MESA - Earnings call transcript Q3 2021

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Operator

Thank you for standing by and welcome to Mesa Airlines Q3 Investor Conference Call. [Operator Instructions] This call is being recorded.

If you have any objections, please disconnect at this time. I would now like to turn the call over to Susan Donofrio, Head of Investor Relations. Ms. begin. may you Donofrio,

Susan Donofrio

this and fiscal to This quarter and replay being operator our found for website. call earnings its recorded of A webcast. third ended simultaneously can welcome you, be Mesa’s on everyone call is call Thank June XX.

with team. are as Torque and management the of Brad VP, Mesa’s Finance, CEO; as Jonathan Zubeck, Chairman other the CFO; call On EVP President and and Ornstein, and well members Rich, COO; me today Michael Lotz, Senior

Following there session remarks, our the for question-and-answer prepared a be will sell-side analysts.

to and everyone statements, our our I wanted to the based SEC. update turn periods to special the with to for it statements. results items. is his adjusting the quarter release, also our available including Please website in Jonathan expectations today’s be reports forward-looking guarantee today, We measures. our from uncertainties that materially to company’s non-GAAP performance. discussed which will differ results to In our on all exclude risks discussion earnings Jonathan? refer of the We that, be forward-looking for forward-looking remind and reflected any the fiscal that are on that we third cause future by call reconciliation a no and factors the not could With undertake duty over filed comparing of will opening remarks. statements actual today risk those are current contains There on significant

Jonathan Ornstein

continued changes The while a to support this is environment Thank and to in responding course for people their start a testament at by demand and of you capabilities difficult to dedication. thanking throughout like their dedicated much, time. here adapt team’s truly rapid to unprecedented very our in Mesa truly ability I’d Susan. focus

and into through quarter. of would Torque jump will the from some to Brad highlights go I like details, the this While

of bring of net our second Embraer year-over-year subsequent block LLs flying $X.X diluted per aircraft. XX XXX aircraft we pre-tax We delivery a million share. side, to million in company. increase the take $X.X United We and the X a to income to for $X.XX financial we last reported total reported did and quarter profit invested in On or the electric sizable a end, our hours up of

the our operational On we believe have our We significant we also due flying of with this to restrictions. but partners. took did only a request number side, the COVID is current mostly we vaccination fleet, of the in partners. increase increase seen volume easing the utilization on of our additional of Not flights, of and activity at

in As has demand continues to some supply increase challenges, and MRO improve, primarily traffic production domestic capabilities. flight around this created chain

and for will generation at to in of part our our be maintenance company years C-checks technology. Besides to travel give our in the the response part that to heavy As in believe investing fleet of believe time XXX a improvements, in increase the air seen We providers will and on in the on you the a needs, ensure result, also on come. of the partners’ fleet. significant details due in more help will CRJ-XXX forefront have strength essential interior aviation some and next of having Costs contracted fleet future. to flying operations our sustainable our perform continual Brad we are have we this movement, of more upgrades later. Remaining we that longevity aircraft also the expansions increased refurbishments

we We long-term to continue major relationships. also ventures think our by our that entering these with new partners, into strengthen airline

a the which the part ESXX, that aircraft is a investment Aerospace, Our plans in in to of first large fleet. XX-seat Heart world’s produce investment electric greener

aircraft carriers fleet make ESXX help network XXX This We of once which one first have decarbonize of targeted become us available, they our the would regional to is to the ordered of XXXX. aircraft. plan add air to for and through electric use travel

to of we have be once or cities again able We that previously service. have will – have dozens the to that to currently no fly previously also little flown

As where Farmington, X had and day Mexico, headquarters flights New per our XX existed, was company our an former example, corporate serving founded previously destinations.

that With We national its allow ordered, is Investing XXX we was hand-in-hand the company think Aviation to our the to This and goes in clean a aircraft to provide no which call this today, efficient to our would Brad our Farmington commercial partners aircraft, highly add that decision. over update that, decision to would Brad? in I’d I service a and is United as responsible aircraft Archer technology turn communities us the operational like ordered While like an children in on investing individuals. XXX that our with partners eVTOL our at best is both is better with the as aircraft. we better children our believe for aircraft and XXXX. beyond with investment right the also creating these environment announced that responsible transportation like February to reconnect there performance children’s a also system. decision of quarter.

Brad Rich

Again, Thank thank us today. you and afternoon everyone. good for you, Jonathan to joining

remains and health our all, of our one of priorities. the safety passengers and top of our employees First

our latest cooperatively We continue CDC’s to partners guidance. work we the following and are with

June a XX.X% flew remain XXX.X% last increase a of their year we and quarter, of meeting from increase and Additionally, partners way the mainline and our block with cornerstone strategy capacity we is of objectives. XX,XXX which By quarter. above last remains our performance committed hours, to flying review the

will demand returning over remain guidance remain to slightly strong environment said, quarter’s and pre-COVID we in about to to that pleased throughout demand demand American our air and recovering United in daily levels. on closer our September for utilization partners, at to see flexible the operations our are year. changes travel and aircraft We operation. in we the levels our current of believe levels XX% expect the the be partners’ requirements. We pre-pandemic XXX% balance That being Based in from of currently

During combined our was completion controllable compared year a the ago. factor XXX% June XX.X% to quarter,

impacting C-check also including on-time We quality, of our impacting maintenance supply span number the and further aircraft anticipate XX% times and review providing recognize of our parts in last to aviation fiscal important higher Our The our was and continues to United we service year for ability year and these heavy be to rapid for We face total E-XXX see that demand, our return entire continues have versus heavy the refurbishment the reliable challenges, our – challenges, elevated quarter, almost upgrades. fleet. to high with objective of in challenge, interruptions recovers. to employee Overall, materials time operation, support a of hiring, departure issues we the aircraft. It’s we operation. the and chain to the will and our in a are Despite regard an C-check result interior E-XXX the into in as into aircraft and turnover add lengthened main XX.X% CRJ-XXX continue our checks, overall service costs note associated rate on MRO done additional these increase thus a This are next operations. industry our solving been the X delivery industry To spare historical of ago. impeding which times took parts is aircraft focus driving our years. bringing daily costs controllable these we our immune to reduction however heavy the that as partners and into to scheduled has to primarily fleet factors materials. With production remain parts availability, our X challenge shortage to not issues XX LLs maintenance. customers

was factor for our was XXX% and quarter. Our rate the controllable XX.X% controllable departure on-time completion

We are ranking during places our performance, which our top peers the versus with in very quarter. us tier pleased the United

our aircraft. new to also LL training adding for all aircraft, of our E-XXX to addition the pilots we Embraer In the CRJ-XXX completed transition

at elevated the the demand hiring pace make attrition are stay to network. and upgrading increasing ahead we we Additionally, meet to of United an and positioned are sure in

removed transition the of these XX CRJ-XXX aircraft process previously GoJet our part XX leasing been Airlines of scheduled all in as from the have the We these CRJ-XXXs by to the calendar the continue with XXXX. of have ends X the aircrafts we operations and announced which transitioned, year. end of agreement, remaining of

I on American a quick Now, our operation. to like would provide update

and part have the The led a quarter, aforementioned but and June had the expectations CRJ-XXXs entire July support our we impacted makeup mentioned, with aircraft met more a were the fleet. challenges parts this and June American key previously been particularly of with to shortages lack May, and driver April concerns increased of in capacity. our in performance to by operation. I XXXs we have In As spare

we remain have August, level American focus of very on For to operation. high our a

on at the improvements. the and interior note than are our As flying mid-August. planned a double system, believe important investments aircraft a reliability. significant in It’s C-check high of run-rate. American volume and CRJ-XXX become available making operational heavy will to focus historical additional to lines summer support in spare expire which we in performance, as we is agreed cabin With that checks current our over will and the performance the continued to more These fly fleet X enhanced reminder, we contribute aircraft to normal

I a to our additional our Our hiring flying some to that requirements support labor. opportunities. DHL we in in training to focused staffing we on remain like and outlook nearly and XXX are about increasing and on operation making continues meet all on provide operational progress bringing divisions. third We operational to very perform of well additional comments make expect would

program, pilot for earn direct airline highest and our Our of United capacity. airline. larger in have applicant XXX to The ability and pilots for in the pilots regional the are aircraft, our as a in offer aircraft like The where feel only pilots remain we hire option the positioned pools the United we opportunity an the to one we pilots fly pay be active able XXX are through well We such in with attractive training and we industry. Furthermore, for to few opportunities offering Airlines. the across regional since we hiring believe career Aviate are regional hired become regional a to full April of remain to airlines strong pathway

allow pilots the We they commute where and are country domiciles crew with the live to work. desire easily to positioned our well across opportunity that

Torque offering also like time upgrade country. over to through the recruiting hundreds that, I are performance. turn walk We opportunities the to of across With from aviation our schools actively to would and now financial

Torque Zubeck

Brad. you, Thank Great.

of discussion our balance our capital quick then our I some performance of financial wrap Let with a review outlook. and on provide business me a and will outlook do sheet. up color

For year for of or This same the reported quarter net income net of year $X.X $X.X fiscal of compares XXXX, or the diluted quarter favorably million last share. we third per income million per $X.XX diluted share. $X.XX to

review $XXX.X million. and to cash excluding me liquidity, increased by are restricted the cash, where million Let quarter, we cash $XX.X in for

$XX million, roughly million debt $XXX.X payments of debt reported, the we to $XXX higher-than-normal be of fiscal we down debt scheduled year was QX quarter. and is of payments As $XX one-time Total reduction partner million. end cash The million, $XX to is million. from $XX deferred have million, previously expect the million will due which ending to at approximately QX $XXX prior from quarter balance true-ups the our primarily of

$XXX end of be quarter million in reduced capitalized Assuming brings the fiscal down CapEx the balance at and will no fourth and roughly year years million fiscal roughly quarter, million $XXX by and million million XXXX. XXXX There debt of additional $X.X the was the debt, This million was total inventory XXXX each of $XX was which in by of in $X.X XXXX. balance $X.X C-checks. to the

Going for is $XX QX forecast at million. forward, CapEx

year still X additional expenditures. XXXX, and capital fiscal other For engine no we have major deliveries

rate with prior after reductions period the are through company to partners PSPX, levels Lastly, funds period. PSPX our million $XX.X we September. XXXX. September the covering over QX, will return Consistent the with on April Rates covered received providing and in liquidity, temporary in PSPX

startup. to provide make Turning European with expecting our to now project with Mesa on EU a help Gramercy to will technical a year support joint XXXX. JV, venture to we the continue and minority the brief Associates we and in Mesa calendar but partner you start providing expertise on regulations, progress update the investment operations be Limited, in will be to with Due are

Let touch me guidance. now on

volatile, Although to the did provide environment areas. a is still guidance we want in few

for March the expect XXXX hours are levels similar quarters. and September So, block XXXX straightforward through we

as of and to expense, maintenance and you more it’s pass-through know, not of timing our this to ops P&L level For zero and events. related has related impact our a

estimates press provided release. our we in best you to have So, our

are in heavy higher These consider fiscal a For we anticipated is run-rates. maintenance, spill is this of touched year. Brad we our as and is fleet. provided than C-checks, for expected press release. the and have would taking result what CRJ-XXX Much estimates engine than work deferred our which longer normal into next on of costing C-checks, to more This are amounts which

Jonathan. going the For QX, including I program we fiscal block than QX would QX. expense, as will increase flight ops forward. turn be meet Jonathan? over to to pilot to $X spool see to costs up we like relative anticipated anticipate in roughly hours year we now maintenance, higher training demand to XXXX, in it maintenance C-check into an and Also leading million

Jonathan Ornstein

hi. Yes,

I recap. Torque. We that. about myself Thank the muted for you, Torque. Sorry financial appreciate

focused our decongesting business, cutting-edge and also companies. the reintroducing in to While our goal cities. core with to leader the air electric commercial our we rural relationships America are partner regional decarbonization through on of remain and aircraft We service we be investments intend technology strengthening in

look growth to the DHL opportunities. Finally, may cargo we call. answer growth this would the open as flying a to just we operator, analysts and new any point, plans believe And our start please up are that happy and all European At pursue we questions be have. continue our for

Operator

Syth question comes Thank Savi from [Operator Instructions] you. Our James. Raymond first from

is open. line Your

Savi Syth

afternoon. good Hey,

I the operation that controllable am on side. American to is up performance, guessing the related performance at maintenance June following operational the Just

that up why hasn’t be or kind of those maintenance why – CR-JXXXs Are kind can’t of XX have doing not that not been those available, kind do spares sorry? are You the of or was anything. curious used, just required caught because

Jonathan Ornstein

familiar want that guys we you take subject. do with Mike, I or pretty that? all think Brad to are

Brad Rich

lot going happy I were and that was of And to Obviously, and some to talked so as Jonathan. we then answer Sure quick on looking do agreement anticipation to certainly, the around knew that airplanes pandemic be all had We will flying, that of good to we signed up the in more things described, checks it. just agreed and question. the ways when have the Savi, that heavy signed going extension out aircraft. we we XX it’s we reasons for put in airplanes were in cash, additional C-checks get C-check, motion. about, to address to a additional time vendors, very as have we a due not the through the the very additional or conserve deferred and come spans we expected. C-check is of

airplane what’s support that’s so lack system. And to fly of created the the

Savi Syth

That makes sense.

kind and that be know and of will elevated a there? do kind for is think fiscal per two of maintenance likely these both on regarding you said next block we basis, the Just What items you remain get of kind into operations line I of when of expect hour do normal flight maintenance kind kind you kind new year. the to of your

Michael Lotz

Savi, Hey, I Mike. will it’s that. take

now. we on hour. had the I number are the It’s kept block actually It’s a to high and of up per the hour cost payroll again on hours. spooling – And relatively the pilot per block training of obviously basis. block we due on employees the been most depressed have think just

XXXX. like of quarter So hour block cost to third by of probably we run-rate second would or kind hour, kind the per to block – pilot get back of

Savi Syth

elevated new was what but level, training was get know new catching previously, up of I normal kind because going is? that that were we curious what a on to roughly, I bit you to were was because it and And Mike, a

Michael Lotz

around it COVID. million Yes, to was $XXX prior

Savi Syth

Got it. And maintenance then on the side?

Michael Lotz

third Maintenance we going till down where block it quarter the to quarter, engines piece side, again, the not back and would bigger on or of the see hour third is in of again, kind XXXX, maintenance the start probably the be. normal more the and run-rate – is C-checks, but of a the second C-checks the

Savi Syth

Appreciate it. it. Thank Got you.

Jonathan Ornstein

work we something, for because XXX add we of close the who extend unfortunately and to And that increased delays did is last with up just But C-check. in something And when out fleet, could I days not days. it supply C-checks in timeframe Savi, those only were saw XX to into get further. to XX That’s focusing planned about even to if talk chain some then we cooperation delay XX, the very I span vendors, really an did that has on cases it aircraft on delayed on the this cause from And had just past mean, XX C-checks, in average it in and parts out. lining Yes. C-check, manufacturer, the our the delay. the

end And aircraft, fewer have number through get by longer and projected much so what spare we with that’s to the as had we while just up vendors. how by extensively XX been those us a than take aircraft much

Savi Syth

That you makes responses. not across And you are that clearly, the sense. the seeing, Appreciate industry. seeing just something are

Operator

Helane Our from next from question Becker Cowen. comes

line is Your open.

Helane Becker

very you Hi, Thanks this much, afternoon. operator. everybody. for much time your very Thank

flight and some operational like question in one weather-related know because kind of are seeing there some cancellations that? too, at to that those a were issues place? issues on Maybe So, a it with in weather. of respect they issues America operational with you color Are issues Dallas combination or crews Is both? are I are causing

Brad Rich

take to one? that me want you do Jonathan,

Jonathan Ornstein

Go ahead. Sure. right

Brad Rich

our impacted really are the mean good. not I has to – weather focus paying it attendant mean, close observation very obviously, the shortages. give crew flight the operation. look, we I been have are accurate. obviously numbers having is attention And industry your sure. Helane, Yes, main the very and I’ll And yes, certainly you But first the shot.

American Our is situation, especially pilot on the healthy. side

crews impact primary us, the So has that been inability issues have out related system has look, really all the problem. reset when all weather yes, issue with we ratio it our the causes to operational The of issue. our But the interruption. to timing core spare weather-related those on adequate and that been of

Helane Becker

That’s with Brad. you showing one I helpful. work. alright. And then the them, any had on other very is of – up to one the issues Okay, But is on attendants and was attrition. Thanks flight question which other answered

pilot ahead attrition stay is? your what the to want hiring Can you April. you that rate say mentioned hired since of actually you attrition on You XXX and

Brad Rich

Well, With in I’ll right I – answer certainly that’s to be the this specific that don’t way. to ahead it that of is believe, you guidance pipeline want pilots we give stay than XXX the attrition. that. should Jonathan, now, going know if to be, And adequate more

Jonathan Ornstein

Yes. mean, I things. of a Helane, couple just

On a than literally our XXX pre-pandemic. were in at the pilot number, a levels. started attrition those pick about We side, single to pilot somewhat the digit. things be as we was would stay adequate, numbers still where those below during assuming but saw spike higher to up pandemic, more

I We do. on United. more that side. long what we think the we’re know got the flying, is more we can flying American basically department take at that we’re There know told things we’ve is that that we’ve instructions training going on to

hiring for now. go we’re Just out and not attrition there, right

we build fact we fewer did in are cushion that Interestingly, the so We’re for of rates per pre-pandemic flying day a in on up spite airplanes additional of we’re flying. can flying terms that higher than we continue utilization to American, hiring flying. take more to

of on stay game. think the the side we ahead get to just I safe want be and of ahead game So and just the

don’t to the not the affect it did in just everybody, spare the On again, XX having a aircraft, problem, But operators, think an have industry, is issue. aircraft, enough additional about not the – is when had which other did aircraft, the aircraft but XX it of not other I you of CRJ affect insignificant. quite C-check you question want you mention parties few

on asked of right was it we starting on in those to days. five coming counted had anticipated to, us flying but XX But additional the We five that lot – we sucked we delighted were after clearly, spares not XX to through be see to to improvement now, taken had days, able flying up XX additional American some a which aircraft that aircraft C-check very accommodate. are particular, we these quickly had in

Helane Becker

was And passionate that. Got the Jonathan. about investments That’s Right. helpful, your question you’re on it. I EV then know had other because I really

investment so with now and investment Archer. And have this you an with Heart you have

Jonathan Ornstein

Archer.

Helane Becker

Yes, with Archer right.

I mean, a clock. are should you of my these or operator Should like going are be for yourself? service business? think a full are this service your all that’s others? limiting of Sorry, about you we – to think we you full How about passion

Jonathan Ornstein

we frankly I I think we know, these other been as would partner, with – partnerships with to expand – appreciate you two, our we’ve if Airlines, United partnered And our that. American love on had possible. first and

when and best discussed I the making Kirby think at Scott, look way investments I is to it was technology. in we’re it

of that work, But think may some what first – so out leader Some is be successful. a there that as technology be going determine we to going we’re can not. will we the to basically

So along United new up by ventures head Leskinen. Mike the with

There occur for are them think continued on I I company I just interesting to I’ve to to on, was the continue And take American a we as growth we lead And And be mean, think did on this. that going what’s is technology United exciting. they taken today companies. – technology marketplace cutting-edge to eVTOL. opportunities that out And the any electric is very inevitable. something of look think I for ignore I to are has it these going visited to that, ignore develops. and dinosaurs. a companies. where a company actually visit and make lot today. that long-term there see and will

done it. we’ve Now

at continue it’s opportunities to and think develop. that really they to as we continue important I forward move look

Helane Becker

and Jonathan Mike. Thanks, you. Thank

Jonathan Ornstein

you. Thank

Operator

Bert Our next Stifel. Subin from comes from question

line open. Your is

Bert Subin

But Where two the cargo concerns Today, of certainly really some quarters sort best – it’s maybe less I for around afternoon on potentially ago side, today, additional you toward the supply the is passenger travel. do you Thanks still asked constrained. and things think recovery Delta opportunities story to a starting story organic good side remain are understood. tilt variant’s or was question, it temporary growth cargo? strong, when creating regional passenger Hey, stand Jonathan, more concerns think, little time. I we this is the the the – seeing you

Jonathan Ornstein

Well, had it’s began of little Prior most as say variant interesting the that believe concerned. you relative the that. Delta really widely has, it basis. think as all on impacting sort passenger a a to I we side to the that upside from – I’m

I about going people that fall. impact be into to are the think most going what is

side, On strength. see the cargo we very continue to good

going We’re continue sort question the here? is go at adding do aircraft, we XXX-XXX is have we this think third we’re of limited. aircraft. from may add where if to I to The to look

XX well going the I known strength may you’re also next there. that think that order cargo fairly And get But view. It’s always incrementally. The operators I we taken it’s aircraft not that think more the cargo just much look we’ve be market XXX-XXX for long-term to the thankfully, at. a aircrafts. within the go is an

our just along. think I we So position will plugging keep is

at continues least passenger side the be that feel strong. as be we to DHL, to that But significant domestic We’re confident And I’m still of. traffic with to on continue continue DHL, there opportunity then doing job very with I’m of partners, our kind that excellent develop grow. a amount still that to for an and relationship the continues of as I confident will

Bert Subin

you’re on cargo maybe three. I side, the clarification a to from from as two going Just guess going two.

one, is The under though, contract. third not

you gap space? that operations? then the ultimately, track You’re a in just it. to the in from going just four having sparing six? And What’s Is the time, record over two build to

Jonathan Ornstein

Yes.

is record track to think there job the pretty our folks I I the clearly important. But to frequently. have developing that mean, talk done record. I at track I an say, think DHL I have excellent people

Board members with worked our them One of as former well.

with concerned think two just added aircraft. we we because I reliability third reliability excellent. actually process, about time been started only were we The that at has that the when the

continue of just forward with aircraft work they hoc do ad plenty DHL had basis. the We that to it with said an move on to because have

just every the DHL and I the in proving really third showing we’re we’re on say, So of the commitment, I aircraft, a work. we’re I day. operationally also. is important for and commitment time, matter think down this we want continue think And think, And long to we by that haul, to it’s extraordinary then path our this ourselves just taking and

So the all thing that a do by quickly. for taking in to on think home convinced And that all, find I I’m will it’s airplane. pretty aircraft right they ultimately, third

Bert Subin

Thanks for that. it. Got

probably just, Just a we leaner say, you interestingly surplus nature. side the one can continue the for shortage for think of But Thanks advantage? we how last you Pilots run the question peers when of now get for cost operation about of time. back to gives went conviction Mike, a COVID? than what me, shortage. from would more I probably sort a Can theoretical sustainability you just to maybe walk us other should that in long-term a your on to through

Michael Lotz

maintain kind time. do run that And advantage – the to there this that answer is been of for see I the it And getting over It’s nothing I Sure. to is question best been would cost you continue to kind over we’ve that the XX is peers. years our mean, can to able it’s continue to a peers? we your think way that way look, of over I’ve going it us company. advantage prevent I forward have

get our that where successful We efficiencies of money. crews from very our to been much we’re We’re we try very conscientious spending we’ve as at. can, which

Jonathan Ornstein

had not anyone have it because that hard make too, which is for expanded structural some ago right benefits a say, the would year There X I And was now employees I our we so we half least point much time less junior last than X Yes. workforce. catch the think seniority. years, a a where over relatively of in that we’ve to years have it, of

have – to And that’s just top on that side to think hard that will that overcome. the we be cost that’s an any advantage. advantage I enhance going further that on we of growth

Operator

[Operator next from from Savi James. Syth Raymond Instructions] comes question Our

open. Savi, please button, check line your your Your line is mute open. is

Savi Syth

Thank you.

And JV time had in side. that. and thinking aircraft on there, follow-up. maybe know the about opportunity there? about you outlook timing when of for Thanks Sorry the now. last your I How of you the as not kind – the just European placeholders couple are a of

Michael Lotz

Yes.

up leasing taking cost the starting looking are first just of [indiscernible] may Mesa aircraft, at reconfiguring quarter calendar standpoint So it benefit already in an quarter an over first getting XXXX. configuration – And potentially in versus we’re of start-up. looking FAA just be analysis really an it Europe look, coach, certified from at experience in aircraft the to of we closely all that that

So evaluation the we’re in still phases.

we’re not which go, we’re to we’re going still options. both way but sure evaluating So

Jonathan Ornstein

it’s us opportunity that think reasonable was you visit And there I not whole were a two Wednesday. by purchase available, that of Gutenberg are fair And gaps at form mentioned, real I are the going necessarily a us in on aircraft that, airport. that know and view pre-COVID there is big today. we just a also on middle our of conversion, at of and sort because priced the exist. – was getting very there in day the And of the they opportunities long-term counted an attractively fresh COVID, I and aircraft right aircraft that Heart, which rates service we crazy. that somewhat and to think ramp. kidding, say, And to could available of a where do carriers there the the agreements has on for decimated think the has do It lot changed And Savi, I’m no to Yes. capacity we versus is some Europe the larger continue in advantages whereby an cities, the marketplace. for some And in now I of in with it’s Mike to around sort carriers. opportunity American-style these really partnerships, I very are now think been believe available some the now just before as bigger that get

Savi Syth

U.S., What’s have have of and you Europe? of you the this advantage the in me remind pipeline. pilot training Jonathan opportunity kind And in arbitrage because that and again, kind

Jonathan Ornstein

effectively that are one, no of the of the base. to became Ryanair we U.S. fact where and think, are Well, vulcanized these operating big with like part of I operating advantages on they over there too one set large you something X a how mentality, two is very $XX I it going it. a a think, had carriers which with paid. this the million in $X for I operation UC particular There surprisingly, by when carriers in to you company piece. is I and at we the Brussels. we familiar were set in than Malta, those, had up I a would regional think, properly company of that location two is part there them, operation I what of those. a airplanes, mean have acquire, looked Embraer that’s setting and like more also We to rank one, purchased, up lot small three there, XXXs potentially Mike million if up, is just I a and that were think the not A

lot would those over existing an have, us – have the things fact I our the a give of and think I carriers. that the advantage So the capability that relationships we that think think I already, operating expertise, we all

Savi Syth

freighters anything sense. pretty – cargo, Makes training that -XXX the difference can -XXXs, follow-up Is you on end or a a of if the instead the buying or in to up introduce? And like fleet I your comments do is cost that seamless quickly if of on kind or there

Jonathan Ornstein

that to about always there see larger operate. cost talked is it may of XXX-XXXs been kinds I all Well, and have some us But our is – us to think at partners Yes, and be looking aircraft put at some have we ATRs like to have – if or things aircraft we folks other – in there I people again, prepared just to long-term, the would opportunities. start-up. thrown that as mean, that respond partners that

having be that say the XXX-XXXs given the on So would – already expenses expense, I yes, but some bulk are the certificate. put there’d sunk the also of

Michael Lotz

cross We be put but to is this would on utilized the Brad certificate, it We Mike. crews XXX would me, have and can correct but can – between an XXX.

would we benefit from efficiency. So that

Savi Syth

Alright, helpful. thank Thanks, you. Perfect.

Operator

at questions the queue in no have additional this time. We

Jonathan Ornstein

feel profitable everybody, conclusion, Okay. Well, pleased out. for been to you, taking We have time very in again, through COVID. thank we’re the that and profitable

our this think word than We’ve through people describe dedication brave whether appreciate pilots, out across better on to to done flight all every they can’t us pandemic. a people in into I a have I work of of it’s people our have that mechanics, are done. just tell tremendous just the I of I seen there. you coming day, say, the the how I folks, phone I the a and much terrific the job environment office brave have know think really the – can’t all that dispatch mean in attendants,

our thank – own to both have and their been now, are also partners right We have having helpful. supportive been incredibly want go to who understanding which challenges through of

We C-check, that work result them. itself to shortage. vendors again, were us – not five resolves aircraft to through start – happening. these pleased as cooperatively very continue in suppliers that entirely a out we the worked happened the as aircraft getting with getting June of will And be airplanes. when with is We actually the the But issue start of back which now take the what

there and do future electric to do keep big a is think continue lastly, were that our Heart the standpoint, just we in a operationally decarbonization. can grindstone we and the And job. And to is other thing so deal. best do I the nose from of We to pleased forms our close think good

are We pleased very company. on two for it exciting as going we’d be We’re And expand that really the continue to and partnerships. to a those to term, have deals to like partner United that. longer those pursue we think could

to very all So much. look your you we next to and our we of talking at you Thank forward support, call. appreciate

Operator

in Thank today’s participation conference. your you for

time. at this may disconnect You

Mesa Air (MESA) 10 Aug 212021 Q3 Earnings call transcript