounted future cash flows are found to be less than the carrying amount of the asset and if the carrying amount of the asset exceeds fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. The Company recognized an impairment loss of $ 3.7 million, $ 1.9 million, and zero on intangible assets for the year ended September 30, 2023 , 2022, and 2021 respectively. Other Assets Other noncurrent assets primarily consist of the non-current portion of lease incentives related to aircraft which Mesa leases to third parties and investments in equity securities. Lease incentives represent amounts paid or payable by Mesa to the lessee and are amortized as a reduction of lease revenue over the term of the lease. The current portion of the lease incentive assets is included in prepaid expenses and other current assets, and the non-current portion is included in other assets on the consolidated balance sheet. Investments in equity securities with readily determinable fair values are adjusted to reflect the market value of the investments each reporting period, with corresponding gains and losses reflected in the statement of operations. Investments in equity securities without readily determinable values are measured at cost less impairment, if any, and are adjusted when there are observable prices of similar or identical investments from the same issuer. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records deferred tax assets for the value of benefits expected to be realized from the utilization of state and federal net operating loss carryforwards. The Company periodically reviews these assets to determine the likelihood of realization. To the extent the Company believes some portion of the benefit may not be realizable based on the available sources of income, an estimate of the unrealized position is made, and a valuation allowance is recorded. The Company and its consolidated subsidiaries file a consolidated federal income tax return. Other Noncurrent Liabilities Other noncurrent liabilities primarily consist of the non-current portion of lease incentive obligations and deposits related to the aircraft which Mesa leases to third parties and vendor credit liabilities for future purchases of electric aircraft. Revenue Recognition The Company recognizes revenue when the service is provided under its CPAs and FSAs. Under these agreements, the Company’s major partners generally pay a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of departures and block hours or flight hours flown. The agreements also include reimbursement of certain direct costs incurred by the Company in performing flight services. These costs, known as " pass-through costs, " may include passenger liability and hull insurance as well as aircraft property taxes. Additionally, for the E-175 aircraft owned by United, United reimburses the Company for heavy airframe and engine maintenance, landing gear maintenance, APU maintenance, and component maintenance. The Company also receives compensation under its agreements for heavy maintenance expenses at a fixed hourly rate or per aircraft rate for all aircraft in scheduled service other than the E-175 aircraft owned by United. The contracts also include incentives and penalties based on certain operational benchmarks. The Company is eligible to receive incentive compensation upon the achievement of certain performance criteria defined in the agreements. At the end of each period during the term of an agreement, the Company calculates the incentives or penalties achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance in accordance ASC 606. All revenue recognized under these contracts is presented as the gross amount billed to the major partners. See Note 3 - “Contract Revenue and Pass-through and Other Revenue” for further information. The Company has committed to perform various activities that can be generally classified into in-flight services and maintenance services. When evaluating these services, the Company determined that the nature of its promise is to provide a single integrated service, flight services, because its contracts require integration and assumption of risk associated with both services to effectively deliver and provide the flights as scheduled over the contract term. Therefore, the in-flight services and maintenance services are inputs to that combined integrated flight service. Both the services occur over the term of the agreement and the performance of maintenance services significantly effects the utility of the in-flight services. The Company's individual flights flown under the CPAs and FSAs are deemed to be distinct and the flight service promised in the agreements represents a series of services that should be accounted for as a single performance obligation. This single performance obligation is satisfied over time as the flights are completed. Therefore, revenue is recognized when each flight is completed. In allocating the transaction price, variable payments (i.e., billings based on departures and block hours or flight hours flown, pass-through costs, etc.) that relate specifically to the Company's efforts in performing flight services are recognized in the period in which the individual flight is completed. The Company has concluded that allocating the variability directly to the individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that follows the variable amounts billed from the Company to its customers. A portion of the Company's compensation under its CPAs with American and United is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. The Company has concluded that a component of its revenue under these agreements is deemed to be lease revenue, as such agreements identify the " right of use " of a specific type and number of aircraft over a stated period-of-time. The lease revenue associated with the Company's CPAs is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive (loss) income. The Company recognized $ 144.7 million, $ 158.4 million, and $ 170.2 million of lease revenue for the year ended September 30, 2023, 2022, and 2021, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive (loss) income because the use of the aircraft is not a separate activity of the total service provided under our CPAs. The Company's CPAs and FSAs are renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, or withdraw aircraft under their respective agreements, subject to certain conditions as described in Note 1. The agreements also contain terms with respect to covered aircraft, services provided, and compensation as described in Note 1. The agreements are amended from time to time to change, add, or delete terms of the agreements. The Company's revenues could be impacted by a number of factors, including amendment or termination of its agreements with its major partners, contract modifications resulting from contract renegotiations, its ability to earn incentive payments contemplated under applicable agreements, and settlement of reimbursement disputes with the Company's major partners. In the event contracted rates are not finalized at a quarterly or annual financial statement date, the Company evaluates the enforceability of its contractual terms and when it has an enforceable right, it estimates the amount the Company expects to be entitled to that is subject to the variable constraint guidance within ASC 606. The Company's agreements contain an option that allows its major partners to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that it operates for them. All of the Company's major partners have exercised this option. Accordingly, the Company does not record an expense or revenue for fuel and related fueling costs for flying under its CPAs or FSA. In addition, the Company's major partners also provide, at no cost to the Company, certain ground handling and customer service functions, as well as airport-related facilities and gates at their hubs and other cities. Services and facilities provided by the Company's major partners at no cost are presented net in its consolidated financial statements; hence, no amounts are recorded as revenue or operating expense for these items. Contract Liabilities Contract liabilities consist of deferred credits representing upfront payments received from major partners related to aircraft modifications associated with CPAs and pilot training. The deferred credits are recognized over time depicting the pattern of transfer of the related services over the term of the CPAs. Current and non-current deferred credits are recorded to other accrued expenses and non-current deferred credits in the consolidated balance sheets, respectively. The Company's total current and non-current deferred credit balances at September 30, 2023 and September 30, 2022 were $ 5.1 million and $ 3.9 million, respectively. The Company recognized $ 1.7 million, $ 0.9 million, and $ 2.4 million of the deferred credits within contract revenue in the consolidated statements of operations and comprehensive (loss) income during the year ended September 30, 2023 , 2022, and 2021, respectively . Contract Assets The Company recognizes assets from the incremental costs incurred to obtain contracts with major partners including aircraft painting, aircraft reconfiguration, and flight service personnel training costs. These costs are amortized based on the pattern of transfer of the services in relation to flight hours over the term of the contract. Contract assets are recorded as other assets in the consolidated balance sheets. The Company's contract assets balance at September 30, 2023 and September 30, 2022 was approximately $ 8.8 million and zero , respectively. Contract cost amortization was approximately $ 1.0 million, zero , and $ 2.0 million for the year ended September 30, 2023 , 2022, and 2021, respectively. Maintenance Expense The Company operates under an FAA approved continuous inspection and maintenance program. The cost of non-major scheduled inspections and repairs and routine maintenance costs for all aircraft and engines are charged to maintenance expense as incurred. The Company accounts for heavy maintenance and major overhaul costs on its owned E-175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense was approximately $ 3.1 million, $ 1.9 million, and $ 0.4 million for the fiscal year ended September 30, 2023, 2022, and 2021, respectively. At September 30, 2023 and September 30, 2022 , the Company had a deferred heavy maintenance balance, net of accumulated amortization, of approximately $ 8.0 and $ 9.7 million, respectively. The Company accounts for heavy maintenance and major overhaul costs for all other fleets under the direct expense method whereby costs are expensed to maintenance expense as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. Our maintenance policy is determined by fleet when major maintenance is incurred. Under the Company's aircraft operating lease agreements and FAA operating regulations, it is obligated to perform all required maintenance activities on its fleet, including component repairs, scheduled airframe checks and major engine restoration events. The Company estimates the timing of the next major maintenance event based on assumptions including estimated usage, FAA-mandated maintenance intervals, and average removal times as recommended by the manufacturer. The timing and the cost of maintenance are based on estimates, which can be impacted by changes in utilization of its aircraft, changes in government regulations and suggested manufacturer maintenance intervals. Major maintenance events consist of overhauls to major components. Engine overhaul expense totaled approximately $ 32.4 million, $ 23.6 million, and $ 31.4 million for the years ended September 30, 2023 , 2022, and 2021, respectively, of which approximately $ 31.9 million, $ 21.7 million, and $ 16.8 million, respectively, was pass-through expense. Airframe check expense totaled approximately $ 23.4 million, $ 22.1 million, and $ 51.1 million for the years ended September 30, 2023 , 2022, and 2021, respectively, of which approximately $ 16.9 million, $ 3.2 million, and $ 20.5 million, respectively, was pass-through expense. Pursuant to the United CPA, United reimburses the Company for heavy maintenance on certain E-175 aircraft. Those reimbursements are included in pass-through and other revenue. See Note 1 - "Organization and Operations" for further information. Leases We determine if an arrangement is a lease at inception. As a lessee, we have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. Our operating lease activities are recorded in operating lease right-of-use assets, current maturities of operating leases, and noncurrent operating lease liabilities in the consolidated balance sheets. Finance leases are reflected in property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases, excluding current portion in the consolidated balance sheets. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term, while finance leases result in a front-loaded expense pattern. To determine whether impairments exist for aircraft and other related assets used in operations, we group assets, including ROU assets, at the CPA or FSA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of CPA or FSA, block hours, maintenance events, labor costs and other relevant factors. As all of our aircraft leases besides one with an insignificant value on our books are leased to us from United or DHL at nominal amounts and not recorded on our books, we did no t assess leased aircraft for impairment. The Company recorded impairment losses of zero , $ 10.5 million, and zero for the years ended September 30, 2023, 2022, and 2021, respectively. As a lessee, we have elected a short-term lease practical expedient on all classes of underlying assets, permitting us to not apply the recognition requirements of this standard to leases with terms of 12 months or less. Our CPAs identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. A portion of the compensation under our CPAs are designed to reimburse the Company, as lessor, for certain aircraft ownership costs of these aircraft. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices. As discussed in Note 1, we lease, at nominal rates, certain aircraft from United and DHL under our United CPA and DHL FSA, which are excluded from operating lease assets and liabilities as they do not represent embedded leases under ASC 842. Other than nominal leases with our major partners, approximately 1 % of our aircraft are leased from third parties. Our aircraft classified as operating leases results in rental payments being charged to expense over the term of the related leases. In the event that we or one of our major partners decide to exit an activity involving leased aircraft, losses may be incurred. In the event that we exit an activity that results in exit losses, these losses are accrued as each aircraft is removed from operations for early termination penalties, lease settle up and other charges. Additionally, any remaining ROU assets and lease liabilities will be written off. |
Contract Revenue and Pass-throu
Contract Revenue and Pass-through and Other Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Revenue and Pass-through and Other Revenue | 3. Contract Revenue and Pass-through and Other Revenue The Company recognizes contract revenue when the service is provided under its CPA and FSA. Under the CPA and FSA, our major partners generally pay for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month with additional incentives based on flight completion, on-time performance, and other operating metrics. The Company’s performance obligation is met when each flight is completed, and revenue is recognized and reflected in contract revenue. The Company recognizes pass-through revenue when the service is provided under its CPA and FSA. Pass-through revenue represents reimbursements for certain direct expenses incurred including passenger liability and hull insurance, property taxes, other direct costs defined within the agreements, and major maintenance on aircraft leased at nominal rates. The Company’s performance obligation is met when each flight is completed or as the maintenance services are performed, and revenue is recognized and reflected in pass-through and other revenue. The Company records deferred revenue when cash payments are received or are due from our major partners in advance of the Company’s performance, including amounts that are refundable. The Company recognized approximately $ 3.0 million of previously deferred revenue, and deferred $ 10.4 million of revenue during the years ended September 30, 2023 and 2022, respectively, which was billed to and paid by our major partners. Deferred revenue is recognized as flights are completed over the remaining contract term. The deferred revenue balance as of September 30, 2023 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands): Periods Ending September 30, Total Revenue 2024 $ 4,880 2025 5,281 2026 4,199 2027 3,835 2028 2,008 Thereafter 844 Total $ 21,047 A portion of the Company's compensation under its CPA with United and formerly American is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. The Company has concluded that a component of its revenue under these agreements is deemed to be lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices. The lease revenue associated with the Company's CPAs is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive (loss) income. The Company recognized approximately $ 144.7 million, $ 158.4 million, and $ 170.2 million of lease revenue for the years ended September 30, 2023, 2022, and 2021, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive (loss) income because the use of the aircraft is not a separate activity from the total service provided under our CPAs. Historically, the Company entered into lease agreements with GoJet Airlines LLC (“GoJet”) to lease CRJ-700 aircraft. The lease agreements were accounted for as operating leases and had a term of nine years beginning on the delivery date of each aircraft. Under the lease agreements, GoJet paid fixed monthly rent per aircraft and variable lease payments for supplemental rent based on monthly aircraft utilization at fixed rates. Supplemental rent payments were subject to reimbursement following GoJet’s completion of qualifying maintenance events defined in the agreements. Lease revenue for fixed monthly rent payments were recognized on a straight-line basis within contract revenue. Lease revenue for supplemental rent was deferred and recognized within contract revenue when it was probable that amounts received will not be reimbursed for future qualifying maintenance events over the lease term. The Company mitigated the residual asset risks through supplemental rent payments and by leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases included specified lease return condition requirements and the Company maintains inspection rights under the leases. Lease incentive obligations for reimbursements of certain aircraft maintenance costs are recognized as lease incentive assets and were amortized on a straight-line basis and recognized as a reduction to lease revenue over the lease term. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 4. Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). This ASU provides optional expedients and exceptions for a limited period of time for accounting for contracts, hedging relationships, and other transactions affected by the London Interbank Offered Rate (LIBOR), or another reference rate expected to be discontinued. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, has determined that the U.S. dollar LIBOR will be replaced by the Secured Overnight Financing Rate (SOFR) after June 30, 2023. Optional expedients can be applied through December 31, 2024. Under the expedient, the Company will account for amendments to agreements as if the modification was not substantial. The new carrying amounts of debts will consist of the carrying amount of the original debt and any additional fees associated with the modified debt instrument. A new effective yield will be established based on the new carrying amount and revised cash flows. In June 2022, the FASB issued new guidance to clarify the fair value measurement guidance for equity securities subject to contractual restrictions that prohibit the sale of an equity security. Further, the guidance introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The standard will be effective for annual reporting periods beginning after December 15, 2023, including interim reporting periods within those fiscal years. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | 5. Concentrations of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are primarily held by financial institutions in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. As of September 30, 2023 , the Company had $ 3.1 million in restricted cash. We have an agreement with a financial institution for a letter of credit facility and to issue letters of credit for particular airport authorities, worker's compensation insurance, property and casualty insurance and other business needs as required in certain lease agreements. Pursuant to the terms of this agreement, $ 3.1 million and $ 3.3 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2023 and 2022, respectively, which are classified as restricted cash. Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. At September 30, 2023, the Company had a CPA with United and a FSA with DHL. Substantially all of the Company's consolidated revenue for the years ended September 30, 2023, 2022, and 2021 and accounts receivable at the end of September 30, 2023 and 2022 was derived from these agreements as well as the CPA with American which was terminated on April 3, 2023. In certain cases, the terms of these agreements are not aligned with the lease obligations on the aircraft performing services under such agreements. Amounts billed by the Company under these agreements are subject to the Company's interpretation of the applicable agreement and are subject to audit by the Company's major partners. Periodically, the Company's major partners dispute amounts billed and pay amounts less than the amount billed. Ultimate collection of the remaining amounts not only depends upon the Company prevailing under the applicable audit, but also upon the financial well-being of the major partner. As such, the Company reviews amounts due based on historical collection trends, the financial condition of major partners and current external market factors and records a reserve for amounts estimated to be uncollectible. The allowance for doubtful accounts was no t material at September 30, 2023 and 2022, respectively. If the Company's ability to collect these receivables and the financial viability of our major partners is materially different than estimated, the Company's estimate of the allowance could be materially impacted. American accounted for approximately 23 %, 45 %, and 45 % of the Company's total revenue for the years ended September 30, 2023 , 2022, and 2021, respectively. United accounted for approximately 73 %, 48 %, and 52 % of the Company's total revenue for the years ended September 30, 2023 , 2022, and 2021, respectively. A termination of the United CPA would have a material adverse effect on the Company's business prospects, financial condition, results of operations, and cash flows. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets The Company includes its intangible assets of customer relationship in the asset group associated with the CRJ-900 fleet operating under the American CPA and monitors for any indicators of impairment of the asset group. When certain conditions or changes in the economic situation exist, the asset group may be impaired if the carrying amount of the assets is not recoverable and that carrying amount exceeds the asset group’s fair value. Due to the impacts of the pilot shortage and the pilot wage increase, we evaluated all asset groups during the year ended September 30, 2023 and determined that the asset group for the CRJ-900 fleet operating under the American CPA was impaired. As a result, the Company recognized an impairment loss of $ 3.7 million and $ 1.9 million on the customer relationship related to the CRJ-900 fleet operating under the American CPA during the year ended September 30, 2023 and 2022, respectively, which was recorded in asset impairment on our consolidated statements of operations and comprehensive (loss) income. The Company did no t record any impairment losses related to its intangible assets during the year ended September 30, 2021. Information about the intangible assets of the Company at September 30, 2023 and 2022, is as follows (in thousands): September 30, September 30, 2023 2022 Customer relationship — $ 43,800 Accumulated amortization — ( 38,029 ) Impairment — ( 1,929 ) Net carrying value $ — $ 3,842 Total amortization expense recognized was approximately $ 0.1 million, $ 1.0 million, and $ 1.2 million, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. The Company recognized an impairment loss of $ 3.7 million on the customer relationship related to the American CPA during the year ended September 30, 2023 , which was recorded in asset impairment on our condensed consolidated statements of operations and comprehensive loss. Accordingly, we expect to record amortization expense of zero for fiscal year 2024 and thereafter. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | 7. Assets Held for Sale During the year ended September 30, 2023, management disposed of our remaining CRJ-200 aircraft and our remaining CRJ-700 aircraft besides two which are leased to a third party. Additionally, management continued our plan to sell certain of our CRJ-900 aircraft, and determined that 14 CRJ-900 aircraft met the criteria to be classified as assets held for sale during the year ended September 30, 2023. We have a total of 15 aircraft held for sale as of September 30, 2023, all of which are CRJ-900 aircraft. These aircraft are presented separately in our condensed consolidated balance sheet at the lower of their current carrying value or their fair market value less costs to sell. The fair values are based upon observable and unobservable inputs, including recent purchase offers and market trends and conditions. The assumptions used to determine the fair value of our assets held for sale, excluding agreed upon purchase offers, are subject to inherent uncertainty and could produce a wide range of outcomes which we will continue to monitor in future periods as new information becomes available. Prior to the ultimate sale of the assets, subsequent changes in our estimate of the fair value of our assets held for sale will be recorded as a gain or loss with a corresponding adjustment to the assets’ carrying value. As of September 30, 2022, the Company had eight CRJ-700 classified as held for sale. During the year ended September 30, 2023 , the Company closed the sale of all eight CRJ-700 aircraft for gross proceeds of $ 40.0 million. Net proceeds from the sale after retirement of debt was $ 8.0 million. As of September 30, 2022, the Company had 11 CRJ-900 aircraft and one CRJ-200 aircraft classified as held for sale. During the year ended September 30, 2023, the Company closed the sale of seven of the CRJ-900 aircraft to a third party for gross proceeds of $ 21.0 million. Net proceeds from the sale after partial debt reduction was $ 1.5 million. The sale of the remaining four CRJ-900 aircraft is expected to close in January 2023 and generate another $ 12.0 million in gross proceeds. Additionally, our CRJ-200 aircraft classified as held for sale as of September 30, 2022 was included in this deal. As the aircraft was fully depreciated, there was no loss recorded on the disposal. During the year ended September 30, 2023, t he Company entered into an agreement to sell seven surplus CRJ-900 aircraft to American. As of September 30, 2023, the Company has closed the sale of three of the aircraft which generated approximately $ 29.7 million in gross proceeds and approximately $ 2.4 million in net proceeds after partial debt reduction. Subsequent to September 30, 2023, the Company closed the sale of the remaining four CRJ-900 aircraft to American for gross proceeds of $ 41.5 million. Net proceeds from the sale of all four aircraft was $ 5.7 million after the retirement of the EDC Loan and MHIRJ junior note. During the year ended September 30, 2023 , the Company closed the sale of seven CRJ-900 aircraft to a third party. The proceeds of $ 21 million from the sale of the CRJ-900 aircraft were used to pay down the Company's obligations under its UST Loan. During the year ended September 30, 2023 , the Company designated seven of our CRJ-900 aircraft under the agreement with RASPRO Trust as held for sale. Subsequent to September 30, 2023 , we entered into an agreement with a third party to sell 12 surplus engines. The gross proceeds of $ 56.0 million will be used to retire approximately $ 40.0 million in associated debt and provide additional liquidity to fund operations and current debt obligations as they come due. The transaction is expected to close by the end of March 2024. As of September 30, 2023 , the Company has 15 CRJ-900 aircraft that are classified as assets held for sale with a net book value of $ 69.7 million, $ 57.7 million of which is classified as current assets on our condensed consolidated balance sheet and $ 12.0 million of which is classified as noncurrent assets on our condensed consolidated balance sheet. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | 8. Balance Sheet Information Certain significant amounts included in the Company's consolidated balance sheets as of September 30, 2023 and 2022, consisted of the following (in thousands): September 30, September 30, 2023 2022 Expendable parts and supplies, net: Expendable parts and supplies $ 39,630 $ 31,913 Less: expendable parts warranty ( 6,295 ) ( 1,373 ) Less: obsolescence ( 4,090 ) ( 3,825 ) $ 29,245 $ 26,715 Prepaid expenses and other current assets: Prepaid aviation insurance $ 3,176 $ 2,618 Prepaid vendors 143 1,310 Prepaid other insurance 1,205 1,268 Lease incentives 1,125 352 Prepaid fuel and other 1,645 1,068 $ 7,294 $ 6,616 Property and equipment, net: Aircraft and other flight equipment $ 1,039,782 $ 1,260,143 Other equipment 9,421 10,420 Total property and equipment 1,049,203 1,270,563 Less: accumulated depreciation ( 351,181 ) ( 405,309 ) $ 698,022 $ 865,254 Other assets: Investments in equity securities $ 20,320 $ 15,178 Lease incentives 954 1,097 Contract asset 8,756 — Other 516 15 $ 30,546 $ 16,290 Other accrued expenses: Accrued property taxes $ 5,281 $ 5,866 Accrued interest 3,447 2,882 Accrued vacation 6,763 4,746 Accrued lodging 3,984 3,795 Accrued maintenance 2,117 1,453 Accrued liability on government payroll — 2,967 Accrued simulator costs 1,006 1,045 Accrued employee benefits 1,450 1,679 Accrued fleet operating expense 650 1,606 Short term lease incentive liability 97 97 Other 2,206 2,864 $ 27,001 $ 29,000 Other noncurrent liabilities: Warrant liabilities $ 25,225 $ 25,225 Lease incentive obligations 1,050 1,050 Long-term employee benefits 429 1,123 Other 1,818 1,821 $ 28,522 $ 29,219 Impairment of long-lived assets The Company monitors for any indicators of impairment of the long-lived fixed assets. When certain conditions or changes in the economic situation exist, the assets may be impaired and the carrying amount of the assets exceed its fair value. The assets are then tested for recoverability of carrying amount. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, the undiscounted net cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net book value of the assets exceeds their estimated fair value. We group assets at the CPA and FSA level (i.e., the lowest level for which there are identifiable cash flows). If impairment indicators exist with respect to any of the asset groups, we estimate future cash flows based on projections of capacity purchase or FSA, block hours, maintenance events, labor costs and other relevant factors. Due to operating losses and the transition of operations from American to United, the Company assessed whether any impairment of its long-lived assets existed for our United fleet as of September 30, 2023 . As future cash flows from the operation of our United fleet through the respective remaining useful life exceeded the carrying value of the fleet, the Company determined that no impairment charges were necessary for the United fleet. The asset group associated with the CRJ-900 fleet includes owned aircraft, leased aircraft, intangible assets of customer relationship, and other relevant long-lived assets. The Company recorded impairment losses of zero , $ 116.6 million, and zero related to its long-lived assets for the years ended September 30, 2023, 2022, and 2021, respectively. The Company’s assumptions about future conditions important to its assessment of potential impairment of its long-lived assets are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available, and will update its analyses accordingly. Depreciation Expense on Property and Equipment Depreciation expense on property and equipment totaled $ 60.2 million, $ 80.5 million, and $ 81.2 million for the years ended September 30, 2023, 2022, and 2021, respectively. Other Assets In connection with a negotiated forward purchase contract for electrically-powered vertical takeoff and landing aircraft (“eVTOL aircraft”) executed in February 2021, we obtained equity warrant assets giving us the right to acquire a number shares of common stock in Archer Aviation, Inc. (“Archer”), which at the time of our initial investment was a private, venture-backed company. As the initial investment in Archer did not have a readily determinable fair value, we accounted for this investment using the measurement alternative under ASC 321 and measured the investments at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We estimated the initial equity warrant asset value to be $ 16.4 million based on publicly available information as of the grant date. In September 2021, the merger between Archer and a special purpose acquisition company (“SPAC”) was completed, resulting in a readily determinable fair value of our investments in Archer. Accordingly, gains and losses associated with changes in the fair value of our investments in Archer are measured in earnings, in accordance with ASC 321. The initial grant date value of the warrants, $ 16.4 million, was recognized as a vendor credit liability within other noncurrent liabilities. The liability related to the warrant assets will be settled in the future, as a reduction of the acquisition date value of the eVTOL aircraft contemplated in the related aircraft purchase agreement. In connection with closing of the merger between Archer and the SPAC described above, in September 2021, we purchased 500,000 Class A common shares in Archer for $ 5.0 million, and obtained an additional warrant to purchase shares of Archer with a total grant date value of $ 5.6 million. The initial value of the warrants was recognized as a vendor credit liability within other noncurrent liabilities, and will be settled in the future, as a reduction of the acquisition date value of the eVTOL aircraft contemplated in the related aircraft purchase agreement. Because these investments have readily determinable fair values, gains and losses resulting from changes in fair value of the investments are reflected in earnings, in accordance with ASC 321. All of our vested warrants have been exercised into shares of Archer common stock. Gains/(losses) on our investments in Archer totaled $ 5.6 million and ($ 13.7 ) million during the fiscal years ended September 30, 2023 and 2022, respectively and are reflected in gain/(loss) on investments, net in our consolidated statement of operations. The fair values of the Company’s investments in Archer are Level 1 within the fair value hierarchy as the values are determined using quoted prices for the equity securities. The value of the Company's investment in Archer is $ 11.5 million as of September 30, 2023. In connection with a negotiated forward purchase contract for fully electric aircraft executed in July 2021, we obtained $ 5.0 million of preferred stock in Heart Aerospace Incorporated (“Heart”), a privately held company. Our investment in Heart does not have a readily determinable fair value, so we account for the investment using the measurement alternative under ASC 321 and measure the investment at initial cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition of the investment, or other features that indicate a change to fair value is warranted. Any changes in fair value from the initial cost of the investment in preferred stock are recognized as increases or decreases on our balance sheet and as net gains or losses on investments in equity securities, in other income (expense), net. The initial investment in preferred stock was measured at cost of $ 5.0 million. There were no identical or similar transactions during the fiscal year ended September 30, 2023, and as such, no adjustments to the initial cost of the equity investment resulting from observable price changes have been recorded at September 30, 2023. The fair values of the Company’s investments in Heart are Level 3 within the fair value hierarchy as the values are determined using unobservable inputs in which there is little or no market data, requiring the Company to develop our own assumptions. The value of the Company's investment in Heart is $ 5.0 million as of September 30, 2023. In connection with a negotiated forward purchase contract for hybrid-electric vertical takeoff and landing (“VTOL”) aircraft executed in February 2022, we obtained a warrant giving us the right to acquire a number of shares of common stock in the privately-held manufacturer of the VTOL aircraft. These investments do not have a readily determinable fair value, so we account for them using the measurement alternative under ASC 321 and measure the investments at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition of the investment or other features that indicate a discount to fair value is warranted. Any changes in fair value from the grant date value of the warrant assets will be recognized as increases or decreases to the investment on our balance sheet and as net gains or losses on investments equity securities. We estimated the initial warrant asset value to be $ 3.2 million based on prices of similar investments in the same issuer. The grant date value of the warrants, $ 3.2 million, was recognized as a vendor credit liability within other noncurrent liabilities. The liability related to the warrant assets will be settled in the future, as a reduction of the acquisition date value of the VTOL aircraft contemplated in the related forward purchase agreement. The fair values of the Company’s investments in the privately-held manufacturer noted above are Level 3 within the fair value hierarchy as the values are determined using unobservable inputs in which there is little or no market data, requiring the Company to develop our own assumptions. The value of the Company's investment is $ 3.5 million as of September 30, 2023. Total net gains/(losses) on our investments in equity securities totaled $ 5.4 million and ($ 13.7 ) million during the year ended September 30, 2023 and 2022, respectively, and are reflected in gain/(loss) on investments, net in our consolidated statements of operations and comprehensive (loss) income. As of September 30, 2023, the aggregate carrying amount of our investments in equity securities was $ 20.3 million, and the carrying amount of our investments without readily determinable fair values was $ 8.8 million. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements Other than our assets held for sale, asset group associated with the CRJ-900 fleet, and investments in equity securities described in Notes 7 and 8, respectively, we did not measure any of our assets or liabilities at fair value on a recurring or nonrecurring basis as of September 30, 2023 and 2022. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable included on the consolidated balance sheets approximated fair value at September 30, 2023 and 2022 because of the immediate or short-term maturity of these financial instruments. The Company's debt agreements are not traded on an active market. The Company has determined the estimated fair value of its debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable and, therefore, could be sensitive to changes in inputs. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt. The carrying value and estimated fair value of the Company's long-term debt, including current maturities, were as follows (in millions): September 30, 2023 September 30, 2022 Carrying Fair Carrying Fair Value Value Value Value Long-term debt and finance leases, including (1) $ 538.3 $ 493.6 $ 615.3 $ 541.7 (1) Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs. |
Long-Term Debt, Finance Leases,
Long-Term Debt, Finance Leases, and Other Borrowings | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Finance Leases, and Other Borrowings | 10. Long-Term Debt, Finance Leases, and Other Borrowings Long-term debt as of September 30, 2023 and 2022, consisted of the following (in thousands): September 30, September 30, 2023 2022 Senior and subordinated notes payable to secured parties, due in monthly installments, interest based on SOFR 2.71 % through 2027 , $ 39,018 $ 73,850 Notes payable to secured parties, due in semi-annual installments, 4.75 % to 6.25 % 2028 , collateralized by the underlying aircraft 108,815 131,010 Notes payable to secured parties, due in quarterly installments, 2.20 % to 2.32 % 4.50 % for subordinated note through 2028 , 90,401 106,865 Revolving credit facility, quarterly interest based on SOFR plus 4.50 % through 2028 , with incentives for up 15 million based on achieving certain performance metrics 40,630 15,630 United Bridge Loan - due in quarterly installments based on SOFR 4.50 % through 2024 10,500 — Other obligations due to financial institution, monthly and/or quarterly 2022 through 2031 , collateralized 67,637 18,038 Notes payable to financial institution, due in monthly installments, 3.10 % through 2024 , collateralized by the underlying equipment 1,075 26,758 Notes payable to financial institution, due in monthly installments, plus 5.00 % through 2023 , secured by flight equipment — 2,000 Notes payable to financial institution, due in monthly installments, 7.50 %, through 2027 , 41,098 36,212 Notes payable to financial institution, quarterly interest based 3.50 % through 2027 139,100 204,947 Gross long-term debt, including current maturities 538,274 615,310 Less unamortized debt issuance costs ( 5,083 ) ( 8,303 ) Less notes payable warrants ( 4,913 ) ( 7,272 ) Net long-term debt, including current maturities 528,278 599,735 Less current portion, net of unamortized debt issuance costs ( 163,550 ) ( 97,218 ) Net long-term debt $ 364,728 $ 502,517 Principal maturities of long-term debt as of September 30, 2023, and for each of the next five years are as follows (in thousands): Periods Ending June 30, Total Principal 2024 $ 164,807 2025 57,840 2026 199,234 2027 63,672 2028 36,322 Thereafter 16,399 $ 538,274 The net book value of collateralized aircraft and equipment as of September 30, 2023 was $ 660.4 million. EDC Loan and MHIRJ Junior Note In June 2015, we entered into seven separate credit agreements with EDC and junior noteholder, MHIRJ, to finance seven CRJ-900 aircraft with a maturity date of June 30, 2027 . In November 2022, we entered into a letter amendment with EDC which provided for the deferral of a portion of scheduled principal payments on our existing loan, beginning in January 2023 through December 2024. The total amount originally scheduled to be deferred during the deferral period was approximately $ 14.0 million. The deferral of the scheduled principal payments was originally scheduled to be repaid on the maturity date of June 30, 2027 . Additionally, the junior noteholder, MHIRJ, agreed to forgive approximately $ 5.0 million in principal contingent upon the repayment of $ 4.2 million in by December 31, 2023. On May 31, 2023, we entered into an agreement with American (the "American Purchase Agreement") to sell all seven aircraft under the EDC Loan and MHIRJ Junior note to American and eliminate the remaining associated debt. As of September 30, 2023, the sale of three of the EDC aircraft has closed, and approximately $ 27.2 million of principal was eliminated with proceeds from the sale. A total of $ 34.6 million of principal between the senior and junior notes was paid off during fiscal year 2023. As of September 30, 2023, we have $ 39.0 million outstanding on the EDC Loan and MHIRJ Junior note. Subsequent to September 30, 2023, we closed the sale of the remaining four CRJ-900 aircraft as part of the American Purchase Agreement, and used a portion of the proceeds to retire the EDC Loan and MHIRJ junior note. $ 0.6 million in proceeds from the sale of each aircraft was repaid to MHIRJ for a total of $ 4.2 million, and we achieved approximately $ 5.0 million of forgiveness on the MHIRJ junior note. Enhanced Equipment Trust Certificate ("EETC") In December 2015, an Enhanced Equipment Trust Certificate ("EETC") pass-through trust was created to issue pass-through certificates to obtain financing for new E-175 aircraft. $ 22.2 million in principal payments were made during the year, and as of September 30, 2023, Mesa has $ 108.8 million of equipment notes outstanding issued under the EETC financing included in long-term debt on the consolidated balance sheets. The structure of the EETC financing consists of a pass-through trust created by Mesa to issue pass-through certificates, which represent fractional undivided interests in the pass-through trust and are not obligations of Mesa. The proceeds of the issuance of the pass-through certificates were used to purchase equipment notes which were issued by Mesa and secured by its aircraft. The payment obligations under the equipment notes are those of Mesa. Proceeds received from the sale of pass-through certificates were initially held by a depositary in escrow for the benefit of the certificate holders until Mesa issued equipment notes to the trust, which purchased such notes with a portion of the escrowed funds. Mesa evaluated whether the pass-through trust formed for its EETC financing is a variable interest entity ("VIE") and required to be consolidated. The pass-through trust was determined to be a VIE; however, the Company has determined that it is not the primary beneficiary of the pass-through trust, and therefore, has not consolidated the pass-through trust with its financial statements. United Revolving Credit Facility On December 27, 2022, in connection with entering into the Amended and Restated United CPA, (i) United agreed to purchase and assume all of First Citizens’ rights and obligations as a lender under the Existing Facility pursuant to an Assignment and Assumption Agreement, (ii) United and CIT Bank agreed to amend the Existing Facility pursuant to an Amendment No. 1, dated December 27, 2022 (“Amendment No. 1”), and an Amendment No. 2, dated January 27, 2023 (“Amendment No. 2”; the Existing Facility as amended by Amendment No. 1 and Amendment No. 2, the "Amended Facility"), and (iii) Wilmington Trust, National Association agreed to assume all of CIT Bank’s rights and obligations as Administrative Agent pursuant to an Agency Resignation, Appointment and Assumption Agreement, dated as of January 27, 2023. Amendment No. 1, among other things, extends the Maturity Date from the earlier to occur of November 30, 2028, or the date of the termination of the Amended and Restated United CPA; provides for a revolving loan of $ 10.5 million plus fees and expenses, which is due January 31, 2024, subject to certain mandatory prepayment requirements; provides for Revolving Commitments equal to $ 30.7 million plus the original principal amount of the $ 10.5 million revolving loan; amortization of the obligations outstanding under the existing CIT Agreement commencing quarterly until March 31, 2025; and a covenant capping Restricted Payments (as defined in the Amended Facility) at $ 5.0 million per fiscal year, a consolidated interest and rental coverage ratio of 1.00 to 1.00 covenant, and a Liquidity (as defined in the Amended Facility) requirement of not less than $ 15.0 million at the close of any business day. Interest assessed under the Amended Facility is 3.50 % for Base Rate Loans and 4.50 % for Term SOFR Loans (as such terms are defined in the Amended Facility). Amendment No. 2, among other things, amends the definition of Controlled Account (as defined in the Amended Facility). Amounts borrowed under this Amended Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines and a pledge of the Company’s stock in certain aviation companies. United funded $ 25.5 million as of the closing date of Amendment No. 1, to be used for general corporate purposes. The United line of credit contains an additional deemed prepayment of $ 15 million with potential forgiveness upon the achievement of a certain number of block hours as well as maintaining a CCF of at least 99.3 % over any rolling four-month period from January 2023 through December 2024. In order to earn forgiveness on the deemed prepayment, we must also have repaid the bridge loan in full. As of September 30, 2023, we have achieved $ 9.0 million in forgiveness. However, as the bridge loan is still outstanding as of September 30, 2023, the forgiveness is not currently recognizable. On September 6, 2023, the Company amended the existing United Credit Facility to (i) permit the Company to re-draw approximately $ 7.9 million of the Effective Date Bridge Loan (as defined in the United Credit Facility) previously repaid; (ii) increased the amount of Revolving Commitments (as defined in the United Credit Facility) from $ 30.7 million to $ 50.7 million, in each case, plus the original principal amount of the Effective Date Bridge Loan and subject to the Borrowing Base (as defined in the United Credit Facility); and (iii) amended the calculation of the Borrowing Base. Amounts borrowed under this facility bear interest at 3.50 % for Base Rate Loans and 4.50 % per annum for Term SOFR Loans. Amounts borrowed under the Amended Credit Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines, a pledge of certain of the Company’s bank accounts and a pledge of the Company’s stock in certain aviation companies. On January 11, 2024 and January 19, 2024, we entered into Amendment No. 4 to our Second Amended and Restated Credit and Guaranty Agreement, Amendment No. 1 to Stock Pledge Agreement and Limited Waiver of Conditions to Credit Extension ("Amendment No. 4") and Waiver and Amendment No. 5 to our Second Amended and Restated Credit and Guaranty Agreement (collectively, the "January 2024 Credit Agreement Amendments"), respectively. The January 2024 Credit Agreement Amendments provide for the following: • The repayment in full of the Company's $ 10.5 million Effective Date Bridge Loan obligations, and the prepayment (and corresponding reduction) of approximately $ 2.1 million in Revolving Loans (as defined therein), with the proceeds from the sale, assignment, or transfer of the Company's vested investment in Heart Aerospace Incorporated. • As a result of the repayment of the Effective Date Bridge Loan and pay down of the Revolving Loans, the shares of capital stock of Archer Aviation, Inc. held by the Company are being released as collateral for the United credit facility, subject to certain conditions. • The waiver of certain financial covenant defaults with respect to the fiscal quarters ended June 30, 2023, September 30, 2023, and December 31, 2023 and the waiver of projected financial covenant defaults with respect to the fiscal quarter ending March 31, 2024. • An increase in the Applicable Margin (as defined in the United credit facility) during a specified period of time for borrowings under the Credit Agreement. • Loan prepayment requirements in connection with the sale of four specified aircraft engines and the addition of such engines as collateral for the United credit facility for a specified period of time. Loan Agreement with the United States Department of the Treasury On October 30, 2020, the Company entered into a Loan and Guarantee Agreement with U.S. Department of the Treasury (the “U.S. Treasury”) for a secured loan facility of up to $ 200.0 million that matures in October 2025 (“the Treasury Loan”). On October 30, 2020, the Company borrowed $ 43.0 million and on November 13, 2020, the Company borrowed an additional $ 152.0 million. No further borrowings are available under the Treasury Loan. The Company also issued warrants to purchase shares of common stock to the U.S. Treasury. The Treasury Loan bears interest at a variable rate equal to (a)(i) the LIBOR rate divided by (ii) one minus the Eurodollar Reserve Percentage plus (b) 3.50 %. Accrued interest on the loans is payable in arrears on the first business day following the 14th day of each March, June, September, and December, beginning with December 15, 2020. All principal amounts outstanding under the Treasury Loan are due and payable in a single installment on October 30, 2025 (the “Maturity Date”). Interest is paid in kind by increasing the principal amount of the loan by the amount of such interest due on an interest payment date for the first 12 months of the loan. Mesa's obligations under the Treasury Loan are secured by certain aircraft, aircraft engines, accounts receivable, ground service equipment, and tooling (collectively, the “Collateral”). The obligations under the Treasury Loan are guaranteed by the Company and Mesa Air Group Inventory Management. The proceeds were used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act. Voluntary prepayments of loans under the Treasury Loan may be made, in whole or in part, by Mesa Airlines, without premium or penalty, at any time and from time to time. Amounts prepaid may not be reborrowed. Mandatory prepayments of loans under the Treasury Loan are required, without premium or penalty, to the extent necessary to comply with the covenants discussed below, certain dispositions of the Collateral, certain debt issuances secured by liens on the Collateral and certain insurance payments related to the Collateral. In addition, if a “change of control” (as defined in the Treasury Loan) occurs with respect to Mesa Airlines, Mesa Airlines will be required to repay the loans outstanding under the Treasury Loan. The Treasury Loan requires the Company, under certain circumstances, including within 10 business days prior to the last business day of March and September of each year beginning March 2021, to appraise the value of the Collateral and recalculate the collateral coverage ratio. If the calculated collateral coverage ratio is less than 1.55 to 1.0, Mesa Airlines will be required either to provide additional Collateral (which may include cash collateral) to secure its obligations under the Treasury Loan or repay the term loans under the Treasury Loan, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional Collateral or repayment, is at least 1.55 to 1.0. The Treasury Loan contains two financial covenants, a minimum collateral coverage ratio and a minimum liquidity level. The Treasury Loan also contains customary negative and affirmative covenants for credit facilities of this type, including, among others: (a) limitations on dividends and distributions; (b) limitations on the creation of certain liens; (c) restrictions on certain dispositions, investments and acquisitions; (d) limitations on transactions with affiliates; (e) restrictions on fundamental changes to the business, and (f) restrictions on lobbying activities. Additionally, the Company is required to comply with the relevant provisions of the CARES Act, including limits on employment level reductions after September 30, 2020, restrictions on dividends and stock buybacks, limitations on executive compensation, and requirements to maintain certain levels of scheduled service. In connection with the Treasury Loan and as partial compensation to the U.S. Treasury for the provision of financial assistance under the Treasury Loan, the Company issued to the U.S. Treasury warrants to purchase an aggregate of 4,899,497 shares of the Company’s common stock at an exercise price of $ 3.98 per share, which was the closing price of the Common Stock on The Nasdaq Stock Market on April 9, 2020. The exercise price and number of shares of common stock issuable under the Warrants are subject to adjustment as a result of anti-dilution provisions contained in the Warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at the Company’s option. For accounting purposes, the fair value for the Warrant was estimated using a Black-Scholes option pricing model and recorded in stockholders' equity with an offsetting debt discount to the Treasury Loan in the consolidated balance sheet. The Company incurred $ 3.1 million in debt issuance costs relating to the Treasury Loan. In accordance with the applicable guidance, Mesa allocated the debt issuance costs between the Treasury Loan and related warrants. At funding on October 30, 2020, the initial $ 43.0 million was recorded net of $ 0.7 million in capitalized debt issuance costs. At funding on November 13, 2020, the remaining $ 152.0 million was recorded net of $ 2.3 million in capitalized debt issuance costs. The remaining $ 0.1 million in debt issuance costs was allocated to the warrants as a reduction to the warrant value within additional paid-in capital. Debt issuance costs allocated to the debt are amortized into interest expense using the effective interest method over the term of the related loan. Prior to the November 13, 2020 funding of the $ 152.0 million portion of the Treasury Loan, the Company repaid $ 167.7 million in existing aircraft debt covering 44 aircraft, including indebtedness under its (a) Senior Loan Agreements, dated June 27, 2018, (b) Junior Loan Agreements, also dated June 27, 2018, (c) Credit Agreements, dated January 31, 2007, April 16, 2014, and May 23, 2014, (d) Senior Loan Agreements, dated December 27, 2017, and (e) Junior Loan Agreements, also dated December 27, 2017 (collectively, “the EDC Loans”). The Company made payments totaling $ 164.2 million to repay the EDC Loans, consisting of principal of $ 167.7 million, and a $ 3.5 million discount on the balance owed. Additionally, in connection with the repayment, $ 2.5 million of unamortized original issue discount and deferred financing costs were recorded as a loss on debt extinguishment, resulting in a net gain on extinguishment of $ 1.0 million recorded within other income. As of September 30, 2023, Mesa has $ 139.1 million outstanding under the Treasury Loan. $ 65.8 million in principal payments were made during the year. Spare Engine Financing In December 2021, we entered into a loan agreement with a financing institution to finance certain purchases of spare engines via a newly formed limited liability company (“LLC”). The loan agreement provides for aggregate borrowings of up to $ 54.0 million through November 2022. In December 2021, we borrowed an aggregate of $ 35.3 million under the loan agreement, which matures in December 2027 . The borrowed amounts are collateralized by the underlying engines and require monthly principal and interest payments until maturity. Borrowings under the loan agreement bear interest at the monthly LIBOR plus 4.25 % . The borrowings are the obligation of the newly formed LLC and are guaranteed by Mesa Airlines, Inc. Subsequent to September 30, 2023 , we entered into an agreement with a third party to purchase the 12 spare engines under the loan agreement. The transaction is expected to close by the end of March 2024, and will eliminate all remaining debt under the loan agreement. The newly formed LLC, which is wholly owned by Mesa, was determined to be a VIE for which we are the primary beneficiary because we have the power to direct the activities of the LLC that most significantly impact the LLC’s economic performance and the obligation to absorb losses and right to receive benefits from the LLC in our capacity as sole member of the LLC and guarantor of the borrowings. Therefore, the LLC is consolidated in our financial statements and the borrowings are reflected as long-term debt in our consolidated balance sheets. The loan agreement contains a loan-to-value (“LTV”) financial covenant pursuant to which we are required to prepay certain amounts of the loan if the aggregate outstanding principal balance of the loan exceeds a specified percentage of the appraised value of the engines beginning in the 12 th full month after closing and each June 1 and December 1 thereafter. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share Calculations of net (loss) income per common share were as follows (in thousands, except per share data): Year Ended September 30, 2023 2022 2021 Net (loss)/income $ ( 120,116 ) $ ( 182,678 ) $ 16,588 Basic weighted average common 39,465 36,133 35,713 Add: Incremental shares for: Dilutive effect of warrants — — 2,543 Dilutive effect of restricted stock — — 587 Diluted weighted average common 39,465 36,133 38,843 Net (loss)/income per common share Basic $ ( 3.04 ) $ ( 5.06 ) $ 0.46 Diluted $ ( 3.04 ) $ ( 5.06 ) $ 0.43 Basic (loss) income per common share is computed by dividing net (loss) income attributable to Mesa Air Group by the weighted average number of common shares outstanding during the period. The number of incremental shares from the assumed issuance of shares relating to restricted stock and exercise of warrants (excluding warrants with a nominal conversion price) is calculated by applying the treasury stock method. Share-based awards and warrants whose impact is considered to be anti-dilutive under the treasury stock method were excluded from the diluted net (loss) income per share calculation. In loss periods, these incremental shares are excluded from the calculation of diluted loss per share, as the inclusion of unvested restricted stock and warrants would have an anti-dilutive effect. The following number of weighted-average potentially dilutive shares (in thousands) were excluded from the calculation of diluted net (loss) income per share because the effect of including such potentially dilutive shares would have been anti-dilutive: Year Ended September 30, 2023 2022 2021 Warrants — 758 Restricted stock — 106 — 864 — |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | 12. Common Stock In connection with the Treasury Loan and as partial compensation to the U.S. Treasury for the provision of financial assistance under the Treasury Loan, the Company issued warrants to the U.S. Treasury to purchase shares of the Company’s common stock, no par value, at an exercise price of $ 3.98 per share (the “Exercise Price”), which was the closing price of the common stock on The Nasdaq Stock Market on April 9, 2020. The warrants were issued pursuant to the terms of a Treasury Warrant Agreement entered into by the Company and the U.S. Treasury. The exercise price and number of warrant shares issuable under the warrants are subject to adjustment as a result of anti-dilution provisions contained in the warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at the Company’s option. The warrants are accounted for within equity at a grant date fair value determined under the Black-Scholes Option Pricing Model. As of September 30, 2023 , 4,899,497 warrants were issued and outstanding. Subsequent changes in fair value are not recognized as long as the warrants outstanding continue to be classified in equity. The Company has not historically paid dividends on shares of its common stock. Additionally, the Treasury Loan and the Company's aircraft lease facility (the " RASPRO " Lease Facility) with RASPRO Trust 2005, a pass-through trust contains restrictions that limit the Company's ability to or prohibit it from paying dividends to holders of its common stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The provision for income taxes consists of the following: Year Ended September 30, 2023 2022 2021 (in thousands) Current Federal $ — $ — $ ( 39 ) State 560 231 202 $ 560 $ 231 $ 163 Deferred Federal ( 7,392 ) ( 47,879 ) 4,494 State ( 1,913 ) ( 4,342 ) 1,171 $ ( 9,305 ) $ ( 52,221 ) $ 5,665 (Benefit) provision for income taxes $ ( 8,745 ) $ ( 51,990 ) $ 5,828 The reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows: Year Ended September 30, 2023 2022 2021 (in thousands) Income tax (benefit) provision at federal statutory rate $ ( 26,555 ) $ ( 49,280 ) $ 4,707 (Reduction) increase in income taxes resulting from: State taxes, net of federal tax benefit ( 2,062 ) ( 3,953 ) 669 Nondeductible stock compensation expenses 313 251 ( 241 ) Permanent items 225 206 292 Change in valuation allowances 18,201 ( 22 ) ( 140 ) 162(m) limitation 285 11 12 Impact of changing rates on deferred tax assets 499 ( 247 ) 509 Expired tax attributes 200 964 152 Other 149 80 ( 132 ) Income tax (benefit) provision $ ( 8,745 ) $ ( 51,990 ) $ 5,828 The components of the Company's deferred taxes as of September 30, 2023 and 2022 are as follows: Year Ended September 30, 2023 2022 (in thousands) Net operating loss carryforwards $ 125,306 $ 131,897 Deferred credits 1,057 703 Other accrued expenses 1,234 1,769 Prepaids and other 556 1,175 Warrant liabilities 5,748 5,725 State alternative minimum tax — 1 Other reserves and estimated losses 937 873 Operating lease liabilities 2,991 8,012 Deferred revenue 4,829 5,506 Interest expense carryforward 6,457 — Gross deferred tax assets $ 149,115 $ 155,661 Less: valuation allowance ( 21,102 ) ( 2,901 ) Total net deferred tax assets $ 128,013 $ 152,760 Intangible assets — ( 877 ) Operating lease right-of-use assets ( 2,475 ) ( 2,055 ) Property and equipment ( 131,805 ) ( 166,586 ) Unrealized gain on equity investments ( 2,148 ) ( 961 ) Total deferred tax liabilities $ ( 136,427 ) $ ( 170,479 ) Net deferred tax liabilities $ ( 8,414 ) $ ( 17,719 ) The Company has federal and state income tax net operating losses (“NOL”) carryforwards of $ 562.6 million and $ 233.5 million, which expire in fiscal years 2027 - 2038 and 2023 - 2043 , respectively. Approximately $ 194.2 million of our federal NOL carryforwards are not subject to expiration. These NOL carryovers are only available to offset 80 % of taxable income in years in which they are utilized due to tax law changes as a result of the Tax Cuts and Jobs Act. The Company also has $ 29.1 million of interest expense carryovers as a result of 163j limitations as of September 30, 2023. The Company cannot conclude that it is more likely than not that the benefit from certain federal and state NOL carryforwards will not be realized. In recognition of this uncertainty, the Company has provided a valuation allowance of $ 21.1 million as of September 30, 2023 and $ 2.9 million as of September 30, 2022 on the deferred tax assets related to these state NOL carryforwards. If or when recognized, the tax benefits related to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of income tax expense. The federal and state NOL carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits. Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of our NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. The Company determined it had an ownership change in February of 2009. Based on the study conducted at that time, a portion of the federal NOLs were determined to be limited by IRC Section 382, resulting in the Company writing off a portion of its NOLs at that time. Additionally, the Company’s initial public offering in August of 2018 resulted in a change in ownership under Section 382 of the Internal Revenue Code. The Company completed an update to the analysis of any potential limitation on the use of its net operating losses under Section 382 for the fiscal year ended September 30, 2023. Based on such analysis, the Company does not believe any ownership changes during the review period will further limit its ability to use its current net operating losses to offset future taxable income, if any. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended September 30, 2023 2022 2021 (in thousands) Unrecognized tax benefits — October 1 $ 4,866 $ 4,866 $ 4,866 Gross decreases — tax positions in prior period — — — Gross increases — tax positions in prior period — — — Unrecognized tax benefits — September 30 $ 4,866 $ 4,866 $ 4,866 The Company’s unrecognized tax benefits of $ 4.9 million, $ 4.9 million and $ 4.9 million as of September 30, 2023, 2022, and 2021, respectively, is included as an offset to the net deferred tax asset balance. If recognized, the balance of the uncertain tax benefits would impact the effective tax rate. We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. We have not recorded accrued penalties or interest related to the unrecognized tax benefits noted above as the amounts would result in an adjustment to NOL carryforwards. We are subject to taxation in the United States and various states. As of September 30, 2023, the Company is no longer subject to U.S. federal or state examinations by taxing authorities for fiscal years prior to 2003. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 14.Share-Based Compensation Restricted Stock The Company grants restricted stock units ("RSUs") as part of its long-term incentive compensation to employees and non-employee members of the Board of Directors. RSUs generally vest over a period of three to five years for employees and one year for members of the Board of Directors. The restricted common stock underlying RSUs are not deemed issued or outstanding upon grant, and do not carry any voting rights. RSUs are measured based on the fair market value of the underlying common stock on the grant date. The restricted stock activity for our years ended September 30, 2023, 2022, and 2021 is summarized as follows: Weighted- Average Number Grant Date 2018 Plan of Shares Fair Value Restricted shares unvested at September 30, 2020 1,195,548 $ 5.47 Granted 346,123 $ 9.53 Vested ( 492,465 ) $ 6.89 Forfeited ( 43,000 ) $ 4.57 Restricted shares unvested at September 30, 2021 1,006,206 $ 6.22 Granted 718,959 $ 3.20 Vested ( 455,303 ) $ 6.13 Forfeited ( 97,369 ) $ 2.97 Restricted shares unvested at September 30, 2022 1,172,493 $ 4.43 Granted 495,087 $ 2.43 Vested ( 585,755 ) $ 4.58 Forfeited ( 344,934 ) $ 4.05 Restricted shares unvested at September 30, 2023 736,891 $ 3.35 As of September 30, 2023, there was $ 1.7 million of total unrecognized compensation cost related to unvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.3 years. Compensation cost for share-based awards are recognized on a straight-line basis over the vesting period. The Company recognizes forfeitures of share-based awards as they occur. Share-based compensation expense for the years ended September 30, 2023, 2022, and 2021 was approximately $ 2.3 million, $ 2.8 million, and $ 3.1 million, respectively. Share-based compensation expense is recorded in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. The Company repurchased 204,486 shares of its common stock for approximately $ 0.4 million to cover the income tax obligation on vested employee equity awards during the fiscal year ended September 30, 2023 . The Company repurchased 147,108 shares of its common stock for approximately $ 0.5 million to cover the income tax obligation on vested employee equity awards and warrant conversions during the fiscal year ended September 30, 2022. During the fiscal year ended September 30, 2021 , the Company repurchased 155,174 shares of its common stock for approximately $ 1.5 million to cover the income tax obligation on vested employee equity awards. |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Stock Purchase Plan | 15. Employee Stock Purchase Plan 2019 ESPP The Mesa Air Group, Inc. 2019 Employee Stock Purchase Plan (the "2019 ESPP") is a nonqualified plan that provides eligible employees of Mesa Air Group, Inc. with an opportunity to purchase Mesa Air Group, Inc. ordinary shares through payroll deductions. Under the 2019 ESPP, eligible employees may elect to contribute 1 % to 15 % of their eligible compensation during each semi-annual offering period to purchase Mesa Air Group, Inc. ordinary shares at a 10 % discount. A maximum of 500,000 Mesa Air Group, Inc. ordinary shares may be issued under the 2019 ESPP. As of September 30, 2023 , eligible employees purchased and the Company issued an aggregate of 444,590 Mesa Air Group, Inc. ordinary shares under the 2019 ESPP, 140,453 of which were purchased and issued during the current fiscal year. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | 16. Leases At September 30, 2023 , the Company leased 18 aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases. The operating leases require the Company to pay taxes, maintenance, insurance, and other operating expenses. Rental expense is recognized on a straight-line basis over the lease term, net of lessor rebates and other incentives. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases, or the property may be purchased rather than leased. Aggregate rental expense under all operating aircraft, equipment and facility leases totaled approximately $ 12.2 million, $ 43.4 million, and $ 44.6 million for the year ended September 30, 2023, 2022, and 2021, respectively. At September 30, 2023 , the Company leased 15 aircraft and three spare engines under non-cancelable finance leases. Basic rent on finance leases is paid monthly and at the end of the lease term. At the end of the lease term, the Company has the option to purchase the aircraft and engines for most of the finance leases. These finance leases are reflected as finance lease obligations of $ 67.6 million on our consolidated balance sheet as of September 30, 2023. The components of our operating and finance lease costs were as follows (in thousands): Year Ended September 30, 2023 2022 Operating lease costs $ 8,517 $ 37,637 Variable and short-term lease costs 3,691 5,783 Interest expense on finance lease liabilities 4,492 547 Amortization expense of finance lease assets 13,414 2,705 Total lease costs $ 30,114 $ 46,672 As of September 30, 2023 , the Company’s operating lease right-of-use assets were $ 9.7 million, the Company’s current maturities of operating lease liabilities were $ 3.5 million, and the Company’s noncurrent operating lease liabilities were $ 8.1 million. As of September 30, 2023, the Company’s current portion of finance lease liabilities were $ 57.7 million, and the Company’s noncurrent finance lease liabilities were $ 9.9 million. The Company’s operating lease payments included in operating cash flows for the year ended September 30, 2023 and 2022 were approximately $ 9.5 million and $ 36.3 million, respectively. The Company’s finance lease interest payments included in operating cash flows for the year ended September 30, 2023 and 2022 were $ 1.2 million and $ 0.3 million, respectively. The Company’s finance lease principal payments included in financing cash flows for the year ended September 30, 2023 and 2022 were $ 15.1 million and $ 2.5 million, respectively. To determine whether impairments exist for aircraft and other related assets used in operations, we group assets, including ROU assets, at the CPA or FSA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of CPA or FSA, block hours, maintenance events, labor costs and other relevant factors. As all of our aircraft leases besides one with an insignificant value on our books are leased to us from United or DHL at nominal amounts and not recorded on our books, we did not assess leased aircraft for impairment. The Company recorded impairment losses of zero , $ 10.5 million, and zero for the years ended September 30, 2023, 2022, and 2021, respectively. The table below presents the weighted average remaining terms and discount rates for our operating and finance leases as of September 30, 2023: As of September 30, 2023 Finance leases: Weighted average remaining lease term 2.17 Weighted average discount rate 3.4 % Operating leases: Weighted average remaining lease term 6.1 Weighted average discount rate 5.6 % The following table summarizes future minimum rental payments, primarily related to leased aircraft, required under operating and finance leases that had initial or remaining non-cancelable lease terms as of September 30, 2023 (in thousands): Periods Ending Operating Leases Finance Leases 2024 $ 4,243 $ 57,704 2025 2,449 1,257 2026 1,520 1,332 2027 1,437 1,411 2028 1,030 1,495 Thereafter 4,161 4,437 Total lease payments 14,840 67,636 Less: imputed interest ( 3,253 ) — Amounts recorded in the consolidated balance sheet $ 11,587 $ 67,636 RASPRO Lease Facility. On September 23, 2005, Mesa Airlines, as lessee, entered into the RASPRO Lease Facility, with RASPRO as lessor, for 15 of our CRJ-900 aircraft. The obligations under the RASPRO Lease Facility are guaranteed by us, and basic rent is paid quarterly on each aircraft. On each of March 10, 2014, June 5, 2014, and December 8, 2017, the RASPRO Lease Facility was amended to defer certain payments of basic rent (the "Deferred Amounts"). Until the principal of and accrued interest on the Deferred Amounts are paid in full: (i) we and Mesa Airlines are prohibited from paying any dividends to holders of our common stock, (ii) we are prohibited from repurchasing any of our warrants or other equity interests, (iii) Mesa Airlines must maintain a minimum of $ 35.0 million of cash, cash equivalents and availability under lines of credit, (iv) Mesa Airlines must provide RASPRO with periodic monthly, quarterly and annual reports containing certain financial information and forecasted engine repair costs and (v) we must maintain a minimum debt-to-assets ratio. In June 2020, the Company amended its RASPRO aircraft lease agreement to defer a $ 4.0 million lease payment otherwise due in June 2020. Per the amended agreement dated June 5, 2020, the Company is required to pay this amount over the period of September 2021 through March 2024. The Company made the accounting election available for COVID-19 related concessions provided by a lessor and accordingly, this was not a lease modification and required no changes to current accounting treatment. In December 2022, the Company entered into an agreement with RASPRO Trust, reducing the buyout price on all 15 aircraft at lease termination by a total of $ 25 million. Under the terms of the new agreement, the Company reclassified these leases as finance leases. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Litigation We are involved in various legal proceedings (including, but not limited to, insured claims) and FAA civil action proceedings which we consider routine to our business activities on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our consolidated financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. As of September 30, 2023, we believed that the ultimate outcomes of routine legal matters are not likely to have a material adverse effect on our financial position, liquidity, or results of operations. Engine Purchase Commitments On February 26, 2021, the Company and General Electric Company (“GE”), acting through its GE-Aviation business unit, entered into an Amended and Restated Letter Agreement No. 13-3. The Company agreed to purchase and take delivery of 10 new CF34-8C5 or CF34-8E5 engines with delivery dates starting from July 1, 2021 through November 1, 2022. During the quarter ended March 31, 2021, a $ 7.0 million non-refundable purchase deposit was made for the first five engines to be delivered in calendar year 2021. The Company has options to purchase an additional 10 similar engines beyond 2022. The total purchase commitment related to these 10 engines is approximately $ 52.2 million. As of September 30, 2023, we have purchased all of the engines pursuant to the Amended and Restated Letter Agreement No. 13-3. If the Company fails to accept delivery of the spare engines when duly tendered, the Company may be assessed a minimum cancellation charge based on the engine price determined as of the date of scheduled engine delivery to the Company. Electric Aircraft Forward Purchase Commitments As described in Note 8, in February 2021, the Company entered into a forward purchase contract with Archer for a number of electrically-powered vertical takeoff and landing aircraft (“eVTOL aircraft”). The aggregate base commitment for the eVTOL aircraft is $ 200.0 million, with an option to purchase additional aircraft. The Company’s obligation to purchase the eVTOL aircraft is subject to the Company and Archer first agreeing in the future to a number of terms and conditions, which may or may not be met. As described in Note 8, in July 2021, the Company entered into a forward purchase contract with Heart for a number of fully electric aircraft. The maximum aggregate base commitment for the aircraft is $ 1,200.0 million, with an option to purchase additional aircraft. The Company’s obligation to purchase the aircraft is subject to the Company and Heart first agreeing in the future to a number of terms and conditions, which may or may not be met. Other Commitments We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events United Agreements On January 11, 2024 and January 19, 2024, we entered into the First Amendment to our Third Amended and Restated United CPA and the Second Amendment to our Third Amended and Restated United CPA (the "January 2024 United CPA Amendments"), respectively. The January 2024 United CPA Amendments provide additional liquidity and certain other amendments described below • Increased CPA rates, retroactive to October 1, 2023 through December 31, 2024, which are projected to generate approximately $ 63.5 million in incremental revenue over the next twelve months. • Amended certain notice requirements for removal by United of up to eight CRJ-900 Covered Aircraft (as defined in the United CPA) from the United CPA. • Extended United's existing utilization waiver for the Company's operation of E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA) to June 30, 2024. On January 11, 2024 and January 19, 2024, we entered into Amendment No. 4 to our Second Amended and Restated Credit and Guaranty Agreement, Amendment No. 1 to Stock Pledge Agreement and Limited Waiver of Conditions to Credit Extension ("Amendment No. 4") and Waiver and Amendment No. 5 to our Second Amended and Restated Credit and Guaranty Agreement (collectively, the "January 2024 Credit Agreement Amendments"), respectively. The January 2024 Credit Agreement Amendments provide for the following: • The repayment in full of the Company's $ 10.5 million Effective Date Bridge Loan obligations, and the prepayment (and corresponding reduction) of approximately $ 2.1 million in Revolving Loans (as defined therein), with the proceeds from the sale, assignment, or transfer of the Company's vested investment in Heart Aerospace Incorporated. • As a result of the repayment of the Effective Date Bridge Loan and pay down of the Revolving Loans, the shares of capital stock of Archer Aviation, Inc. held by the Company are being released as collateral for the United credit facility, subject to certain conditions. • The waiver of certain financial covenant defaults with respect to the fiscal quarters ended June 30, 2023, September 30, 2023, and December 31, 2023 and the waiver of projected financial covenant defaults with respect to the fiscal quarter ending March 31, 2024. • An increase in the Applicable Margin (as defined in the United credit facility) during a specified period of time for borrowings under the Credit Agreement. • Loan prepayment requirements in connection with the sale of four specified aircraft engines and the addition of such engines as collateral for the United credit facility for a specified period of time. American Purchase Agreement Subsequent to September 30, 2023, we closed the sale of the four remaining CRJ-900 aircraft to American for gross proceeds of $ 41.5 million. Net proceeds from the sale of all four aircraft was $ 5.7 million after the retirement of the EDC Loan and the MHIRJ junior noteholder debt. As part of our letter amendment entered into with MHIRJ in November 2022, approximately $ 5.0 million in principal was forgiven upon the repayment of $ 4.2 million in principal before December 31, 2023. Aircraft Purchase Agreement Subsequent to September 30, 2023, we closed the sale of the remaining four CRJ-900 aircraft as part of an aircraft purchase agreement to a third party for gross proceeds of $ 12.0 million. Net proceeds from the sale of all four aircraft was $ 6.5 million after partial debt reduction of our UST Loan. Engine Purchase Agreement On December 1, 2023, we entered into an agreement with a third party to sell 12 surplus GE model CF34-8C aircraft engines and related parts. The gross proceeds of $ 56.0 million will be used to retire approximately $ 40.0 million in associated debt and provide additional liquidity to fund operations and current debt obligations as they come due. The transaction is expected to close by the end of March 2024. Engine Purchase Commitment Subsequent to September 30, 2023, we entered into a purchase agreement with a third party which provides for the sale of 23 engines for gross proceeds of $ 11.5 million which will be used to pay down our UST Loan. The transaction is expected to close by the end of December 2024. Airframe and Engine Purchase Commitments We have 15 aircraft under the RASPRO finance lease with a buyout obligation of $ 50.3 million at the end of March 2024. Subsequent to September 30, 2023, we entered into purchase agreements with two separate parties to purchase the RASPRO aircraft and related engines. One agreement is for 30 engines for a total of $ 19.5 million. The second agreement is for 15 airframes (without engines) for a total of $ 18.8 million. Both of these transactions are expected to be completed by the end of March 2024, with net cash from these transactions expected to be approximately $( 12.1 ) million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ( " GAAP " ) and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ( " ASC " ) and Accounting Standards Update (" ASU ") of the Financial Accounting Standards Board (" FASB "). All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company generated a net loss of $ 120.1 million and cash flow used in operations of $ 24.1 million for the year ended September 30, 2023. As of September 30, 2023 , the Company had a working capital deficit of $ 129.3 million, an accumulated deficit of $ 71.1 million, and cash and cash equivalents of $ 32.9 million. The Company is evaluating strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, obtaining equity financing, issuing debt, entering into other financing arrangements, restructuring of operations to grow revenues and decrease expenses, or selling the aircraft held for sale and our equity investments. |
Use of Estimates | Use of Estimates The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280, " Segment Reporting, " we are not organized around specific services or geographic regions. We currently operate in one service line providing scheduled flying services in accordance with our CPAs and FSAs. While we operate under a CPA and a FSA, we do not manage our business based on any performance measure at the individual contract level. As of September 30, 2023 , our chief operating decision maker ("CODM") was the Chief Executive Officer. Our CODM uses consolidated financial information to evaluate our performance, which is the same basis on which he communicates our results and performance to our Board of Directors. Our CODM bases all significant decisions regarding the allocation of our resources on a consolidated basis. Based on the information described above and in accordance with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash primarily includes deposits in trust accounts to collateralize letters of credit and to fund workers' compensation claims, landing fees, and other business needs. Restricted cash is stated at cost, which approximates fair value. The Company has an agreement with a financial institution for a $ 6.0 million letter of credit facility to issue letters of credit for landing fees, workers' compensation insurance, and other business needs. Pursuant to such agreement, $ 3.1 million and $ 3.3 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2023 and 2022, respectively, which are classified as restricted cash. |
Expendable Parts and Supplies | Expendable Parts and Supplies Expendable parts and supplies are stated at cost, less an allowance for obsolescence. The Company provides an allowance for obsolescence for such parts and supplies over the useful life of its aircraft after considering the useful life of each aircraft fleet, the estimated cost of expendable parts expected to be on hand at the end of the useful life, and the estimated salvage value of the parts. This allowance for expendable parts account was $ 4.1 million and $ 3.8 million as of September 30, 2023 and 2022, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of manufacturer incentives, and depreciated over their estimated useful lives to their estimated salvage values, which are 20 % for aircraft and rotable spare parts, using the straight-line method. Estimated useful lives of the various classifications of property and equipment are as follows: Property and Equipment Estimated Useful Life Buildings 30 years Aircraft 25 years from the manufacture date Flight equipment 7 - 20 years Equipment 5 - 9 years Furniture and fixtures 3 - 5 years Vehicles 5 years Rotable spare parts Life of the aircraft or term of the lease, whichever is less Leasehold improvements Life of the aircraft or term of the lease, whichever is less Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if (i) the undiscounted future cash flows are found to be less than the carrying amount of the asset or asset group, and (ii) the carrying amount of the asset or asset group exceeds its fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. To determine whether impairments exist for aircraft and other related assets used in operations, we group assets at the CPA and FSA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase or FSA, block hours, maintenance events, labor costs and other relevant factors. If an asset group is impaired, the impairment loss recognized is the amount by which the asset group's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available. Due to operating losses and the transition of operations from American to United, we evaluated our United fleet as of September 30, 2023 , and determined that future cash flows from the operation of our fleet through the respective remaining useful life exceeded the carrying value of the fleet. As such, no impairment charges were recorded to our fleet. The Company recognized impairment charges of zero , 109.7 million, and zero on property and equipment and other long-lived assets for the years ended September 30, 2023 , 2022, and 2021 respectively. |
Assets Held For Sale | Assets Held for Sale We classify assets as held for sale when (i) our management approves and commits to a formal plan of sale that is probable of being completed within one year; (ii) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (iii) an active program to locate a buyer has been initiated; (iv) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (v) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets designated as held for sale are recorded at the lower of their current carrying value or their fair market value, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale. If the market value, less costs to sell, is lower than the current carrying value, an impairment loss is recorded on the asset designated as held for sale. The Company recognized impairment charges of $ 50.6 million, $ 62.1 million, and zero on assets designated as held for sale for the years ended September 30, 2023, 2022, and 2021, respectively. See Note 7 – “Assets Held for Sale” for further discussion of our assets classified as held for sale as of September 30, 2023 |
Fair Value Measurements | Fair Value Measurements The Company accounts for assets and liabilities in accordance with accounting standards that define fair value and establish a consistent framework for measuring fair value on either a recurring or a nonrecurring basis. Fair value is an exit price representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Accounting standards include disclosure requirements relating to the fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels: • Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 – Unobservable inputs in which there is little or no market data, requiring an entity to develop its own assumptions. |
Debt Financing Costs | Debt Financing Costs Debt financing costs consist of payments made to issue debt related to the purchase of aircraft, flight equipment, and certain flight equipment maintenance costs. The Company defers the costs and amortizes them to interest expense over the term of the debt agreement. Debt financing costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of the related long-term debt on the consolidated balance sheet. Debt financing costs with no related recognized debt liability are presented as assets, with the current portion included in prepaid expenses and other current assets and the noncurrent portion included in other assets on the consolidated balance sheet. |
Intangible Assets | Intangible Assets Customer relationships are amortized over their estimated useful lives. In accordance with ASC 360, Property, Plant, and Equipment, an intangible asset with a finite life that is being amortized is reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if the undiscounted future cash flows are found to be less than the carrying amount of the asset and if the carrying amount of the asset exceeds fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. The Company recognized an impairment loss of $ 3.7 million, $ 1.9 million, and zero on intangible assets for the year ended September 30, 2023 , 2022, and 2021 respectively. |
Other Assets | Other Assets Other noncurrent assets primarily consist of the non-current portion of lease incentives related to aircraft which Mesa leases to third parties and investments in equity securities. Lease incentives represent amounts paid or payable by Mesa to the lessee and are amortized as a reduction of lease revenue over the term of the lease. The current portion of the lease incentive assets is included in prepaid expenses and other current assets, and the non-current portion is included in other assets on the consolidated balance sheet. Investments in equity securities with readily determinable fair values are adjusted to reflect the market value of the investments each reporting period, with corresponding gains and losses reflected in the statement of operations. Investments in equity securities without readily determinable values are measured at cost less impairment, if any, and are adjusted when there are observable prices of similar or identical investments from the same issuer. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records deferred tax assets for the value of benefits expected to be realized from the utilization of state and federal net operating loss carryforwards. The Company periodically reviews these assets to determine the likelihood of realization. To the extent the Company believes some portion of the benefit may not be realizable based on the available sources of income, an estimate of the unrealized position is made, and a valuation allowance is recorded. The Company and its consolidated subsidiaries file a consolidated federal income tax return. |
Other Noncurrent Liabilities | Other Noncurrent Liabilities Other noncurrent liabilities primarily consist of the non-current portion of lease incentive obligations and deposits related to the aircraft which Mesa leases to third parties and vendor credit liabilities for future purchases of electric aircraft. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the service is provided under its CPAs and FSAs. Under these agreements, the Company’s major partners generally pay a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of departures and block hours or flight hours flown. The agreements also include reimbursement of certain direct costs incurred by the Company in performing flight services. These costs, known as " pass-through costs, " may include passenger liability and hull insurance as well as aircraft property taxes. Additionally, for the E-175 aircraft owned by United, United reimburses the Company for heavy airframe and engine maintenance, landing gear maintenance, APU maintenance, and component maintenance. The Company also receives compensation under its agreements for heavy maintenance expenses at a fixed hourly rate or per aircraft rate for all aircraft in scheduled service other than the E-175 aircraft owned by United. The contracts also include incentives and penalties based on certain operational benchmarks. The Company is eligible to receive incentive compensation upon the achievement of certain performance criteria defined in the agreements. At the end of each period during the term of an agreement, the Company calculates the incentives or penalties achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance in accordance ASC 606. All revenue recognized under these contracts is presented as the gross amount billed to the major partners. See Note 3 - “Contract Revenue and Pass-through and Other Revenue” for further information. The Company has committed to perform various activities that can be generally classified into in-flight services and maintenance services. When evaluating these services, the Company determined that the nature of its promise is to provide a single integrated service, flight services, because its contracts require integration and assumption of risk associated with both services to effectively deliver and provide the flights as scheduled over the contract term. Therefore, the in-flight services and maintenance services are inputs to that combined integrated flight service. Both the services occur over the term of the agreement and the performance of maintenance services significantly effects the utility of the in-flight services. The Company's individual flights flown under the CPAs and FSAs are deemed to be distinct and the flight service promised in the agreements represents a series of services that should be accounted for as a single performance obligation. This single performance obligation is satisfied over time as the flights are completed. Therefore, revenue is recognized when each flight is completed. In allocating the transaction price, variable payments (i.e., billings based on departures and block hours or flight hours flown, pass-through costs, etc.) that relate specifically to the Company's efforts in performing flight services are recognized in the period in which the individual flight is completed. The Company has concluded that allocating the variability directly to the individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that follows the variable amounts billed from the Company to its customers. A portion of the Company's compensation under its CPAs with American and United is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. The Company has concluded that a component of its revenue under these agreements is deemed to be lease revenue, as such agreements identify the " right of use " of a specific type and number of aircraft over a stated period-of-time. The lease revenue associated with the Company's CPAs is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive (loss) income. The Company recognized $ 144.7 million, $ 158.4 million, and $ 170.2 million of lease revenue for the year ended September 30, 2023, 2022, and 2021, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive (loss) income because the use of the aircraft is not a separate activity of the total service provided under our CPAs. The Company's CPAs and FSAs are renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, or withdraw aircraft under their respective agreements, subject to certain conditions as described in Note 1. The agreements also contain terms with respect to covered aircraft, services provided, and compensation as described in Note 1. The agreements are amended from time to time to change, add, or delete terms of the agreements. The Company's revenues could be impacted by a number of factors, including amendment or termination of its agreements with its major partners, contract modifications resulting from contract renegotiations, its ability to earn incentive payments contemplated under applicable agreements, and settlement of reimbursement disputes with the Company's major partners. In the event contracted rates are not finalized at a quarterly or annual financial statement date, the Company evaluates the enforceability of its contractual terms and when it has an enforceable right, it estimates the amount the Company expects to be entitled to that is subject to the variable constraint guidance within ASC 606. The Company's agreements contain an option that allows its major partners to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that it operates for them. All of the Company's major partners have exercised this option. Accordingly, the Company does not record an expense or revenue for fuel and related fueling costs for flying under its CPAs or FSA. In addition, the Company's major partners also provide, at no cost to the Company, certain ground handling and customer service functions, as well as airport-related facilities and gates at their hubs and other cities. Services and facilities provided by the Company's major partners at no cost are presented net in its consolidated financial statements; hence, no amounts are recorded as revenue or operating expense for these items. |
Contract Liabilities | Contract Liabilities Contract liabilities consist of deferred credits representing upfront payments received from major partners related to aircraft modifications associated with CPAs and pilot training. The deferred credits are recognized over time depicting the pattern of transfer of the related services over the term of the CPAs. Current and non-current deferred credits are recorded to other accrued expenses and non-current deferred credits in the consolidated balance sheets, respectively. The Company's total current and non-current deferred credit balances at September 30, 2023 and September 30, 2022 were $ 5.1 million and $ 3.9 million, respectively. The Company recognized $ 1.7 million, $ 0.9 million, and $ 2.4 million of the deferred credits within contract revenue in the consolidated statements of operations and comprehensive (loss) income during the year ended September 30, 2023 , 2022, and 2021, respectively |
Contract Assets | Contract Assets The Company recognizes assets from the incremental costs incurred to obtain contracts with major partners including aircraft painting, aircraft reconfiguration, and flight service personnel training costs. These costs are amortized based on the pattern of transfer of the services in relation to flight hours over the term of the contract. Contract assets are recorded as other assets in the consolidated balance sheets. The Company's contract assets balance at September 30, 2023 and September 30, 2022 was approximately $ 8.8 million and zero , respectively. Contract cost amortization was approximately $ 1.0 million, zero , and $ 2.0 million for the year ended September 30, 2023 , 2022, and 2021, respectively. |
Maintenance Expense | Maintenance Expense The Company operates under an FAA approved continuous inspection and maintenance program. The cost of non-major scheduled inspections and repairs and routine maintenance costs for all aircraft and engines are charged to maintenance expense as incurred. The Company accounts for heavy maintenance and major overhaul costs on its owned E-175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense was approximately $ 3.1 million, $ 1.9 million, and $ 0.4 million for the fiscal year ended September 30, 2023, 2022, and 2021, respectively. At September 30, 2023 and September 30, 2022 , the Company had a deferred heavy maintenance balance, net of accumulated amortization, of approximately $ 8.0 and $ 9.7 million, respectively. The Company accounts for heavy maintenance and major overhaul costs for all other fleets under the direct expense method whereby costs are expensed to maintenance expense as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. Our maintenance policy is determined by fleet when major maintenance is incurred. Under the Company's aircraft operating lease agreements and FAA operating regulations, it is obligated to perform all required maintenance activities on its fleet, including component repairs, scheduled airframe checks and major engine restoration events. The Company estimates the timing of the next major maintenance event based on assumptions including estimated usage, FAA-mandated maintenance intervals, and average removal times as recommended by the manufacturer. The timing and the cost of maintenance are based on estimates, which can be impacted by changes in utilization of its aircraft, changes in government regulations and suggested manufacturer maintenance intervals. Major maintenance events consist of overhauls to major components. Engine overhaul expense totaled approximately $ 32.4 million, $ 23.6 million, and $ 31.4 million for the years ended September 30, 2023 , 2022, and 2021, respectively, of which approximately $ 31.9 million, $ 21.7 million, and $ 16.8 million, respectively, was pass-through expense. Airframe check expense totaled approximately $ 23.4 million, $ 22.1 million, and $ 51.1 million for the years ended September 30, 2023 , 2022, and 2021, respectively, of which approximately $ 16.9 million, $ 3.2 million, and $ 20.5 million, respectively, was pass-through expense. Pursuant to the United CPA, United reimburses the Company for heavy maintenance on certain E-175 aircraft. Those reimbursements are included in pass-through and other revenue. See Note 1 - "Organization and Operations" for further information. |
Leases | Leases We determine if an arrangement is a lease at inception. As a lessee, we have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. Our operating lease activities are recorded in operating lease right-of-use assets, current maturities of operating leases, and noncurrent operating lease liabilities in the consolidated balance sheets. Finance leases are reflected in property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases, excluding current portion in the consolidated balance sheets. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term, while finance leases result in a front-loaded expense pattern. To determine whether impairments exist for aircraft and other related assets used in operations, we group assets, including ROU assets, at the CPA or FSA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of CPA or FSA, block hours, maintenance events, labor costs and other relevant factors. As all of our aircraft leases besides one with an insignificant value on our books are leased to us from United or DHL at nominal amounts and not recorded on our books, we did no t assess leased aircraft for impairment. The Company recorded impairment losses of zero , $ 10.5 million, and zero for the years ended September 30, 2023, 2022, and 2021, respectively. As a lessee, we have elected a short-term lease practical expedient on all classes of underlying assets, permitting us to not apply the recognition requirements of this standard to leases with terms of 12 months or less. Our CPAs identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. A portion of the compensation under our CPAs are designed to reimburse the Company, as lessor, for certain aircraft ownership costs of these aircraft. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices. As discussed in Note 1, we lease, at nominal rates, certain aircraft from United and DHL under our United CPA and DHL FSA, which are excluded from operating lease assets and liabilities as they do not represent embedded leases under ASC 842. Other than nominal leases with our major partners, approximately 1 % of our aircraft are leased from third parties. Our aircraft classified as operating leases results in rental payments being charged to expense over the term of the related leases. In the event that we or one of our major partners decide to exit an activity involving leased aircraft, losses may be incurred. In the event that we exit an activity that results in exit losses, these losses are accrued as each aircraft is removed from operations for early termination penalties, lease settle up and other charges. Additionally, any remaining ROU assets and lease liabilities will be written off. |
Organization and Operations (Ta
Organization and Operations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Original Reported Balances and Restated Balances Reflecting Correction | The following table shows the original reported balances and restated balances reflecting the correction. June 30, 2023 (Unaudited) Reported Adjustment Restated Current liabilities: Current portion of long-term debt and finance leases $ 124,341 $ 30,630 $ 154,971 Total current liabilities 222,114 30,630 252,744 Noncurrent liabilities: Long-term debt and finance leases, excluding current portion $ 441,941 $ ( 30,630 ) $ 411,311 Total noncurrent liabilities 511,990 ( 30,630 ) 481,360 Total liabilities 734,104 — 734,104 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Various Classifications of Property and Equipment | Estimated useful lives of the various classifications of property and equipment are as follows: Property and Equipment Estimated Useful Life Buildings 30 years Aircraft 25 years from the manufacture date Flight equipment 7 - 20 years Equipment 5 - 9 years Furniture and fixtures 3 - 5 years Vehicles 5 years Rotable spare parts Life of the aircraft or term of the lease, whichever is less Leasehold improvements Life of the aircraft or term of the lease, whichever is less |
Contract Revenue and Pass-thr_2
Contract Revenue and Pass-through and Other Revenue (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Revenue Remaining Performance Obligations | The deferred revenue balance as of September 30, 2023 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands): Periods Ending September 30, Total Revenue 2024 $ 4,880 2025 5,281 2026 4,199 2027 3,835 2028 2,008 Thereafter 844 Total $ 21,047 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information About Intangible Assets | Information about the intangible assets of the Company at September 30, 2023 and 2022, is as follows (in thousands): September 30, September 30, 2023 2022 Customer relationship — $ 43,800 Accumulated amortization — ( 38,029 ) Impairment — ( 1,929 ) Net carrying value $ — $ 3,842 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Certain Significant Amounts Included in Consolidated Balance Sheets | Certain significant amounts included in the Company's consolidated balance sheets as of September 30, 2023 and 2022, consisted of the following (in thousands): September 30, September 30, 2023 2022 Expendable parts and supplies, net: Expendable parts and supplies $ 39,630 $ 31,913 Less: expendable parts warranty ( 6,295 ) ( 1,373 ) Less: obsolescence ( 4,090 ) ( 3,825 ) $ 29,245 $ 26,715 Prepaid expenses and other current assets: Prepaid aviation insurance $ 3,176 $ 2,618 Prepaid vendors 143 1,310 Prepaid other insurance 1,205 1,268 Lease incentives 1,125 352 Prepaid fuel and other 1,645 1,068 $ 7,294 $ 6,616 Property and equipment, net: Aircraft and other flight equipment $ 1,039,782 $ 1,260,143 Other equipment 9,421 10,420 Total property and equipment 1,049,203 1,270,563 Less: accumulated depreciation ( 351,181 ) ( 405,309 ) $ 698,022 $ 865,254 Other assets: Investments in equity securities $ 20,320 $ 15,178 Lease incentives 954 1,097 Contract asset 8,756 — Other 516 15 $ 30,546 $ 16,290 Other accrued expenses: Accrued property taxes $ 5,281 $ 5,866 Accrued interest 3,447 2,882 Accrued vacation 6,763 4,746 Accrued lodging 3,984 3,795 Accrued maintenance 2,117 1,453 Accrued liability on government payroll — 2,967 Accrued simulator costs 1,006 1,045 Accrued employee benefits 1,450 1,679 Accrued fleet operating expense 650 1,606 Short term lease incentive liability 97 97 Other 2,206 2,864 $ 27,001 $ 29,000 Other noncurrent liabilities: Warrant liabilities $ 25,225 $ 25,225 Lease incentive obligations 1,050 1,050 Long-term employee benefits 429 1,123 Other 1,818 1,821 $ 28,522 $ 29,219 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Long-term Debt, Including Current Maturities | The carrying value and estimated fair value of the Company's long-term debt, including current maturities, were as follows (in millions): September 30, 2023 September 30, 2022 Carrying Fair Carrying Fair Value Value Value Value Long-term debt and finance leases, including (1) $ 538.3 $ 493.6 $ 615.3 $ 541.7 Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs. |
Long-Term Debt, Finance Lease_2
Long-Term Debt, Finance Leases, and Other Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of September 30, 2023 and 2022, consisted of the following (in thousands): September 30, September 30, 2023 2022 Senior and subordinated notes payable to secured parties, due in monthly installments, interest based on SOFR 2.71 % through 2027 , $ 39,018 $ 73,850 Notes payable to secured parties, due in semi-annual installments, 4.75 % to 6.25 % 2028 , collateralized by the underlying aircraft 108,815 131,010 Notes payable to secured parties, due in quarterly installments, 2.20 % to 2.32 % 4.50 % for subordinated note through 2028 , 90,401 106,865 Revolving credit facility, quarterly interest based on SOFR plus 4.50 % through 2028 , with incentives for up 15 million based on achieving certain performance metrics 40,630 15,630 United Bridge Loan - due in quarterly installments based on SOFR 4.50 % through 2024 10,500 — Other obligations due to financial institution, monthly and/or quarterly 2022 through 2031 , collateralized 67,637 18,038 Notes payable to financial institution, due in monthly installments, 3.10 % through 2024 , collateralized by the underlying equipment 1,075 26,758 Notes payable to financial institution, due in monthly installments, plus 5.00 % through 2023 , secured by flight equipment — 2,000 Notes payable to financial institution, due in monthly installments, 7.50 %, through 2027 , 41,098 36,212 Notes payable to financial institution, quarterly interest based 3.50 % through 2027 139,100 204,947 Gross long-term debt, including current maturities 538,274 615,310 Less unamortized debt issuance costs ( 5,083 ) ( 8,303 ) Less notes payable warrants ( 4,913 ) ( 7,272 ) Net long-term debt, including current maturities 528,278 599,735 Less current portion, net of unamortized debt issuance costs ( 163,550 ) ( 97,218 ) Net long-term debt $ 364,728 $ 502,517 |
Schedule of Principal Maturities of Long-term Debt | Principal maturities of long-term debt as of September 30, 2023, and for each of the next five years are as follows (in thousands): Periods Ending June 30, Total Principal 2024 $ 164,807 2025 57,840 2026 199,234 2027 63,672 2028 36,322 Thereafter 16,399 $ 538,274 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculations of Net (Loss) Income Per Common Share | Calculations of net (loss) income per common share were as follows (in thousands, except per share data): Year Ended September 30, 2023 2022 2021 Net (loss)/income $ ( 120,116 ) $ ( 182,678 ) $ 16,588 Basic weighted average common 39,465 36,133 35,713 Add: Incremental shares for: Dilutive effect of warrants — — 2,543 Dilutive effect of restricted stock — — 587 Diluted weighted average common 39,465 36,133 38,843 Net (loss)/income per common share Basic $ ( 3.04 ) $ ( 5.06 ) $ 0.46 Diluted $ ( 3.04 ) $ ( 5.06 ) $ 0.43 |
Number of Weighted-Average Potentially Dilutive Shares Excluded from Calculation of Diluted Net (Loss) Income Per Share | The following number of weighted-average potentially dilutive shares (in thousands) were excluded from the calculation of diluted net (loss) income per share because the effect of including such potentially dilutive shares would have been anti-dilutive: Year Ended September 30, 2023 2022 2021 Warrants — 758 Restricted stock — 106 — 864 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended September 30, 2023 2022 2021 (in thousands) Current Federal $ — $ — $ ( 39 ) State 560 231 202 $ 560 $ 231 $ 163 Deferred Federal ( 7,392 ) ( 47,879 ) 4,494 State ( 1,913 ) ( 4,342 ) 1,171 $ ( 9,305 ) $ ( 52,221 ) $ 5,665 (Benefit) provision for income taxes $ ( 8,745 ) $ ( 51,990 ) $ 5,828 |
Schedule of Reconciliation between Effective Tax Rate Income from Continuing Operations and Statutory Rate | The reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows: Year Ended September 30, 2023 2022 2021 (in thousands) Income tax (benefit) provision at federal statutory rate $ ( 26,555 ) $ ( 49,280 ) $ 4,707 (Reduction) increase in income taxes resulting from: State taxes, net of federal tax benefit ( 2,062 ) ( 3,953 ) 669 Nondeductible stock compensation expenses 313 251 ( 241 ) Permanent items 225 206 292 Change in valuation allowances 18,201 ( 22 ) ( 140 ) 162(m) limitation 285 11 12 Impact of changing rates on deferred tax assets 499 ( 247 ) 509 Expired tax attributes 200 964 152 Other 149 80 ( 132 ) Income tax (benefit) provision $ ( 8,745 ) $ ( 51,990 ) $ 5,828 |
Schedule of Components of Deferred Taxes | The components of the Company's deferred taxes as of September 30, 2023 and 2022 are as follows: Year Ended September 30, 2023 2022 (in thousands) Net operating loss carryforwards $ 125,306 $ 131,897 Deferred credits 1,057 703 Other accrued expenses 1,234 1,769 Prepaids and other 556 1,175 Warrant liabilities 5,748 5,725 State alternative minimum tax — 1 Other reserves and estimated losses 937 873 Operating lease liabilities 2,991 8,012 Deferred revenue 4,829 5,506 Interest expense carryforward 6,457 — Gross deferred tax assets $ 149,115 $ 155,661 Less: valuation allowance ( 21,102 ) ( 2,901 ) Total net deferred tax assets $ 128,013 $ 152,760 Intangible assets — ( 877 ) Operating lease right-of-use assets ( 2,475 ) ( 2,055 ) Property and equipment ( 131,805 ) ( 166,586 ) Unrealized gain on equity investments ( 2,148 ) ( 961 ) Total deferred tax liabilities $ ( 136,427 ) $ ( 170,479 ) Net deferred tax liabilities $ ( 8,414 ) $ ( 17,719 ) |
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended September 30, 2023 2022 2021 (in thousands) Unrecognized tax benefits — October 1 $ 4,866 $ 4,866 $ 4,866 Gross decreases — tax positions in prior period — — — Gross increases — tax positions in prior period — — — Unrecognized tax benefits — September 30 $ 4,866 $ 4,866 $ 4,866 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | The restricted stock activity for our years ended September 30, 2023, 2022, and 2021 is summarized as follows: Weighted- Average Number Grant Date 2018 Plan of Shares Fair Value Restricted shares unvested at September 30, 2020 1,195,548 $ 5.47 Granted 346,123 $ 9.53 Vested ( 492,465 ) $ 6.89 Forfeited ( 43,000 ) $ 4.57 Restricted shares unvested at September 30, 2021 1,006,206 $ 6.22 Granted 718,959 $ 3.20 Vested ( 455,303 ) $ 6.13 Forfeited ( 97,369 ) $ 2.97 Restricted shares unvested at September 30, 2022 1,172,493 $ 4.43 Granted 495,087 $ 2.43 Vested ( 585,755 ) $ 4.58 Forfeited ( 344,934 ) $ 4.05 Restricted shares unvested at September 30, 2023 736,891 $ 3.35 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Operating and Financing Lease Costs | The components of our operating and finance lease costs were as follows (in thousands): Year Ended September 30, 2023 2022 Operating lease costs $ 8,517 $ 37,637 Variable and short-term lease costs 3,691 5,783 Interest expense on finance lease liabilities 4,492 547 Amortization expense of finance lease assets 13,414 2,705 Total lease costs $ 30,114 $ 46,672 |
Schedule of Weighted Average Remaining Terms and Discount Rates for Operating and Financing Leases | The table below presents the weighted average remaining terms and discount rates for our operating and finance leases as of September 30, 2023: As of September 30, 2023 Finance leases: Weighted average remaining lease term 2.17 Weighted average discount rate 3.4 % Operating leases: Weighted average remaining lease term 6.1 Weighted average discount rate 5.6 % |
Schedule of Future Minimum Rental Payments Under Operating and Finance Leases of Initial or Remaining Non-cancelable Lease Terms | The following table summarizes future minimum rental payments, primarily related to leased aircraft, required under operating and finance leases that had initial or remaining non-cancelable lease terms as of September 30, 2023 (in thousands): Periods Ending Operating Leases Finance Leases 2024 $ 4,243 $ 57,704 2025 2,449 1,257 2026 1,520 1,332 2027 1,437 1,411 2028 1,030 1,495 Thereafter 4,161 4,437 Total lease payments 14,840 67,636 Less: imputed interest ( 3,253 ) — Amounts recorded in the consolidated balance sheet $ 11,587 $ 67,636 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||||||
Jan. 11, 2024 USD ($) AirCraft | Dec. 31, 2023 USD ($) | Dec. 01, 2023 USD ($) Engine | Oct. 01, 2023 USD ($) AirCraft Engine | Jan. 13, 2023 shares | Dec. 20, 2019 AirCraft | Nov. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) DailyDeparture State AirCraft shares | May 31, 2023 AirCraft | Dec. 31, 2022 USD ($) AirCraft | Aug. 31, 2022 AirCraft | Mar. 31, 2024 USD ($) AirCraft | Sep. 30, 2023 USD ($) DailyDeparture AirCraft State City Employee shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | Dec. 31, 2024 USD ($) | Sep. 06, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 27, 2022 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of states in which entity operates | State | 36 | 36 | |||||||||||||||||
Number of aircrafts operated | AirCraft | 120 | ||||||||||||||||||
Reduction in loan amount | $ 5,000,000 | ||||||||||||||||||
Number of cities in which entity operates | City | 86 | ||||||||||||||||||
Number of daily departures | DailyDeparture | 296 | 296 | |||||||||||||||||
Number of employees | Employee | 2,303 | ||||||||||||||||||
Net cash (used in) provided by operating activities | $ (24,091,000) | $ 13,362,000 | $ 132,871,000 | ||||||||||||||||
Net (loss) income | (120,116,000) | (182,678,000) | 16,588,000 | ||||||||||||||||
Non-cash impairment charge | 50,600,000 | 62,100,000 | 0 | ||||||||||||||||
Loan forgiven | $ (1,505,000) | $ (397,000) | 950,000 | ||||||||||||||||
Common stock, shares issued | shares | 40,940,326 | 40,940,326 | 36,376,897 | ||||||||||||||||
Consideration for amended description | Additionally, in January 2023, in consideration for entering in the Amended and Restated United CPA and providing the revolving line of credit, discussed in Note 10, the Company (i) granted United the right to designate one individual to the Company's board of directors (the "United Designee"), which occurred effective May 2, 2023 with the appointment of Jonathan Ireland and (ii) issued to United 4,042,061 shares of the Company’s common stock equal to approximately 10% of the Company’s issued and outstanding capital stock on such date (the "United Shares"). United's board designee rights will terminate at such time as United's equity ownership in the Company falls below five percent (5%) of the Company's issued and outstanding stock. | ||||||||||||||||||
Additional revenue and liquidity | $ 10,400,000 | ||||||||||||||||||
Elimination in financing lease payments | $ 15,100,000 | 2,500,000 | |||||||||||||||||
United capacity purchase agreement termination notice period | 30 days | ||||||||||||||||||
Current portion of long-term debt | $ 163,550,000 | $ 163,550,000 | 97,218,000 | $ 154,971,000 | |||||||||||||||
Gain on sale of assets | 7,162,000 | 4,723,000 | $ (78,000) | ||||||||||||||||
Long-term debt and finance leases, excluding current portion | 364,728,000 | 364,728,000 | $ 502,517,000 | 411,311,000 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Gross proceeds from sale of asset | 27,200,000 | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of surplus engines to be sold | Engine | 12 | 12 | |||||||||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||||||||||
Additional revenue and liquidity | $ 63,500,000 | ||||||||||||||||||
Gross proceeds from sale of asset | $ 56,000,000 | $ 56,000,000 | |||||||||||||||||
Payment of debt and liquidity to fund operations and current debt obligations | $ 40,000,000 | $ 40,000,000 | |||||||||||||||||
Revolving Credit Facility [Member] | Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Repayments of long term debt | 2,100,000 | ||||||||||||||||||
United Line of Credit [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Revolving loan | $ 25,500,000 | 25,500,000 | |||||||||||||||||
Additional prepayment with potential forgiveness | 15,000,000 | ||||||||||||||||||
Debt reduction amount | $ 7,900,000 | ||||||||||||||||||
Percentage of controllable completion factor | 99.30% | ||||||||||||||||||
United Line of Credit [Member] | Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Additional prepayment with potential forgiveness | $ 9,000,000 | ||||||||||||||||||
United Capacity Purchase Agreement [Member] | Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Repayments of long term debt | 10,500,000 | ||||||||||||||||||
Additional revenue and liquidity | $ 63,500,000 | ||||||||||||||||||
United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Revolving loan | $ 10,500,000 | ||||||||||||||||||
Revolving commitments | $ 30,700,000 | ||||||||||||||||||
Correction of Error [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Current portion of long-term debt | 30,600,000 | ||||||||||||||||||
Factual balance sheet misstatement associated with certain debt covenant | $ 30,600,000 | ||||||||||||||||||
Maximum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Revolving commitments | $ 50,700,000 | ||||||||||||||||||
Maximum [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts operated | AirCraft | 80 | ||||||||||||||||||
Minimum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Revolving commitments | $ 30,700,000 | ||||||||||||||||||
RASPRO Aircraft Lease Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft lease terminated | AirCraft | 15 | ||||||||||||||||||
Buyout pricing | $ 25,000,000 | ||||||||||||||||||
Purchase Agreement [Member] | Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of engines to be sold | Engine | 23 | ||||||||||||||||||
Gross proceeds from sale of asset | $ 11,500,000 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft sold | AirCraft | 7 | ||||||||||||||||||
Number of aircraft to be sold | AirCraft | 11 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | Subsequent Event | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Proceeds from sale of asset | 600,000 | ||||||||||||||||||
Repayments of long term debt | 4,200,000 | ||||||||||||||||||
Loan forgiven | $ 5,000,000 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | UST Loan [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Proceeds from sale of asset | $ 1,500,000 | ||||||||||||||||||
Gross proceeds from sale of asset | $ 21,000,000 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | UST Loan [Member] | Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||||||||||
Proceeds from sale of asset | $ 6,500,000 | ||||||||||||||||||
Gross proceeds from sale of asset | $ 12,000,000 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts operated | AirCraft | 24 | 26 | |||||||||||||||||
Maximum number of aircraft to be operated | AirCraft | 38 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | Scenario Forecast [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Repayments of long term debt | $ 4,200,000 | ||||||||||||||||||
Loan forgiven | $ 5,000,000 | ||||||||||||||||||
CRJ-900 Aircraft [Member] | Scenario Forecast [Member] | Export Development Bank of Canada Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Maximum liquidity provided | $ 14,000,000 | ||||||||||||||||||
E-175 Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts operated | AirCraft | 54 | ||||||||||||||||||
Number of aircrafts to be removed | AirCraft | 18 | ||||||||||||||||||
Boeing 737400F [Member] | DHL Flight Services Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts operated | AirCraft | 4 | ||||||||||||||||||
Aircraft lease term | 5 years | ||||||||||||||||||
Number of aircraft leased | AirCraft | 2 | ||||||||||||||||||
Notice period for termination of agreement | At any time after the first anniversary of the commencement date of the first aircraft placed in service with 90 days' written notice. | ||||||||||||||||||
Aircraft option to extend agreement description | DHL has the option to extend the agreement with respect to one or more aircraft for a period of one year with 90 days’ advance written notice. | ||||||||||||||||||
Boeing737800 F [Member] | DHL Flight Services Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft leased | AirCraft | 1 | ||||||||||||||||||
Captains [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Percentage of increased overall hourly pay due to pilot shortage and attrition | 118% | 118% | |||||||||||||||||
New Hire First Officers [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Percentage of increased overall hourly pay due to pilot shortage and attrition | 172% | 172% | |||||||||||||||||
United [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Common stock, shares issued | shares | 4,042,061 | ||||||||||||||||||
Common Stock Issued Equivalent Percentage Of Issued And Outstanding Capital Stock | 10% | ||||||||||||||||||
Percentage of controllable completion factor | 99.30% | ||||||||||||||||||
United [Member] | United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Additional prepayment with potential forgiveness | $ 15,000,000 | ||||||||||||||||||
United [Member] | CRJ-700 Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts listed for sale | AirCraft | 18 | ||||||||||||||||||
Number of aircraft lease terminated | AirCraft | 18 | ||||||||||||||||||
Aircraft lease term | 9 years | ||||||||||||||||||
United [Member] | E175LL Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft leased | AirCraft | 20 | ||||||||||||||||||
Notice period for termination of agreement | United, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E-175 aircraft from service, by giving us notice of 90 days or more; and | ||||||||||||||||||
United [Member] | E-175 Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts operated | AirCraft | 42 | ||||||||||||||||||
Lease expiration year | 2028 | ||||||||||||||||||
Number of aircrafts owned | AirCraft | 18 | ||||||||||||||||||
Notice period for termination of agreement | United, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the agreement in its discretion, or remove aircraft from service, by giving us notice of 90 days or more | ||||||||||||||||||
United [Member] | E-175 Aircraft [Member] | Maximum [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Lease expiration year | 2028 | ||||||||||||||||||
United [Member] | E-175 Aircraft [Member] | Minimum [Member] | United Capacity Purchase Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Lease expiration year | 2024 | ||||||||||||||||||
American Airlines Inc. [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft held for sale | AirCraft | 7 | ||||||||||||||||||
Number of aircraft sold | AirCraft | 3 | ||||||||||||||||||
American Airlines Inc. [Member] | Subsequent Event | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||||||||||
American Airlines Inc. [Member] | CRJ-900 Aircraft [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of surplus aircraft to be sold | AirCraft | 7 | ||||||||||||||||||
Number of surplus aircraft sold | AirCraft | 3 | ||||||||||||||||||
Proceeds from sale of asset | $ 2,400,000 | ||||||||||||||||||
Gross proceeds from sale of asset | 29,700,000 | ||||||||||||||||||
American Airlines Inc. [Member] | CRJ-900 Aircraft [Member] | Subsequent Event | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||||||||||
Proceeds from sale of asset | $ 5,700,000 | ||||||||||||||||||
Gross proceeds from sale of asset | $ 41,500,000 | ||||||||||||||||||
Impact Of Pilot Shortage and Attrition [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Net cash (used in) provided by operating activities | 24,100,000 | ||||||||||||||||||
Net (loss) income | (120,100,000) | ||||||||||||||||||
Non-cash impairment charge | 54,300,000 | ||||||||||||||||||
Impact Of Pilot Shortage and Attrition [Member] | Export Development Bank of Canada Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Principal contingent amount upon repayment | $ 4,200,000 | ||||||||||||||||||
Impact Of Pilot Shortage and Attrition [Member] | RASPRO Aircraft Lease Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of aircrafts operated | AirCraft | 15 | ||||||||||||||||||
Impact Of Pilot Shortage and Attrition [Member] | Scenario Forecast [Member] | RASPRO Aircraft Lease Agreement [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Net cash from aircraft and equipment purchase agreement | $ (12,100,000) | ||||||||||||||||||
Buyout price | $ 50,300,000 | ||||||||||||||||||
Impact Of Pilot Shortage and Attrition [Member] | Scenario Forecast [Member] | RASPRO Aircraft Lease Agreement One [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of engines | AirCraft | 30 | ||||||||||||||||||
Buyout pricing | $ 19,500,000 | ||||||||||||||||||
Impact Of Pilot Shortage and Attrition [Member] | Scenario Forecast [Member] | RASPRO Aircraft Lease Agreement Two [Member] | |||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||||||
Number of airframes without engines | AirCraft | 15 | ||||||||||||||||||
Buyout pricing | $ 18,800,000 |
Organization and Operations - S
Organization and Operations - Summary of Original Reported Balances and Restated Balances Reflecting Correction (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Current liabilities: | |||
Current portion of long-term debt and finance leases | $ 163,550 | $ 154,971 | $ 97,218 |
Total current liabilities | 267,906 | 252,744 | 214,477 |
Noncurrent liabilities: | |||
Long-term debt and finance leases, excluding current portion | 364,728 | 411,311 | 502,517 |
Total noncurrent liabilities | 430,525 | 481,360 | 592,951 |
Total liabilities | $ 698,431 | 734,104 | $ 807,428 |
Reported [Member] | |||
Current liabilities: | |||
Current portion of long-term debt and finance leases | 124,341 | ||
Total current liabilities | 222,114 | ||
Noncurrent liabilities: | |||
Long-term debt and finance leases, excluding current portion | 441,941 | ||
Total noncurrent liabilities | 511,990 | ||
Total liabilities | 734,104 | ||
Adjustment [Member] | |||
Current liabilities: | |||
Current portion of long-term debt and finance leases | 30,630 | ||
Total current liabilities | 30,630 | ||
Noncurrent liabilities: | |||
Long-term debt and finance leases, excluding current portion | (30,630) | ||
Total noncurrent liabilities | $ (30,630) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Segment AirCraft | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Outstanding letters of credit to be collateralized by amounts on deposit, classified as restricted cash | $ 3,100,000 | $ 3,300,000 | |
Asset impairment | 54,343,000 | 171,824,000 | |
Impairment loss held for sale | 50,600,000 | 62,100,000 | $ 0 |
Impairment loss on intangible assets | 54,343,000 | 171,824,000 | |
Lease revenue | $ 144,700,000 | $ 158,400,000 | $ 170,200,000 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Contract revenue | Contract revenue | Contract revenue |
Current and non-current deferred credit balances | $ 5,100,000 | $ 3,900,000 | |
Recognized deferred credits within contract revenue | 1,700,000 | 900,000 | $ 2,400,000 |
Contract assets balances | 8,800,000 | 0 | |
Contract cost amortization | 1,000,000 | 0 | 2,000,000 |
Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense | 3,100,000 | 1,900,000 | 400,000 |
Deferred heavy maintenance balance, net of accumulated amortization | 8,000,000 | 9,700,000 | |
Engine overhaul expense | 32,400,000 | 23,600,000 | 31,400,000 |
Engine overhaul pass-through expense | 31,900,000 | 21,700,000 | 16,800,000 |
Airframe check expense | 23,400,000 | 22,100,000 | 51,100,000 |
Airframe check pass-through expense | 16,900,000 | 3,200,000 | 20,500,000 |
Impairment loss | 0 | 10,500,000 | 0 |
Net (loss) income | (120,116,000) | (182,678,000) | 16,588,000 |
Net cash (used in) provided by operating activities | (24,091,000) | 13,362,000 | 132,871,000 |
Working capital deficit | 129,300,000 | ||
Accumulated deficit | (71,119,000) | 48,997,000 | |
Cash and cash equivalents | $ 32,940,000 | 57,683,000 | |
CRJ-900 Aircraft [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of aircraft classified as assets held for sale | AirCraft | 14 | ||
Customer Relationships [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment loss on intangible assets | $ 3,700,000 | 1,900,000 | 0 |
Customer Relationships [Member] | CRJ-900 Aircraft [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment loss on intangible assets | 3,700,000 | 1,900,000 | 0 |
Property and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Asset impairment | 0 | 109,700,000 | 0 |
Other Long-lived Assets [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Asset impairment | 0 | 109,700,000 | $ 0 |
Long Lived Assets [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Asset impairment | 0 | ||
Aircraft [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Allowance for obsolete expendable parts and supplies | $ 4,100,000 | $ 3,800,000 | |
Percentage leased | 1% | ||
Aircraft and Rotable Spare Parts [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, salvage value, percentage | 20% | ||
Letter of Credit [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Letter of credit facility, amount | $ 6,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Various Classifications of Property and Equipment (Detail) | Sep. 30, 2023 |
Buildings [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 30 years |
Aircraft [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Method [Extensible Enumeration] | us-gaap:UsefulLifeTermOfLeaseMember |
Flight Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 7 years |
Flight Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 20 years |
Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 9 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Vehicles [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Rotable Spare Parts [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Method [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Method [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Contract Revenue and Pass-thr_3
Contract Revenue and Pass-through and Other Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Deferred Revenue | $ 10.4 | ||
Deferred revenue recognized | $ 3 | ||
Lease revenue | $ 144.7 | $ 158.4 | $ 170.2 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Contract revenue | Contract revenue | Contract revenue |
CRJ-700 | |||
Disaggregation Of Revenue [Line Items] | |||
Operating lease, term of contract | 9 years |
Contract Revenue and Pass-thr_4
Contract Revenue and Pass-through and Other Revenue - Schedule of Deferred Revenue Remaining Performance Obligations (Detail) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 21,047 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 4,880 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 5,281 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 4,199 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 3,835 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 2,008 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 844 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Contract Revenue and Pass-thr_5
Contract Revenue and Pass-through and Other Revenue - Schedule of Deferred Revenue Remaining Performance Obligations (Detail 1) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Revenue | $ 21,047 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Concentration Risk [Line Items] | |||
Restricted cash | $ 3,132,000 | $ 3,342,000 | |
Outstanding letters of credit to be collateralized by amounts on deposit | 3,100,000 | 3,300,000 | |
Allowance for doubtful accounts | $ 0 | $ 0 | |
Sales Revenue, Net [Member] | American Airlines Inc. [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23% | 45% | 45% |
Sales Revenue, Net [Member] | United [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 73% | 48% | 52% |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | $ 54,343,000 | $ 171,824,000 | |
Amortization expense recognized | 100,000 | 1,000,000 | $ 1,200,000 |
Amortization expense next twelve months and year thereafter | 0 | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | 3,700,000 | 1,900,000 | 0 |
Customer Relationships [Member] | American Capacity Purchase Agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | 3,700,000 | ||
Customer Relationships [Member] | CRJ-900 Aircraft [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | $ 3,700,000 | $ 1,900,000 | $ 0 |
Intangible Assets - Information
Intangible Assets - Information About Intangible Assets (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Customer relationship | $ 43,800 |
Accumulated amortization | (38,029) |
Impairment | (1,929) |
Net carrying value | $ 3,842 |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Jan. 11, 2024 AirCraft | Dec. 01, 2023 USD ($) Engine | Oct. 01, 2023 USD ($) AirCraft Engine | Jan. 31, 2023 USD ($) AirCraft | Sep. 30, 2023 USD ($) AirCraft | Sep. 30, 2022 USD ($) AirCraft | |
Long Lived Assets Held For Sale [Line Items] | ||||||
Asset impairment | $ 54,343,000 | $ 171,824,000 | ||||
Aircraft held for sale current | 57,722,000 | |||||
Aircraft held for sale | $ 12,000,000 | $ 73,000,000 | ||||
Subsequent Event [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft sold | AirCraft | 4 | |||||
Gross proceeds from sale of asset | $ 56,000,000 | $ 56,000,000 | ||||
Number of surplus engines to be sold | Engine | 12 | 12 | ||||
Payment of debt and liquidity to fund operations and current debt obligations | $ 40,000,000 | $ 40,000,000 | ||||
CRJ-700 | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft held for sale | AirCraft | 8 | |||||
Number of aircraft leased to third party | AirCraft | 2 | |||||
Number of aircraft sold | AirCraft | 8 | |||||
Gross proceeds from sale of asset | $ 40,000,000 | |||||
Proceeds from sale of asset | $ 8,000,000 | |||||
CRJ-900 [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft held for sale | AirCraft | 15 | 11 | ||||
Number of aircraft eligible to be classified as assets held for sale | AirCraft | 14 | |||||
Asset impairment | $ 0 | |||||
Number of aircraft sold | AirCraft | 4 | 7 | ||||
Gross proceeds from sale of asset | $ 12,000,000 | $ 21,000,000 | ||||
Proceeds from sale of asset | 1,500,000 | |||||
Assets held for sale with a net book value | 69,700,000 | |||||
Aircraft held for sale current | 57,700,000 | |||||
Aircraft held for sale | $ 12,000,000 | |||||
CRJ-900 [Member] | RASPRO Aircraft Lease Agreement [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft held for sale | AirCraft | 7 | |||||
CRJ-900 [Member] | American Airlines Inc. [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft sold | AirCraft | 3 | |||||
Number of surplus aircraft to be sold | AirCraft | 7 | |||||
Gross proceeds from sale of asset | $ 29,700,000 | |||||
Proceeds from sale of asset | $ 2,400,000 | |||||
CRJ-900 [Member] | American Airlines Inc. [Member] | Subsequent Event [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft sold | AirCraft | 4 | |||||
Gross proceeds from sale of asset | $ 41,500,000 | |||||
Proceeds from sale of asset | $ 5,700,000 | |||||
CRJ-200 [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Number of aircraft held for sale | AirCraft | 1 |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Certain Significant Amounts Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Expendable parts and supplies, net: | ||
Expendable parts and supplies | $ 39,630 | $ 31,913 |
Less: expendable parts warranty | (6,295) | (1,373) |
Less: obsolescence | (4,090) | (3,825) |
Expendable parts and supplies, net | 29,245 | 26,715 |
Prepaid expenses and other current assets: | ||
Prepaid aviation insurance | 3,176 | 2,618 |
Prepaid vendors | 143 | 1,310 |
Prepaid other insurance | 1,205 | 1,268 |
Lease Incentives | 1,125 | 352 |
Prepaid fuel and other | 1,645 | 1,068 |
Prepaid expenses and other current assets | 7,294 | 6,616 |
Property and equipment, net: | ||
Property and equipment-gross | 1,049,203 | 1,270,563 |
Less: accumulated depreciation | (351,181) | (405,309) |
Property and equipment-net | 698,022 | 865,254 |
Other assets: | ||
Investments in equity securities | 20,320 | 15,178 |
Lease incentives | 954 | 1,097 |
Contract asset | 8,756 | |
Other | 516 | 15 |
Other assets | 30,546 | 16,290 |
Other accrued expenses: | ||
Accrued property taxes | 5,281 | 5,866 |
Accrued interest | 3,447 | 2,882 |
Accrued vacation | 6,763 | 4,746 |
Accrued lodging | 3,984 | 3,795 |
Accrued maintenance | 2,117 | 1,453 |
Accrued liability on government payroll program | 2,967 | |
Accrued simulator costs | 1,006 | 1,045 |
Accrued employee benefits | 1,450 | 1,679 |
Accrued fleet operating expense | 650 | 1,606 |
Short term lease incentive liability | 97 | 97 |
Other | 2,206 | 2,864 |
Other accrued expenses | 27,001 | 29,000 |
Other noncurrent liabilities: | ||
Warrant liabilities | 25,225 | 25,225 |
Lease incentive obligations | 1,050 | 1,050 |
Long-term employee benefits | 429 | 1,123 |
Other | 1,818 | 1,821 |
Other noncurrent liabilities | 28,522 | 29,219 |
Aircraft and Other Flight Equipment [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | 1,039,782 | 1,260,143 |
Other Machinery and Equipment [Member] | ||
Property and equipment, net: | ||
Property and equipment-gross | $ 9,421 | $ 10,420 |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Jul. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 28, 2022 | |
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Asset impairment | $ 54,343,000 | $ 171,824,000 | ||||
Depreciation expense | 60,200,000 | 80,500,000 | $ 81,200,000 | |||
Estimated initial equity warrant asset value | 16,400,000 | |||||
Warrant asset value | 16,400,000 | |||||
Investments in equity securities | 20,320,000 | 15,178,000 | ||||
Estimated initial warrant asset value | $ 3,200,000 | |||||
Net gains/(losses) on investments in equity securities | 5,400,000 | (13,700,000) | ||||
Aggregate carrying amount of investments in equity securities | 20,300,000 | |||||
Investments without readily determinable fair value | 8,800,000 | |||||
Level 3 [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Investments in equity securities | 3,500,000 | |||||
Archer Aviation, Inc. [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Gains/(losses) on investments | 5,600,000 | (13,700,000) | ||||
Archer Aviation, Inc. [Member] | Level 1 [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Investments in equity securities | 11,500,000 | |||||
Heart Aerospace Incorporated [Member] | Level 3 [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Investments in equity securities | 5,000,000 | |||||
Heart Aerospace Incorporated [Member] | Forward Purchase Contract [Member] | Preferred Stock [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Purchase of preferred stock | $ 5,000,000 | |||||
Initial investment in preferred stock measured at cost | $ 5,000,000 | |||||
Class A [Member] | Archer Aviation, Inc. [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Stock issued during period, Shares | 500,000 | |||||
Stock issued during period, Value | $ 5,000,000 | |||||
Total grant date value, Additional warrant to purchase shares | $ 5,600,000 | |||||
Long Lived Assets [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Asset impairment | 0 | |||||
CRJ-900 [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Asset impairment | 0 | |||||
CRJ-900 [Member] | Long Lived Assets [Member] | ||||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||||
Asset impairment | $ 0 | $ 116,600,000 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Long-term Debt, Including Current Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Fair Value Disclosures [Abstract] | ||
Long-term debt and finance leases, including current maturities, carrying value | $ 538,274 | $ 615,310 |
Long-term debt and finance leases, including current maturities, fair value | $ 493,600 | $ 541,700 |
Long-Term Debt, Finance Lease_3
Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | $ 538,274 | $ 615,310 |
Less unamortized debt issuance costs | (5,083) | (8,303) |
Less notes payable warrants | (4,913) | (7,272) |
Net long-term debt, including current maturities | 528,278 | 599,735 |
Less current portion, net of unamortized debt issuance costs | (163,550) | (97,218) |
Net long-term debt | 364,728 | 502,517 |
Revolving credit facility quaterly collateralized by underlying equipment and investments through two thousand twenty eight [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 40,630 | 15,630 |
Senior and Subordinated Notes Payable to Secured Parties, Due in Monthly Installments Collateralized by the Underlying Aircraft Through 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 39,018 | 73,850 |
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 108,815 | 131,010 |
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 90,401 | 106,865 |
United Bridge Loan Quaterly Collateralized By Underlying Equipment And Investments Through Two Thousand Twenty Four [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 10,500 | |
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 67,637 | 18,038 |
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 1,075 | 26,758 |
Notes Payable to Financial Institution, Due in Monthly Installments Secured by Flight Equipment, Through 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 2,000 | |
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | 41,098 | 36,212 |
Notes Payable To Financial Institution Due Two Thousand Twenty Three [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | $ 139,100 | $ 204,947 |
Long-Term Debt, Finance Lease_4
Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revolving Credit Facility Quaterly Collateralized By Underlying Equipment And Investments Through Two Thousand Twenty Eight [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2028 | |
Long term debt interest rate description | quarterly interest based on SOFR plus interest spread at 4.50% | |
Revolving Credit Facility Quaterly Collateralized By Underlying Equipment And Investments Through Two Thousand Twenty Eight [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 4.50% | |
Revolving Credit Facility Quaterly Collateralized By Underlying Equipment And Investments Through Two Thousand Twenty Eight [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Incentive Recieved | $ 15 | |
Senior and Subordinated Notes Payable to Secured Parties, Due in Monthly Installments Collateralized by the Underlying Aircraft Through 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2027 | 2027 |
Long term debt interest rate description | due in monthly installments, interest based on SOFR plus interest spread at 2.71% | |
Senior and Subordinated Notes Payable to Secured Parties, Due in Monthly Installments Collateralized by the Underlying Aircraft Through 2027 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 2.71% | |
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2028 | 2028 |
Long term debt interest rate description | due in semi-annual installments, interest based on SOFR plus interest spread at 4.75% to 6.25% | |
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 4.75% | |
Notes Payable to Secured Parties, Due in Semi Annual Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 6.25% | |
United Bridge Loan Quaterly Collateralized By Underlying Equipment And Investments Through Two Thousand Twenty Four [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate description | due in quarterly installments based on SOFR plus interest spread at 4.50% | |
United Bridge Loan Quaterly Collateralized By Underlying Equipment And Investments Through Two Thousand Twenty Four [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2024 | 2024 |
Long term debt, basis spread on variable rate | 4.50% | |
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate description | monthly and/or quarterly interest due from 2022 through 2031, | |
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2022 | 2022 |
Other Obligations Due to Financial Institutions, Monthly or Quarterly Collateralized by the Underlying Equipment, Due 2022 Through 2031 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2031 | 2031 |
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2028 | 2028 |
Long term debt interest rate description | due in quarterly installments, interest based on SOFR plus interest at spread 2.20% to 2.32% for senior note & 4.50% for subordinated note | |
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | Subordinated Note [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 4.50% | |
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior Note [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 2.20% | |
Notes Payable to Secured Parties, Due in Quarterly Installments Collateralized by the Underlying Aircraft Through 2028 [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior Note [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 2.32% | |
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2027 | 2027 |
Long term debt interest rate description | due in monthly installments, interest based on fixed interest of 7.50%, through 2027 | |
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2027 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 7.50% | |
Notes Payable to Financial Institution, Quarterly, Through 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt interest rate description | Notes payable to financial institution, quarterly interest based on SOFR plus interest spread at 3.50% | |
Notes Payable to Financial Institution, Quarterly, Through 2027 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 3.50% | |
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2024 | 2024 |
Long term debt interest rate description | due in monthly installments, interest based on SOFR plus interest spread at 3.10% | |
Notes Payable to Financial Institution, Due in Monthly Installments Collateralized by the Underlying Equipment, Through 2024 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 3.10% | |
Notes Payable to Financial Institution, Due in Monthly Installments Secured by Flight Equipment, Through 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity year | 2023 | 2023 |
Long term debt interest rate description | due in monthly installments, plus interest spread at 5.00% | |
Notes Payable to Financial Institution, Due in Monthly Installments Secured by Flight Equipment, Through 2023 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, basis spread on variable rate | 5% |
Long-Term Debt, Finance Lease_5
Long-Term Debt, Finance Leases, and Other Borrowings - Schedule of Principal Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Long-Term Debt, Fiscal Year Maturity [Abstract] | ||
2024 | $ 164,807 | |
2025 | 57,840 | |
2026 | 199,234 | |
2027 | 63,672 | |
2028 | 36,322 | |
Thereafter | 16,399 | |
Long-term debt | $ 538,274 | $ 615,310 |
Long-Term Debt, Finance Lease_6
Long-Term Debt, Finance Leases, and Other Borrowings - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||
Jan. 11, 2024 USD ($) AirCraft | Dec. 31, 2023 USD ($) | Dec. 01, 2023 USD ($) | Oct. 01, 2023 USD ($) Engine AirCraft | Sep. 06, 2023 USD ($) | Dec. 27, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 13, 2020 USD ($) | Nov. 12, 2020 USD ($) AirCraft | Oct. 30, 2020 USD ($) $ / shares shares | May 31, 2023 AirCraft | Sep. 30, 2023 USD ($) AirCraft $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Nov. 14, 2020 USD ($) | Jun. 30, 2015 AirCraft | |
Debt Instrument [Line Items] | ||||||||||||||||
Property and equipment, net | $ 698,022 | $ 865,254 | ||||||||||||||
Long-Term Debt | 528,278 | 599,735 | ||||||||||||||
Debt outstanding | $ 538,274 | 615,310 | ||||||||||||||
Warrants of common stock exercise price | $ / shares | $ 3.98 | |||||||||||||||
Loan forgiven | $ (1,505) | $ (397) | $ 950 | |||||||||||||
Principal payments | $ 22,200 | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft sold | AirCraft | 4 | |||||||||||||||
Gross proceeds from sale of asset | $ 56,000 | $ 56,000 | ||||||||||||||
CRJ-900 Aircraft [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft classified as assets held for sale | AirCraft | 14 | |||||||||||||||
Number of aircraft sold | AirCraft | 7 | |||||||||||||||
CRJ-900 Aircraft [Member] | American Airlines Inc. [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gross proceeds from sale of asset | $ 29,700 | |||||||||||||||
CRJ-900 Aircraft [Member] | American Airlines Inc. [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft sold | AirCraft | 4 | |||||||||||||||
Gross proceeds from sale of asset | $ 41,500 | |||||||||||||||
Treasury Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt outstanding | 139,100 | |||||||||||||||
Principal payments | 65,800 | |||||||||||||||
Treasury Loan [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Calculated collateral coverage ratio | 0.155 | |||||||||||||||
Treasury Loan [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Additional collateral coverage ratio | 0.155 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt outstanding | 39,000 | |||||||||||||||
Gross proceeds from sale of asset | $ 27,200 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | American Airlines Inc. [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft held for sale | AirCraft | 7 | |||||||||||||||
Number of aircraft sold | AirCraft | 3 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | American Airlines Inc. [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft sold | AirCraft | 4 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | CRJ-900 Aircraft [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Jun. 30, 2027 | |||||||||||||||
Number of aircraft financed | AirCraft | 7 | |||||||||||||||
Deferred loan amount outstanding | $ 14,000 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | CRJ-900 Aircraft [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of long term debt | $ 4,200 | |||||||||||||||
Loan forgiven | $ 5,000 | |||||||||||||||
EDC Loan and MHIRJ Junior Note [Member] | CRJ-900 Aircraft [Member] | Scenario Forecast [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of long term debt | $ 4,200 | |||||||||||||||
Loan forgiven | $ 5,000 | |||||||||||||||
Loan Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Secured term loan facility, amount borrowed | $ 43,000 | |||||||||||||||
Secured term loan facility, additional amount borrowed | $ 152,000 | |||||||||||||||
Warrants to purchase shares of common stock | shares | 4,899,497 | |||||||||||||||
Warrants of common stock exercise price | $ / shares | $ 3.98 | |||||||||||||||
Debt issuance costs allocated to warrants | 100 | |||||||||||||||
Repayments of long term debt | $ 167,700 | |||||||||||||||
Number of aircraft financed | AirCraft | 44 | |||||||||||||||
Loan Agreement [Member] | EDC Loans [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance costs | 3,100 | |||||||||||||||
Repayments of long term debt | 1,000 | |||||||||||||||
Payment of loans | $ 164,200 | |||||||||||||||
Discount for balance amount of loans | $ 3,500 | |||||||||||||||
Unamortized debt discounts | 2,500 | |||||||||||||||
Loan Agreement [Member] | FortyThreeMillionTreasuryLoanMember | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Capitalized debt issuance costs, net | $ 700 | |||||||||||||||
Loan Agreement [Member] | $152M Treasury Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Capitalized debt issuance costs, net | 2,300 | |||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Permitted amount to redraw from existing credit facility | $ 7,900 | |||||||||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of long term debt | $ 2,100 | |||||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving commitments | 50,700 | |||||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving commitments | $ 30,700 | |||||||||||||||
Spare Engine Facility [Member] | Loan Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Secured term loan facility, maximum borrowing capacity | $ 54,000 | |||||||||||||||
Debt instrument, maturity date | Dec. 31, 2027 | |||||||||||||||
Debt instrument, face amount | $ 35,300 | |||||||||||||||
Long term debt interest rate description | LIBOR plus 4.25% | |||||||||||||||
Long term debt, basis spread on variable rate | 4.25% | |||||||||||||||
Spare Engine Facility [Member] | Loan Agreement [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of new spare engines to be acquired | Engine | 12 | |||||||||||||||
Equipment Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-Term Debt | 108,800 | |||||||||||||||
Secured Term Loan Facility [Member] | Loan Agreement [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Secured term loan facility, maximum borrowing capacity | 200,000 | |||||||||||||||
Secured Term Loan Facility [Member] | Loan Agreement [Member] | Treasury Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Secured term loan facility, amount borrowed | $ 43,000 | |||||||||||||||
Secured term loan facility, additional amount borrowed | $ 152,000 | $ 0 | ||||||||||||||
Debt instrument, maturity date | Oct. 30, 2025 | |||||||||||||||
Long term debt, basis spread on variable rate | 3.50% | |||||||||||||||
American Capacity Purchase Agreement [Member] | EDC Loan and MHIRJ Junior Note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayment of senior and junior notes | $ 34,600 | |||||||||||||||
American Purchase Agreement [Member] | CRJ-900 Aircraft [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of aircraft sold | AirCraft | 4 | |||||||||||||||
Gross proceeds from sale of asset | $ 41,500 | |||||||||||||||
American Purchase Agreement [Member] | EDC Loan and MHIRJ Junior Note [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gross proceeds from sale of asset | 600 | |||||||||||||||
American Purchase Agreement [Member] | EDC Loan and MHIRJ Junior Note [Member] | CRJ-900 Aircraft [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of long term debt | 4,200 | |||||||||||||||
Loan forgiven | $ 5,000 | |||||||||||||||
United Capacity Purchase Agreement [Member] | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of long term debt | $ 10,500 | |||||||||||||||
United Capacity Purchase Agreement [Member] | United Airlines, Inc. [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Percentage of controllable completion factor | 99.30% | |||||||||||||||
United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 3.50% | 3.50% | ||||||||||||||
Long-Term Line of Credit | $ 10,500 | |||||||||||||||
Revolving commitments | 30,700 | |||||||||||||||
Covenant capping restricted payments | $ 5,000 | |||||||||||||||
Rental coverage ratio | 1 | |||||||||||||||
United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | SOFR [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long term debt, basis spread on variable rate | 4.50% | 4.50% | ||||||||||||||
United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | United Airlines, Inc. [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letter of credit facility, amount | $ 25,500 | |||||||||||||||
Additional prepayment with potential forgiveness | 15,000 | |||||||||||||||
Forgiveness achieved | 9,000 | |||||||||||||||
United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount required | $ 15,000 | |||||||||||||||
Aircraft and Equipment [Member] | Pledged as Collateral [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Property and equipment, net | $ 660,400 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Net (Loss) Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share And Equity [Abstract] | |||
Net (loss)/income | $ (120,116) | $ (182,678) | $ 16,588 |
Basic weighted average common shares outstanding | 39,465 | 36,133 | 35,713 |
Add: Incremental shares for: | |||
Dilutive effect of warrants | 2,543 | ||
Dilutive effect of restricted stock | 587 | ||
Diluted weighted average common shares outstanding | 39,465 | 36,133 | 38,843 |
Net (loss)/income per common share attributable to Mesa Air Group: | |||
Basic | $ (3.04) | $ (5.06) | $ 0.46 |
Diluted | $ (3.04) | $ (5.06) | $ 0.43 |
Earnings Per Share - Number of
Earnings Per Share - Number of Weighted-Average Potentially Dilutive Shares Excluded from Calculation of Diluted Net (Loss) Income Per Share (Detail) shares in Thousands | 12 Months Ended |
Sep. 30, 2022 shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from calculation of diluted net (loss) income per share | 864 |
Number of Warrants [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from calculation of diluted net (loss) income per share | 758 |
Restricted Stock [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from calculation of diluted net (loss) income per share | 106 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Stockholders' Equity Note [Abstract] | ||
Warrants of common stock exercise price | $ 3.98 | |
Common stock, warrants issued | 4,899,497 | 4,899,497 |
Common stock, warrants outstanding | 4,899,497 | 4,899,497 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current | |||
Federal | $ (39) | ||
State | $ 560 | $ 231 | 202 |
Total current income tax provision | 560 | 231 | 163 |
Deferred | |||
Federal | (7,392) | (47,879) | 4,494 |
State | (1,913) | (4,342) | 1,171 |
Total deferred income tax provision | (9,305) | (52,221) | 5,665 |
(Benefit) provision for income taxes | $ (8,745) | $ (51,990) | $ 5,828 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation between Effective Tax Rate Income from Continuing Operations and Statutory Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax (benefit) provision at federal statutory rate | $ (26,555) | $ (49,280) | $ 4,707 |
(Reduction) increase in income taxes resulting from: | |||
State taxes, net of federal tax benefit | (2,062) | (3,953) | 669 |
Nondeductible stock compensation expenses | 313 | 251 | (241) |
Permanent items | 225 | 206 | 292 |
Change in valuation allowances | 18,201 | (22) | (140) |
162(m) limitation | 285 | 11 | 12 |
Impact of changing rates on deferred tax assets | 499 | (247) | 509 |
Expired tax attributes | 200 | 964 | 152 |
Other | 149 | 80 | (132) |
(Benefit) provision for income taxes | $ (8,745) | $ (51,990) | $ 5,828 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 125,306 | $ 131,897 |
Deferred credits | 1,057 | 703 |
Other accrued expenses | 1,234 | 1,769 |
Prepaids and other | 556 | 1,175 |
Warrant liabilities | 5,748 | 5,725 |
State alternative minimum tax | 1 | |
Other reserves and estimated losses | 937 | 873 |
Operating lease liabilities | 2,991 | 8,012 |
Deferred revenue | 4,829 | 5,506 |
Interest expense carryforward | 6,457 | |
Gross deferred tax assets | 149,115 | 155,661 |
Less: valuation allowance | (21,102) | (2,901) |
Total net deferred tax assets | 128,013 | 152,760 |
Intangible assets | (877) | |
Operating lease right-of-use assets | (2,475) | (2,055) |
Property and equipment | (131,805) | (166,586) |
Unrealized gain on equity investments | (2,148) | (961) |
Total deferred tax liabilities | (136,427) | (170,479) |
Net deferred tax liabilities | $ (8,414) | $ (17,719) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Line Items] | |||
Interest expense carryovers | $ 6,457 | ||
Operating loss carryforwards, valuation allowance | 21,100 | $ 2,900 | |
Unrecognized tax benefits if unrecognized, the balance of uncertain tax benefits would impact the effective tax rate | $ 4,900 | 4,900 | $ 4,900 |
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards not subject to expiration | $ 194,200 | ||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 80% | ||
Interest expense carryovers | $ 29,100 | ||
Domestic Tax Authority [Member] | 2027-2038 [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 562,600 | ||
State and Local Jurisdiction [Member] | 2022-2042 [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 233,500 | ||
Minimum [Member] | Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration year | 2027 | ||
Minimum [Member] | State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration year | 2023 | ||
Maximum [Member] | Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration year | 2038 | ||
Maximum [Member] | State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration year | 2043 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2020 | |
Income Tax Uncertainties [Abstract] | |||
Unrecognized tax benefits beginning balance | $ 4,866 | $ 4,866 | $ 4,866 |
Gross decreases — tax positions in prior period | 0 | 0 | 0 |
Gross increases — tax positions in prior period | 0 | 0 | 0 |
Unrecognized tax benefits ending balance | $ 4,866 | $ 4,866 | $ 4,866 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested share-based compensation arrangements | $ 1.7 | ||
Unrecognized compensation cost, period for recognition | 1 year 3 months 18 days | ||
Share-based compensation expense | $ 2.3 | $ 2.8 | $ 3.1 |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchased shares, shares | 204,486 | 147,108 | 155,174 |
Repurchased shares, value | $ 0.4 | $ 0.5 | $ 1.5 |
Board of Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares vesting period | 1 year | ||
Restricted Stock Units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares vesting period | 3 years | ||
Restricted Stock Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares vesting period | 5 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Unvested, Beginning Balance | 1,172,493 | 1,006,206 | 1,195,548 |
Number of Shares, Granted | 495,087 | 718,959 | 346,123 |
Number of Shares, Vested | (585,755) | (455,303) | (492,465) |
Number of Shares, Forfeited | (344,934) | (97,369) | (43,000) |
Number of Shares, Unvested, Ending Balance | 736,891 | 1,172,493 | 1,006,206 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ 4.43 | $ 6.22 | $ 5.47 |
Weighted-Average Grant Date Fair Value, Granted | 2.43 | 3.2 | 9.53 |
Weighted-Average Grant Date Fair Value, Vested | 4.58 | 6.13 | 6.89 |
Weighted-Average Grant Date Fair Value, Forfeited | 4.05 | 2.97 | 4.57 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ 3.35 | $ 4.43 | $ 6.22 |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - 2019 ESPP [Member] - shares | 12 Months Ended | 54 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ordinary shares, discount rate | 10% | |
Number of ordinary shares issued | 140,453 | 444,590 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Eligible employees contribution from their eligible compensation during each semi annual | 1% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Eligible employees contribution from their eligible compensation during each semi annual | 15% | |
Number of ordinary shares issued | 500,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) AirCraft | Sep. 30, 2023 USD ($) AirCraft | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Sep. 23, 2005 USD ($) AirCraft | |
Lessee, Lease, Description [Line Items] | |||||||
Number of leased aircraft under finance lease | AirCraft | 15 | ||||||
Number of spare engines leased under finance lease | AirCraft | 3 | ||||||
Finance lease obligations | $ 67,600,000 | ||||||
Operating lease, right-of-use assets | 9,709,000 | $ 43,090,000 | |||||
Operating lease current liabilities | 3,510,000 | 17,233,000 | |||||
Operating lease noncurrent liabilities | 8,077,000 | 16,732,000 | |||||
Financing lease current | $ 57,700,000 | ||||||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt and finance leases ($20,500 and $0 from related party) | ||||||
Number of leased aircraft | AirCraft | 18 | ||||||
Financing lease noncurrent liabilities | $ 9,900,000 | ||||||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance leases, excluding current portion ($30,630 and $0 from related party) | ||||||
Operating lease payments in operating cash flows | $ 9,476,000 | 36,262,000 | $ 47,612,000 | ||||
Aggregate rental expense under all operating aircraft, equipment and facility lease | 12,200,000 | 43,400,000 | 44,600,000 | ||||
Financing lease payments in operating cash flows | 1,200,000 | 300,000 | |||||
Financing lease payments in financing cash flows | 15,100,000 | 2,500,000 | |||||
Impairment loss | 0 | 10,500,000 | 0 | ||||
Deferred income taxes | 8,414,000 | 17,719,000 | |||||
Cash, cash equivalents and availability under lines of credit | $ 36,072,000 | $ 61,025,000 | $ 123,867,000 | $ 102,841,000 | |||
RASPRO Aircraft Lease Agreement [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Deferred income taxes | $ 4,000,000 | ||||||
Number of aircraft lease terminated | AirCraft | 15 | ||||||
Buyout pricing | $ 25,000,000 | ||||||
CRJ-900 Aircraft [Member] | RASPRO Aircraft Lease Agreement [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Number of leased aircraft | AirCraft | 15 | ||||||
Cash, cash equivalents and availability under lines of credit | $ 35,000,000 |
Leases - Components of Operatin
Leases - Components of Operating and Finance Lease Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 8,517 | $ 37,637 |
Variable and short-term lease costs | 3,691 | 5,783 |
Interest expense on finance lease liabilities | 4,492 | 547 |
Amortization expense of finance lease assets | 13,414 | 2,705 |
Total lease costs | $ 30,114 | $ 46,672 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Terms and Discount Rates for Operating and Financing Leases (Detail) | Sep. 30, 2023 |
Finance leases: | |
Weighted average remaining lease term | 2 years 2 months 1 day |
Weighted average discount rate | 3.40% |
Operating leases: | |
Weighted average remaining lease term | 6 years 1 month 6 days |
Weighted average discount rate | 5.60% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments under Operating and Finance Leases of Initial or Remaining Non-cancelable Lease Terms (Detail) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating Leases | |
2024 | $ 4,243 |
2025 | 2,449 |
2026 | 1,520 |
2027 | 1,030 |
2028 | 1,437 |
Thereafter | 4,161 |
Total lease payments | 14,840 |
Less: imputed interest | (3,253) |
Amounts recorded in the consolidated balance sheet | 11,587 |
Finance Leases | |
2024 | 57,704 |
2025 | 1,257 |
2026 | 1,332 |
2027 | 1,495 |
2028 | 1,411 |
Thereafter | 4,437 |
Total lease payments | 67,636 |
Amounts recorded in the consolidated balance sheet | $ 67,636 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 USD ($) Engine | Sep. 30, 2023 USD ($) Engine | Jul. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | |
Forward Purchase Contract [Member] | Heart Aerospace Incorporated [Member] | Maximum [Member] | ||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | ||||
Purchase commitment amount | $ 1,200,000,000 | |||
CF34-8C5 or CF34-8E5 Engines [Member] | Letter Agreement No. 13-3 [Member] | ||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | ||||
Number of new spare engines to be acquired | Engine | 10 | |||
New spare engines delivery month and year description | The Company agreed to purchase and take delivery of 10 new CF34-8C5 or CF34-8E5 engines with delivery dates starting from July 1, 2021 through November 1, 2022. During the quarter ended March 31, 2021, a $7.0 million non-refundable purchase deposit was made for the first five engines to be delivered in calendar year 2021. | |||
Purchase deposit | $ 7,000,000 | |||
Number of new spare engines to be delivered | Engine | 5 | |||
Number of additional spare engines to be acquired beyond 2022 | Engine | 10 | |||
Purchase commitment amount | $ 52,200,000 | |||
eVTOL Aircraft [Member] | Forward Purchase Contract [Member] | Archer Aviation, Inc. [Member] | ||||
Purchase Commitment Excluding Longterm Commitment [Line Items] | ||||
Purchase commitment amount | $ 200,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jan. 11, 2024 USD ($) AirCraft | Dec. 31, 2023 USD ($) | Dec. 01, 2023 USD ($) Engine | Oct. 01, 2023 USD ($) AirCraft Engine | Sep. 30, 2023 AirCraft | Dec. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) Engine AirCraft | Sep. 30, 2023 USD ($) AirCraft | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 27, 2022 USD ($) | |
Subsequent Event [Line Items] | |||||||||||
Additional revenue and liquidity | $ 10,400 | ||||||||||
Loan forgiven | $ (1,505) | $ (397) | $ 950 | ||||||||
Number of aircrafts operated | AirCraft | 120 | ||||||||||
EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Gross proceeds from sale of asset | $ 27,200 | ||||||||||
American Airlines Inc. [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 3 | ||||||||||
RASPRO Aircraft Lease Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Buyout pricing | $ 25,000 | ||||||||||
United Capacity Purchase Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Revolving loan | $ 10,500 | ||||||||||
CRJ-900 Aircraft [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 7 | ||||||||||
CRJ-900 Aircraft [Member] | American Airlines Inc. [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Gross proceeds from sale of asset | $ 29,700 | ||||||||||
Proceeds from sale of asset | $ 2,400 | ||||||||||
CRJ-900 Aircraft [Member] | United Capacity Purchase Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircrafts operated | AirCraft | 24 | 26 | |||||||||
UST Loan [Member] | CRJ-900 Aircraft [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Gross proceeds from sale of asset | $ 21,000 | ||||||||||
Proceeds from sale of asset | $ 1,500 | ||||||||||
Impact Of Pilot Shortage and Attrition [Member] | RASPRO Aircraft Lease Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircrafts operated | AirCraft | 15 | ||||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of surplus engines to be sold | Engine | 12 | 12 | |||||||||
Additional revenue and liquidity | $ 63,500 | ||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||
Gross proceeds from sale of asset | $ 56,000 | $ 56,000 | |||||||||
Payment of debt and liquidity to fund operations and current debt obligations | $ 40,000 | $ 40,000 | |||||||||
Subsequent Event | American Airlines Inc. [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||
Subsequent Event | Engine Purchase Commitment [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Gross proceeds from sale of asset | $ 11,500 | ||||||||||
Number of engines to be sold | Engine | 23 | ||||||||||
Subsequent Event | Revolving Credit Facility [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of long term debt | $ 2,100 | ||||||||||
Subsequent Event | United Capacity Purchase Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Additional revenue and liquidity | 63,500 | ||||||||||
Repayments of long term debt | $ 10,500 | ||||||||||
Subsequent Event | American Purchase Agreement [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Gross proceeds from sale of asset | $ 600 | ||||||||||
Subsequent Event | CRJ-900 Aircraft [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loan forgiven | 5,000 | ||||||||||
Repayments of long term debt | 4,200 | ||||||||||
Proceeds from sale of asset | $ 600 | ||||||||||
Subsequent Event | CRJ-900 Aircraft [Member] | American Airlines Inc. [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||
Gross proceeds from sale of asset | $ 41,500 | ||||||||||
Proceeds from sale of asset | $ 5,700 | ||||||||||
Subsequent Event | CRJ-900 Aircraft [Member] | American Purchase Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||
Gross proceeds from sale of asset | $ 41,500 | ||||||||||
Proceeds from sale of asset | 5,700 | ||||||||||
Subsequent Event | CRJ-900 Aircraft [Member] | American Purchase Agreement [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loan forgiven | 5,000 | ||||||||||
Repayments of long term debt | $ 4,200 | ||||||||||
Subsequent Event | CF34-8C Aircraft [Member] | Engine Purchase Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of surplus engines to be sold | Engine | 12 | ||||||||||
Gross proceeds from sale of asset | $ 56,000 | ||||||||||
Payment of debt and liquidity to fund operations and current debt obligations | $ 40,000 | ||||||||||
Subsequent Event | UST Loan [Member] | CRJ-900 Aircraft [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||
Gross proceeds from sale of asset | $ 12,000 | ||||||||||
Proceeds from sale of asset | $ 6,500 | ||||||||||
Subsequent Event | UST Loan [Member] | CRJ-900 Aircraft [Member] | Aircraft Purchase Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of aircraft sold | AirCraft | 4 | ||||||||||
Gross proceeds from sale of asset | $ 12,000 | ||||||||||
Proceeds from sale of asset | $ 6,500 | ||||||||||
Forecast [Member] | CRJ-900 Aircraft [Member] | EDC Loan and MHIRJ Junior Note [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loan forgiven | $ 5,000 | ||||||||||
Repayments of long term debt | $ 4,200 | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | RASPRO Aircraft Lease Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Buyout price | $ 50,300 | ||||||||||
Net cash from aircraft and equipment purchase agreement | $ (12,100) | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | RASPRO Aircraft Lease Agreement One [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of engines | AirCraft | 30 | ||||||||||
Buyout pricing | $ 19,500 | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | RASPRO Aircraft Lease Agreement Two [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Buyout pricing | $ 18,800 | ||||||||||
Number of airframes without engines | AirCraft | 15 | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | Airframe and Engine Purchase Commitments [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Net cash from aircraft and equipment purchase agreement | $ (12,100) | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | Airframe and Engine Purchase Commitments [Member] | RASPRO Aircraft Lease Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Buyout price | $ 50,300 | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | Airframe and Engine Purchase Commitments [Member] | RASPRO Aircraft Lease Agreement One [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of engines | Engine | 30 | ||||||||||
Buyout pricing | $ 19,500 | ||||||||||
Forecast [Member] | Impact Of Pilot Shortage and Attrition [Member] | Airframe and Engine Purchase Commitments [Member] | RASPRO Aircraft Lease Agreement Two [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Buyout pricing | $ 18,800 | ||||||||||
Number of airframes without engines | AirCraft | 15 |