MESA - Earnings call transcript Q3 2022

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Operator

Thank you for standing by, and welcome to the Mesa Airlines Q3 Investor Conference Call. [Operator Instructions]. This call is being recorded. I would now like to turn the call over to Doug Cooper, Head of Investor Relations. Mr. begin. may you Cooper,

Doug Cooper

and fiscal to XX. third Christina, call earnings for its quarter welcome, you, Mesa's everyone, conference Thank ended June

the Officer; Rich, team. today Chief me Lotz, the President; Chief call management Ornstein, Zubeck, Michael as On Chairman, Chief other Torque Mesa's of Financial Operating are Officer; Executive well Vice Executive Jonathan Brad and President as and Officer; with members

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

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

Jonathan Ornstein

you, thank and Doug, joining today. you, for Thank us everyone,

Let's get to down business.

demand. and impeded ability more the shortage hours, remains our As request anticipated, that industry-wide meet while our partners strong to continue traffic to pilot

mitigate the can We continue of impact to to the do we shortage. everything

requirements levels levels, consumers time air we rule. higher financial service. shortages corresponding so-called pilot can the and leading increased we much issues have of negative ultimately greater of to for commercial to and and elevated so capabilities costs, entry X,XXX-hour and decreased wage higher seen barriers form to created the pilot a overwhelmingly by become only do given fundamental there's in fares our the With However,

the greater pool have greater but commercial fact, actually regional do. the to With without would licenses, unprecedented shrinking fly Strangely and a MESA commercially, this enough, at license huge Unfortunately, pilots have to for attrition industry pilots in there a major is additional fly qualified to of a squeeze the already the their in necessary pilots and levels demand the post-COVID commercial are X,XXX scheduled and resource. commercially of ability history that caught as of in oftentimes an is pilots amount need of entry-level diminished their which supply pool the in highest the pilot pilots focusing of these is, airlines, over on service. hours they imply unable future group hours.

and of their to hours constraints the X,XXX-hour looking development accumulation within are rule. accelerate at the We opportunities now of

In retention. addition, we exploring options are to enhance pilot

entering that American important are recruiting in fastest way provides while were groups While employment note a we advance is transitions. the implement pilots, including believe a in to be which commercial giving of announcing Aviate, major to significant at participate One well to all career visibility quarter and this could future broader to progress may United. will problem path this DHL Eagle development airline aviation and This Airlines is just improve and Mesa to a the benefit this to flying other labor also operation retention. pilots, and pilot United We able pilots. it us attraction making enhance was our with than for into program, pilot we retention

service. XXX-XXX aircraft Boeing third revenue our operation, cargo DHL our to Turning entered

that, our important than of update and performance has I part been will be on cargo believe has business. it we to details of cargo initially the our anticipated, increasingly the to more With an over Brad potential forward, Rich go operational business to growth hand quarter. somewhat an this the While slower of over going our

Bradford Rich

Thank you, Jonathan, and good afternoon to everyone.

Jonathan and shortage that significantly expect has face demand operate mentioned, order level our both ability the of to we flying well-documented a that our at adequately passenger Mesa impeded As industry-wide continue pilot to serve to partners in levels.

committed customers. issues flew on the high-quality decrease current in initiatives well through turning strong effective navigate quarter. labor XX.X% and heavily XXXX we will the operational delivering discuss same implementing As block which we performance impacts that provide from pandemic efforts and linked addressing we to we more associated Most and decrease its importantly, June travel, challenges, our below the which more our I are ensure our and to remain focused In as on detail. quarter, year X.X% to a the hours, are quarter service XX,XXX we safe, a March reliable as last able to is toward

are our was compared reduction factor our controllable completion impacted factor controllable ago. to XX.X% production significantly capacity, rates. for high below making crews has XX.X% been is have levels XXXX more by driving increased to well combined commute the absence as which combined it Our and COVID-XX, completion a which and our a difficult in year Both loads, as

this attrition to latest of the guidance the XX%. to training able COVID quarter on output, the roughly due retirements. are our involved, block and next to completion performance the resurgence. been primary the levels We current at factors calls by larger spike Based provide below facing be also hours capacity carriers and not and elevated we in down related volatility as replace on-time pilots further to attrition early And expected remain due our Both at are sick time. trends are has and to attrition driver add expectation, and of

to from with increased vote agreement with agreement note not it unanimous and pilot initially our timing our large offer approximately did pass after relationship ways by receiving another to always with by of constructive regional the reach During our recent leadership. we coincided our the have compensation support union, which was union as an pilot Unfortunately, ideal quarter, pilot not important a pilots. It announced an to continue XXX%. we carrier, is discuss creative that maintained the

we negotiations flight where attendants, progress. are our believe we are also with continuing We making

enhanced We also basis. compensation recently maintenance some at our of instituted

ahead the the on we Looking of operating remainder possible. are year as focused as airline and to fiscal reliably productively XXXX,

remains pilot we remain to X,XXX constrained due demand hour very accelerated major strong, the the airlines. While rule to and attrition

long it training. Our brought leaders, we elevated our of several and Horizon. moving through from of from team, pilot knowledge is our bolster challenge in VP with as us Flight such Operations, and primary new efficiently management training attrition career has Alaska mitigate ability Hornibrook, Boeing to have extensive flight comes operations and key pilots his them effectively our to and Senior recruiting who John To through and

be in also shortage. an developing altering the are what current pilot believe industry we of stages We will solution to the final

online As second mentioned recently come we CRJ and simulator types had secured July. calls, on additional previous time have a equipment regional simulator both in for

to We the a E-Jet third summer for also have be simulator delivered of XXXX.

to the new to Aviate new X. We particularly implement as United Jonathan August mentioned, as pilots $XX,XXX bonus attract through new pilots programs continue for program to starting continue well hire Mesa, to as a

advanced plans. enable critical resources our manage systems in and training invested to recently training to effectively have needed meet to pipeline us We software our

regarding also the provide information pilot to major Although and industry division I is situation areas tech wanted ops our some a of focus, focus.

performance enhancements and improvement and made consolidation We prioritizing have maintenance of through footprint through our in locations. recently changes key some

and iPad enhanced updating We're Now sourcing. automation we're for through focusing troubleshooting. parts on technology improved software

people strong, mentioned, several we partners relationship in regarding continue our have and top our short- We enhanced on I long-term and focused pay. with leadership as our priority. being We operating our and key business And to reliably safety our strategies. of roles. capacity very our the relates health remain additions and some as have We we mechanic core both customers regional our conversations it to remain productive have with believe safety and future

to now financial through Now the to performance. with I'd over that, who walk Torque, turn us like our will time

Torque Zubeck

you, this outlook sheet. I'll opportunity Thank now our our balance and review financial to our capital Brad. performance, take

third income share $X.XX compared for equity of $XX reported million or net quarter has hours. was or On QX our to $X.X and securities net primarily XXXX, on of of decrease a upon diluted now lower is expense. important block of year loss income to XXXX, on excludes The improvement X.X% the abandonment per 'XX. pretax and of $XX.X $XXX,XXX funding million an for a income Mesa the Compared on $X.X impact QX of QX mark-to-market related a PSP XXXX reported from increase QX fiscal per It's XXXX. For noncash an did facilities as production basis in Revenue block $XXX.X hour for loss has to QX diluted million compared adjusted XXXX adjustment impairment or one program investments we performance ahead expectations. of share due of pretax million flat our $X.XX a sequential well million, our was our $X.X $X.X that year-over-year to of QX for in essentially adjusted in a as that financial loss XXXX. ended. million loss This million tax million pretax QX $XXX.X see our we note the to to leased of related the

across last QX balance $X.X revenue flown offset block same reminder, increased the Pass-through deferred of fleets. recognized million expense. all reduction P&L the terms after remained pass-through our a to deferral revenue levels Mesa's year-over-year and by contract. by no Mesa's primarily revenue program. to partially versus recognition normal over the major XXXX. XX.X% of contract reductions will year, to include a performance. for This QX of results year And in maintenance hours due the deferred as million a to the returned relatively $X.X partners temporary GAAP pass-through of impact Our per was million last $X.X related be period rates expense flights PSP other previously as remaining completed as in flat of versus remaining The revenue has the are revenue to XXXX

$XX.X QX side, that COVID. variance the million XXXX were year, normalize costs up million for $X.X past million On high versus as of expense the was the $XX.X engine $X.X XXXX. QX expense are XXXX. versus of $XX.X operations for Maintenance Maintenance million cost last in up at that $XXX.X was as number C-checks the quarter, overall largest heavy QX flight PSP-related to were grant expense million QX now to versus continues XXXX QX higher we the to ended. has Similar million, operating and overhauls the last Mesa's beginning Mesa's down compared XXXX, due to training. deferred primarily expenses

and let we Cash review the by Next, excluding on restricted million. are $XX.X $XX.X million cash, for me decreased liquidity. to cash where quarter,

we on We the payments the prior of hours a production worked had anticipated of scheduled primary coming operating delivery debt Block new had had the in debt a and million, payments, than we debt had our the new million other previously $XX.X offset payments still to was million which made we During of as increase cash direct $X.X is from than engine the quarter, anticipated. end established we reliable impact hour this by quarter, down up flying $XXX.X quarter the partners lease was more the lower schedule. financing, fly had in our and at debt million. is a of we Total of quarter, much which repayments. finance in quarter. took with this as The block including while as quarter closely lease $X.X possible

party. currently previously this sell is addition leased liquidity next few of aircraft we details to have balance I announced the have can't strengthen sheet. time. add to our Well, planned to other show We in to this We third anticipate our XX to the over initiatives This a CRJ-XXX at quarters. that

specific guidance, will few cannot While in provide we color financial some a provide we areas.

block shortage earlier, see of this in on that were mentioned, incur we block decrease to our constraints hours the plan continue our for it's and contain us the envisioned Brad the that in imposed the utilization panel to down next contracts the continue pilot highly to we of expect anticipate unreasonable address reality year hours, working And the never continued and feel through attrition utilization mentioned pilot in provisions about The during an block constrained to impact there environment. We partners to penalties XX% and to block business. is hours hours. be for pilot closely pressure industry-wide with quarter. to fiscal as As rest our

or as an know is to reduced Our quarters next and to costs block be working partners We'll work down we've optimizing based this, expect industry-wide more unprecedented upon flat done. aware address to few be from the maintenance this well well is and quarter are over and been hours. these know of be and the current that issues. there evolving they And problem, constructively we

to to back Now Jonathan. over it turn I'd like

Jonathan Ornstein

Thank as we appreciate summary, year we you, to challenging In recap. Torque, XXXX a the and continue see financial for Mesa.

face to call partners analysts significant for by navigate with this through listening, as we and the any believe continue we and very employees, we working our At open issues, that period questions I'd together to operator, future. all field While the much you this successfully Thank point, that ourselves happy up the position near-term will have. be for please may our everyone.

Operator

Instructions]. [Operator

question Our comes today first Savi from Syth.

Savi Syth

aspects that kind as mentioned business subsidiary, retention this briefly you're pay your new in of the mean of an if recruiting seeing impact you of big think seeing competitor this, compensation that does but in-house kind or some kind of expect I what for we've increases -- curious the your of pilots? was I are Brad you rates seen terms the what impact well of pay on as one there, of of your

Jonathan Ornstein

This Brad, know to And flat an not is at that. we throughout is result be things pilots of impact. carrier, if Attrition bit, a time, partly it that. any would We and may they slow had know much some been this That a result say that. to we what as slowed if But hadn't a yet. do Jonathan. had I at would hoped levels feel I have I'm go down. think you as I down there's that obviously, pipe of point, free. in sure pretty want that little

see of that to is I concerning But going think the a of pricing could on question economically that, just long we're time. kind I the impact when there's, a term, it's of a think, sort just happens. what reasonable have obsolete of what over what's make the industry that's fairly to chunk fleet what chance

we've solution out there and would you pilots. open of fly Torque figure licenses, myself the think here new which mentioned commercial think pipeline I might got under have out of you the pilots but what to a definition, regs. plenty commercially, they way real by have the is and not the and Brad heard to There's could up that new

be it position the got as not market such MEC you've deal we disappointed of increase hours, even where huge people our that are extra that, X,XXX that through was were Brad had quickly. in real to occurring a that a it a unfortunately, a put anxious when mid-contract. is amicable We ultimately the stymied people unanimous as how do think We it It think put boat, received that That boat. fast I a get So surprising MEC. that support as we bit very pipeline forward. from pointed possible, out, I will problem, is together because us in was result quickly. move leadership them those of number who the significant deal. what was And seeking into solves Everybody think we to we a question little commercial this was getting a because of were the as middle

Savi Syth

seems general It helpful. response for figure of means. this is trying that most what like the a to industry all out That's

in I you have can have in July. the does terms double that about it? you that there of If ask Does second of it training? your of-- that been number target met? in the And how E-XXX had mean, don't kind do as capacity? you much of of of kind well. the you simulator, there? What -- a of of kind instructors that a CRJ training is certain that was getting through mind, you Does you component from does Has pilot kind How back -- pilots -- simulator I goal through help kind talked of just increasing

Bradford Rich

that's a question. No, great

recurring just look there's you sim the certain every to that that's when realize have to of So month you at do sims, a required amount time training.

you our capacity. hires upgrade is number go XX% there. means the have of and go then what from X more that words, terms of So of the X to like Well, going beyond recurrent, and ability that just actually, is think from In sort other in new which baseline capacity people. you to we to means would double sort

we that been of XXX, I instructors, that of becoming instructors have think and last that the months a to as as is we just a more terms was most We which few year we the the part, of felt is less frankly, instructors majors issue the where spree on a a, hiring early had caught short of we biggest I'm for focusing that demand. traded In the very number less the us. from certainly slew retirements problem had doubled Part pleased Embraer you we for I of were out the ago. continued the checked, And than little and before. an a had result tell the had of

So pilots for the have train. a people program the a fly training additional the or already of for have just I of we've who pilots can from us of because some a to same terms They are sim, And who impact. just pilot X a come the those type. at months and in to basis, to XX, in who opposed entire on group longer-term in small the think in through little it can lose couple take of take the now hiring lot big a bit as go retired they about weeks to longer trained we're ranks people creative get X very time quickly. trained when you X But getting the been

aircraft. also on up solution could to we so we free assets fly and a think working now a we're longer-term continue short-term to that have we So solution,

Operator

Hillary Our next comes Cacanando. from question

Hillary Cacanando

Calling in Mike. for

guess signing I the mentioned you bonus, this month. $XX,XXX starting So

Just will any potential have wondering from if candidates that and and you help think a you feedback recruiters, received lot? if

Jonathan Ornstein

bonus the for bonus, because an attraction Yes. I to the through to our interim think ways measure us pay looking mean are on scale. improve retention is I we and

deal solution we As for In we a not-too-distant here. put relationship we think voted I in we become that solution has limited future. with is have a think, good all that that into straws will reservoir, the it reservoir trained talking in have meantime, refill the that just a about competitive. we bonus the clearly, And to did mentioned, supply. ALPA because down. I we're to bigger being that have leadership put is where, for not long-term the the us But more And again,

we've had since So good we response a it. entered

So I think I go think see go them in door. we'll get the our proposition. be rather to to I'd an expensive people like new And frank, just It's than hires any okay. be money that to CEO, obviously to to

think little I It's we other can there just more So going a to bit are this ways solve time. take issue. that

And interim be our so solution this keep is sure so training we can classes to the that built.

Hillary Cacanando

Gramercy, And and Got certification to completed. last I Associates get Gramercy expecting mentioned with it. European on Got it. track partnership quarter, the your you were that that then is think you

think if this that over XXXX, in that could more? of I Wondering quarter, bit third little go right? quarter kind of is you a

Jonathan Ornstein

is fourth of now year. Mike It's looking of next issue timing with in to out pushed -- the were We fiscal quarter AOC Yes. we're start registered being in the We and looking just this an it regulators Malta. the to in were looking where we Lotz. is -- fiscal second the quarter, it

Operator

Our comes from next Helane Becker. question

Helane Becker

Jonathan, to for you something consider? consolidation is issue? And this be at is would in that pilot to the argument solve effort an level there made an

Jonathan Ornstein

about fly fact basically Helane, of And got West talking is America good Yes. the that's of you've the really half people days. and a to question. matter number trying aircraft. The been all the have consolidation you since No, I

we mean, fundamental you've across that our be just down have X is in all if money. just knows no you And is And so to very utilization board. we're frank, people the we're be problem our some there profitable. everyone got going X sense we made I if And fly our not assets we fly today fly. flaw as these day, beyond that the of a quite to fixed we'd that our industry, to to the If business where facing could is pilot XX that high-cost flying we hours be The do to make XX, well. there's shortage. can have fact operations, one of we're this to in to

fact legislation now so that of to the And these yes, have issue as result is for with. companies And due and that modify And be of are to COVID-related there's encouraging to success early penalties to us losses us, way degree but deal due the argument of the working -- if part an than other assets. our is and see think to the our hard that And being because, certainly, to partners been your return ways very go than when it's have for to go to about into it, -- regional the said, just out when it's last department get with number hard a particularly back up. said that coming train to correct was or it to again, as think we ways out up profitability. as the workforce creative, in be up looking who that be from we look and really one running just to and domestically. frank, literally do to ever difficult Mesa try year, which the out lose what's challenges But to to hours, on COVID crazy going to is matter very of And no COVID. any every we you we the -- thought this that keep and that between think as We've of large XX% demand X% are rather the easier control. that's with Again, somewhat working a a happened. would is that numbers utilize of small airline But just we just opposed to with kind I to simulators, company good obviously, it get output. on even working the these a have to can And been we're made. the face would for of particular pilots that those we're I have I you a I either have. losses to profit that we've challenges without retirement generates creates X% of for there's be call, that month assets to think And

Helane Becker

Right.

what do So want talk or you you would we pipelines. the major would of off do topic, what -- instead the that's what about about you to here? ask takeaway to respect wish Like business you like with

Jonathan Ornstein

It XX means that Well, me biggest industry wage these were of the operating be stick, XX-seat jokingly, regional wish I that to effectively that changes -- as profitable But the that next going subject here legislation introduced jet. were is long-term the and I long this that in would you you out. just what are I mean, business quarter? of levels mean, quarter for be and you company the as the wasn't and we I if wiped think ago airplanes are asking future

it's tied going the to their pieces Now at hub the suggesting the all because of look just think doesn't of jet think work. I much as that a network, of which a here regional the jet on not happen in the critical the markets, work, going I'm XX% already majors that's I rest pilot doesn't regional service to service in impact further of and U.S. all reduction country. the pricing it levels I throughout believe how question We've It's shortage. gets. an have is to seen directly

pressure years, a be do to it as the that to going make I going can't because, us I they beyond pilot lot there place detail. be and that this jets NDAs mentioned, right is and I of in their For hump of fly at would things and have network. of still the which getting go think but believe will resounding program over United of have from believe yes this is and problem. close at hours, go the a fact, jets, with that we this, subject Because to looking the into we're X,XXX change level to think just development. the mean, think operate core all plans I out of of lot much but that same a real add outlook that think I that impact, is solving focusing capacity months? change the I hump to close also quickly. as would of we it to first of fly to can things the need. put just hours would rule amount alter It what that over that purchase the significantly. about world issue or to would that's current hours to all pilots just a the to a the because we passenger the answer and talking American, are those wages. they we're And look just use the to I more the really ability talking they have I have jet. XXX get the a would that around patience won't at trajectory the would are And for is We're on I is, I look them industry, We're pipeline, a agreement. help X,XXX think, long as implement. XXX, of that us, the now, in can now. It part And on lot critical key. really you we're the XX think us that change months. will break negative take change not think our if key I I a I even this to I could, program this deal about that industry question in accelerate industry. the regional with for logjam we bunch majors could would think our could, fly plenty when we're do couple of hour to the And I XXX

at cargo third a add did that think continues to I our role small we XXX. play Mesa, but

DHL wonderful They thoughtful that. We operating there. are future been aircraft. integrated to older to no big we that and for there carrier and be a a wasn't was absolutely still aircraft I doubt helpful into was remains us I easy looking DHL we And operation had DHL those feel family it supportive. mean, think partner. that has put as that -- to I tell were on certificate. had in and They a to expand you, have there the

to the that be XXXs down very move operations can as hopefully, potentially in of we road world me, with cargo, new that, see to all to to larger more and aircraft is cargo add which familiar us. the us continuing be next get we So big the will the

Operator

[Operator Instructions].

Didora. Our Andrew next from question comes

Andrew Didora

came resets now? -- we're that you stabilization block costs level number? across any see the rates pilot that higher just -- when issue, the right just wage obviously this pressure a do light a the Or of quarter, sort over So on environment that hour that -- per or coming from you like just past what at your quarters, bonuses, talked at Jonathan, We've look I fall. the Do everything. $XXX regional hour last drivers see that, with operations call in take is the in in this of block and from cost $XXX training up the given seeing to

Michael Lotz

the given per Andrew, paying. hour the look, combination we're mean, hours high bonuses extremely is costs just block now cost training I the block and of local Mike. it's and that high

and situation to down just hopefully that attrition lockouts. in levels it pavers a off the down forward, block we're get able the number X.X%, in and starts it's the of attrition or X%, cycle increase build that's it to up to going So down to see the past. then when right come number to we're level temporary, that our able hours now will change out of we'll We're the people just the as to will enough some come through X%, to training been but

Andrew Didora

that of is the what of pure line bucket, a flying? you pilots us can that sense And Got give just percentage it. kind on pilot wages, of just

Jonathan Ornstein

I top Yes. after Andrew, the of have get you the can off I my head, it don't for that call. but

Bradford Rich

the me really Torque, wrong I'm people of increase. to be that possibly doing. attrition. mean as that still can it frank, bulk we I I as correct we're many I mean there's choice. of got level still are of on to train It's around training. we we've training And no remains the if think or the be able -- And to

wrong, one -- first our ones -- from but was In think of fact, of output off that if correct the lost and what me last far training I of our not through I'm month, was where we attrition.

of around we're everybody sort industry, challenge going take is like progress, talking facing misery maybe it's sounds loves but to work. And So the continue but to making now. same company, the it right

Torque Zubeck

just roughly pilot to quarter kind ballpark Andrew, related to the it, in XX% wages of about was our of training.

Operator

Our comes Syth. next question from Savi

Savi Syth

of I housekeeping just had a quick couple questions.

with that of kind or a year-over-year or that Is XX%. Similarly, quarter quarter down hour a block quarter-over-quarter? was expense or the commentary, year-over-year maintenance comment? comment the So

Torque Zubeck

It This quarter-over-quarter. is Torque. was

Savi Syth

sense. Okay. Makes

mean, -- long what's you've sense, kind the be what's say Like Just that I some would important pay as majors economical. of like your a how some Kind these do the mentioned you of pass or well question. Jonathan, is this take? the as through how contracts? in given groups ability pilots you other But that of long kind to of and as bigger them it's your to heard of it think even increases,

Jonathan Ornstein

Mesa -- also from lift I fact we that to vested a having lower question. certainly over think make we're as competitive. provide I margin well, on there's the are our be clearly it them increasing can't our X% who if an from that for think do, compensation it appreciate all just to those model Well, guys we're we times, it's they raise a sense or albeit will That they be discussions have I example, to support well good for us and in -- think you not And I do seeing require for it would making for I that have think based they that sense can continue levels, said, model, provide, It good because you be will that okay of wage level interest partners. look makes I they this levels reasonable they that mean we are in obviously at hard when understanding -- as now. being think American, Obviously, we like feel be But the a would at as because guys that but can't well. raise X% them mean, here, now. it

I that they So it. United know I think appreciates that. appreciate

Mesa and And remember, low-cost ultimately I always been -- a too, provider. so that think has

always paid other Our revenue for else mean, paid sort asking I lower generate like in to ASM we part, has has for the get we're regional of everybody getting decade. large that been significantly carriers. been And just last than

not too seem that's and to that on are far numbers an -- the but So feel exact ballpark. off we that's based not science,

Bradford Rich

more sensitive encouraged by everyone you to do to it the do, discussions I productive Brad, it a characterize by best had. in discussions to is encouraged as had obviously, as think I you're there you've No. most productive mean, the what very mean, to partners I Jonathan, think term. I to work issue, said headed. I well. Still the the more we've is that? sensitive I we've what you Jonathan, some to but but we're with Want anything very mean, still to had, we're obviously, lot partners the the well. do -- at I very add discussions. But but direction it's point mean, the to a this of way would generates characterize to it the said that cost-efficient results want Is in add that's direction would some to do work the long there? anything issue. I point. everyone

Savi Syth

you cash a can ask, that you you're level you're I there balance were comfortable And But can't is you Torque, initiatives perspective? -- that sheet about you the from on. Yes. a I know working talk quickly some of feel said just, or managing to

Torque Zubeck

where try $XX we're manage of could obviously generally be I some question. through, a like lower to I things close it a than and right? It's little manage are depending around that, $XX think down cash on in managing we our carefully, But million. be deals, million. to great to can But and mean we bit

Operator

Because I'm showing no further may questions at you time, proceed. this

Jonathan Ornstein

The that difficult everyone. business help are for the so you Horizon. clearly do to I do us X/XX. the our everybody around them but pretty this events way This and think horrific Mike faced long all and a address, else a thank I to of two, and challenging for think of time. solutions. is mean I that believe I working this in mean in partners all as making none Torque been one, over much, to is I came dealt because long. much our back. are we industry through say has long -- going Well, the of over together just time. something of been as us it's at And we We obviously, with there so wherewithal issue. terms very Alaska you know, I what as value I time. one going has we're And lasted have But think that longer-term seen that's Okay. is to -- one fair it. have a just have

space in pilots to Mesa to time it's take comes just confident so at continue make unfortunately. profitably overnight, airline operate little I to to just to the you and bit So do a of do things can't happen point. going be will that because some to when able training, that it and remain But regional

is our So the have see me, can stock we macroeconomic I just within everyone's we dealing given patience. continue where today to with as we the the else. to operate forward appreciate do are I anyone business believe and disappointed and aspects mean, we're to But best industry. it we are the price moving where that

appreciate for a quarter, everyone's you thank Hopefully, better again, next again time. have very much. you report we'll So and

Operator

today' That participating. Thank for will you conclude conference.

this You at may disconnect time.

Mesa Air (MESA) 9 Aug 222022 Q3 Earnings call transcript