Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
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 | true | |
Entity Ex Transition Period | true | |
ICFR Auditor Attestation Flag | true | |
Entity Public Float | $ 121,825,139 | |
Entity Common Stock, Shares Outstanding | 35,526,918 | |
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 | |
Security Exchange Name | NASDAQ | |
Documents Incorporated by Reference | Portions of the Registrant's definitive proxy statement relating to its 2021 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 99,395 | $ 68,855 |
Restricted cash | 3,446 | 3,646 |
Receivables, net | 13,712 | 23,080 |
Expendable parts and supplies, net | 22,971 | 21,337 |
Prepaid expenses and other current assets | 16,067 | 40,923 |
Total current assets | 155,591 | 157,841 |
Property and equipment, net | 1,212,415 | 1,273,585 |
Intangibles, net | 8,032 | 9,532 |
Lease and equipment deposits | 1,899 | 2,167 |
Operating lease right-of-use assets | 123,251 | |
Other assets | 742 | 8,792 |
Total assets | 1,501,930 | 1,451,917 |
Current liabilities: | ||
Current portion of long-term debt and financing leases | 189,268 | 165,900 |
Current maturities of operating leases | 43,932 | |
Accounts payable ($1,729 (2019) to related party) | 53,229 | 49,930 |
Accrued compensation | 12,030 | 11,988 |
Other accrued expenses | 54,867 | 28,888 |
Total current liabilities | 353,326 | 256,706 |
Long-term debt and financing leases, excluding current portion | 542,456 | 677,423 |
Noncurrent operating lease liabilities | 62,531 | |
Deferred credits ($5,751 (2019) to related party) | 5,705 | 12,134 |
Deferred income taxes | 64,275 | 55,303 |
Deferred revenue, net of current portion | 14,369 | |
Other noncurrent liabilities | 1,409 | 24,483 |
Total noncurrent liabilities | 690,745 | 769,343 |
Total liabilities | 1,044,071 | 1,026,049 |
Commitments and contingencies (Note 15 and Note 16) | ||
Stockholders' equity: | ||
Preferred stock of no par value, 5,000,000 shares authorized; no shares issued and outstanding | ||
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 35,526,918 (2020) and 31,413,287 (2019) shares issued and outstanding, and 0 (2020) and 3,600,953 (2019) warrants issued and outstanding | 242,772 | 238,504 |
Retained earnings | 215,087 | 187,364 |
Total stockholders' equity | 457,859 | 425,868 |
Total liabilities and stockholders' equity | $ 1,501,930 | $ 1,451,917 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts payable to related party | $ 1,729 | |
Deferred credits to related party | $ 5,751 | |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 35,526,918 | 31,413,287 |
Common stock, shares outstanding | 35,526,918 | 31,413,287 |
Common stock, warrants issued | 0 | 3,600,953 |
Common stock, warrants outstanding | 0 | 3,600,953 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating revenues: | |||
Total operating revenues | $ 545,070 | $ 723,357 | $ 681,595 |
Operating expenses: | |||
Flight operations | 169,242 | 210,879 | 209,065 |
Fuel | 672 | 588 | 498 |
Maintenance | 192,123 | 196,514 | 193,164 |
Aircraft rent | 48,802 | 52,206 | 68,892 |
Aircraft and traffic servicing | 3,356 | 3,972 | 3,541 |
General and administrative | 52,246 | 50,527 | 53,647 |
Depreciation and amortization | 82,296 | 77,994 | 65,031 |
Lease termination | 9,540 | 15,109 | |
CARES Act grant recognition | (83,834) | ||
Total operating expenses | 464,903 | 602,220 | 608,947 |
Operating income | 80,167 | 121,137 | 72,648 |
Other income (expenses), net: | |||
Interest expense | (44,120) | (55,717) | (56,867) |
Interest income | 105 | 1,501 | 114 |
Loss on extinguishment of debt | (3,616) | ||
Other income (expense), net | 843 | (19) | (66) |
Total other (expense), net | (43,172) | (57,851) | (56,819) |
Income before taxes | 36,995 | 63,286 | 15,829 |
Income tax expense (benefit) | 9,531 | 15,706 | (17,426) |
Net income and comprehensive income | $ 27,464 | $ 47,580 | $ 33,255 |
Net income per share | |||
Basic | $ 0.78 | $ 1.37 | $ 1.34 |
Diluted | $ 0.78 | $ 1.36 | $ 1.32 |
Weighted-average common shares outstanding | |||
Basic | 35,237 | 34,764 | 24,826 |
Diluted | 35,308 | 35,064 | 25,257 |
Contract Revenue [Member] | |||
Operating revenues: | |||
Total operating revenues | $ 506,590 | $ 682,834 | $ 639,264 |
Pass Through and Other [Member] | |||
Operating revenues: | |||
Total operating revenues | $ 38,480 | $ 40,523 | $ 42,331 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Contract Revenue [Member] | ||
Revenue from related party | $ 376,506 | $ 359,467 |
Pass Through and Other [Member] | ||
Revenue from related party | $ 7,257 | $ 6,628 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity - USD ($) $ in Thousands | Total | Cumulative Effect of Change in Accounting Principle [Member] | Revision of Prior Period Accounting Standards Update Adjustment [Member] | Common Stock [Member] | Number of Warrants [Member] | Common Stock and Additional Paid-In Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect of Change in Accounting Principle [Member] | Retained Earnings [Member]Revision of Prior Period Accounting Standards Update Adjustment [Member] |
Beginning balance at Sep. 30, 2017 | $ 222,224 | $ 114,456 | $ 107,768 | ||||||
Beginning balance, shares at Sep. 30, 2017 | 11,294,083 | 12,230,625 | |||||||
Stock compensation expense | 1,991 | 1,991 | |||||||
Repurchased shares and warrants | (7,709) | (7,709) | |||||||
Repurchased shares and warrants, shares | (438,541) | (250,000) | |||||||
Warrants converted to common stock | 1,365,643 | (1,365,643) | |||||||
Restricted shares issued | 11,918 | 11,918 | |||||||
Restricted shares issued, shares | 1,327,700 | ||||||||
Conversion of unvested restricted shares | 2,321 | 2,321 | |||||||
IPO issuance | 111,706 | 111,706 | |||||||
IPO issuance, shares | 10,354,018 | 8 | |||||||
Ending balance at Sep. 30, 2018 | 374,467 | $ (1,239) | 234,683 | 139,784 | $ (1,239) | ||||
Net income | 33,255 | 33,255 | |||||||
Ending balance, shares at Sep. 30, 2018 | 23,902,903 | 10,614,990 | |||||||
Stock compensation expense | 5,508 | 5,508 | |||||||
Stock issuance costs | 185 | 185 | |||||||
Repurchased shares and warrants | (1,872) | $ (1,900) | (1,872) | ||||||
Repurchased shares and warrants, shares | (205,235) | ||||||||
Warrants converted to common stock | 7,014,037 | (7,014,037) | |||||||
Restricted shares issued, shares | 701,582 | ||||||||
Ending balance at Sep. 30, 2019 | 425,868 | 238,504 | 187,364 | ||||||
Net income | 47,580 | 47,580 | |||||||
Ending balance, shares at Sep. 30, 2019 | 31,413,287 | 3,600,953 | |||||||
Stock compensation expense | 4,414 | 4,414 | |||||||
Repurchased shares and warrants | (586) | $ (600) | (586) | ||||||
Repurchased shares and warrants, shares | (142,439) | ||||||||
Warrants converted to common stock | 3,600,953 | (3,600,953) | |||||||
Restricted shares issued, shares | 555,473 | ||||||||
Employee share purchases | 440 | 440 | |||||||
Employee share purchases, shares | 99,644 | ||||||||
Ending balance at Sep. 30, 2020 | 457,859 | $ 242,772 | 215,087 | ||||||
Ending balance (ASU 2018-09 [Member]) at Sep. 30, 2020 | $ 259 | $ 259 | |||||||
Net income | $ 27,464 | $ 27,464 | |||||||
Ending balance, shares at Sep. 30, 2020 | 35,526,918 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 27,464,000 | $ 47,580,000 | $ 33,255,000 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation and amortization | 82,296,000 | 77,994,000 | 65,031,000 |
Stock compensation expense | 4,414,000 | 5,508,000 | 12,929,000 |
Deferred income taxes | 9,234,000 | 15,503,000 | (17,874,000) |
Long-term deferred revenue | 14,369,000 | ||
Amortization of deferred credits | (3,742,000) | (5,121,000) | (4,395,000) |
Unfavorable lease liabilities | (5,718,000) | (6,640,000) | |
Amortization of debt financing costs and accretion of interest on non-interest-bearing subordinated notes | 4,202,000 | 4,203,000 | 4,606,000 |
Loss on extinguishment of debt | 3,616,000 | ||
Loss/(Gain) on disposal of assets | 401,000 | (5,000) | 307,000 |
Provision for obsolete expendable parts and supplies | 642,000 | 200,000 | |
Loss on lease termination | 9,540,000 | 15,109,000 | |
Changes in assets and liabilities: | |||
Receivables | 9,368,000 | (9,275,000) | (5,437,000) |
Expendable parts and supplies | (1,529,000) | (6,310,000) | (744,000) |
Prepaid expenses and other current assets | (1,368,000) | (713,000) | 7,584,000 |
Accounts payable | 3,418,000 | 12,119,000 | 2,427,000 |
Accrued liabilities | 30,190,000 | 2,113,000 | 12,581,000 |
Change in operating activity of ROU asset | (4,055,000) | ||
Net cash provided by operating activities | 174,662,000 | 151,676,000 | 118,939,000 |
Cash flows from investing activities: | |||
Capital expenditures | (26,667,000) | (125,350,000) | (117,989,000) |
Purchases of investment securities | (14,884,000) | (19,921,000) | |
Sales of investment securities | 34,961,000 | ||
Net returns (payments) on equipment & other deposits | 431,000 | (653,000) | |
Net cash used in investing activities | (26,667,000) | (104,842,000) | (138,563,000) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 23,000,000 | 171,658,000 | 187,703,000 |
Principal payments on long-term debt and finance leases | (138,289,000) | (244,087,000) | (222,153,000) |
Debt financing costs | (1,780,000) | (5,680,000) | (5,852,000) |
Debt prepayment costs | (1,672,000) | ||
Proceeds from issuance of common stock | 124,246,000 | ||
Stock issuance costs | 185,000 | (12,540,000) | |
Repurchase of stock | (586,000) | (1,871,000) | (4,993,000) |
Net cash (used in) provided by financing activities | (117,655,000) | (81,467,000) | 66,411,000 |
Net change in cash and cash equivalents | 30,340,000 | (34,633,000) | 46,787,000 |
Cash and cash equivalents and restricted cash at beginning of period | 72,501,000 | 107,134,000 | 60,347,000 |
Cash and cash equivalents and restricted cash at end of period | 102,841,000 | 72,501,000 | 107,134,000 |
Supplemental cash flow information | |||
Cash paid for interest | 41,501,000 | 53,503,000 | 50,672,000 |
Cash paid for income taxes - net | 398,000 | 419,000 | 385,000 |
Operating lease payments in operating cash flows | 44,173,000 | ||
Supplemental non-cash operating activities | |||
Right-of-use assets obtained in exchange of lease liabilities | 145,054,000 | ||
Supplemental non-cash investing and financing activities | |||
Accrued capital expenditures | $ 61,000 | $ 179,000 | 16,677,000 |
Acquisition of finance leases | $ 10,473,000 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Operations | 1. The Company Mesa Air Group, Inc. ( " Mesa " or the " Company " The Company's airline operations are conducted by its regional airline subsidiary, Mesa Airlines, Inc. ( " Mesa Airlines " " American " " United " The financial arrangements between the Company and its major airline partners involve a revenue-guarantee arrangement (i.e. a " capacity purchase agreement " On August 8, 2018, the Company filed its Second Amended and Restated Articles of Incorporation, which, among other things: (i) effected a 2.5-for-1 stock split of its common stock; and (ii) increased the authorized number of shares of its common and preferred stock to 125,000,000 and 5,000,000, respectively. All references to share and per share amounts in the Company's consolidated financial statements have been retrospectively revised to reflect the stock split and increase in authorized shares. On August 14, 2018, the Company completed an initial public offering ( " IPO " " Firm Shares " " Option Shares " The sale of these shares raised gross proceeds of approximately $124,247,820. The Company did not receive any proceeds from the sale of the Option Shares by the selling shareholders. As part of the IPO, stock appreciation rights ( " SARs " " SAR Plan " " 2018 Plan " Share-Based Compensation 2018 Plan in exchange for the cancellation of 491,915 shares of existing unvested restricted phantom stock units and 491,198 shares of restricted stock under the 2011 and 2017 Plans, respectively . Impact of the COVID-19 Pandemic The unprecedented and rapid spread of COVID-19 and the related travel restrictions and social distancing measures implemented throughout the world have significantly reduced demand for air travel. The length and severity of the reduction in demand due to the pandemic remains uncertain. This reduction in demand has had an unprecedented and materially adverse impact on our revenues and financial position. The exact timing and pace of a recovery in demand is uncertain given the significant impact of the pandemic on the overall U.S. and global economy. Our forecasted expense management and liquidity measures may be modified as we clarify the demand recovery timing. Since a portion of the consideration we receive under our capacity purchase agreements is fixed, the impact to Mesa will be partially mitigated or offset. In addition, we have limited exposure to fluctuations in passenger traffic, ticket and fuel prices. While the fixed contract consideration remains mostly unchanged, the variable revenue based on number of block hours was significantly reduced beginning in the last few weeks in March and in the June 2020 and September 2020 quarters. We may experience further reductions in subsequent quarters. The Company further reports that, beginning in March 2020, it experienced a material decline in demand in block hours from both of its major airline partners, American and United Airlines, Inc. (“United” and together with American, the “Partners”) resulting from the spread of the COVID-19 virus. As a result of this decline in demand and the subsequent capacity reductions by the Company’s Partners, the Company operated at significantly lower block hours in the second half of fiscal year 2020. While there has been a modest demand recovery, the Company anticipates similar schedule reductions may continue throughout the remainder of calendar year 2020 the foreseeable future. Expense Management. With the reduction in revenue, we have, and will continue to implement cost saving initiatives, including: ▪ Instituting a company-wide hiring freeze. ▪ Delaying non-essential heavy maintenance expense and reducing or suspending other discretionary spending. Balance Sheet, Cash Flow and Liquidity. As of September 30, 2020, our cash and cash equivalents balance was $99.4 million. We have taken the following actions to increase liquidity and strengthen our financial position. ▪ Working with our major partners and original equipment manufacturers ("OEM") to delay the timing of our future aircraft and spare engine deliveries. ▪ Drew $23.0 million from our previously undrawn revolving credit facility with CIT Bank, N.A. ▪ In April 2020, we were granted $92.5 million in emergency relief through the Payroll Support Program of the CARES Act, which was received as of September 30, 2020. In September we were notified that, based on funding availability, recipients that were currently in compliance with signed payroll support program agreements would receive an approximate 2% increase in their award amount. As a result, we were granted an additional $2.7 million for a total grant of $95.2 million, which was received in October 2020. $83.8 million has been utilized to offset the payroll expenses in the year ended September 30, 2020 and $11.4 million has been deferred to offset future payroll costs which we expect to utilize in Q1 2021. In connection with the Payroll Support Program, we are required to comply with the relevant provisions of the CARES Act, including the requirement that funds provided pursuant to the agreement be used exclusively for the continuation of payment of employee wages, salaries and benefits, the requirement against involuntary furloughs and reductions in employee pay rates and benefits, which expired on September 30, 2020, the requirement that certain levels of commercial air service be maintained as well as those that restrict the payment of certain executive compensation. The provisions also prohibit the repurchase of common stock, and the payment of common stock dividends through September 30, 2021 . ▪ The CARES Act also provides for up to $25 billion in secured loans to the airline industry. In October 2020, the Company entered into a five-year Department which provides the Company with a secured loan facility to borrow up to $200.0 million under the CARES Act. On October 30, 2020, the Company borrowed $43.0 million under the facility and on November 13, 2020, the Company borrowed an additional $152.0 million totaling $195.0 million. No All borrowings under the Loan Agreement will bear interest at an annual rate based on Adjusted LIBO (as defined in the Loan Agreement) plus 3.5%. 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), and on the maturity date. Interest will be paid during the first twelve months by increasing the principal amount of the loan by the amount of such interest due on an interest payment date, unless Mesa Airlines elects to pay interest in cash at least 30 days prior to each applicable interest payment date. The borrower obligations are guaranteed by the Company and Mesa Air Group Inventory Management. The proceeds may be used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act. All advances under the Loan Agreement will be in the form of term loans, all of which will mature and be due and payable in a single installment on the Maturity Date. Voluntary prepayments of loans under the Loan Agreement 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 Loan Agreement are required, without premium or penalty, to the extent necessary to comply with covenants, 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 Loan Agreement) occurs with respect to Mesa Airlines, Mesa Airlines will be required to repay the loans outstanding under the Loan Agreement. American Capacity Purchase Agreement As of September 30, 2020, the Company operated 54 CRJ-900 aircraft for American under a capacity purchase agreement. In exchange for providing flight services under our American Capacity Purchase Agreement, 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 during each month. In addition, we may also receive incentives or incur penalties based upon our operational performance, including controllable on-time departures and controllable completion percentages. American also reimburses us for certain costs on an actual basis, including passenger liability and hull insurance and aircraft property taxes, all as set forth in our American Capacity Purchase Agreement. Other expenses, including fuel and certain landing fees, are directly paid to suppliers by American. In addition, American also provides, at no cost to us, certain ground handling and customer service functions, as well as airport-related facilities and gates at American hubs and cities where we operate. Our American Capacity Purchase Agreement establishes utilization credits which are required to be paid if the Company does not operate at minimum levels of flight operations. In prior periods, the FAA Qualification Standards (as defined below) have negatively impacted our ability to hire pilots at a rate sufficient to support required utilization levels, and, as a result, we have issued credits to American pursuant to the terms of our American Capacity Purchase Agreement. Our American Capacity Purchase Agreement will terminate with respect to different tranches of aircraft between 2021 and 2025, unless otherwise extended or amended. As of the date of this filing, we remain in discussions with American regarding the terms of extending the 31 aircraft that are due to expire in 2021, the 16 aircraft that are due to expire in 2022, and the 7 aircraft that expire in 2025. Our American Capacity Purchase Agreement is subject to termination prior to that date, subject to our right to cure, in various circumstances including: ▪ If either American or we become insolvent, file for bankruptcy or fail to pay our debts as they become due , the non-defaulting party may terminate the agreement; ▪ Failure by us or American to perform the covenants, conditions or provisions of our American Capacity Purchase Agreement, subject to 15 days' notice and cure rights; ▪ If we are required by the FAA or the DOT to suspend operations and we have not resumed operations within three business days, except as a result of an emergency airworthiness directive from the FAA affecting all similarly equipped aircraft , American may terminate the agreement; ▪ If our controllable flight completion factor falls below certain levels for a specified period of time, subject to our right to cure, or ▪ Upon a change in our ownership or control without the written approval of American. In the event that American has the right to terminate our American Capacity Purchase Agreement, American may, in lieu of termination, withdraw up to an aggregate of 14 aircraft from service under our American Capacity Purchase Agreement. Upon any such withdrawal, American's payments to us would be correspondingly reduced by the number of withdrawn aircraft. On January 31, 2019, the Company entered into an amendment to the American Capacity Purchase Agreement, the terms of which provide for new and revised operational performance metrics, the Company's right to earn additional incentive compensation based on the achievement of such metrics, and the right of American to permanently withdraw up to six (6) aircraft in the event the Company fails to meet such new/revised performance metrics. Under the terms of such amendment the Company agreed, effective April 2, 2019, to convert two (2) aircraft to be utilized by the Company as operational spares in the Company's sole discretion throughout its system. In July 2019, American exercised its right to permanently withdraw two (2) aircraft from the American Capacity Purchase Agreement due to the Company's failure to meet certain performance metrics. The aircraft were removed on November 2, 2019. On November 25, 2019, the Company amended its agreement with American Airlines. The Company did not meet certain performance metrics during the then most recent measurement period, which would have allowed American to remove two additional aircraft from the capacity purchase agreement. American had agreed to defer the right to remove these two aircraft but subsequently elected to remove one of the two previously deferred aircraft, effective January 2, 2020. As of January 2, 2020, American had removed three (3) of the six (6) aircraft under the January 31 st On April 3, 2020, the Company received a new withdrawal notice from American seeking to permanently withdraw three aircraft from the American Capacity Purchase Agreement. Two of the aircraft were withdrawn effective May 19, 2020 and the third On June 11, 2020, the Company entered into the Twenty-First Amendment to The American Capacity Purchase Agreement effective April 1, 2020. The amendments include (i) the permanent withdrawal of two (2) additional aircraft from the American Capacity Purchase Agreement, effective June 15, 2020, with such aircraft included in the tranche of aircraft American has the right to ratably remove commencing January 1, 2021 in exchange for American paying the full cost of the aircraft for the same period and (ii) the addition of utilization-based credits, entitling American to payment credits for the period April 1, 2020 through September 30, 2020, based upon the achievement of agreed upon aircraft utilization thresholds, subject to Mesa’s receipt of previously approved funds under the CARES Act. The impact of the contract modification was not mater ial to the three or year ended September 30, 2020 American had a 0.0%, 7.1% and 7.2% ownership interest in the Company, calculated on a fully-diluted basis as of September 30, 2020, 2019 and 2018, respectively. The related party amounts presented on the consolidated balance sheets and statements of operations and comprehensive income pertain to American. United Capacity Purchase Agreement As of September 30, 2020, we operated 20 CRJ-700 and 60 E-175 aircraft for United under our United Capacity Purchase Agreement. In exchange for providing the flight services under our United Capacity Purchase Agreement, 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. Under our United Capacity Purchase Agreement, United owns 42 of the 60 E-175 aircraft and leases them to us at nominal amounts. United reimburses us on a pass-through basis for all costs related to heavy airframe and engine maintenance, landing gear, auxiliary power units ("APUs") and component maintenance for the 42 E-175 aircraft owned by United. Our United Capacity Purchase Agreement 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 Capacity Purchase Agreement in its entirety or permanently remove select aircraft from service, we are permitted to return any of the affected E-175 aircraft leased from United at no cost to us. On November 26, 2019, we amended and restated our United Capacity Purchase Agreement to, among other things, incorporate the terms of the 14 prior amendments to that Agreement and to extend the term thereof through the addition of twenty (20) new Embraer E175LL aircraft to the scope of such Agreement. T hese new aircraft were to be financed and owned by us and operated for a period of twelve In addition to adding the 20 new E175LL aircraft to the amended and restated United Capacity Purchase Agreement, we extended the term of our 42 E-175 aircraft leased from United for an additional five (5) years, which now expire between 2024 and 2028. In addition, we own 18 E-175 aircraft that expire in 2028. As part of the amended and restated United Capacity Purchase Agreement, we agreed to lease our CRJ-700 aircraft to another United Express service provider for a term of seven (7) years. We will continue to operate such aircraft until they are transitioned to the new service provider. United has a right to purchase the CRJ-700 aircraft at the then fair market value. On November 4, 2020, we amended and restated our United Capacity Purchase Agreement to, among other things, transactions of this type. Proceeds from the Prepayment will retire debt on certain airframes and engines that will serve as collateral under the term loan facility provided to Mesa Airlines by the U.S. Treasury . Our United Capacity Purchase Agreement is subject to early termination under various circumstances noted above and including: ▪ By United if certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances; ▪ By United if we fail to perform the material covenants, agreements, terms or conditions of our United Capacity Purchase Agreement or similar agreements with United, subject to thirty (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; or ▪ By United 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 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. 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 " " ASC " ASU FASB Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation. The Company is an " emerging growth company, JOBS Act opt out 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 Segment Reporting, While we operate under two separate capacity purchase agreements, we do not manage our business based on any performance measure at the individual contract level. Additionally, our chief operating decision maker 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. He 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. All of our operating revenue in our 2020, 2019 and 2018 fiscal years was derived from operations associated with our American and United Capacity Purchase Agreements. It is currently impractical to provide certain information on our revenue from our customers for each of our services and geographic information on our revenues and long lived assets. 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, $3.4 million and $3.6 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2020 and 2019, respectively, which are classified as restricted cash. Expendable Parts and Supplies Expendable parts and supplies are stated at the lower of cost (using the first-in, first-out method) or market, and are charged to expense as they are used. 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 was $2.8 million and $2.4 million as of September 30, 2020 and 2019, 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 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 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 no impairment charges on property and equipment for the years ended September 30, 2020 and 2019. 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; • 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, which require the reporting entity to develop its own assumptions. Prepaid Maintenance Deposits Prepaid maintenance deposits consist of payments made on a monthly basis to cover certain future maintenance events for leased flight equipment. The deposits are contractual obligations that are held in trust by the lessors. The deposits are only to be used to cover maintenance events, which include, among other things, C-checks, engine restoration events, engine life limited parts, landing gear repairs, and auxiliary power unit overhauls. The Company expenses the service as it is performed and receives reimbursement from the reserve trust account in accordance with our maintenance policy. Amounts on deposit that are not probable of being returned for qualifying maintenance events are recognized as supplemental rent expense in the period such costs are determined to not be refundable. The current portion of prepaid deposits is included in prepaid expenses and other current assets on the consolidated balance sheet. 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 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. Unutilized Manufacturer Credits Manufacturer credits received in connection with aircraft purchases that can be used for the future purchase of certain goods and services are recorded as a prepaid asset based on the value of the credits expected to be utilized, and the Company reduces the asset as the credits are utilized to fund such purchases. The current portion is included in prepaid expenses and other current assets and the noncurrent portion is included in other assets on the consolidated balance sheet. Intangibles Customer relationships are amortized using future discounted cash flows over the estimated life. 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. Other Assets Other long-term assets primarily consist of noncurrent deferred reimbursed costs, debt financing costs, and prepaid maintenance deposits. 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 alternative minimum tax credit carryforwards, capital loss carryforwards, and 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, 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 During each of the years ended September 30, 2019 and 2018, the Company recorded amortization of this unfavorable lease liability of $5.7 million and $6.6 million, respectively, as a reduction of lease expense. This disclosure is not applicable for the year ended September 30, 2020 due to the adoption of the new leasing standard ASC-842. During the year ended September 30, 2019 and 2018, the Company wrote off $0.75 million and $1.2 million of unfavorable lease liability related to the lease termination of its aircraft lease facility with Wells Fargo Bank Northwest, National Association, as owner trustee and lessor (the " GECAS Lease Facility Revenue Recognition The Company recognizes revenue when the service is provided under its capacity purchase agreements. Under these agreements, the major airline partners generally pay a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of flights and block hours flown. The contracts also include reimbursement of certain costs incurred by the Company in performing flight services. These costs, known as " pass-through costs, upon the achievement of certain performance criteria defined in the capacity purchase agreements. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance under ASC 606. All revenue recognized under these contracts is presented as the gross amount billed to the major airline partners . See note 3: “ Contract revenue and Pass- through and other” for further information . Under the capacity purchase agreements, 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 capacity purchase agreements are deemed to be distinct and the flight service promised in the capacity purchase 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 flights and block 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 their customers. A portion of the Company's compensation under its capacity purchase agreements with American and United is designed to reimburse the Company for certain aircraft ownership costs. 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 The Company recognized $208.9 million, $219.0 million and $217.0 million of lease revenue for the year ended September 30, 2020, 2019 and 2018, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations because the use of the aircraft is not a separate activity of the total service provided. The Company's capacity purchase agreements are renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, subject to certain conditions as described in Note 1. The capacity purchase agreements also contain terms with respect to covered aircraft, services provided and compensation as described in Note 1. The capacity purchase 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 capacity purchase agreements, 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 airline 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 ASC 606 constraint. The Company's capacity purchase agreements contain an option that allows its major airline partners to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that it operates for them. Both of the Company's major airline 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 capacity purchase agreements. In addition, the Company's major airline 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 airline partners at no cost ar e presented net in its consolidated financial statements; hence, no amounts are recorded for revenue or expense for these items. Contract Liabilities Contract liabilities consist of deferred credits representing upfront payments received from major airline partners related to aircraft modifications associated with capacity purchase agreements and pilot training. The deferred credits are recognized over time depicting the pattern of transfer of the related services over the term of the capacity purchase agreements. Current and non-current deferred credits are recorded to other accrued expenses and non-current deferred credits in the consolidated balance sheets. The Company's total current and non-current deferred credit balances at September 30, 2020, September 30, 2019 and September 30, 2018 are $8.5 million, $12.1 million and $15.4 million respectively. The Company recognized $3.7 million, $5.1 million and $4.4 million of the deferred credits to revenue in the consolidated statements of operations during the year ended September 30, 2020, 2019 and 2018, 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 balances at September 30, 2020, September 30, 2019 and September 30, 2018 are $2.0 million, $3.9 million and $4.6 million, respectively. Contract cost amortization was $1.9 million, $2.4 million and $1.9 million for the year ended September 30, 2020, 2019 and 2018, respectively. Maintenance Expense The Company operates under an FAA approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its maintenance of regional jet engine overhauls, airframe, landing gear, and normal recurring maintenance wherein the expense is recognized when the maintenance work is completed, or over the period of repair, if materially different. Our maintenance policy is determined by fleet when major maintenance is incurred. For leased aircraft, the Company is subject to lease return provisions that require a minimum portion of the " life 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 air frame 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 $40.5 million, $30.0 million and $51.2 million for the years ended September 30, 2020, 2019 and 2018, respectively, of which $7.0 million, $6.0 million and $12.3 million was pass-through expense. Airframe check expense totaled $23.5 million, $17.2 million and $21.5 million for the years ended September 30, 2020, 2019 and 2018, respectively, of which $7.2 million, $0.4 million and $7.5 million was pass-through expense. Pursuant to the United capacity purchase agreement, 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 Aircraft Leases In addition to the aircraft we receive from United under our Capacity Purchase Agreement, approximately 12% of our aircraft are leased from third parties. All of our aircraft leases have been classified as operating leases, which 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 airline 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. The majority of the Company's leased aircraft are leased through trusts that have a sole purpose to purchase, finance, and lease these aircraft to the Company; therefore, they meet the criteria of a variable interest entity. However, since these are single-owner trusts in which the Company does not participate, the Company is not at risk for losses and is not considered the primary beneficiary. Management believes that the Company's maximum exposure under these leases is the remaining lease payments. Change in Accounting Policy Stock Appreciation Rights (" SARs |
Contract Revenue and Pass- Thro
Contract Revenue and Pass- Through and Other | 12 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Contract Revenue and Pass- Through and Other | 3. Contract revenue and Pass- through and other The Company recognizes contract revenue when the service is provided under its capacity purchase agreements. Under the capacity purchase agreements, our airline 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 and on-time performance. The major airline partners also directly pay for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel and airport landing fees. The Company’s performance obligation is met when each flight is completed and revenue is recognized and reflected in contract revenue. The directly reimbursed expenses, earned as flights are completed over the agreement term, are recognized and reflected in pass-through revenue. During the year ended September 30, 2020, the Company completed a significantly lower than normal number of flights due to the impact of COVID-19. Since the revenue recognition is based on the number of flights completed, the fixed amount of cash received exceeded the revenue recognized based on the number of flights completed during the quarter. Under US GAAP, the fixed monthly payments are recognized as revenue ratably based on completed flights over the contract term. The Company deferred $23.8 million of revenue in the year ended September 30, 2020. The current portion of $9.4 million of deferred revenue is recorded as a part of other accrued expenses and long-term portion of $14.4 million is recorded as deferred revenue on the balance sheet. This deferred revenue will be recognized when flights are completed over the remaining contract term. The deferred revenue balance as of September 30, 2020 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 2021 $ 8,177 2022 8,969 2023 3,883 2024 2,730 Total $ 23,759 A portion of the Company's compensation under its capacity purchase agreements with American and United is designed to reimburse the Company for certain aircraft ownership costs. 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 capacity purchase agreements is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations. The Company recognized $208.9 million and $219.0 million of lease revenue for the year ended September 30, 2020 and 2019, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations because the use of the aircraft is not a separate activity of the total service provided under our capacity purchase agreements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 4 . In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU2020-04”). 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. Optional expedients can be applied from March 12, 2020 through December 31, 2022. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This ASU introduces a new accounting model known as Credit Expected Credit Losses (“CECL”). CECL requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables. There are other provisions within the standard affecting how impairments of other financial assets may be recorded and presented, as well as expanded disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which provides guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, with the exception of short-term leases. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the statement of income. The Company adopted Topic 842 effective October 1, 2019 and elected the package of transition practical expedients for expired or existing contracts, which does not require reassessment of: (1) whether any of the Company’s contracts are or contain leases, (2) lease classification and (3) initial direct costs. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." The Company did not elect the hindsight practical expedient. This update provides an optional transition method that allows entities to elect to apply the standard using the modified retrospective approach at its effective date, versus recasting the prior years presented. If this adoption method is elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The Company elected this adoption method on October 1, 2019.There was no adjustment to retained earnings. Additionally, the Company’s adoption of Topic 842 did not have a significant impact on the recognition, measurement or presentation of lease revenue and lease expenses within the consolidated statements of operations or the consolidated statements of cash flows. The Company’s adoption of Topic 842 did not have a material impact on the timing or amount of the Company’s lease revenue as a lessor. The Company’s prepaid aircraft rents, accrued aircraft rents and deferred rent credits that were separately stated in the Company’s September 30, 2019 balance sheet have been classified as a component of the Company’s right-of-use assets effective October 1, 2019. The consolidated financial statements for the year ended September 30, 2020 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy. See Note 16, "Leases, Commitments and Contingencies," for more information. We determine if an arrangement is a lease at inception. Our current lease activities are recorded in operating lease right-of-use (“ROU”) assets, current maturities of operating lease and noncurrent operating lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment, net, current portion of long-term debt and financing leases, long-term debt and financing leases, excluding current portion. 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 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 incremental borrowing rate based on the information available at 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. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As a lessee, we elected a short-term lease exception policy on all classes of underlying assets, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less). As a lessor, our capacity purchase agreements identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. A portion of the compensation in the capacity purchase agreements are designed to reimburse the Company 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. In July 2018, the FASB issued ASU 2018-09, Codification Improvements, which contains amendments that affect a wide variety of Topics in the Codification, including amendment to Subtopic 718-40, Compensation-Stock Compensation-Income Taxes, that clarifies the timing of when an entity should recognize excess tax benefits. We adopted this standard on October 1, 2019 and it did not have a material impact on our consolidated financial statements. |
Concentrations
Concentrations | 12 Months Ended |
Sep. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Concentrations | 5 . At September 30, 2020, the Company had capacity purchase agreements with American and United. All of the Company's consolidated revenue for the years ended September 30, 2020, 2019 and 2018 and accounts receivable at the end of September 30, 2020 and 2019 was derived from these agreements. The terms of both the American and United capacity purchase agreements are not aligned with the lease obligations on the aircraft performing services under such agreements. Amounts billed by the Company under capacity purchase agreements are subject to the Company's interpretation of the applicable capacity purchase agreement and are subject to audit by the Company's major airline partners. Periodically, the Company's major airline 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 airline partner. As such, the Company periodically reviews amounts past due and records a reserve for amounts estimated to be uncollectible. The allowance for doubtful accounts was $0.8 million and $1.0 million at September 30, 2020 and 2019, respectively. If the Company's ability to collect these receivables and the financial viability of our partners is materially different than estimated, the Company's estimate of the allowance could be materially impacted. American accounted for approximately 52%, 53% and 54% of the Company's total revenue for the years ended September 30, 2020, 2019 and 2018, respectively. United accounted for approximately 48%, 47% and 46% of the Company's total revenue for the years ended September 30, 2020, 2019 and 2018, respectively. A termination of either the American or the United capacity purchase agreement 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, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6 . The Company monitors for any indicators of impairment of the intangible assets. When certain conditions or changes in the economic situation such as the current environment brought by COVID-19 exist, the assets may be impaired and the carrying amount of the assets exceed its fair value. We determined that our reduced flying schedules and cash flow projections as a result of the COVID-19 pandemic indicate that an impairment loss may have been incurred. Therefore, we quantitatively assessed whether it was more likely than not that the intangible assets we hold have been impaired as of September 30, 2020. We reviewed our previous forecasts and assumptions based on our current projections that are subject to various risks and uncertainties, including: (1) forecasted revenues, expenses and cash flows, including the duration and extent of impact to our business from the COVID-19 pandemic, (2) current discount rates, (3) changes to the regulatory environment and (4) the nature and amount of government support that will be provided. Based on our carrying amount recoverability test, we have concluded that our finite-lived intangible assets are not impaired as of September 30, 2020. Given the uncertain future amid COVID-19, we will conduct additional tests in the first quarter of 2021. Information about the intangible assets of the Company at September 30, 2020 and 2019, were as follows (in thousands): September 30, September 30, 2020 2019 Customer relationship $ 43,800 $ 43,800 Accumulated amortization (35,768 ) (34,268 ) $ 8,032 $ 9,532 Total amortization expense recognized was approximately $1.5 million, $1.8 million and $0.4 million for the fiscal years ended September 30, 2020, 2019 and 2018. The Company expects to record amortization expense of $1.2 million, $1.0 million, $0.9 million, $0.8 million and $0.7 million for fiscal years 2021, 2022, 2023, 2024, 2025 respectively. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Information | 7 . Certain significant amounts included in the Company's consolidated balance sheet as of September 30, 2020 and 2019, consisted of the following (in thousands): September 30, September 30, 2020 2019 Expendable parts and supplies, net Expendable parts and supplies $ 27,431 $ 25,336 Less obsolescence and other (4,460 ) (3,999 ) $ 22,971 $ 21,337 Prepaid expenses and other current assets Prepaid aircraft rent $ — $ 35,786 Deferred offering and reimbursed costs 1,261 2,092 Other 14,806 3,045 $ 16,067 $ 40,923 Property and equipment—net Aircraft and other flight equipment substantially pledged $ 1,596,174 $ 1,582,199 Other equipment 5,147 5,122 Leasehold improvements 2,763 2,797 Vehicles 1,032 924 Building 699 699 Furniture and fixtures 302 302 Total property and equipment 1,606,117 1,592,043 Less accumulated depreciation (393,702 ) (318,458 ) $ 1,212,415 $ 1,273,585 Other accrued expenses Accrued property taxes $ 11,354 $ 9,186 Accrued interest 3,268 4,497 Accrued vacation 5,975 6,128 Deferred revenue- current portion 9,389 1,513 Other 24,881 7,564 $ 54,867 $ 28,888 The Company monitors for any indicators of impairment of the long-lived fixed assets. When certain conditions or changes in the economic situation such as the current environment brought by COVID-19 exist, the assets may be impaired and the carrying amount of the assets exceed its fair value. The assets need to be tested for recoverability of carrying amount. To determine whether impairments exist, we group assets at the Capacity Purchase Agreement and fleet-type 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 arrangements, block hours, maintenance events, labor costs and other relevant factors. Due to our reduced flying schedules and projections of future cash flows, we evaluated each of our fleets to determine if any of the fleets are impaired. Based on our carrying amount recoverability test, we have concluded that no fleet was impaired as of September 30, 2020 as the future cash flows exceeded the carrying value of our long-lived fixed assets. Given the uncertain future amid COVID-19, we will conduct additional tests in first quarter of 2021. Depreciation expense totaled $80.8 million, $76.2 million and $64.6 million for the years ended September 30, 2020, 2019 and 2018, respectively. Prior to the Company’s adoption of Topic 842 on October 1, 2019, the Company recorded amortization of the unfavorable lease liability amounting to $5.7 million and $6.6 million for the years ended 2019 and 2018, respectively, as a reduction to lease expense. Upon the Company’s adoption of Topic 842, the unfavorable lease liability is now included in its ROU asset balance and amortized therein. During the year ended 2019 and 2018 the Company wrote off $0.8 million and $1.2 million of unfavorable lease liability related to the lease termination of its aircraft lease facility with Wells Fargo Bank Northwest, National Association, as owner trustee and lessor (the "GECAS Lease Facility"), which was accounted for as lease termination expense. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8 . The Company did not measure any of its assets or liabilities at fair value on a recurring or nonrecurring basis as of September 30, 2020 and 2019. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable included on the consolidated balance sheets approximated fair value at September 30, 2020 and 2019. 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, 2020 September 30, 2019 Carrying Fair Carrying Fair Value Value Value Value Long-term debt, including current maturities (1) $ 743.3 $ 768.7 $ 858.1 $ 882.7 (1) Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs. |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowings | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Borrowings | 9 . Long-term debt as of September 30, 2020 and 2019, consisted of the following (in thousands): September 30, September 30, 2020 2019 Notes payable to financial institution, collateralized by the underlying aircraft, due 2022 (1)(2) $ 41,472 $ 49,795 Notes payable to financial institution, collateralized by the underlying aircraft, due 2024 (3) 55,674 60,761 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027 (4) 105,887 110,912 Notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (5) 172,137 191,168 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (6) 138,114 152,945 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022 (7) 47,319 71,998 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022 (8) 29,682 47,309 Notes payable to financial institution, collateralized by the underlying equipment, due 2020 (9) — 1,659 Notes payable to financial institution due 2020 (10) 1,523 2,329 Notes payable to financial institution, collateralized by the underlying equipment, due 2020 (11) 4,182 6,962 Other obligations due to financial institution, collateralized by the underlying equipment, due 2023 (12) 6,864 8,530 Notes payable to financial institution, collateralized by the underlying equipment, due 2024 (13) 63,341 80,153 Notes payable to financial institution, collateralized by the underlying aircraft, due 2023 (14) 48,125 65,625 Notes payable to financial institution, collateralized by the underlying due 2023 (15) 6,000 8,000 Working capital draw loan, used to cover operational needs (16) 22,930 — Gross long-term debt, including current maturities 743,250 858,145 Less unamortized debt issuance costs (11,526 ) (14,822 ) Net long-term debt, including current maturities 731,724 843,323 Less current portion (189,268 ) (165,900 ) Net long-term debt $ 542,456 $ 677,423 (1) In fiscal 2007, the Company financed three CRJ-900 and three CRJ-700 aircraft for $120.3 million. The debt bears interest at the monthly LIBOR plus 2.25% (2.40% at September 30, 2020) and requires monthly principal and interest payments. (2) In fiscal 2014, the Company financed ten CRJ-900 aircraft for $88.4 million. The debt bears interest at the monthly LIBOR plus 1.95% (2.10% at September 30, 2020) and requires monthly principal and interest payments. In fiscal 2018, the Company repaid $40.0 million related to four CRJ-900 aircraft. (3) In fiscal 2014, the Company financed eight CRJ-900 aircraft with $114.5 million in debt. The debt bears interest at 5.00% and requires monthly principal and interest payments. (4) In fiscal 2015, the Company financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $151.0 million bear interest at monthly LIBOR plus 2.71% (2.86% at September 30, 2020) and require monthly principal and interest payments. The subordinated notes payable is noninterest-bearing and become payable in full on the last day of the term of the notes. The Company has imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes. (5) In fiscal 2016, the Company financed ten E-175 aircraft with $246.0 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments. (6) In fiscal 2016, the Company financed eight E-175 aircraft with $ 195.3 million in debt. The senior notes payable of $ 172.0 million bear interest at the three-month LIBOR plus a spread ranging fr om 2.20 % to 2.32 % ( 2.43 % to 2.55 % at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50 % and require quarterly principal and interest payments. (7) In June 2018, the Company refinanced six CRJ-900 aircraft with $27.5 million in debt and financed nine CRJ-900 aircraft, which were previously leased, with $69.6 million in debt. The senior notes payable of $65.8 million bear interest at the three-month LIBOR plus 3.50% (3.73% at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable of $29.8 million bear interest at three month LIBOR plus 7.50% (7.73% at September 30, 2020) and require quarterly principal and interest payments. (8) In (9) In fiscal 2015, the Company financed certain flight equipment with $8.3 million in debt. The debt bears interest at 5.163% and was paid off in August 2020. (10) In fiscal 2015 and 2016, the Company financed certain flight equipment maintenance costs with $10.2 3.07% (11) In fiscal 2016-2019, the Company financed certain flight equipment. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% 3.21% ( 12) In February 2018, the Company leased two spare engines. The leases were determined to be capital as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.128% and the leases requires monthly payments. (13) In January 2019, the Company financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% (3.25% at September 30, 2020) and requires monthly principal and interest payments. (14) In June 2019, the Company financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% (5.15% at September 30, 2020) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1 st (15) On September 27,2019, the Company financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% (5.15% at September 30, 2020) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1 st (16) On September 25, 2019, the company extended the term on their $35.0 million working capital draw loan by three years, which now terminates in September 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. Principal maturities of long-term debt as of September 30, 2020, and for each of the next five years are as follows (in thousands): Total Principal Periods Ending September 30, Amount 2021 $ 189,268 2022 152,517 2023 126,095 2024 71,033 2025 56,526 Thereafter 147,811 $ 743,250 The net book value of collateralized aircraft and equipment as of September 30, 2020 was $1,093.0 million. In December 2015, an Enhanced Equipment Trust Certificate (" EETC 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 On January 28, 2019, the Company entered into a Term Loan Agreement (the " Term Loan On June 14, 2019, the Company completed the purchase of ten CRJ-700 aircraft, which were previously leased under the GECAS Lease Facility, for $70.0 million. The Company financed the aircraft purchase with $70.0 million in new debt. The notes payable of $70.0 million require monthly payments of principal and interest through fiscal 2023 bearing interest at LIBOR plus 5.00%. The Company recorded non-cash lease termination expense of $9.5 million in connection with the lease buyout. On September 25, 2019, the Company extended the term on their $35 million working capital draw loan by three years, which now terminates in September 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. In the 2 nd On September 27, 2019, the Company financed certain flight equipment for $8.0 million in new debt. The debt of $8.0 million require monthly payments of principal and interest through fiscal 2023 bearing interest at Libor plus 5.0%. On April 9, 2020, the Company entered into a letter amendment with lender, Export Development Canada (“EDC”), which provided for the deferral of scheduled principle payments beginning on March 19, 2020 through September 30, 2020. As of September 30, 2020, the Company had deferred 28.0 million of scheduled principal payments. On October 29, 2020 and November 12, 2020, the Company entered into subsequent letter amendments with EDC extending the principal deferrals through and including August 2, 2020. Amounts deferred are due in lump sum payment on August 2, 2020, there were no other amendments to the terms of the debt agreement with EDC resulting from the letter amendments. As further discussed in Note 18 to the consolidated financial statements, the Company repaid $145 million of existing aircraft debt subsequent to year end, which included repayment of $19.9 million of the previously deferred principal payments owed to EDC as of September 30, 2020. In June 2020, the Company amended their RASPRO aircraft lease agreement to defer $4.0 million of a lease payment otherwise due in June 2020. Per the amended agreement dated June 5, 2020, the Company is to pay this amount over the period of September 2021 through March 2024. The company made the accounting election available for COVID-19 related concession provided by a lessor. This event is not a lease modification and requires no changes to current accounting treatment. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 . Calculations of net income per common share were as follows (in thousands, except per share data): Year Ended September 30, 2020 2019 2018 Net income $ 27,464 $ 47,580 $ 33,255 Basic weighted average common shares outstanding 35,237 34,764 24,826 Add: Incremental shares for: Dilutive effect of warrants — — 116 Dilutive effect of restricted stock 71 300 315 Diluted weighted average common shares outstanding 35,308 35,064 25,257 Net income per common share Basic $ 0.78 $ 1.37 $ 1.34 Diluted $ 0.78 $ 1.36 $ 1.32 Basic income per common share is computed by dividing net income attributable to Mesa Air Group by the weighted average number of common shares outstanding during the period, including warrants with the nominal conversion price. 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 income or loss 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. There were no anti-dilutive shares relating to restricted stock and exercise of warrants that were excluded from the calculation of diluted loss per share for the years ended September 30, 2020, 2019 and 2018. |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2020 | |
Stockholders Equity Note [Abstract] | |
Common Stock | 1 1 . The Company previously issued warrants to third parties, which had a five-year On June 28, 2018, the Company agreed with GE Capital Aviation Services LLC (" GE Capital In July 2018, the Company's Board of Directors and Compensation Committee approved the issuance of shares of restricted common stock under its 2018 Plan immediately following completion of the Company's IPO to certain of its employees and directors in exchange for the cancellation of existing restricted phantom stock units, unvested restricted shares and SARs. The shares of restricted common stock issued under the 2018 Plan in exchange for the cancellation of restricted phantom stock units, unvested restricted shares and SARs are subject to vesting on the same terms set forth in the prior vesting schedules and are not subject to acceleration in connection with the 2018 Plan issuances. On August 8, 2018, the Company filed its Second Amended and Restated Articles of Incorporation, which, among other things: (i) effected a 2.5-for-1 stock split of its common stock; and (ii) increased the authorized number of shares of its common and preferred stock to 125,000,000 and 5,000,000, respectively. All references to share and per share amounts in the Company’s consolidated financial statements have been retrospectively revised to reflect the stock split and increase in authorized shares. On August 14, 2018, the Company completed its IPO, in which it issued and sold 9,630,000 shares of common stock, no Firm Shares Option Shares On April 9, 2019, and pursuant to Section 4.4 of the 2018 Plan, the board of directors approved an increase in the number of shares authorized for issuance under the 2018 Plan by 1,000,000 shares of common stock resulting in a total of 3,500,000 authorized shares. The Company has not historically paid dividends on shares of its common stock. Additionally, the Company's aircraft lease facility (the " RASPRO |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . The provision (benefit) for income taxes consists of the following: Years Ended September 30, 2020 2019 2018 (in thousands) Current Federal $ — $ (138 ) $ — State 297 341 465 $ 297 $ 203 $ 465 Deferred Federal 8,404 13,238 (17,308 ) State 830 2,265 (583 ) $ 9,234 $ 15,503 $ (17,891 ) Provision (Benefit) for income taxes $ 9,531 $ 15,706 $ (17,426 ) Reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows: Years Ended September 30, 2020 2019 2018 (in thousands) Income tax expense at federal statutory rate $ 7,769 $ 13,290 $ 3,878 Increase (reduction) in income taxes resulting from: State taxes, net of federal tax benefit 968 1,785 660 Nondeductible stock compensation expenses 524 (21 ) — Permanent items 314 261 63 Change in valuation allowances 1,173 (50 ) (646 ) US Tax Cuts and Jobs Act Impact — — (22,015 ) 162(m) Limitation 14 119 — Impact of changing rates on deferred tax assets (2,313 ) 484 (773 ) Expired tax attributes 633 111 1,088 Other 449 (273 ) 319 Income tax expense (benefit) $ 9,531 $ 15,706 $ (17,426 ) The Company's deferred tax assets as of September 30, 2020 and 2019 are as follows: Years Ended September 30, 2020 2019 (in thousands) Net operating carry forwards $ 113,402 $ 106,645 Deferred credits 1,485 1,882 Other accrued expenses 2,842 2,329 Prepaids and other 1,632 2,576 State alternative minimum tax 1 1 Other reserves and estimated losses 641 947 Operating lease 24,263 4,928 Subtotal $ 144,266 $ 119,308 Less: valuation allowance (3,063 ) (1,890 ) Total net deferred tax assets $ 141,203 $ 117,418 Intangibles (1,830 ) (2,204 ) ROU Lease (19,210 ) — Property and equipment (184,438 ) (170,517 ) Total deferred tax liabilities $ (205,478 ) $ (172,721 ) Net deferred tax liability $ (64,275 ) $ (55,303 ) The Company has federal and state income tax NOL carryforwards of $512.4 million and $223.9 million, which expire in fiscal years 2027-2038 and 2021-2040, respectively. Approximately, $94.0 million of our federal NOL carryforwards are not subject to expiration. These NOL carryovers, if not utilized prior to fiscal 2022, 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. As a result of the CARES Act, the Company is able to offset one hundred percent of taxable income with available net operating losses generated after fiscal 2018, but only if these net operating losses are utilized prior to fiscal 2022. The Company believes that it is more likely than not that the benefit from certain state NOL carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $3.1 million in fiscal year 2020 and $1.9 million in fiscal year 2019 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. Based on the value of the Company’s stock valuation as of the initial public offering date, the Company does not believe any further limitation on the utilization of the Company's current net operating losses would be applicable as of September 30, 2020. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years Ended September 30, 2020 2019 2018 (in thousands) Unrecognized tax benefits — October 1 $ 4,688 $ 4,688 $ 7,547 Gross decreases — tax positions in prior period — — (2,859 ) Gross increases — tax positions in prior period 178 — — Unrecognized tax benefits — September 30 $ 4,866 $ 4,688 $ 4,688 The Company’s unrecognized tax benefits of $4.9 million, $4.7 million and $4.7 million as of September 30, 2020, 2019 and 2018, respectively, is included the net deferred tax assets. If recognized, the balance of the uncertain tax benefit would affect 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 carry forwards. We are subject to taxation in the United States and various states. As of September 30, 2020, the Company is no longer subject to U.S. federal or state examinations by taxing authorities for fiscal years prior to 2000. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 1 3 . Restricted Stock In July 2018, the Company’s Board of Directors and Compensation Committee approved the issuance of shares of restricted common stock under its 2018 Plan immediately following the IPO to certain of its employees and directors in exchange for the cancellation of existing restricted phantom stock units, unvested restricted shares and SARs. The shares of restricted common stock issued under the 2018 Plan in exchange for the cancellation of restricted phantom stock units, unvested restricted shares and SARs are subject to vesting on the same terms set forth in the prior vesting schedules and are not subject to acceleration in connection with the 2018 Plan issuances. There were 966,022 vested SARs which were cancelled, exchanged for shares of restricted common stock and issued as restricted stock upon completion of the IPO. Immediately following the IPO, 2,249,147 shares were issued to certain of its employees and directors under the 2018 Plan in exchange for the cancellation of 491,915 unvested restricted phantom stock units, 491,198 unvested restricted shares issued under the 2011 and 2017 Plans and 1,266,034 SARs (966,022 vested and 300,012 unvested). The Company has the right to withhold shares to satisfy tax withholding obligations and the withheld shares become available for future grants. The shares are valued at grant date based upon recent share transactions. From inception of the 2011 Plan through IPO, 2,448,905 shares have been granted, 1,978,550 shares have vested and 470,355 shares have been cancelled. From inception of the 2017 Plan, 31,255 shares have been granted, 10,412 have vested and 20,843 shares have been cancelled. In April 2019, the Company’s Board of Directors increased the number of authorized shares of common stock to management under the 2018 Plan from 2,500,000 to 3,500,000. From inception of the 2018 Plan, 3,481,370 shares have been awarded, 2,255,577 shares have vested and 30,245 shares have been cancelled. The restricted stock activity for our years ended September 30, 2020, 2019 and 2018 is summarized as follows: Weighted- Average Number Grant Date 2011 and 2017 Plans of Shares Fair Value Restricted shares unvested at September 30, 2017 775,753 $ 5.22 Granted — — Vested (284,555 ) 5.26 Cancelled (491,198 ) 5.20 Restricted shares unvested at September 30, 2018 — $ — Weighted- Average Number Grant Date 2018 Plan of Shares Fair Value Restricted shares unvested at September 30, 2017 — $ — Exchanged Restricted Shares 491,198 5.20 Exchanged Phantom Stock 491,915 12.00 Exchanged SARs 1,266,034 12.00 Exchanged SARs vested prior to exchange (966,022 ) 12.00 Vested (32,500 ) 2.00 Cancelled — — Restricted shares unvested at September 30, 2018 1,250,625 $ 9.59 Granted 321,926 8.94 Vested (701,582 ) 9.25 Cancelled (22,995 ) 12.00 Restricted shares unvested at September 30, 2019 847,974 $ 9.56 Granted 910,297 3.97 Vested (555,473 ) 9.21 Cancelled (7,250 ) 7.89 Restricted shares unvested at September 30, 2020 1,195,548 $ 5.47 The Company has granted restricted stock awards (" RSAs RSUs 5 years Stock Appreciation Rights In 2014, the Company implemented a share-based payment plan under which certain executives and directors are eligible to receive grants of SARs (the " SARs Plan over a three year period from the date of grant. The Company had authorized 5,000,000 shares under this plan and had granted 4,204,993 since inception of the plan. Since inception of the plan, 3,687,218 of SARs have vested and 2,088,333 of SARs have been exercised. In August 2018, upon IPO, 517,775 unvested SARs and 1,598,885 vested SARs were cancelled in exchange for 300,012 and 966,022 shares of restricted stock under the 2018 Plan, respectively. The SARs activity for the years ended September 30, 2018 is summarized as follows: Weighted- Number Average of Shares Fair Value SARs unvested at September 30, 2017 1,140,013 $ — Granted — — Vested (622,238 ) — Cancelled (517,775 ) 8.69 Forfeited — — SARs unvested at September 30, 2018 — $ — Phantom Stock On October 17, 2017, the Company implemented a share-based payment plan under which employees, officers, directors and other individuals providing services to the Company are eligible to receive grants of restricted phantom stock units (" Phantom Stock Plan restricted stock units RSUs three-year The phantom stock activity for the year ended September 30, 2018 is summarized as follows: Weighted- Number Average of Shares Fair Value Phantom stock unvested at September 30, 2017 — $ — Granted 536,538 6.14 Vested (44,623 ) 7.30 Cancelled (491,915 ) 12.00 Phantom stock unvested at September 30, 2018 — $ — Following the IPO there will be no further grants under the Stock Appreciation Rights and Phantom Stock plans. Immediately following the IPO, shares of restricted common stock were issued to certain of its employees and directors under its 2018 Plan in exchange for the cancellation of existing restricted phantom stock units, unvested restricted shares and SARs. The shares of restricted common stock issued under the 2018 Plan in exchange for the cancellation of restricted phantom stock units, unvested restricted shares and SARs are subject to vesting on the same terms set forth in the prior vesting schedules and are not subject to acceleration in connection with the 2018 Plan issuances. As of September 30, 2020, there was $5.1 million, of total unrecognized compensation cost related to unvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.8 years. Compensation cost for share-based awards are recognized on a straight-line basis over the vesting period. Share-based compensation expense for the years ended September 30, 2020, 2019 and 2018 was $4.4 million, $5.5 million and $12.9 million, respectively. Share-based compensation expenses are recorded in general and administrative expenses in the consolidated statements of operations. The Company repurchased 142,439 shares of its common stock for $0.6 million to cover the income tax obligation on vested employee equity awards and warrant conversions during the fiscal year ended September 30, 2020. During the fiscal year ended September 30, 2019, the Company repurchased 205,235 shares of its common stock for $1.9 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, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Purchase Plan | 1 4 . 2019 ESPP The Mesa Air Group, Inc. 2019 Employee Stock Purchase Plan (the " 2019 ESPP A maximum of 500,000 Mesa Air Group, Inc. ordinary shares may be issued under the 2019 ESPP. As of September 30, 2020, eligible employees purchased and the Company issued 99,644 Mesa Air Group, Inc. ordinary shares under the 2019 ESPP. |
Leases and Commitments
Leases and Commitments | 12 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases and Commitments | 1 5 . Effective At September 30, 2020, the Company leased 18 aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases. The leases require the Company to pay all 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 $64.7 million and $72.8 million for the year ended September 30, 2020 and 2019, respectively. As of September 30, 2020, the Company’s operating lease right-of-use assets were $123.3 million, the Company’s current maturities of operating lease liabilities were $43.9 million, and the Company’s noncurrent lease liabilities were $62.5 million. As of September 30, 2020, the Company’s operating lease payments in operating cash flows for the year ended September 30, 2020 is $44.2 million. The disclosure is not applicable for the year ended September 30, 2019 due to the method of adoption of the new leasing Standard ASC-842. The Table below presents lease related terms and discount rates as of September 30,2020: As of September 30,2020 Weighted average remaining lease term Operating leases 3.6 years Weighted average discount rate Operating leases 4.2 % The following table summarizes future minimum rental payments primarily related to leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of September 30, 2020 (in thousands): Periods Ending September 30, Total Maturities 2021 $ 47,377 2022 33,216 2023 15,947 2024 14,682 2025 1,654 Less: Interest $ (6,413 ) Amounts recorded in the Consolidated Balance Sheet $ 106,463 The following represents future minimum lease obligations under non-cancelable operating leases as of September 30, 2019 (in thousands): Periods Ending September 30, Total Payments 2020 $ 47,814 2021 46,007 2022 31,090 2023 13,726 2024 13,185 2025 1,368 Total $ 153,190 |
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 1 6 . The Company is involved in various legal proceedings (including, but not limited to, insured claims) and FAA civil action proceedings that the Company does not believe will have a material adverse effect upon its business, financial condition, or results of operations, although no assurance can be given to the ultimate outcome of any such proceedings. See item 3 “Legal Proceedings”. |
Selected Consolidated Quarterly
Selected Consolidated Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Quarterly Financial Data (Unaudited) | 1 7 . The following table sets forth certain unaudited selected consolidated financial information for each of the four quarters in the years ended September 30, 2020, 2019 and 2018. In management's opinion, this unaudited consolidated quarterly selected information has been prepared on the same basis as the audited consolidated financial statements and includes all necessary adjustments, consisting only of normal recurring adjustments, which management considers necessary for a fair presentation when read in conjunction with Quarterly EPS may not total to the fiscal year EPS due to the weighted average number of shares outstanding at the end of each period reported and rounding. 12/31/2019 3/31/2020 6/30/2020 9/30/2020 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) 2020 Contract revenue $ 171,800 $ 165,781 $ 71,648 $ 97,361 Total operating revenues 184,036 179,896 73,099 108,039 Operating income 27,187 13,892 15,224 23,864 Net income 10,785 1,885 3,419 11,375 Net income per share attributable to common shareholders Basic 0.31 0.05 0.10 0.32 Diluted 0.31 0.05 0.10 0.32 12/31/2018 3/31/2019 6/30/2019 9/30/2019 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) 2019 Contract revenue $ 170,449 $ 169,771 $ 170,366 $ 172,248 Total operating revenues 178,156 177,147 180,224 187,830 Operating income 39,230 34,377 17,077 30,453 Net income 19,081 13,249 3,007 12,243 Net income per share attributable to common shareholders Basic 0.55 0.38 0.09 0.35 Diluted 0.54 0.38 0.09 0.35 12/31/2017 3/31/2018 6/30/2018 9/30/2018 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) 2018 Contract revenue $ 154,389 $ 156,515 $ 159,916 $ 168,444 Total operating revenues 164,684 167,640 171,739 177,532 Operating income 15,023 16,349 (508 ) 41,784 Net income 22,624 2,372 (11,135 ) 19,394 Net income per share attributable to common shareholders Basic 0.97 0.10 (0.48 ) 0.66 Diluted 0.96 0.10 (0.48 ) 0.65 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 8 . Subsequent Events On October 8, 2020, Mesa Air Group, Inc. and General Electric Company, acting through its GE-Aviation business unit, entered into Amended and Restated Letter Agreement No. 13, which deferred the initial delivery and initial payment dates. Under the terms of this amendment, the Company agreed to purchase and take delivery of 20 new spare CF34-8C5 engines commencing in May 2021, with the final spare engine being delivered in December 2021. Payments are now due in five (5) separate tranches commencing in December 2020, and in February, April, May, and June 2021. On October 30, 2020 (the “Closing Date”), the Company entered into a Loan and Guarantee Agreement, dated as of the Closing Date (the “Loan Agreement”), by and among the Company, as a guarantor, its subsidiaries Mesa Airlines, Inc., as borrower (“Mesa Airlines”), and Mesa Air Group Inventory Management, L.L.C., as a guarantor (“Mesa Air Group Inventory Management”), the other guarantors party thereto from time to time, the United States Department of the Treasury (“Treasury”), and the Bank of New York Mellon as Administrative and Collateral Agent under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Loan Agreement provides for a secured term loan facility of up to $200.0 million that matures on October 30, 2025. On the Closing Date, the Company borrowed $43.0 million of this commitment and on November 13, 2020, the Company borrowed an additional $152.0 million. No further borrowings are available under the Loan Agreement. The obligations of under the Loan Agreement are secured by certain aircraft, aircraft engines, accounts receivable, ground service equipment and tooling (collectively, the “Collateral”). All borrowings under the Loan Agreement will bear interest at an annual rate based on Adjusted LIBO (as defined in the Loan Agreement) plus 3.5%. The obligations are guaranteed by the Company and Mesa Air Group Inventory Management. The proceeds may be used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act. The Loan Agreement requires the Company, under certain circumstances, including within ten (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 1.6 to 1.0, Mesa Airlines will be required either to provide additional Collateral (which may include cash collateral) to secure its obligations under the Loan Agreement or repay the term loans under the Loan Agreement, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional Collateral or repayment, is at least 1.6 to 1.0. The Loan Agreement contains two financial covenants, a minimum collateral coverage ratio and a minimum liquidity level. The Loan Agreement 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 Loan Agreement and as partial compensation to Treasury for the provision of financial assistance under the Loan Agreement, the Company issued to 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. . On November 4, 2020, Mesa Airlines entered into the Second Amended and Restated Capacity Purchase Agreement with United Airlines, Inc., which amended and restated the prior agreement between the parties dated November 26, 2019. The amendments included the following: (a) United’s ownership, in lieu of Mesa Airlines, of 20 E75LL aircraft, which will be leased to Mesa Airlines; (b) adjusted rates to account for the ownership of such aircraft by United; (c) relief from certain provisions related to minimum utilization until December 31, 2020; (d) United’s right to remove one or more E175LL aircraft if Mesa Airlines fails to meet certain financial covenants; and (e) a one-time provision for United to prepay $85.0 million under the future performance by Mesa Airlines and the application of certain discounts to certain payment obligations of United under the United CPA. Weekly amounts due from United under the United CPA will be applied toward the balance of the $ 85.0 million prepayment until such prepayment is fully expended. Prior to November 13, 2020 funding under the Loan Agreement, the Company repaid approximately $164.1 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, as further defined in Note 9, notations (1),(3),(7) and (8). The Company used approximately $82.8 million of existing cash and $81.3 million of cash proceeds received from the United prepayment described above to fund this debt pay down. The company will treat this transaction as early extinguishment of debt. The company will treat this transaction as early extinguishment of debt and expects to recognize an immaterial gain from the extinguishment. On November 19, 2020, Mesa Airlines entered into the Amended and Restated Capacity Purchase Agreement with American Airlines, Inc., which is effective as of January 1, 2021 and amends and restates the existing Code Share and Revenue Sharing Agreement, dated as of March 20, 2001 (as theretofore amended), between Mesa and American. The amendments include the following: (a) a five-year term, commencing January 1, 2021 – December 31, 2025, covering 40 aircraft; (b) new compensation payable to Mesa Airlines during the term; (c) American’s right to withdraw aircraft under certain circumstances during the new five-year term; and (d) additional termination rights granted to American, subject to specified cure periods . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
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 " " ASC " ASU FASB Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation. The Company is an " emerging growth company, JOBS Act opt out |
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 Segment Reporting, While we operate under two separate capacity purchase agreements, we do not manage our business based on any performance measure at the individual contract level. Additionally, our chief operating decision maker 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. He 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. All of our operating revenue in our 2020, 2019 and 2018 fiscal years was derived from operations associated with our American and United Capacity Purchase Agreements. It is currently impractical to provide certain information on our revenue from our customers for each of our services and geographic information on our revenues and long lived assets. |
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, $3.4 million and $3.6 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2020 and 2019, respectively, which are classified as restricted cash. |
Expendable Parts and Supplies | Expendable Parts and Supplies Expendable parts and supplies are stated at the lower of cost (using the first-in, first-out method) or market, and are charged to expense as they are used. 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 was $2.8 million and $2.4 million as of September 30, 2020 and 2019, 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 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 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 no impairment charges on property and equipment for the years ended September 30, 2020 and 2019. |
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; • 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, which require the reporting entity to develop its own assumptions. |
Prepaid Maintenance Deposits | Prepaid Maintenance Deposits Prepaid maintenance deposits consist of payments made on a monthly basis to cover certain future maintenance events for leased flight equipment. The deposits are contractual obligations that are held in trust by the lessors. The deposits are only to be used to cover maintenance events, which include, among other things, C-checks, engine restoration events, engine life limited parts, landing gear repairs, and auxiliary power unit overhauls. The Company expenses the service as it is performed and receives reimbursement from the reserve trust account in accordance with our maintenance policy. Amounts on deposit that are not probable of being returned for qualifying maintenance events are recognized as supplemental rent expense in the period such costs are determined to not be refundable. The current portion of prepaid deposits is included in prepaid expenses and other current assets on the consolidated balance sheet. |
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 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. |
Unutilized Manufacturer Credits | Unutilized Manufacturer Credits Manufacturer credits received in connection with aircraft purchases that can be used for the future purchase of certain goods and services are recorded as a prepaid asset based on the value of the credits expected to be utilized, and the Company reduces the asset as the credits are utilized to fund such purchases. The current portion is included in prepaid expenses and other current assets and the noncurrent portion is included in other assets on the consolidated balance sheet. |
Intangibles | Intangibles Customer relationships are amortized using future discounted cash flows over the estimated life. 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. |
Other Assets | Other Assets Other long-term assets primarily consist of noncurrent deferred reimbursed costs, debt financing costs, and prepaid maintenance deposits. |
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 alternative minimum tax credit carryforwards, capital loss carryforwards, and 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, 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 During each of the years ended September 30, 2019 and 2018, the Company recorded amortization of this unfavorable lease liability of $5.7 million and $6.6 million, respectively, as a reduction of lease expense. This disclosure is not applicable for the year ended September 30, 2020 due to the adoption of the new leasing standard ASC-842. During the year ended September 30, 2019 and 2018, the Company wrote off $0.75 million and $1.2 million of unfavorable lease liability related to the lease termination of its aircraft lease facility with Wells Fargo Bank Northwest, National Association, as owner trustee and lessor (the " GECAS Lease Facility |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the service is provided under its capacity purchase agreements. Under these agreements, the major airline partners generally pay a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of flights and block hours flown. The contracts also include reimbursement of certain costs incurred by the Company in performing flight services. These costs, known as " pass-through costs, upon the achievement of certain performance criteria defined in the capacity purchase agreements. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance under ASC 606. All revenue recognized under these contracts is presented as the gross amount billed to the major airline partners . See note 3: “ Contract revenue and Pass- through and other” for further information . Under the capacity purchase agreements, 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 capacity purchase agreements are deemed to be distinct and the flight service promised in the capacity purchase 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 flights and block 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 their customers. A portion of the Company's compensation under its capacity purchase agreements with American and United is designed to reimburse the Company for certain aircraft ownership costs. 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 The Company recognized $208.9 million, $219.0 million and $217.0 million of lease revenue for the year ended September 30, 2020, 2019 and 2018, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations because the use of the aircraft is not a separate activity of the total service provided. The Company's capacity purchase agreements are renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, subject to certain conditions as described in Note 1. The capacity purchase agreements also contain terms with respect to covered aircraft, services provided and compensation as described in Note 1. The capacity purchase 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 capacity purchase agreements, 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 airline 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 ASC 606 constraint. The Company's capacity purchase agreements contain an option that allows its major airline partners to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that it operates for them. Both of the Company's major airline 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 capacity purchase agreements. In addition, the Company's major airline 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 airline partners at no cost ar e presented net in its consolidated financial statements; hence, no amounts are recorded for revenue or expense for these items. |
Contract Liabilities | Contract Liabilities Contract liabilities consist of deferred credits representing upfront payments received from major airline partners related to aircraft modifications associated with capacity purchase agreements and pilot training. The deferred credits are recognized over time depicting the pattern of transfer of the related services over the term of the capacity purchase agreements. Current and non-current deferred credits are recorded to other accrued expenses and non-current deferred credits in the consolidated balance sheets. The Company's total current and non-current deferred credit balances at September 30, 2020, September 30, 2019 and September 30, 2018 are $8.5 million, $12.1 million and $15.4 million respectively. The Company recognized $3.7 million, $5.1 million and $4.4 million of the deferred credits to revenue in the consolidated statements of operations during the year ended September 30, 2020, 2019 and 2018, 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 balances at September 30, 2020, September 30, 2019 and September 30, 2018 are $2.0 million, $3.9 million and $4.6 million, respectively. Contract cost amortization was $1.9 million, $2.4 million and $1.9 million for the year ended September 30, 2020, 2019 and 2018, respectively. |
Maintenance Expense | Maintenance Expense The Company operates under an FAA approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its maintenance of regional jet engine overhauls, airframe, landing gear, and normal recurring maintenance wherein the expense is recognized when the maintenance work is completed, or over the period of repair, if materially different. Our maintenance policy is determined by fleet when major maintenance is incurred. For leased aircraft, the Company is subject to lease return provisions that require a minimum portion of the " life 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 air frame 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 $40.5 million, $30.0 million and $51.2 million for the years ended September 30, 2020, 2019 and 2018, respectively, of which $7.0 million, $6.0 million and $12.3 million was pass-through expense. Airframe check expense totaled $23.5 million, $17.2 million and $21.5 million for the years ended September 30, 2020, 2019 and 2018, respectively, of which $7.2 million, $0.4 million and $7.5 million was pass-through expense. Pursuant to the United capacity purchase agreement, 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 |
Aircraft Leases | Aircraft Leases In addition to the aircraft we receive from United under our Capacity Purchase Agreement, approximately 12% of our aircraft are leased from third parties. All of our aircraft leases have been classified as operating leases, which 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 airline 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. The majority of the Company's leased aircraft are leased through trusts that have a sole purpose to purchase, finance, and lease these aircraft to the Company; therefore, they meet the criteria of a variable interest entity. However, since these are single-owner trusts in which the Company does not participate, the Company is not at risk for losses and is not considered the primary beneficiary. Management believes that the Company's maximum exposure under these leases is the remaining lease payments. |
Changes in Accounting Policy | Change in Accounting Policy Stock Appreciation Rights (" SARs |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 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- Th_2
Contract Revenue and Pass- Through and Other (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Deferred Revenue Remaining Performance Obligations | The deferred revenue balance as of September 30, 2020 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 2021 $ 8,177 2022 8,969 2023 3,883 2024 2,730 Total $ 23,759 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Information About Intangible Assets | Information about the intangible assets of the Company at September 30, 2020 and 2019, were as follows (in thousands): September 30, September 30, 2020 2019 Customer relationship $ 43,800 $ 43,800 Accumulated amortization (35,768 ) (34,268 ) $ 8,032 $ 9,532 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Certain Significant Amounts Included in Condensed Consolidated Balance Sheet | Certain significant amounts included in the Company's consolidated balance sheet as of September 30, 2020 and 2019, consisted of the following (in thousands): September 30, September 30, 2020 2019 Expendable parts and supplies, net Expendable parts and supplies $ 27,431 $ 25,336 Less obsolescence and other (4,460 ) (3,999 ) $ 22,971 $ 21,337 Prepaid expenses and other current assets Prepaid aircraft rent $ — $ 35,786 Deferred offering and reimbursed costs 1,261 2,092 Other 14,806 3,045 $ 16,067 $ 40,923 Property and equipment—net Aircraft and other flight equipment substantially pledged $ 1,596,174 $ 1,582,199 Other equipment 5,147 5,122 Leasehold improvements 2,763 2,797 Vehicles 1,032 924 Building 699 699 Furniture and fixtures 302 302 Total property and equipment 1,606,117 1,592,043 Less accumulated depreciation (393,702 ) (318,458 ) $ 1,212,415 $ 1,273,585 Other accrued expenses Accrued property taxes $ 11,354 $ 9,186 Accrued interest 3,268 4,497 Accrued vacation 5,975 6,128 Deferred revenue- current portion 9,389 1,513 Other 24,881 7,564 $ 54,867 $ 28,888 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020 September 30, 2019 Carrying Fair Carrying Fair Value Value Value Value Long-term debt, including current maturities (1) $ 743.3 $ 768.7 $ 858.1 $ 882.7 (1) Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs. |
Long-Term Debt and Other Borr_2
Long-Term Debt and Other Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of September 30, 2020 and 2019, consisted of the following (in thousands): September 30, September 30, 2020 2019 Notes payable to financial institution, collateralized by the underlying aircraft, due 2022 (1)(2) $ 41,472 $ 49,795 Notes payable to financial institution, collateralized by the underlying aircraft, due 2024 (3) 55,674 60,761 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2027 (4) 105,887 110,912 Notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (5) 172,137 191,168 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2028 (6) 138,114 152,945 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022 (7) 47,319 71,998 Senior and subordinated notes payable to secured parties, collateralized by the underlying aircraft, due 2022 (8) 29,682 47,309 Notes payable to financial institution, collateralized by the underlying equipment, due 2020 (9) — 1,659 Notes payable to financial institution due 2020 (10) 1,523 2,329 Notes payable to financial institution, collateralized by the underlying equipment, due 2020 (11) 4,182 6,962 Other obligations due to financial institution, collateralized by the underlying equipment, due 2023 (12) 6,864 8,530 Notes payable to financial institution, collateralized by the underlying equipment, due 2024 (13) 63,341 80,153 Notes payable to financial institution, collateralized by the underlying aircraft, due 2023 (14) 48,125 65,625 Notes payable to financial institution, collateralized by the underlying due 2023 (15) 6,000 8,000 Working capital draw loan, used to cover operational needs (16) 22,930 — Gross long-term debt, including current maturities 743,250 858,145 Less unamortized debt issuance costs (11,526 ) (14,822 ) Net long-term debt, including current maturities 731,724 843,323 Less current portion (189,268 ) (165,900 ) Net long-term debt $ 542,456 $ 677,423 (1) In fiscal 2007, the Company financed three CRJ-900 and three CRJ-700 aircraft for $120.3 million. The debt bears interest at the monthly LIBOR plus 2.25% (2.40% at September 30, 2020) and requires monthly principal and interest payments. (2) In fiscal 2014, the Company financed ten CRJ-900 aircraft for $88.4 million. The debt bears interest at the monthly LIBOR plus 1.95% (2.10% at September 30, 2020) and requires monthly principal and interest payments. In fiscal 2018, the Company repaid $40.0 million related to four CRJ-900 aircraft. (3) In fiscal 2014, the Company financed eight CRJ-900 aircraft with $114.5 million in debt. The debt bears interest at 5.00% and requires monthly principal and interest payments. (4) In fiscal 2015, the Company financed seven CRJ-900 aircraft with $170.2 million in debt. The senior notes payable of $151.0 million bear interest at monthly LIBOR plus 2.71% (2.86% at September 30, 2020) and require monthly principal and interest payments. The subordinated notes payable is noninterest-bearing and become payable in full on the last day of the term of the notes. The Company has imputed an interest rate of 6.25% on the subordinated notes payable and recorded a related discount of $8.1 million, which is being accreted to interest expense over the term of the notes. (5) In fiscal 2016, the Company financed ten E-175 aircraft with $246.0 million in debt under an EETC financing arrangement (see discussion below). The debt bears interest ranging from 4.75% to 6.25% and requires semi-annual principal and interest payments. (6) In fiscal 2016, the Company financed eight E-175 aircraft with $ 195.3 million in debt. The senior notes payable of $ 172.0 million bear interest at the three-month LIBOR plus a spread ranging fr om 2.20 % to 2.32 % ( 2.43 % to 2.55 % at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable bear interest at 4.50 % and require quarterly principal and interest payments. (7) In June 2018, the Company refinanced six CRJ-900 aircraft with $27.5 million in debt and financed nine CRJ-900 aircraft, which were previously leased, with $69.6 million in debt. The senior notes payable of $65.8 million bear interest at the three-month LIBOR plus 3.50% (3.73% at September 30, 2020) and require quarterly principal and interest payments. The subordinated notes payable of $29.8 million bear interest at three month LIBOR plus 7.50% (7.73% at September 30, 2020) and require quarterly principal and interest payments. (8) In (9) In fiscal 2015, the Company financed certain flight equipment with $8.3 million in debt. The debt bears interest at 5.163% and was paid off in August 2020. (10) In fiscal 2015 and 2016, the Company financed certain flight equipment maintenance costs with $10.2 3.07% (11) In fiscal 2016-2019, the Company financed certain flight equipment. The debt bears interest at the three-month LIBOR plus a spread ranging from 2.93% 3.21% ( 12) In February 2018, the Company leased two spare engines. The leases were determined to be capital as the leases contain a bargain purchase option at the end of the term. Imputed interest is 9.128% and the leases requires monthly payments. (13) In January 2019, the Company financed certain flight equipment with $91.2 million in debt. The debt bears interest at the monthly LIBOR plus 3.10% (3.25% at September 30, 2020) and requires monthly principal and interest payments. (14) In June 2019, the Company financed ten CRJ-700 aircraft with $70.0 million in debt, which were previously leased. The debt bears interest at the monthly LIBOR plus 5.00% (5.15% at September 30, 2020) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1 st (15) On September 27,2019, the Company financed certain flight equipment for $8.0 million. The debt bears interest at the monthly LIBOR plus 5.00% (5.15% at September 30, 2020) and requires monthly principal and interest payments. The interest rate reduced from 5.25% to 5.00% in 1 st (16) On September 25, 2019, the company extended the term on their $35.0 million working capital draw loan by three years, which now terminates in September 2022. Interest is assessed on drawn amounts at one-month LIBOR plus 3.75%. |
Schedule of Principal Maturities of Long-term Debt | Principal maturities of long-term debt as of September 30, 2020, and for each of the next five years are as follows (in thousands): Total Principal Periods Ending September 30, Amount 2021 $ 189,268 2022 152,517 2023 126,095 2024 71,033 2025 56,526 Thereafter 147,811 $ 743,250 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculations of Net Income Per Common Share | Calculations of net income per common share were as follows (in thousands, except per share data): Year Ended September 30, 2020 2019 2018 Net income $ 27,464 $ 47,580 $ 33,255 Basic weighted average common shares outstanding 35,237 34,764 24,826 Add: Incremental shares for: Dilutive effect of warrants — — 116 Dilutive effect of restricted stock 71 300 315 Diluted weighted average common shares outstanding 35,308 35,064 25,257 Net income per common share Basic $ 0.78 $ 1.37 $ 1.34 Diluted $ 0.78 $ 1.36 $ 1.32 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consists of the following: Years Ended September 30, 2020 2019 2018 (in thousands) Current Federal $ — $ (138 ) $ — State 297 341 465 $ 297 $ 203 $ 465 Deferred Federal 8,404 13,238 (17,308 ) State 830 2,265 (583 ) $ 9,234 $ 15,503 $ (17,891 ) Provision (Benefit) for income taxes $ 9,531 $ 15,706 $ (17,426 ) |
Schedule of Reconciliation between Effective Tax Rate Income from Continuing Operations and Statutory Rate | Reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows: Years Ended September 30, 2020 2019 2018 (in thousands) Income tax expense at federal statutory rate $ 7,769 $ 13,290 $ 3,878 Increase (reduction) in income taxes resulting from: State taxes, net of federal tax benefit 968 1,785 660 Nondeductible stock compensation expenses 524 (21 ) — Permanent items 314 261 63 Change in valuation allowances 1,173 (50 ) (646 ) US Tax Cuts and Jobs Act Impact — — (22,015 ) 162(m) Limitation 14 119 — Impact of changing rates on deferred tax assets (2,313 ) 484 (773 ) Expired tax attributes 633 111 1,088 Other 449 (273 ) 319 Income tax expense (benefit) $ 9,531 $ 15,706 $ (17,426 ) |
Schedule of Deferred Tax Assets | The Company's deferred tax assets as of September 30, 2020 and 2019 are as follows: Years Ended September 30, 2020 2019 (in thousands) Net operating carry forwards $ 113,402 $ 106,645 Deferred credits 1,485 1,882 Other accrued expenses 2,842 2,329 Prepaids and other 1,632 2,576 State alternative minimum tax 1 1 Other reserves and estimated losses 641 947 Operating lease 24,263 4,928 Subtotal $ 144,266 $ 119,308 Less: valuation allowance (3,063 ) (1,890 ) Total net deferred tax assets $ 141,203 $ 117,418 Intangibles (1,830 ) (2,204 ) ROU Lease (19,210 ) — Property and equipment (184,438 ) (170,517 ) Total deferred tax liabilities $ (205,478 ) $ (172,721 ) Net deferred tax liability $ (64,275 ) $ (55,303 ) |
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years Ended September 30, 2020 2019 2018 (in thousands) Unrecognized tax benefits — October 1 $ 4,688 $ 4,688 $ 7,547 Gross decreases — tax positions in prior period — — (2,859 ) Gross increases — tax positions in prior period 178 — — Unrecognized tax benefits — September 30 $ 4,866 $ 4,688 $ 4,688 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | The restricted stock activity for our years ended September 30, 2020, 2019 and 2018 is summarized as follows: Weighted- Average Number Grant Date 2011 and 2017 Plans of Shares Fair Value Restricted shares unvested at September 30, 2017 775,753 $ 5.22 Granted — — Vested (284,555 ) 5.26 Cancelled (491,198 ) 5.20 Restricted shares unvested at September 30, 2018 — $ — Weighted- Average Number Grant Date 2018 Plan of Shares Fair Value Restricted shares unvested at September 30, 2017 — $ — Exchanged Restricted Shares 491,198 5.20 Exchanged Phantom Stock 491,915 12.00 Exchanged SARs 1,266,034 12.00 Exchanged SARs vested prior to exchange (966,022 ) 12.00 Vested (32,500 ) 2.00 Cancelled — — Restricted shares unvested at September 30, 2018 1,250,625 $ 9.59 Granted 321,926 8.94 Vested (701,582 ) 9.25 Cancelled (22,995 ) 12.00 Restricted shares unvested at September 30, 2019 847,974 $ 9.56 Granted 910,297 3.97 Vested (555,473 ) 9.21 Cancelled (7,250 ) 7.89 Restricted shares unvested at September 30, 2020 1,195,548 $ 5.47 |
Schedule of SARs Activity | The SARs activity for the years ended September 30, 2018 is summarized as follows: Weighted- Number Average of Shares Fair Value SARs unvested at September 30, 2017 1,140,013 $ — Granted — — Vested (622,238 ) — Cancelled (517,775 ) 8.69 Forfeited — — SARs unvested at September 30, 2018 — $ — |
Schedule of Phantom Stock Activity | The phantom stock activity for the year ended September 30, 2018 is summarized as follows: Weighted- Number Average of Shares Fair Value Phantom stock unvested at September 30, 2017 — $ — Granted 536,538 6.14 Vested (44,623 ) 7.30 Cancelled (491,915 ) 12.00 Phantom stock unvested at September 30, 2018 — $ — |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Lease Related Terms and Discount Rates | The Table below presents lease related terms and discount rates as of September 30,2020: As of September 30,2020 Weighted average remaining lease term Operating leases 3.6 years Weighted average discount rate Operating leases 4.2 % |
Schedule of Future Minimum Rental Payments under Operating 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 leases that had initial or remaining non-cancelable lease terms as of September 30, 2020 (in thousands): Periods Ending September 30, Total Maturities 2021 $ 47,377 2022 33,216 2023 15,947 2024 14,682 2025 1,654 Less: Interest $ (6,413 ) Amounts recorded in the Consolidated Balance Sheet $ 106,463 |
Schedule of Future Minimum Lease Obligations under Non-cancelable Operating Leases | The following represents future minimum lease obligations under non-cancelable operating leases as of September 30, 2019 (in thousands): Periods Ending September 30, Total Payments 2020 $ 47,814 2021 46,007 2022 31,090 2023 13,726 2024 13,185 2025 1,368 Total $ 153,190 |
Selected Consolidated Quarter_2
Selected Consolidated Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Consolidated Financial Information | The following table sets forth certain unaudited selected consolidated financial information for each of the four quarters in the years ended September 30, 2020, 2019 and 2018. In management's opinion, this unaudited consolidated quarterly selected information has been prepared on the same basis as the audited consolidated financial statements and includes all necessary adjustments, consisting only of normal recurring adjustments, which management considers necessary for a fair presentation when read in conjunction with Quarterly EPS may not total to the fiscal year EPS due to the weighted average number of shares outstanding at the end of each period reported and rounding. 12/31/2019 3/31/2020 6/30/2020 9/30/2020 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) 2020 Contract revenue $ 171,800 $ 165,781 $ 71,648 $ 97,361 Total operating revenues 184,036 179,896 73,099 108,039 Operating income 27,187 13,892 15,224 23,864 Net income 10,785 1,885 3,419 11,375 Net income per share attributable to common shareholders Basic 0.31 0.05 0.10 0.32 Diluted 0.31 0.05 0.10 0.32 12/31/2018 3/31/2019 6/30/2019 9/30/2019 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) 2019 Contract revenue $ 170,449 $ 169,771 $ 170,366 $ 172,248 Total operating revenues 178,156 177,147 180,224 187,830 Operating income 39,230 34,377 17,077 30,453 Net income 19,081 13,249 3,007 12,243 Net income per share attributable to common shareholders Basic 0.55 0.38 0.09 0.35 Diluted 0.54 0.38 0.09 0.35 12/31/2017 3/31/2018 6/30/2018 9/30/2018 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) 2018 Contract revenue $ 154,389 $ 156,515 $ 159,916 $ 168,444 Total operating revenues 164,684 167,640 171,739 177,532 Operating income 15,023 16,349 (508 ) 41,784 Net income 22,624 2,372 (11,135 ) 19,394 Net income per share attributable to common shareholders Basic 0.97 0.10 (0.48 ) 0.66 Diluted 0.96 0.10 (0.48 ) 0.65 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) | Nov. 04, 2020USD ($) | Jun. 15, 2020Air-craft | Jun. 01, 2020Air-craft | May 19, 2020Air-craft | Apr. 03, 2020Air-craft | Jan. 02, 2020Air-craft | Nov. 26, 2019Air-craft | Nov. 25, 2019Air-craft | Sep. 11, 2018USD ($)$ / sharesshares | Aug. 14, 2018USD ($)$ / sharesshares | Aug. 08, 2018shares | Oct. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Nov. 30, 2019Air-craft | Sep. 30, 2019USD ($)Air-craftshares | Jul. 31, 2019Air-craft | Apr. 30, 2019shares | Jan. 31, 2019Air-craft | Jul. 31, 2018shares | Sep. 30, 2020USD ($)Daily_DepartureStateAir-craftCityshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Nov. 14, 2020USD ($) | Nov. 13, 2020USD ($) | Oct. 30, 2020USD ($) | Apr. 02, 2019Air-craft |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of states in which entity operates | State | 39 | |||||||||||||||||||||||||
Number of aircrafts operated | Air-craft | 146 | |||||||||||||||||||||||||
Number of cities in which entity operates | City | 102 | |||||||||||||||||||||||||
Number of daily departures | Daily_Departure | 373 | |||||||||||||||||||||||||
Common stock, stock split | effected a 2.5-for-1 stock split | |||||||||||||||||||||||||
Stock split ratio | 2.5 | |||||||||||||||||||||||||
Common stock, shares authorized | shares | 125,000,000 | 125,000,000 | 125,000,000 | 125,000,000 | ||||||||||||||||||||||
Preferred stock, shares authorized | shares | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||||||||||||||||
Stock issued during period, shares, new issues | shares | 1,344,500 | |||||||||||||||||||||||||
Common stock, warrants issued | shares | 3,600,953 | 0 | 3,600,953 | |||||||||||||||||||||||
Gross proceeds from sale of shares | $ | $ 124,247,820 | $ 124,246,000 | ||||||||||||||||||||||||
Cash and cash equivalents | $ | $ 68,855,000 | $ 99,395,000 | $ 68,855,000 | |||||||||||||||||||||||
Drew amount from undrawn revolving credit facility | $ | $ 23,000,000 | 171,658,000 | $ 187,703,000 | |||||||||||||||||||||||
CARES act grant amount | $ | $ 92,500,000 | |||||||||||||||||||||||||
CARES act, increasing percentage of payroll | 2.00% | |||||||||||||||||||||||||
CARES act, additional grant amount | $ | $ 2,700,000 | |||||||||||||||||||||||||
CARES act, total grant amount | $ | 95,200,000 | |||||||||||||||||||||||||
CARES act, utilized offset payroll expenses | $ | 83,800,000 | |||||||||||||||||||||||||
CARES act, deferred offset future payroll cost | $ | $ 11,400,000 | |||||||||||||||||||||||||
Secured loan facility interest rate description | 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), and on the maturity date. | |||||||||||||||||||||||||
American capacity purchase agreement termination notice period | 15 days | |||||||||||||||||||||||||
Maximum number of aircraft to withdraw in the event company fails to meet new/ revise performance metrics | Air-craft | 14 | |||||||||||||||||||||||||
Maximum number of aircraft to permanently withdraw in the event company fails to meet new/ revise performance metrics | Air-craft | 6 | |||||||||||||||||||||||||
Number of aircraft converted to be utilized as operational spares | Air-craft | 2 | |||||||||||||||||||||||||
Number of aircraft permanently withdraw due to failure to meet new/revised performance metrics | Air-craft | 2 | 2 | 2 | 2 | ||||||||||||||||||||||
Number of additional aircraft permanently withdrawn due to company's failure to meet certain performance metrics | Air-craft | 2 | |||||||||||||||||||||||||
Number of aircraft removed due to failure to meet new/revised performance metrics | Air-craft | 3 | |||||||||||||||||||||||||
Number of aircraft that would be withdrawn at any time due to failure to meet new/revised performance metrics | Air-craft | 3 | 3 | 3 | 3 | ||||||||||||||||||||||
Number of deferred aircraft elected to remove | Air-craft | 1 | 1 | ||||||||||||||||||||||||
Notice period for termination of agreement | Our United Capacity Purchase Agreement 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. | |||||||||||||||||||||||||
Prepayment | $ | $ 1,672,000 | |||||||||||||||||||||||||
United capacity purchase agreement termination notice period | 30 days | |||||||||||||||||||||||||
CRJ-700 Aircraft [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of aircrafts operated | Air-craft | 20 | |||||||||||||||||||||||||
CRJ-700 Aircraft [Member] | United [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Aircraft lease term | 7 years | |||||||||||||||||||||||||
E-175 Aircraft [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of aircrafts operated | Air-craft | 18 | 60 | ||||||||||||||||||||||||
Lease expiration year | 2028 | |||||||||||||||||||||||||
E-175 Aircraft [Member] | United [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of aircrafts operated | Air-craft | 42 | 42 | ||||||||||||||||||||||||
Aircraft lease extension period | 5 years | |||||||||||||||||||||||||
E175LL Aircraft [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of additional aircrafts | Air-craft | 20 | |||||||||||||||||||||||||
Number of years in operation | 12 years | |||||||||||||||||||||||||
Air drafts delivery month and year description. | Deliveries of the new E175LL aircraft were scheduled to begin in May 2020. | |||||||||||||||||||||||||
Termination of aircraft operation, description | Commencing five (5) years after the actual in-service date, United has the right to remove the E175LL aircraft from service by giving us notice of 90 days or more, subject to certain conditions, including the payment of certain wind-down expenses plus, if removed prior to the ten (10) year anniversary of the in-service date, certain accelerated margin payments. | |||||||||||||||||||||||||
American Airlines Inc. [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Ownership interest | 7.10% | 0.00% | 7.10% | 7.20% | ||||||||||||||||||||||
CRJ-900 Aircraft [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of aircrafts operated | Air-craft | 54 | |||||||||||||||||||||||||
CRJ-900 Aircraft [Member] | Aircraft Lease Expire In 2021 [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of operated aircrafts expired or set to expire | Air-craft | 31 | |||||||||||||||||||||||||
Lease expiration year | 2021 | |||||||||||||||||||||||||
CRJ-900 Aircraft [Member] | Aircraft Lease Expire In 2022 [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of operated aircrafts expired or set to expire | Air-craft | 16 | |||||||||||||||||||||||||
Lease expiration year | 2022 | |||||||||||||||||||||||||
CRJ-900 Aircraft [Member] | Aircraft Lease Expire In 2025 [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of operated aircrafts expired or set to expire | Air-craft | 7 | |||||||||||||||||||||||||
Lease expiration year | 2025 | |||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Secured loans to the airline industry | $ | $ 25,000,000,000 | |||||||||||||||||||||||||
Capacity purchase agreement, expiration year | 2025 | |||||||||||||||||||||||||
Maximum [Member] | E-175 Aircraft [Member] | United [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Lease expiration year | 2028 | |||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Capacity purchase agreement, expiration year | 2021 | |||||||||||||||||||||||||
Minimum [Member] | E-175 Aircraft [Member] | United [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Lease expiration year | 2024 | |||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Secured loans to the airline industry | $ | $ 195,000,000 | $ 152,000,000 | $ 43,000,000 | |||||||||||||||||||||||
Secured loan facility term | 5 years | |||||||||||||||||||||||||
Secured loan facility remaining borrowing capacity | $ | $ 0 | |||||||||||||||||||||||||
Subsequent Event [Member] | United [Member] | United Capacity Purchase Agreement [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of years in operation | 12 years | |||||||||||||||||||||||||
Prepayment | $ | $ 85,000,000 | |||||||||||||||||||||||||
Prepayment term | 4 months | |||||||||||||||||||||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Secured loan facility maximum borrowing capacity | $ | $ 200,000,000 | |||||||||||||||||||||||||
LIBOR [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Secured loan facility interest rate | 3.50% | |||||||||||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Drew amount from undrawn revolving credit facility | $ | $ 23,000,000 | |||||||||||||||||||||||||
2018 Equity Incentive Plan [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Stock withheld to cover tax withholding requirements upon vesting to restricted stock units shares | shares | 314,198 | |||||||||||||||||||||||||
Restricted stock, shares issued net of shares for tax withholdings | shares | 651,824 | |||||||||||||||||||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Stock issued during period, shares, new issues | shares | 2,249,147 | |||||||||||||||||||||||||
Number of Shares, Granted | shares | 1,266,034 | 3,481,370 | 910,297 | 321,926 | ||||||||||||||||||||||
Number of Shares, vested | shares | 966,022 | |||||||||||||||||||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock [Member] | Employees [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Additional restricted common stock shares issued | shares | 983,113 | |||||||||||||||||||||||||
2011 and 2017 Plans [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Number of Shares, Granted | shares | 0 | |||||||||||||||||||||||||
2011 and 2017 Plans [Member] | Restricted Stock [Member] | Employees [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Cancellation of common stock shares existing unvested restricted phantom units | shares | 491,915 | |||||||||||||||||||||||||
Cancellation of common stock shares existing of unvested restricted stock | shares | 491,198 | |||||||||||||||||||||||||
IPO [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Stock issued during period, shares, new issues | shares | 9,630,000 | |||||||||||||||||||||||||
Shares issued, price per share | $ / shares | $ 12 | |||||||||||||||||||||||||
Gross proceeds of initial public offering | $ | $ 115,600,000 | $ 124,200,000 | ||||||||||||||||||||||||
Underwriter Options [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Common stock, warrants issued | shares | 1,444,500 | |||||||||||||||||||||||||
Purchased Directly From Company [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Stock issued during period, shares, new issues | shares | 723,985 | |||||||||||||||||||||||||
Purchased Directly From Selling Shareholders [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Stock issued during period, shares, new issues | shares | 620,515 | |||||||||||||||||||||||||
Firm Shares and Option Shares [Member] | ||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||||||||||||||||||
Shares issued, price per share | $ / shares | $ 12 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
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 | $ 3,400,000 | $ 3,600,000 | |
Allowance for obsolete expendable parts and supplies | 642,000 | $ 200,000 | |
Reduction of unfavorable lease liability | 5,700,000 | 6,600,000 | |
Write off of unfavorable lease liability | 750,000 | 1,200,000 | |
Lease revenue | 208,900,000 | 219,000,000 | 217,000,000 |
Current and non-current deferred credit balances | 8,500,000 | 12,100,000 | 15,400,000 |
Recognized deferred credits to revenue | 3,700,000 | 5,100,000 | 4,400,000 |
Contract assets balances | 2,000,000 | 3,900,000 | 4,600,000 |
Contract cost amortization | 1,900,000 | 2,400,000 | 1,900,000 |
Engine overhaul expense | 40,500,000 | 30,000,000 | 51,200,000 |
Engine overhaul pass-through expense | 7,000,000 | 6,000,000 | 12,300,000 |
Airframe check expense | 23,500,000 | 17,200,000 | 21,500,000 |
Airframe check pass-through expense | 7,200,000 | 400,000 | $ 7,500,000 |
Change in accounting policy , effect of increase in SARs and Phantom Stock liability | 2,400,000 | ||
Property and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment charges | 0 | 0 | |
Aircraft [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Allowance for obsolete expendable parts and supplies | $ 2,800,000 | $ 2,400,000 | |
Percentage leased | 12.00% | ||
Aircraft and Rotable Spare Parts [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, salvage value, percentage | 20.00% | ||
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) | 12 Months Ended |
Sep. 30, 2020 | |
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 and Equipment, Estimated Useful Life | 25 years from manufacture date |
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 and Equipment, Estimated Useful Life | Life of the aircraft or term of the lease, whichever is less |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | Life of the aircraft or term of the lease, whichever is less |
Contract Revenue and Pass- Th_3
Contract Revenue and Pass- Through and Other - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Deferred revenue | $ 23,800 | ||
Deferred revenue, current | 9,389 | $ 1,513 | |
Deferred revenue, noncurrent | 14,369 | ||
Lease revenue | 208,900 | 219,000 | $ 217,000 |
Contract Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Lease revenue | 208,900 | $ 219,000 | |
Other Accrued Expenses [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Deferred revenue, current | $ 9,400 |
Contract Revenue and Pass- Th_4
Contract Revenue and Pass- Through and Other - Schedule of Deferred Revenue Remaining Performance Obligations (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 23,759 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 8,177 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 8,969 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Total Revenue | $ 3,883 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
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 | $ 2,730 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Contract Revenue and Pass- Th_5
Contract Revenue and Pass- Through and Other - Schedule of Deferred Revenue Remaining Performance Obligations (Detail 1) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue Performance Obligation Satisfied Over Time [Abstract] | |
Total Revenue | $ 23,759 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 457,859,000 | $ 425,868,000 | $ 374,467,000 | $ 222,224,000 | |
Cumulative Effect Period Of Adoption Adjustment [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ (1,239,000) | ||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect Period Of Adoption Adjustment [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 0 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration Risk [Line Items] | |||
Allowance for doubtful accounts | $ 0.8 | $ 1 | |
American Airlines Inc. [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 52.00% | 53.00% | 54.00% |
United [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 48.00% | 47.00% | 46.00% |
Intangible Assets - Information
Intangible Assets - Information About Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationship | $ 43,800 | $ 43,800 |
Accumulated amortization | (35,768) | (34,268) |
Total | $ 8,032 | $ 9,532 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Amortization expense recognized | $ 1.5 | $ 1.8 | $ 0.4 |
Amortization expense for 2021 | 1.2 | ||
Amortization expense for 2022 | 1 | ||
Amortization expense for 2023 | 0.9 | ||
Amortization expense for 2024 | 0.8 | ||
Amortization expense for 2025 | $ 0.7 |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Certain Significant Amounts Included in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Expendable parts and supplies, net | ||
Expendable parts and supplies | $ 27,431 | $ 25,336 |
Less obsolescence and other | (4,460) | (3,999) |
Expendable parts and supplies, net | 22,971 | 21,337 |
Prepaid expenses and other current assets | ||
Prepaid aircraft rent | 35,786 | |
Deferred offering and reimbursed costs | 1,261 | 2,092 |
Other | 14,806 | 3,045 |
Prepaid expenses and other current assets | 16,067 | 40,923 |
Property and equipment-net | ||
Property and equipment-gross | 1,606,117 | 1,592,043 |
Less accumulated depreciation | (393,702) | (318,458) |
Property and equipment-net | 1,212,415 | 1,273,585 |
Other accrued expenses | ||
Accrued property taxes | 11,354 | 9,186 |
Accrued interest | 3,268 | 4,497 |
Accrued vacation | 5,975 | 6,128 |
Deferred revenue- current portion | 9,389 | 1,513 |
Other | 24,881 | 7,564 |
Other accrued expenses | 54,867 | 28,888 |
Aircraft and Other Flight Equipment Substantially Pledged [Member] | ||
Property and equipment-net | ||
Property and equipment-gross | 1,596,174 | 1,582,199 |
Other Machinery and Equipment [Member] | ||
Property and equipment-net | ||
Property and equipment-gross | 5,147 | 5,122 |
Leasehold Improvements [Member] | ||
Property and equipment-net | ||
Property and equipment-gross | 2,763 | 2,797 |
Vehicles [Member] | ||
Property and equipment-net | ||
Property and equipment-gross | 1,032 | 924 |
Building [Member] | ||
Property and equipment-net | ||
Property and equipment-gross | 699 | 699 |
Furniture and Fixtures [Member] | ||
Property and equipment-net | ||
Property and equipment-gross | $ 302 | $ 302 |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation expense | $ 80,800 | $ 76,200 | $ 64,600 |
Amortization of unfavorable lease liability | 5,718 | 6,640 | |
Write off of unfavorable lease liability | $ 800 | $ 1,200 |
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, 2020 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, including current maturities, carrying value | $ 743,250 | $ 858,145 |
Long-term debt, including current maturities, fair value | $ 768,700 | $ 882,700 |
Long-Term Debt and Other Borr_3
Long-Term Debt and Other Borrowings - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | $ 743,250 | $ 858,145 |
Less unamortized debt issuance costs | (11,526) | (14,822) |
Net long-term debt, including current maturities | 731,724 | 843,323 |
Less current portion | (189,268) | (165,900) |
Net long-term debt | 542,456 | 677,423 |
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 41,472 | 49,795 |
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 55,674 | 60,761 |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 105,887 | 110,912 |
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 172,137 | 191,168 |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 138,114 | 152,945 |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 47,319 | 71,998 |
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2022 [Member] | CRJ-900 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 29,682 | 47,309 |
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 1,659 | |
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment Maintenance [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 4,182 | 6,962 |
Notes Payable to Financial Institution Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 1,523 | 2,329 |
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 6,000 | 8,000 |
Other Obligations Due to Financial Institution, Collateralized by the Underlying Equipment, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 6,864 | 8,530 |
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 63,341 | 80,153 |
Working Capital Draw Loan, Used to Cover Operational Needs [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | 22,930 | |
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross long-term debt, including current maturities | $ 48,125 | $ 65,625 |
Long-Term Debt and Other Borr_4
Long-Term Debt and Other Borrowings - Schedule of Long-term Debt (Parenthetical) (Detail) $ in Thousands | Sep. 27, 2019USD ($) | Sep. 25, 2019USD ($) | Jun. 30, 2019USD ($)Airfleet | Jan. 31, 2019USD ($) | Jun. 30, 2018USD ($)Air-craft | Feb. 28, 2018Engine | Dec. 31, 2017USD ($)Air-craft | Mar. 31, 2020USD ($) | Dec. 31, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017 | Sep. 30, 2016USD ($)Air-craft | Sep. 30, 2015USD ($)Air-craft | Sep. 30, 2007USD ($)Airfleet | Sep. 30, 2014USD ($)Airfleet |
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from long-term debt | $ 23,000 | $ 171,658 | $ 187,703 | ||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from long-term debt | $ 23,000 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2022 | 2022 | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of aircraft refinanced | Airfleet | 3 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | CRJ-700 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of aircraft refinanced | Airfleet | 3 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | Three C- R- J-900 and Three C- R- J-700 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 120,300 | ||||||||||||||||
Long term debt interest rate percentage | 2.40% | ||||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 2.25% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | Three C- R- J-900 and Three C- R- J-700 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 2.25% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | Ten C- R- J-900 Aircraft [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 88,400 | ||||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 1.95% | ||||||||||||||||
Number of aircraft financed | Airfleet | 10 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | Ten C- R- J-900 Aircraft [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 2.10% | 1.95% | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2022 [Member] | Four C- R- J-900 Aircraft [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of long term debt | $ 40,000 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2024 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2024 | 2024 | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2024 [Member] | Eight C- R- J-900 Aircraft [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 114,500 | ||||||||||||||||
Number of aircraft financed | Airfleet | 8 | ||||||||||||||||
Long term debt interest rate percentage | 5.00% | ||||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2027 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2027 | 2027 | |||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2027 [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 170,200 | ||||||||||||||||
Number of aircraft financed | Air-craft | 7 | ||||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2028 | 2028 | |||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Ten E-175 Aircraft [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 246,000 | ||||||||||||||||
Number of aircraft financed | Air-craft | 10 | ||||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Ten E-175 Aircraft [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 4.75% | ||||||||||||||||
Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Ten E-175 Aircraft [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 6.25% | ||||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2028 | 2028 | |||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2028 [Member] | Eight E-175 Aircraft [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of aircraft refinanced | Air-craft | 8 | ||||||||||||||||
Debt instrument, face amount | $ 195,300 | ||||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2022 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2022 | 2022 | |||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2022 [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2022 | 2022 | |||||||||||||||
Number of aircraft refinanced | Air-craft | 6 | 9 | |||||||||||||||
Debt instrument, face amount | $ 27,500 | $ 74,900 | |||||||||||||||
Number of aircraft financed | Air-craft | 9 | ||||||||||||||||
Senior and Subordinated Notes Payable to Secured Parties, Collateralized by the Underlying Aircraft, Due 2022 [Member] | CRJ-900 [Member] | Capital Lease Obligations [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 69,600 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2020 | 2020 | |||||||||||||||
Debt instrument, face amount | $ 8,300 | ||||||||||||||||
Long term debt interest rate percentage | 5.163% | ||||||||||||||||
Debt instrument, repayment date | 2020-08 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment Maintenance [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2020 | 2020 | |||||||||||||||
Long term debt interest rate description | three-month LIBOR plus a spread ranging from 2.93% to 3.21% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment Maintenance [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 3.16% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment Maintenance [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 3.44% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment Maintenance [Member] | LIBOR [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 2.93% | 2.93% | 2.93% | 2.93% | |||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2020 [Member] | Flight Equipment Maintenance [Member] | LIBOR [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 3.21% | 3.21% | 3.21% | 3.21% | |||||||||||||
Notes Payable to Financial Institution Due 2020 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2020 | 2020 | |||||||||||||||
Notes Payable to Financial Institution Due 2020 [Member] | Flight Equipment Maintenance [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 10,200 | $ 10,200 | |||||||||||||||
Long term debt interest rate percentage | 3.30% | ||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus 3.07% | ||||||||||||||||
Notes Payable to Financial Institution Due 2020 [Member] | Flight Equipment Maintenance [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 3.07% | 3.07% | |||||||||||||||
Other Obligations Due to Financial Institution, Collateralized by the Underlying Equipment, Due 2023 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2023 | 2023 | |||||||||||||||
Imputed interest | 9.128% | ||||||||||||||||
Number of spare engines leased | Engine | 2 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2024 | 2024 | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | Flight Equipment [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 91,200 | ||||||||||||||||
Long term debt interest rate percentage | 3.25% | ||||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 3.10% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2024 [Member] | Flight Equipment [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 3.10% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2023 | 2023 | |||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | CRJ-700 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 70,000 | ||||||||||||||||
Long term debt interest rate percentage | 5.15% | ||||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 5.00% | ||||||||||||||||
Number of aircraft financed | Airfleet | 10 | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | CRJ-700 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 5.00% | 5.00% | 5.25% | ||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Equipment, Due 2023 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument maturity year | 2023 | 2023 | |||||||||||||||
Senior Notes Due Two Thousand Twenty Seven [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 151,000 | ||||||||||||||||
Long term debt interest rate percentage | 2.86% | ||||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 2.71% | ||||||||||||||||
Senior Notes Due Two Thousand Twenty Seven [Member] | CRJ-900 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 2.71% | ||||||||||||||||
Subordinated Notes Due Two Thousand Twenty Seven [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Imputed interest | 6.25% | ||||||||||||||||
Debt discount | $ 8,100 | ||||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus a spread ranging from 2.20% to 2.32% | ||||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 172,000 | ||||||||||||||||
Long term debt interest rate percentage | 2.43% | ||||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 2.55% | ||||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | LIBOR [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 2.20% | ||||||||||||||||
Senior Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | LIBOR [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 2.32% | ||||||||||||||||
Subordinated Notes Due 2008 [Member] | Eight E-175 Aircraft [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 4.50% | ||||||||||||||||
Senior Notes Due 2020 [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 65,800 | ||||||||||||||||
Long term debt interest rate percentage | 3.73% | ||||||||||||||||
Long term debt, basis spread on variable rate | 3.50% | ||||||||||||||||
Senior Notes Due 2020 [Member] | CRJ-900 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus 3.50% | ||||||||||||||||
Subordinated Notes Due 2020 [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 29,800 | ||||||||||||||||
Long term debt interest rate percentage | 7.73% | ||||||||||||||||
Long term debt, basis spread on variable rate | 7.50% | ||||||||||||||||
Subordinated Notes Due 2020 [Member] | CRJ-900 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate description | three month LIBOR plus 7.50% | ||||||||||||||||
Senior Notes due Two Thousand Twenty Two [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 46,900 | ||||||||||||||||
Long term debt interest rate percentage | 3.73% | ||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus 3.50% | ||||||||||||||||
Senior Notes due Two Thousand Twenty Two [Member] | CRJ-900 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 3.50% | ||||||||||||||||
Subordinated Notes DueTwoThousandTwentyTwo [Member] | CRJ-900 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 4.73% | ||||||||||||||||
Long term debt interest rate description | three-month LIBOR plus 4.50% | ||||||||||||||||
Subordinated Notes DueTwoThousandTwentyTwo [Member] | CRJ-900 [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt interest rate percentage | 4.50% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying, Due 2023 [Member] | Flight Equipment [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 8,000 | ||||||||||||||||
Long term debt interest rate percentage | 5.15% | ||||||||||||||||
Long term debt interest rate description | monthly LIBOR plus 5.00% | ||||||||||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying, Due 2023 [Member] | Flight Equipment [Member] | LIBOR [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 5.00% | 5.00% | 5.25% | ||||||||||||||
Working Capital Draw Loan [Member] | Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 35,000 | ||||||||||||||||
Long term debt interest rate description | one-month LIBOR plus 3.75%. | one-month LIBOR plus 3.75%. | |||||||||||||||
Term loan, term | 3 years | ||||||||||||||||
Debt instrument, expiration year and month | 2022-09 | ||||||||||||||||
Proceeds from long-term debt | $ 23,000 | $ 23,000 | |||||||||||||||
Working Capital Draw Loan [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, basis spread on variable rate | 3.75% |
Long-Term Debt and Other Borr_5
Long-Term Debt and Other Borrowings - Schedule of Principal Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Long Term Debt By Maturity [Abstract] | ||
2021 | $ 189,268 | |
2022 | 152,517 | |
2023 | 126,095 | |
2024 | 71,033 | |
2025 | 56,526 | |
Thereafter | 147,811 | |
Long-term debt | $ 743,250 | $ 858,145 |
Long-Term Debt and Other Borr_6
Long-Term Debt and Other Borrowings - Additional Information (Detail) $ in Thousands | Oct. 01, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 25, 2019USD ($) | Jun. 14, 2019USD ($)Air-craft | Jan. 28, 2019USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||||
Property and equipment, net | $ 1,212,415 | $ 1,273,585 | ||||||||
Long-Term Debt | 731,724 | 843,323 | ||||||||
Loss on extinguishment of debt | 3,616 | |||||||||
Payment for debt extinguishment prepayment penalties | 1,672 | |||||||||
Non-cash lease termination expense | 9,540 | $ 15,109 | ||||||||
Proceeds from long-term debt | 23,000 | $ 171,658 | $ 187,703 | |||||||
Lease payment amount | 106,463 | |||||||||
Export Development Canada [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal payments deferred | 28,000 | |||||||||
Export Development Canada [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of existing aircraft debt | $ 145,000 | |||||||||
Repayments of previously deferred principal payments | $ 19,900 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from long-term debt | 23,000 | |||||||||
Equipment Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-Term Debt | $ 172,100 | |||||||||
Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 91,200 | |||||||||
Long term debt interest rate description | LIBOR plus 3.10% | |||||||||
Term loan, term | 5 years | |||||||||
Write-off of financing cost | $ 1,900 | |||||||||
Payment for debt extinguishment prepayment penalties | 1,700 | |||||||||
Term Loan [Member] | Spare Engine Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt interest rate description | LIBOR plus 7.25% | |||||||||
Loss on extinguishment of debt | $ 3,600 | |||||||||
Term Loan [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt, basis spread on variable rate | 3.10% | |||||||||
Term Loan [Member] | LIBOR [Member] | Spare Engine Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt, basis spread on variable rate | 7.25% | |||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | CRJ-700 Aircraft [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 70,000 | |||||||||
Long term debt interest rate description | LIBOR plus 5.00%. | |||||||||
Number of aircraft purchased | Air-craft | 10 | |||||||||
Payment for aircraft purchased | $ 70,000 | |||||||||
Non-cash lease termination expense | $ 9,500 | |||||||||
Notes Payable to Financial Institution, Collateralized by the Underlying Aircraft, Due 2023 [Member] | LIBOR [Member] | CRJ-700 Aircraft [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt, basis spread on variable rate | 5.00% | |||||||||
Working Capital Draw Loan [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 35,000 | |||||||||
Long term debt interest rate description | one-month LIBOR plus 3.75%. | one-month LIBOR plus 3.75%. | ||||||||
Term loan, term | 3 years | |||||||||
Proceeds from long-term debt | $ 23,000 | $ 23,000 | ||||||||
Working Capital Draw Loan [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt, basis spread on variable rate | 3.75% | |||||||||
Aircraft and Equipment [Member] | Pledged as Collateral [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Property and equipment, net | $ 1,093,000 | |||||||||
Flight Equipment [Member] | Notes Payable to Financial Institution Due 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 8,000 | |||||||||
Long term debt interest rate description | Libor plus 5.0%. | |||||||||
Flight Equipment [Member] | Notes Payable to Financial Institution Due 2023 [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt, basis spread on variable rate | 5.00% | |||||||||
RASPRO Aircraft Lease [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Lease payment amount | $ 4,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share And Equity [Abstract] | |||||||||||||||
Net income | $ 11,375 | $ 3,419 | $ 1,885 | $ 10,785 | $ 12,243 | $ 3,007 | $ 13,249 | $ 19,081 | $ 19,394 | $ (11,135) | $ 2,372 | $ 22,624 | $ 27,464 | $ 47,580 | $ 33,255 |
Basic weighted average common shares outstanding | 35,237 | 34,764 | 24,826 | ||||||||||||
Add: Incremental shares for: | |||||||||||||||
Dilutive effect of warrants | 116 | ||||||||||||||
Dilutive effect of restricted stock | 71 | 300 | 315 | ||||||||||||
Diluted weighted average common shares outstanding | 35,308 | 35,064 | 25,257 | ||||||||||||
Net income per common share | |||||||||||||||
Basic | $ 0.32 | $ 0.10 | $ 0.05 | $ 0.31 | $ 0.35 | $ 0.09 | $ 0.38 | $ 0.55 | $ 0.66 | $ (0.48) | $ 0.10 | $ 0.97 | $ 0.78 | $ 1.37 | $ 1.34 |
Diluted | $ 0.32 | $ 0.10 | $ 0.05 | $ 0.31 | $ 0.35 | $ 0.09 | $ 0.38 | $ 0.54 | $ 0.65 | $ (0.48) | $ 0.10 | $ 0.96 | $ 0.78 | $ 1.36 | $ 1.32 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted loss per share | 0 | 0 | 0 |
Number of Warrants [Member] | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from calculation of diluted loss per share | 0 | 0 | 0 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) $ / shares in Units, $ in Millions | Apr. 09, 2019shares | Sep. 11, 2018$ / sharesshares | Aug. 14, 2018USD ($)$ / sharesshares | Aug. 08, 2018shares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019$ / sharesshares | Jun. 28, 2018shares |
Class of Warrant or Right [Line Items] | |||||||
Warrants term | 5 years | ||||||
Warrants of common stock exercise price | $ / shares | $ 0.004 | ||||||
Maximum percentage of stock pertaining to restrictions | 24.90% | ||||||
Extended term of outstanding warrants expiration period | 5 years | ||||||
Warrants of common stock expiration date | Sep. 30, 2023 | ||||||
Warrants to purchase shares of common stock | 250,000 | ||||||
Common stock, stock split | effected a 2.5-for-1 stock split | ||||||
Stock split ratio | 2.5 | ||||||
Common stock, shares authorized | 125,000,000 | 125,000,000 | 125,000,000 | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Stock issued during period, shares, new issues | 1,344,500 | ||||||
Common stock, no par value | $ / shares | $ 0 | $ 0 | |||||
Common stock, warrants issued | 0 | 3,600,953 | |||||
2018 Equity Incentive Plan [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Increase in number of shares authorized for issuance | 1,000,000 | ||||||
Common stock, shares authorized | 3,500,000 | ||||||
IPO [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Stock issued during period, shares, new issues | 9,630,000 | ||||||
Common stock, no par value | $ / shares | |||||||
Shares issued, price per share | $ / shares | $ 12 | ||||||
Gross proceeds of initial public offering | $ | $ 115.6 | $ 124.2 | |||||
Net proceeds from initial public offering | $ | 111.7 | ||||||
Underwriting discounts and commissions | $ | 8.7 | ||||||
Offering costs | $ | $ 3.6 | ||||||
Underwriter Options [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Common stock, warrants issued | 1,444,500 | ||||||
Purchased Directly From Company [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Stock issued during period, shares, new issues | 723,985 | ||||||
Purchased Directly From Selling Shareholders [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Stock issued during period, shares, new issues | 620,515 | ||||||
Firm Shares and Option Shares [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Shares issued, price per share | $ / shares | $ 12 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current | |||
Federal | $ (138) | ||
State | $ 297 | 341 | $ 465 |
Total current income tax provision (benefit) | 297 | 203 | 465 |
Deferred | |||
Federal | 8,404 | 13,238 | (17,308) |
State | 830 | 2,265 | (583) |
Total deferred income tax provision (benefit) | 9,234 | 15,503 | (17,891) |
Provision (Benefit) for income taxes | $ 9,531 | $ 15,706 | $ (17,426) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
Income tax expense at federal statutory rate | $ 7,769 | $ 13,290 | $ 3,878 |
Increase (reduction) in income taxes resulting from: | |||
State taxes, net of federal tax benefit | 968 | 1,785 | 660 |
Nondeductible stock compensation expenses | 524 | (21) | |
Permanent items | 314 | 261 | 63 |
Change in valuation allowances | 1,173 | (50) | (646) |
US Tax Cuts and Jobs Act Impact | (22,015) | ||
162(m) Limitation | 14 | 119 | |
Impact of changing rates on deferred tax assets | (2,313) | 484 | (773) |
Expired tax attributes | 633 | 111 | 1,088 |
Other | 449 | (273) | 319 |
Provision (Benefit) for income taxes | $ 9,531 | $ 15,706 | $ (17,426) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating carry forwards | $ 113,402 | $ 106,645 |
Deferred credits | 1,485 | 1,882 |
Other accrued expenses | 2,842 | 2,329 |
Prepaids and other | 1,632 | 2,576 |
State alternative minimum tax | 1 | 1 |
Other reserves and estimated losses | 641 | 947 |
Operating lease | 24,263 | 4,928 |
Subtotal | 144,266 | 119,308 |
Less: valuation allowance | (3,063) | (1,890) |
Total net deferred tax assets | 141,203 | 117,418 |
Intangibles | (1,830) | (2,204) |
ROU Lease | (19,210) | |
Property and equipment | (184,438) | (170,517) |
Total deferred tax liabilities | (205,478) | (172,721) |
Net deferred tax liability | $ (64,275) | $ (55,303) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Line Items] | |||
Operating loss carryforwards, valuation allowance | $ 3.1 | $ 1.9 | |
Unrecognized tax benefits if unrecognized, the balance of uncertain tax benefit would affect the effective tax rate | 4.9 | $ 4.7 | $ 4.7 |
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards not subject to expiration | $ 94 | ||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 80.00% | ||
Domestic Tax Authority [Member] | 2027-2037 [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 512.4 | ||
State and Local Jurisdiction [Member] | 2021-2039 [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 223.9 | ||
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 | 2021 | ||
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 | 2040 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Uncertainties [Abstract] | |||
Unrecognized tax benefits beginning balance | $ 4,688 | $ 4,688 | $ 7,547 |
Gross decreases — tax positions in prior period | 0 | 0 | (2,859) |
Gross increases — tax positions in prior period | 178 | 0 | 0 |
Unrecognized tax benefits ending balance | $ 4,866 | $ 4,688 | $ 4,688 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 11, 2018 | Aug. 14, 2018 | Oct. 17, 2017 | Apr. 30, 2019 | Aug. 31, 2018 | Jul. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2020 | Apr. 09, 2019 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock issued during period, shares, new issues | 1,344,500 | ||||||||||||
Unrecognized compensation cost related to unvested share-based compensation arrangements | $ 5,100 | $ 5,100 | |||||||||||
Unrecognized compensation cost, period for recognition | 1 year 9 months 18 days | ||||||||||||
Share-based compensation expense | $ 4,400 | $ 5,500 | $ 12,900 | ||||||||||
Repurchased shares, value | $ 586 | $ 1,872 | $ 7,709 | ||||||||||
Common Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock issued during period, shares, new issues | 10,354,018 | ||||||||||||
Repurchased shares, shares | 142,439 | 205,235 | |||||||||||
Repurchased shares, value | $ 600 | $ 1,900 | |||||||||||
IPO [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock issued during period, shares, new issues | 9,630,000 | ||||||||||||
Board of Directors [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares vesting period | 1 year | ||||||||||||
Stock Appreciation Rights [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares vested | 622,238 | 3,687,218 | |||||||||||
Number of shares cancelled | 517,775 | ||||||||||||
Number of shares unvested | 0 | 1,140,013 | |||||||||||
Number of shares granted | 0 | 4,204,993 | |||||||||||
Number of shares authorized | 5,000,000 | ||||||||||||
Shares vesting period | 3 years | ||||||||||||
Shares expiration period | 10 years | ||||||||||||
Number of shares exercised | 2,088,333 | ||||||||||||
Restricted Stock Units [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares vested | 44,623 | ||||||||||||
Number of shares granted | 536,538 | ||||||||||||
Number of shares authorized | 1,250,000 | ||||||||||||
Shares vesting period | 3 years | ||||||||||||
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 | ||||||||||||
Restricted Stock Award | Minimum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares vesting period | 3 years | ||||||||||||
Restricted Stock Award | Maximum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares vesting period | 5 years | ||||||||||||
2018 Equity Incentive Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 3,500,000 | ||||||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares vested | 2,255,577 | 555,473 | 701,582 | 32,500 | |||||||||
Stock issued during period, shares, new issues | 2,249,147 | ||||||||||||
Number of shares cancelled | 30,245 | 966,022 | 491,915 | 7,250 | 22,995 | 0 | |||||||
Unvested restricted shares issued | 491,198 | ||||||||||||
Number of shares unvested | 1,195,548 | 847,974 | 1,250,625 | 1,195,548 | 0 | ||||||||
Number of shares granted | 1,266,034 | 3,481,370 | 910,297 | 321,926 | |||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 2,500,000 | ||||||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 3,500,000 | ||||||||||||
2018 Equity Incentive Plan [Member] | Stock Appreciation Rights [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares vested | 1,598,885 | 966,022 | |||||||||||
Stock issued during period, shares, new issues | 1,266,034 | ||||||||||||
Number of shares cancelled | 300,012 | ||||||||||||
Number of shares unvested | 300,012 | ||||||||||||
2018 Equity Incentive Plan [Member] | Stock Appreciation Rights [Member] | IPO [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Unvested restricted shares issued | 517,775 | ||||||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | IPO [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares cancelled | 491,915 | ||||||||||||
2011 Plan [Member] | Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares vested | 1,978,550 | ||||||||||||
Number of shares cancelled | 470,355 | ||||||||||||
Number of shares granted | 2,448,905 | ||||||||||||
2017 Plan [Member] | Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares vested | 10,412 | ||||||||||||
Number of shares cancelled | 20,843 | ||||||||||||
Number of shares granted | 31,255 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | Aug. 14, 2018 | Apr. 30, 2019 | Aug. 31, 2018 | Jul. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
2011 and 2017 Plans [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares, Unvested, Beginning Balance | 0 | 775,753 | |||||
Number of Shares, Granted | 0 | ||||||
Number of Shares, Vested | (284,555) | ||||||
Number of Shares, Cancelled | (491,198) | ||||||
Number of Shares, Unvested, Ending Balance | 0 | ||||||
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ 0 | $ 5.22 | |||||
Weighted-Average Grant Date Fair Value, Granted | 0 | ||||||
Weighted-Average Grant Date Fair Value, Vested | 5.26 | ||||||
Weighted-Average Grant Date Fair Value, Cancelled | 5.20 | ||||||
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ 0 | ||||||
2018 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares, Unvested, Beginning Balance | 847,974 | 1,250,625 | 0 | ||||
Number of Shares, Granted | 1,266,034 | 3,481,370 | 910,297 | 321,926 | |||
Exchanged Restricted Shares | 491,198 | ||||||
Exchanged Phantom Stock | 491,915 | ||||||
Exchanged SARs | 1,266,034 | ||||||
Exchanged SARs vested prior to exchange | (966,022) | ||||||
Number of Shares, Vested | (2,255,577) | (555,473) | (701,582) | (32,500) | |||
Number of Shares, Cancelled | (30,245) | (966,022) | (491,915) | (7,250) | (22,995) | 0 | |
Number of Shares, Unvested, Ending Balance | 1,195,548 | 847,974 | 1,250,625 | ||||
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ 9.56 | $ 9.59 | $ 0 | ||||
Weighted-Average Grant Date Fair Value, Granted | 3.97 | 8.94 | |||||
Exchanged Restricted Shares | 5.20 | ||||||
Exchanged Phantom Stock | 12 | ||||||
Exchanged SARs | 12 | ||||||
Exchanged SARs vested prior to exchange | 12 | ||||||
Weighted-Average Grant Date Fair Value, Vested | 9.21 | 9.25 | 2 | ||||
Weighted-Average Grant Date Fair Value, Cancelled | 7.89 | 12 | 0 | ||||
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ 5.47 | $ 9.56 | $ 9.59 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of SARs Activity (Detail) - Stock Appreciation Rights [Member] - $ / shares | 12 Months Ended | 84 Months Ended |
Sep. 30, 2018 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Unvested, Beginning Balance | 1,140,013 | |
Number of Shares, Granted | 0 | 4,204,993 |
Number of Shares, Vested | (622,238) | (3,687,218) |
Number of Shares, Cancelled | (517,775) | |
Number of Shares, Forfeited | 0 | |
Number of Shares, Unvested, Ending Balance | 0 | |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ 0 | |
Weighted-Average Grant Date Fair Value, Granted | 0 | |
Weighted-Average Grant Date Fair Value, Vested | 0 | |
Weighted-Average Grant Date Fair Value, Cancelled | 8.69 | |
Weighted-Average Grant Date Fair Value, Forfeited | 0 | |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ 0 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Phantom Stock Activity (Detail) - Phantom Stock [Member] | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 0 |
Number of Shares, Granted | shares | 536,538 |
Number of Shares, Vested | shares | (44,623) |
Number of Shares, Cancelled | shares | (491,915) |
Number of Shares, Unvested, Ending Balance | shares | 0 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 0 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 6.14 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 7.30 |
Weighted-Average Grant Date Fair Value, Cancelled | $ / shares | 12 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 0 |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - 2019 ESPP [Member] | 12 Months Ended |
Sep. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Ordinary shares, discount rate | 10.00% |
Number of ordinary shares issued | 99,644 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Eligible employees contribution from their eligible compensation during each semi annual | 1.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Eligible employees contribution from their eligible compensation during each semi annual | 15.00% |
Number of ordinary shares issued | 500,000 |
Leases and Commitments - Additi
Leases and Commitments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020USD ($)Air-craft | Sep. 30, 2019USD ($) | Oct. 01, 2019USD ($) | |
Operating Leased Assets [Line Items] | |||
Operating lease, right-of-use assets | $ 123,251 | ||
Number of leased aircraft | Air-craft | 18 | ||
Aggregate rental expense under all operating aircraft, equipment and facility leases | $ 64,700 | $ 72,800 | |
Operating lease current liabilities | 43,932 | ||
Operating lease noncurrent liabilities | 62,531 | ||
Operating lease payments in operating cash flows | $ 44,173 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right-of-use assets | $ 154,600 | ||
Operating lease, liability | 141,900 | ||
Accounting Standards Update 2016-02 [Member] | Prepaid Aircraft Rent [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right-of-use assets | 35,800 | ||
Accounting Standards Update 2016-02 [Member] | Deferred Rent Credits [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right-of-use assets | 21,300 | ||
Accounting Standards Update 2016-02 [Member] | Accrued Aircraft Rents [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right-of-use assets | $ 1,800 |
Leases and Commitments - Schedu
Leases and Commitments - Schedule of Lease Related Terms and Discount Rates (Detail) | Sep. 30, 2020 |
Commitments And Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term Operating leases | 3 years 7 months 6 days |
Weighted average discount rate Operating leases | 4.20% |
Leases and Commitments - Sche_2
Leases and Commitments - Schedule of Future Minimum Rental Payments under Operating Leases of Initial or Remaining Non-cancelable Lease Terms (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2021 | $ 47,377 |
2022 | 33,216 |
2023 | 15,947 |
2024 | 14,682 |
2025 | 1,654 |
Less: Interest | (6,413) |
Amounts recorded in the Consolidated Balance Sheet | $ 106,463 |
Leases and Commitments - Sche_3
Leases and Commitments - Schedule of Future Minimum Lease Obligations under Non-cancelable Operating Leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2020 | $ 47,814 |
2021 | 46,007 |
2022 | 31,090 |
2023 | 13,726 |
2024 | 13,185 |
2025 | 1,368 |
Total | $ 153,190 |
Selected Consolidated Quarter_3
Selected Consolidated Quarterly Financial Data (Unaudited) - Schedule of Selected Consolidated Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||||||||||
Total operating revenues | $ 108,039 | $ 73,099 | $ 179,896 | $ 184,036 | $ 187,830 | $ 180,224 | $ 177,147 | $ 178,156 | $ 177,532 | $ 171,739 | $ 167,640 | $ 164,684 | $ 545,070 | $ 723,357 | $ 681,595 |
Operating income | 23,864 | 15,224 | 13,892 | 27,187 | 30,453 | 17,077 | 34,377 | 39,230 | 41,784 | (508) | 16,349 | 15,023 | 80,167 | 121,137 | 72,648 |
Net income | $ 11,375 | $ 3,419 | $ 1,885 | $ 10,785 | $ 12,243 | $ 3,007 | $ 13,249 | $ 19,081 | $ 19,394 | $ (11,135) | $ 2,372 | $ 22,624 | $ 27,464 | $ 47,580 | $ 33,255 |
Net income per share | |||||||||||||||
Basic | $ 0.32 | $ 0.10 | $ 0.05 | $ 0.31 | $ 0.35 | $ 0.09 | $ 0.38 | $ 0.55 | $ 0.66 | $ (0.48) | $ 0.10 | $ 0.97 | $ 0.78 | $ 1.37 | $ 1.34 |
Diluted | $ 0.32 | $ 0.10 | $ 0.05 | $ 0.31 | $ 0.35 | $ 0.09 | $ 0.38 | $ 0.54 | $ 0.65 | $ (0.48) | $ 0.10 | $ 0.96 | $ 0.78 | $ 1.36 | $ 1.32 |
Contract Revenue [Member] | |||||||||||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||||||||||
Total operating revenues | $ 97,361 | $ 71,648 | $ 165,781 | $ 171,800 | $ 172,248 | $ 170,366 | $ 169,771 | $ 170,449 | $ 168,444 | $ 159,916 | $ 156,515 | $ 154,389 | $ 506,590 | $ 682,834 | $ 639,264 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Nov. 12, 2020USD ($)Air-craft | Nov. 04, 2020USD ($) | Oct. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Nov. 14, 2020USD ($) | Nov. 13, 2020USD ($) | Sep. 30, 2020$ / shares | Jun. 28, 2018shares |
Subsequent Event [Line Items] | ||||||||
Warrants to purchase shares of common stock | shares | 250,000 | |||||||
Warrants of common stock exercise price | $ / shares | $ 0.004 | |||||||
Prepayment | $ 1,672,000 | |||||||
Subsequent Event [Member] | United [Member] | United Capacity Purchase Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Prepayment | $ 85,000,000 | |||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Calculated collateral coverage ratio | 1.6 | |||||||
Subsequent Event [Member] | Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Additional collateral coverage ratio | 1.6 | |||||||
Subsequent Event [Member] | Loan Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Warrants to purchase shares of common stock | shares | 4,899,497 | |||||||
Warrants of common stock exercise price | $ / shares | $ 3.98 | |||||||
Repayments of long term debt | $ 164,100,000 | |||||||
Number of aircraft financed | Air-craft | 44 | |||||||
Cash proceeds to fund debt pay down | $ 81,300 | |||||||
Subsequent Event [Member] | Loan Agreement [Member] | Cash in Hand [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash proceeds to fund debt pay down | $ 82,800 | |||||||
Subsequent Event [Member] | United Capacity Purchase Agreement [Member] | American Airlines Inc. [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of aircraft financed | Air-craft | 40 | |||||||
Subsequent Event [Member] | Secured Term Loan Facility [Member] | Loan Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Secured term loan facility, maximum borrowing capacity | $ 200,000,000 | |||||||
Secured term loan facility, amount borrowed | $ 43,000,000 | |||||||
Secured term loan facility, additional amount borrowed | $ 0 | $ 152,000,000 | ||||||
Long term debt, basis spread on variable rate | 3.50% | |||||||
Long term debt interest rate description | annual rate based on Adjusted LIBO (as defined in the Loan Agreement) plus 3.5% |