Mesa Airlines has completed a significant transaction under its Regional Aircraft Securitization Program (RASPRO), announcing the sale of six CRJ-900 aircraft and 10 engines, part of a larger group of 15 surplus aircraft and 30 powerplants. These assets have been sold to two undisclosed third parties as Mesa continues to streamline its operations and financial commitments.
The Phoenix-based carrier reported a challenging first quarter in 2024, with revenues down by 19% compared to the same period last year, culminating in a net loss of $57.9 million. This financial downturn is reflective of broader trends affecting the regional airline sector.
In a strategic move to improve its financial standing, Mesa has successfully reduced its lease purchase obligations from $50.4 million to $27.3 million as of late May. This reduction marks a significant decrease in financial liabilities for the airline.
Jonathan Ornstein, Chairman and CEO of Mesa, highlighted the strategic importance of the sale, stating, “Addressing the RASPRO lease has been one of the top priorities for our surplus asset sale efforts over the past year-and-a-half. This is a significant financial obligation that we are putting behind us, and we are increasingly able to prioritize the future of the company for our investors and people. We look forward to enhancing our focus on returning to profitable performance and executing other strategic actions while closing the remaining transactions related to the RASPRO assets in the coming months.”
Currently, Mesa operates a fleet of 69 aircraft, including 17 CRJ-900s and 52 Embraer E175s. After severing its operational ties with American Airlines in early 2023, Mesa now exclusively operates under the United Express brand.
Additionally, Mesa’s partnership with DHL, which began in 2020, concluded in February 2024 due to a reduction in cargo demand. Under this partnership, Mesa had operated two 737-400s for the logistics giant.
In related industry news, SkyWest, another regional operator, announced during its Q1 2024 earnings call that it would acquire 20 additional E175s owned by United. These aircraft are to be sourced from another United Express carrier, although the specific carrier was not disclosed by SkyWest’s commercial chief, Wade Steel. This transition reflects ongoing realignments within the regional airline market, affecting fleet compositions and partnerships.