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Monday, January 24, 2022

Mesa Air Group, Inc. (MESA) Stock on a Free-fall, Here’s the Reason

Mesa Air Group, Inc. (MESA), a holding company for Mesa Airlines, Inc. which provides regional air carrier services, has plunged 16.67% in the premarket trading session. Consequently, MESA stock is trading at $5.90 at the time of the writing. The plunge could be attributed to the announcement of the quarterly and full-year 2021 results. On Thursday, the stock closed the day at $7.08 after declining 2.34% during regular trading hours.

MESA FY 2021 Operational Results

On Thursday, MESA released the operational results for the fourth quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated total operating revenues of $130.7 million against $108 million for the same period of 2020. The total operating expenses bore by the company during the three months were $125.6 million against $84.1 million for the same period of 2020. The net loss suffered by the company during the period was $7.4 million (or $0.21 per basic and diluted share) against the net income of $11.3 million (or net income of $0.32 per basic and diluted share).


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Q4 2021 Operational Results

Alongside the financial and operational results for Q4 2021, MESA also reported the operational results for the full fiscal year 2021. The company generated total revenue of $503.5 million during the year against $545 million for 2020. The total operating expenses bore by the company during the 12 months were $440.3 million against $464.9 million for the fiscal year 2020. The net income generated by the company during the period was $16.5 million against $27.4 million for the fiscal year 2020.

Executive Commentary

While commenting on the results, Jonathan Ornstein, Chairman, and CEO of MESA said that 2021 has proven to be a difficult year for the company due to rapid contraction and expansion of the demand. The company is expecting the COVID-related issues, which have impacted the costs to spill-over, to prevail during the next two quarters.

Future Outlook for MESA

Based on recent stats, it appears that MESA stock has declined more than 20% during the last month. Despite the recent decline, analysts are hopeful that the stock would bounce back in near future. Hence, potential investors should keep a close eye on the performance of stock.

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