Earnings call transcript Q3 2023

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Operator

Thank you for standing by, and welcome to the Mesa Airlines Q3 Fiscal Year 2023 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 [Shawn Lang]. Mr. begin. may now you Lang,

Unidentified Company Representative

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

Mesa's Officer; call are Officer. Torque the me Chairman Financial Ornstein, and On Zubeck, Chief Chief Lotz, Michael with Executive President; and Jonathan today

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

to uncertainties actual factors materially cause future on by We discussion any We that company's that reflected of our duty statements. statements on the in the statements, results file There contains risk differ the current a no to and from SEC. the update performance. undertake are including everyone those not with reports the on significant forward-looking remind want be to discussed forward-looking forward-looking also call today's are expectations risks that could based guarantee and

In to periods of fiscal is adjusting the website comparing exclude to will quarter for special available earnings results, today's our be refer which measures. release, our third Please all we on non-GAAP items. reconciliation

With for his that, opening to Jonathan over Jonathan? remarks. turn it I'll

Jonathan Ornstein

us Sean, joining to and you everyone thank for you, Thank today.

we stated, As a XXXX transition have remains Mesa. for year fiscal

infrastructure. hours We CRJ-XXX and surplus maximizing continue block and assets to on focus reducing

million $XX.X additional loss million, related CRJ-XXX the to quarter million Although approximately the $XX adjusted related for and the of $X this pretax was surplus included costs transition.

approximately Our third quarter hours. block XX,XXX of with performance roughly forecast block hour our tracked

total have E-Jets. Regarding largely XX transition, currently and a flying of CRJ-XXX in our the is to work CRJs we addition XX complete,

easy, job. did amazing from American but not to our transition United people always The was an

flying. for passengers X.X incremental we its the carried quarter, During additional on million an United

faced challenge exacerbated driven inclement the with recent service industry in shortages. traffic air continues and strong widespread regional to operational at large air weather staffing demand, has significant control While disruptions by by months see

allowing cancellations block-hour minimize to overall. capacity mandate further scheduling, optimize there opportunity we United's believe our for to understand we increase us is significant passengers, to While our

overall planes our driven pervasive to labor attrition aviation shortage pilots and utilization. hyper regionals. to imbalance from all an operate at see to of carriers The increase Mesa officers majors an ensure top and pilot industry continues priority by continues with first by at exacerbated Our significant production captains to maximum impacting of constraints, increasingly

Mesa captain our with United. that have program United. cooperation direct-entry officer effort is program Aviate must supported new captain and transitioning United's first has addressing to years our imbalance requirement X experiences before with captain been of by a This in pilots in

ability qualified In officers addition, unlike the some to has Mesa first to require to captain. carriers, upgrade

to In hours recruiting our additional applicants with Inverness, in the requirement. we their We develop Mesa also particular, at our Program worked commercial approximately build have who Pilot Currently, Florida. has initiatives. need XX training to We now to continue location Development and license first X,XXX-hour well. in-house have aircraft pilot X,XXX very reach

already who have initial Mesa. very cadre at graduated We have an performed training well in

Given and MPD, with benefits approximately hire have the Aviate regional of we pay new X,XXX now of scale our at the top industry-leading applicants. the industry, in combination

has item the the pacing of attrition pilot upgradable pre-pandemic turnaround our stable officers. become availability first pilot a now A last X and been has business. pipeline levels, over at our months While to essential healthy the remain the of base

full XX% few of consistently generate utilization reach utilization, industry, and primarily January counterproductive prior adding pretax spite not which give XXX the Once shortage important consistently shortage, to consistent of cripple we the and idea we will captains. our to base from pilot believe The in In in continues carriers created still with business. which regulation we we flying target United's pilots pilot at regional achieved X% to is target approximately our you here of more the United portfolio. To approximately To will facts. impact, capacity, other utilization, by United's meet pilots, we're the margins an immune. present, XX% need between Mesa a only is we are

believe Given by our and of current year pilot the outlook, United's we United we Airlines, support XXXX. end utilization target reach will as well as fiscal cooperation from

easy, our While success. Mesa's ongoing believe has support. will ensure we are that their ongoing to thankful with us we the assured work transformation strategic and understand closely United to our has importance not been Mesa future for incredibly continue United they of relationship,

I'll over turn that, With call Mike. to the

Michael Lotz

to everyone. afternoon you, Jonathan, Thank and good

of that maintenance Mesa. years First DiMarco, key we note X to brings leaders operational experience over and off, our Engineering, Lori recently added expertise Vice and oversight of Maintenance I'd like at aviation new XX to President Mesa.

Lotter performance. We Flight peak airline XX new training. President background the utilization continue and and capacity significant Lori's will years' also talents industry to to has our forward maximize and experience improve Andrew our as operational over in key ensuring pilot Vice be Operations. and of Andrew Mesa in hired has our can going Andrew

Denver, fly of August. CRJ-XXX historically supported has was and completed, we newly and this and resources now had completion Phoenix our the has we this on by CRJ-XXX, and which Dallas for bases. been July XXX% Initially, impact maintenance primarily of out which realignment an the currently Houston ran Operationally, spring. in been XX% factor reliability, opened This

approximately like flew the had in XX,XXX to our block of we In we June with roughly quarter, our line estimate XX,XXX I'd review provided. that Next, hours, capabilities. block-hour

roughly our quarter. that expect we June same the September higher quarter slightly forward, block than hours is Looking the or to be

quarter. for increase per roughly Our of initial X% XXXX an fiscal to projections X% are

Our our most rates. upgrade to and block-hour captain, production attract on officers, attrition our ability on dependent based direct-entry is first highly recent is

regional fleet, regards our regional With large the jets. XX for provides United CPA to

XX quarter, of fleet mix For and consisted the E-Jets XX third the CRJ-XXXs.

increasing focus utilization of our on fleet. continue Embraer-XXX we the However, to

to continue X X operate and we DHL, at operations, cargo our XXX-XXXs For X XXXs XXX-XXX.

now financial I'd walk to like With some of through that, the it Torque to to data. over turn

Torque Zubeck

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

compared to XX.X% million QX $XXX.X the For million, XXXX. lower year third XXXX, of $XXX.X revenue quarter fiscal in was

by by partially fell contract While contract, and These pilot fewer were driven block hours new CRJ-XXX under block-hour rates aircraft United by decreases higher revenue pay $XX.X offset year-over-year. lower million scale. for

recognition remaining recognized deferred deferred of an pass-through of net million $X revenue QX of offset maintenance versus per results P&L deferred previously $XX.X in million the contract over XXXX $X.X include, completed remaining the of by flights in term of GAAP, X a revenue previously United by balance of the QX revenue be pass-through are decrease revenue increase recognition the The impact. with expense $X.X Mesa's driven revenue partially was million million in will of contract. XXXX. as The

XXXX. million Mesa's sale. million for to side, expenses increase GAAP On XXXX million, versus were primarily due $XX.X This of was assets operating QX the held QX $XXX.X impairment a expense up overall $XX.X for

falling was as million was million, reflecting However, lower were flight $XX.X charge to partially expense expense pilot finance impairment depreciable lease also amortization driven well for operating QX adjusted as The offset $XXX.X scales. decrease attributable million, by in expenses CRJ-XXX pay primarily XXXX. X.X% an by year-over-year by aircraft higher XXXX. million $X.X $X.X CRJ-XXXs to the operating primarily rent by higher This the higher certain decrease lower million driven QX decrease base depreciation in versus reclassification lease from year-over-year, or asset operations from $X.X to and

engine This higher by $XX.X check QX partially was expense. expense to Additionally, offset quarter versus million $X.X maintenance, in C XXXX. million, this and lower due in an is maintenance pass-through increase

We roughly at the next level expect and to maintenance consistent be expense this check for C quarter.

$X.XX $X.XX line, of bottom of million a or million $X.XX a to of diluted loss a loss diluted a an On per for million reported year of loss XXXX. loss a a to or net million share adjusted we a $XX.X a share or loss ago. per or loss the basis, share $XX.X share Mesa's QX reported diluted of loss $X.XX of On of $XX a loss of $X.X compared net per per net compared diluted

impairment equity QX a related investments sales The $XX.X debt equity excludes QX $X.X on adjusted and costs Adjusted loss million for financing $XXX,XXX asset XXXX loss a a million on in million retirement. loss, results excluded a $X.X deferred gain-on-asset in on securities. to loss XXXX from and investments $X.X primarily gain a million

still looking surplus. an United $XX CPA, CRJ-XXX XX at estimated The performance, engines as at are additional to several in the XX financial spare quarter. The QX which line. roughly So items XX million and of company's CRJ are XX a on be the leaving the continue has key impacting earnings, aircraft fleet for there bottom CRJ-XXXs, drag

excess includes and cost This through primarily the expenses depreciation, infrastructure. for interest wages

of to continue As we key shed surplus transition areas CRJ-XXX and forward inventory to from the CRJ-XXX be and focus will sell aircraft E-Jets, to going engines infrastructure. the one our

quarter. per through savings result disposal walk these me you surplus purchased of of agreements let XX aircraft, have will Now the CRJ-XXX items. cost Of in of $X on approximately XX, million the we which some

$X We savings dispose been The approximately carrying XX quarter. approximately and are deliver $X which disposed will also costs not in hold negotiations an have million per additional of per X of remaining to cost of quarter. CRJs, million surplus CRJ-XXXs of

We [olefin] engines also marketing. are we that have XX

sale cost this Meanwhile, of quarter forward. quarter. moving the to disposition in $X engines per which The past of of $X in result approximately cost million result million will approximately savings United XX savings will of

that above aircraft have engines debt their and balances. note sold all these It's important to existing

regarding the We as eliminating our in fleet. of support transition United are their discussions cost in we CRJ-XXXs surplus also with the

quarter. balance the turn Now June the me let to sheet for

million. $X.X Total quarter. million cash, from quarter was $XXX.X end debt the from prior restricted million million, of $XX.X the March $XXX.X As end, at cash, to the of by down the quarter excluding decreased

quarter, the of $XX.X of Mesa During $X.X payment lease made payments debt finance the and million million.

the approximately engines cash QX in that transaction the quarter, generated down of to we This closed $XX.X $XX.X while sale million, of United XX remaining the on to spare also net we XX million XXXX. during paying quarter. debt of During out agreed the the in sell

the $X we provided $XX returned approximately under million million by addition, loan bridge the of United. In

debt asset lease we XXXX. $XX.X in have finance year fiscal year-end debt payments associated principal million. $XXX after and of remaining million of with We repayment of sales, expect approximately XXXX the scheduled And

expect and we currently in CRJs XX cash. levels transactions, our million our surplus agreements will provide approximately another million we by current reduce debt Notably, $XX on, our that have involving $XX.X

Given we any provide ongoing business, fiscal the more year not specific this will at time. uncertainties guidance in

now that, to like to I'd turn With remarks. back over for Jonathan it closing

Jonathan Ornstein

financial year knew we at performance. and when Thank not dramatic In the improve would Torque. be our process easy we this took the sum, you, operational beginning of to steps

progress financial rolled and to or significant that. That actions Mesa as actions. And outcome together balance We this being such, made is not sheet that our have correct said, up CRJ-XXX transition United with anticipated. agreed our and to we've sleeves either the take

like to to again hear you questions for us I'd forward With and any today, to thank your answering we have. you that, taking look time may

Operator

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

Savanthi Syth

of just curious the bit just your today lighter little are you kind fourth are thought utilization was And is get a giving the on of where the trends hours pilot level I curious, that fiscal as quarter XXXX block before. you of what than into had in into you the and seeing block quarter-over-quarter confidence hours. improvement -- of kind current outlook of fourth

Jonathan Ornstein

by. the same some by pardon that end are This the than Mike more people quarter to. is had little the obviously Jonathan, captain impacted lose facing chime in was I'll if We light. did and our at a you, get we he of also issues projection somewhat Aviate to anticipated. operational a We wants thank few impacted bit We let Savi, crunch, did everybody versus that. was The

we ability of to a the issue. all those think But do that are most But of upgrade we're have. the terms We probably bit little of in that upgrading sort and have short people, people. I

other is, that thought we it more maybe there The that scheduling. efficient of mentioned some we point was

an and took in That block to us a they confidence think available equipment I more that. reduction our crew what to think in flying. spare people and more think We particularly we've approach that the hours there's United terms not the max as said in conservative over gotten have we we transition. I be, insignificant parts some CRJ of fly. where could need was now

interesting words least identical is data total what's you areas that the we've that probably one the the compared total other hours other what divided in carriers, is that by to in almost we the think the do we the at can the I tell of about more our we number those CRJ aircraft fly hours. actual of see, number utilization can to other of is talked us And when from from at look CPA, So regional -- operators. across fleet,

building So up question good just -- other and it's doing in we're a transition holding pilots own. We're actually doing was it not those as if the of our job a carriers. not But less flying vis-a-vis on hours. pretty the

And now can the we to forward, is you sort primarily which, going hours aircraft of large a have degree. E-Jets, in to imagine, continue on pushing choice of up to as focus the

want you that? to on Mike, Do add anything,

Michael Lotz

we think we had fewer than had -- I have No, upgrades we did just planned.

our We officers. we to do hours, that had starts number they anticipated. more qualify FOs projections increase our are but But more of as with to we upgrade and fewer scheduling first of forward, these we our as upgrade going classes than

going in That's captain this with been program on as try come are have program capitalize emphasis least we're with times, and that on direct-entry also to to We couple United. pretty a to extended at out cooperation a of going some -- major well.

Operator

Cowen. question Becker with And comes from Helane TD next our

Helane Becker

about of Question the portion current debt.

'XX repayment calendar scheduled, how the you question. remaining? it debt you refinancing is thinking pay I wasn't that's about think intending Torque, you quarter? I year? And Or that $XX are is debt the million just had Or sure, have that over I clarification as think that in fourth I due you then due? are to it's said -- next and a

Torque Zubeck

Helane. a Thanks, great That's question.

in So not in the debt the XXXX remaining year, calendar fiscal year. is

that And we're something consider. need sense. we're obviously, refinancing something, if So makes debt that comment way. would assets working and there, retiring certainly But that's -- selling on to do at on that's a we look to we if looking

Helane Becker

total And potential the on helpful. million, I the XX quarter just right? make the and Okay. $X question then that's the That's to agreement right. the get know That's the just sure the question, dumb want I and purchase million, that more, clarification other aggregate, that's in but aircraft? per I have, $X a million $X probably amount, just per all not I on for the

Torque Zubeck

Yes.

Helane Becker

It's in aggregate? the

Torque Zubeck

aggregate. the it's Yes,

Helane Becker

Yes.

a perfect. so lets two is Okay. X,XXX-hour I in still FAA Jonathan, the fly going FAA or -- guess, rule. That's but negotiation couple let then, pilots them to bill, of that the current change the more clear years the And not fly it's

like looks us that's with with So us for be it going continue to be a while. and to

think XX that pandemic airlines another you Do maybe or and want make other kind only financial might the retired of hiring that during sense? out XX about forced from for that but years? nabbing the few fly not and or XX still guys were are Or captains does to them

Jonathan Ornstein

a are to think the I different direct-entry people possibilities. I I all high we if No, And I $XXX,XXX-plus are at think, are are announce bonus look, they people bringing captain mean, we're to to qualified, that some first looking the captains, or in new call programs shortly enhance mean people who going that. officers. we're paying further order direct-entry time to what get

have the find is pilots. due think, we through is course, to all who reason attrition the FOs have we're qualified moved The now, Right problem facing, is are why that captains I shortage, X,XXX qualifications of the this the basically to applicants that, more have be everybody to And that almost, hyper struggling gone captains. with because up.

done we to through just which do say, "Look, we've what that MPD. create a think let's pipeline," I is

captain. Aviate captain. Aviate, restructured. requires of guarantees folks to have seat basically least That United. as jobs out years the have have in United. to can to become sit to They by what no those time now thankfully, at the They which and two hired right a longer then the was the become We equates wait to program,

the capable to in fact, and it." Aviate, are saying, hire in that XX% and pilots start existing think upgraded out And think you're result a kicks -- our be give right you, have kicks than some -- upgrade I of first will that Mesa, people, you're Once in for of the will itself they an in, participation lifetime "If and once folks industry will, at did doing particularly going signed we because grandfathered they being there to I of our Aviate, as to of up accept when rather get but officers.

up have or was didn't expression known days, a well you choice. Back old in that as the out,

see I programs the And take upgradable will where upgrade. in pilots system. I and a wash be issue to more to through it that in think will, to think first you're put more frequently solve this But in officers. that ultimately going these regarding position will that fact, the time

that's are of of this coming all thing having by upgrade clearly, preparing program. stream in pilots the And the and whom reached we're in, that never Aviate

have block 'XX, So And we it that no with time. be targeted we by we at can that the There's point. our we agrees projections, think right knows us will hours, end get situation of will that take which margins see that's thankfully, change. that to And 'XX, need in be why done clearly, fiscal need us that about United generate through because, to to Mike's of that. now doubt has the things kind we there to and the can

very I confident feel And that. that do they'll

Operator

question comes next Your with of America. Bank from Andrew Didora

Andrew Didora

Torque, the impact the just trying cost would savings a and question understand sale that of on to all CRJs flow these of just engines, be. cash from what incremental the

get cost So Just interest is D&A, aircraft that from is there expense? Are is on a now? D&A? cash the right mostly these of perspective, you operating benefit. that have combination sense costs to savings flow Or a some of trying it other a that cash

Torque Zubeck

keeping there's you to maintain primarily biggest of That's unless at interest in have piece. the aircraft, depreciation. and elimination you Yes. also them. them storage, with expenses looking of We're certain amount active. the they're when a But And have associated

aircraft certainly these so savings the other to and work can but sold, depreciation, side we see some probably the And the maintain. there's few is because we that maintenance on cost get we piece biggest also the and sooner have just on interest

Jonathan Ornstein

and we restate is is have And haven't the from cash Andrew, that anything that sale. think I we things important of not I again, it think, the that one sold really mentioned too, Torque also generated to

other And even But debt our our had took balance. aircraft so to while sales, convince I United were XXX% that all think of sold little sold above convince the we at us and of that it a run-out parties. engines, that

do you not also can only And cash. but when but our flow, these take an so it's that, Torque our improve cash insignificant And generate at through cash. will off not and of they look they sales, all amount expense walk statement of income

engines. fair and, built actually in the in up aircraft in a We've of all particular, amount equity these

Andrew Didora

it. Got

about United's rate the Okay. the That's confidence mentioned utilization this year. we of on or what needed? the like Jonathan, be should reach helpful. targeted goal? just guess, some a us from need next I for what track goals for the more you're you And kind as through then, of perspective, to you fiscal more like XXX Or milestones pilots meeting to are lookout things pilot we move you on that that 'XX have give are

Jonathan Ornstein

Mesa's that Andrew, Yes, to the tell carriers, as you where they frustrating large of even the can't look, fact are in operators jets. And are. numbers regional fact, utilization flying other other I we how are, levels at begin the same

So XXX that is seems itself, that, XXX that people XXX again, pilots we which to frustrating. just need But in is pilots, we find. need

obviously, have captains, do as obviously, the of issue Now go. retention, lose and we we we

to than the was numbers. anticipated lost hand one issue captains, We many think need we a going has to make just little resolved. an count direct-entry since per these earlier. some Aviate, And I been number bringing rely that in But the bit can on of you with actually which how due we're to although that more on have month to we had

for going energy the upgrade, of matter are our that to officers then so fact that putting absolutely who's and upgrade to are lot not well, need we're qualified is, ensure as Because up not into we capable. able people. the we're anyone have we to who of that which upgrade And coming capable first a

is So helps, we upgrade, as feel that be we I area pilots benefit to confident have that think can well. is the that number kicking that's to all which I the where probably just, required we in Aviate once why of get that get the biggest that we once think program will

are, program of upgrade the positions oomph, upgrade natural where the and coming be kicking just people be should three, attrition those okay. give would we to in along, between stay people the should they who requiring enough levels that captain direct-entry us Aviate So assuming

the pretty As mentioned, in direct-entry number new our And terms that FOs high else of we're hire significantly on actually of I as we've has. or hires. FOs we captains focusing time reduced now everyone strictly

Anything else, Mike?

Michael Lotz

many partners Andrew, quarter our flying far block think, I just holding are, know hours. based each we'll us No, as as we're how we back where block gauging pilot on aren't hours on because

Jonathan Ornstein

Yes. The majors the have I have a government going the to the a would CRJ. from reticent. been are industry, the with press. probably of little attention in and we everything aggressive little cancellations more on initially, But a the mean, hoped and from on obviously, get lot delays

they think little is I So a which conservative, understandable. were

reliably, there's But think room more think help schedule, I that aircraft I would these proven for we've significantly. fly that now can which example, the CRJ in

numbers The tell I to a aircraft few based flying. that will United our one just you the thing underestimated and on sensitivity Mesa both that was

that So without existing shape and already think schedule future get as are in that staff better be think resolved any the that, and increasing far addressing have, I that changes numbers. we'll that's we with crew just I we

Operator

with Bank. Deutsche question next Linenberg Michael comes from Our

Michael Linenberg

block-hour Jonathan, X% Torque X% just year, of I target think mentioned by that United for you number next back quarter. getting to per the to or end

is production Now are is a that a sequential we from Or basis? year-over-year that where number? block-hour today on

Jonathan Ornstein

Sequential.

Michael Linenberg

get -- your captains, to upgrade you scheduled to on I that you the with upgrade. and an the pilots and they're And made of officers, first or And touch ability to to to then I unlike with back just Okay. respect you your that for talked about go think, competitors. kind want have they point

Or where where at voluntary or see to a high it's I you company potential in that that become elsewhere? point they and a of seeing? supposed been first falloff Is they on lot an from when at the maybe in officers attrition a elect captain, carriers, decide that point break is to Do upgrade and that to breakpoint? captain, you've not a think that to basis. a issue get go time junior they're to

Jonathan Ornstein

are haven't it we think it. not people I'm be big, "Oh, have going it. No, numbers really need else." go of -- want somewhere leave have remember, those of just do pilots But folks we The Aviate not that don't put upgrade. Aviate. to on Because I a because upgrade. really to gee, saying, hard seen most may XX% be are our so to in to I would to forced they to finger They

And of we requirement in I the hasn't work is, but And will issue problem. no, the with people, once think a I believe fact been entirely, -- away. it the go kicks clearly matter again, firmly Aviate this we

The for the even up ourselves, to making frank, an saying, went so much, our of airport the in an I $XXX hour. I pay dreamed pay itself, mean the problem to created is of coming fact we money." whiz, much "Gee the also, have up officer FOs FOs never be this I've first a And job. bad FO matter starting not is being is, because

greater it it we FO captains. with think bit and been a I So deal between have ourselves, and little differential should it. the But maybe we'll is, is created what

the a are will people the are well these road folks to fact I that and what's upgrade. change as the us as as I in new down going aware will that in be position coming making make things what of think all in really on, that will put do United Aviate work well help think the

Michael Linenberg

I many difference just your last then you on you factor just is to partners, dispatch, Isle, Clearly, in going the cases, completion a Okay. one, you have completion partner, know, to look And at see London to and than that can factor. this that daily your flight data. Maine. And controllable case, you Presque just between factor. the -- cancel, don't total completion And they're rather telling your in you the to flight at fact that are the your look right, I the

point basis, a of doing that basis, got financial to because sync, on cost. by that crews your You're you're completion you're completion got you? being on What Is airplanes hit sort a is sort to quarter have where though, it's told not X flight of cancel at every or some having a and to impact, and and on stand of least out put partner? down the margin but getting well controllable it's

Jonathan Ornstein

is The bit And Dallas I mean, Yes, issues. probably of was not time some I issue transition think we point to move look, the gone aircraft the think had smoother. we could little operational quickly in I bit too a out have a was will cancels that There -- day-to-day all a bigger there when Houston. have. little

kinds probably those think things I of of more were it.

could right The bigger being doing we on putting each think E-Jets create per this more but E-Jets on to issue I that have fly just by we more spare shell spares. I and would now, that to We're fly max. scheduled crew ultimately able to max max the if flying the aircraft, crew is more just think aircraft we're -- And could have create CRJs. efficiently, to we on crew we then hours

just do. United, the been that, able up. don't go cancellations. day-to-day as the as been have United conservative you is that by to are press think there with performance planned I this attention and the It's hours. that to And problem think can well the solutions imagine, has the fairly given as numbers Those completion I now. government to right So we're officials working rate has the given on-time block all

Operator

Syth Savi comes James. with from Raymond Our question next

Savanthi Syth

far. questions the based ones two quick on Just so

is debt is you debt, I sales of fiscal ends lot the bit in color target gave. and a kind for I all this of of cargo flying? that kind revenue done? a when appreciate this happening was give you those what of are of little as But this us lease level the by Just United or And on it a calendar of all mix quarter year-end kind also, of the I sales. cash that get do you something focused cash was you year, now and wondering the have through can some kind give can of that of you of of if like where given if might, just maybe most that,

Michael Lotz

revenue United like going portion and on be I is debt the X% or on Well, distribution. to the X% think piece, XX%, will the be cargo

of have we're rid be putting not more going we us. projections. the to of far we benefit them. of -- timing As will these as don't but of surplus It's to any get most Obviously, on not really the sales quicker some assets, the be only highly can these cash, dependent out XXX the of any assets,

So we're long-term cash just now. any on projections right not putting

And dependent assets aircraft sell surplus have, it parts, that highly we will these whatnot. when be on engines, we XXX

Jonathan Ornstein

Yes. the is I not aircraft contracted And for, we're already even number close itself. an when that we in insignificant that on mean,

Savanthi Syth

there certain target below? cash you keep you want of kind a kind don't that to Is of to at want go

Jonathan Ornstein

United productive. we is for last time was had think Board aware to let our trying I'm Mike, do the idea constant meeting, we're say I'd which the what think target as incredibly its participation as We United. with much discussions situation. you are United Obviously, I -- -- possible, have where but answer Board in any that. is -- thought well me first with of at I

to intend do, the all that understand it that, part going important which that we clear family. to it's made do United from solved, of take to is problem incredibly and Mesa get that that the have that needs cooperation think an I they they to

balancing part are We the certainly all equipment. of of the

than number jets you operators it, aircraft a regional large the We operate two other of operate at them. that about look mean, do. same one actually we the of more little of I if

help the historically that being balances fixed, level business knows and we adequate can I an to cash bit cash. to I operate get this what strapped. it cash what would our United that a operators operate without do in call do little the be done and that than of needs are to So done think other at takes that. differently terms We We've ensure understands that we'll what

nonetheless, United we basis the healthy But to to us on operate feel balance the level day-to-day that order all a think do. need that requires business we at in a I

Operator

time. this at questions other no showing I'm

Jonathan Ornstein

wrap just that have the that have not Again, partner feel news conclusion. strong mean make me change. to good that a in is these to let very numbers. pleased Well, us. we know things particularly We with happen up we I we're help Okay. with

mention They've the actually cargo We been but business consistent, quarter. be very cargo about continue steady much supportive, the has this business, supportive. been will didn't to

could be road on in think I our whole there terms opportunities pilot primarily cargo. down just to has focus -- on the the been be continues But of situation. nonetheless,

the I things were. through terms we this which without of it I think rates regulation, we're point, utilization that, below different none is even on we can this now. had and this financial -- focusing up actually happening in way, past, we we than if at And target the at our the think the that achieve bubble able would to to where that right saying is And reflect I back goes by be been numbers to target utilization operating that doing lower getting point think all get utilization of fair were in in it's results add to past where were will the

targets doable. the are that think I So

the in happen. I make have from to have support all place. means that we And most think this importantly, we United think need we the I

very you So thank much.

We talk We appreciate you quarter. will your time. next to

Operator

does Thank today's conclude you. conference. That

and disconnect for may at You you this time, joining. thank

Mesa Air (MESA) 9 Aug 232023 Q3 Earnings call transcript