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• The Foxconn of the skies, operating regional flights for major airlines like American and United under their brand names (e.g., American Eagle, United Express).
• Like a specialized 'white-label' service provider for the airline industry, similar to how a company might produce products sold under a retailer's brand like Amazon Basics or Walmart Great Value. Mesa Air provides regional flight operations for American and United Airlines.
• Similar to how a third-party company might manage a hotel that carries the Marriott or Hilton brand name, Mesa Air operates regional flights for major airlines like American and United, which are sold under the larger airline's brand.

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• Regional Passenger Air Transportation: Provides contract passenger flight services for major airlines, operating under their brand names (e.g., United Express, American Eagle) on specified routes.
• Air Cargo Transportation: Operates dedicated cargo flights for logistics companies, transporting freight and packages.

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Mesa Air Group (MESA) operates primarily as a regional airline, providing flights under capacity purchase agreements for major airlines. Therefore, its major customers are other companies, specifically large passenger airlines.

The major customers of Mesa Air are:

• American Airlines Group (Symbol: AAL)
• United Airlines Holdings, Inc. (Symbol: UAL)

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• Embraer S.A. (NYSE: ERJ)
• General Electric (NYSE: GE)
• Mitsubishi Heavy Industries, Ltd. (TYO: 7011)

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Jonathan G. Ornstein, Chairman & Chief Executive Officer

Jonathan Ornstein has served as Chairman and Chief Executive Officer of Mesa Air Group since 1999 and May 1998, respectively, making him one of the longest-serving CEOs in the airline industry. He previously served as president and chief executive officer and chairman of Virgin Express, a European airline, from 1995 to 1999, which he co-founded after being recruited by Richard Branson. Prior to that, Ornstein was CEO of Continental Express and later Senior Vice President of Airport Services for Continental Airlines in 1994, where he orchestrated an $80 million improvement in operating income. During his first tenure with Mesa from 1988 to 1994, he was Executive Vice President and President of the wholly-owned subsidiary WestAir Holding, Inc., which he helped return to profitability after its acquisition. Ornstein is known in the industry as a "dealmaker" and "maverick" with a reputation for being acquisitive. He also led Mesa through its emergence from Chapter 11 bankruptcy in March 2011.

Michael J. Lotz, President & Chief Financial Officer

Michael Lotz has been the President of Mesa Air Group since 2000 and joined the company in July 1998. He assumed the role of Chief Financial Officer on September 15, 2023, having also held the CFO position previously. His career began in 1983 at John Brown Engineering in Connecticut.

Brian S. Gillman, Executive Vice President, General Counsel and Secretary

Brian Gillman rejoined Mesa Air Group in September 2013 as Executive Vice President, General Counsel and Secretary, overseeing the Legal, Contracts, Risk Management, Properties/Facilities, and Human Resources departments. He previously served as Executive Vice President, General Counsel at Global Aviation Holdings Inc. from 2011 to 2013, and was a key member of Mesa's executive team as Executive Vice President and General Counsel from 2001 to 2011. Before his initial tenure at Mesa, he was Vice President, General Counsel and Secretary at Vanguard Airlines, Inc. from 1996 to 2001.

Rakesh Badola, Vice President & Corporate Controller

Rakesh Badola serves as the Vice President & Corporate Controller at Mesa Airlines, bringing over 20 years of experience in the finance and accounting sectors.

Tyler Campbell, Vice President, Safety and Security

Tyler Campbell returned to the position of Vice President of Safety and Security in October 2019, a role he previously held from 2016 to 2018. He also served as the Vice President of Training and as the Director of Safety from 2012 to 2016.

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The key risks to Mesa Air (MESA) are primarily centered around its financial stability, operational capabilities, and reliance on major airline partnerships.

1. Financial Distress and High Debt Load: Mesa Air faces significant financial challenges, including a substantial debt load and recurring operating losses. Multiple reports indicate a high probability of financial distress or even bankruptcy. The company's cash position has been a concern, and it has resorted to selling surplus aircraft and engines to reduce debt and improve liquidity. As of June 30, 2023, Mesa had $51 million of cash, $124 million of short-term debt, and $442 million of long-term debt. The company reported a net loss of $114 million in Q1 2025, with operating losses of $57.3 million for the quarter ended March 31, 2025.
2. Pilot Shortage and Operational Challenges: An ongoing industry-wide pilot shortage, particularly for captains, significantly impacts Mesa's ability to maintain sufficient staffing and meet its contractual flight obligations. This shortage has led to reduced block hours and utilization penalties, directly hindering the company's operational efficiency and profitability. Mesa needs to hire a substantial number of pilots, mostly captains, to return to operating profits and increase block hours.
3. Dependence on Capacity Purchase Agreements (CPAs) and Major Airline Partners: Mesa Air operates exclusively through capacity purchase agreements with major airlines, primarily United Airlines. The company's business model is heavily reliant on these agreements, and any unfavorable renegotiation, termination, or reduction in aircraft utilization by its partners can severely impact its financial performance. Mesa recently wound down an unprofitable CPA with American Airlines due to operational difficulties and higher pilot wages. A reduction in contractual aircraft with United Airlines also contributed to lower operating revenues in the September 2025 quarter.

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The intensifying and severe pilot shortage poses a clear emerging threat to Mesa Air. This shortage directly impacts Mesa's ability to staff flights and meet the capacity purchase agreements with its mainline partners, leading to flight cancellations, operational inefficiencies, and potential contractual penalties. Furthermore, the acute demand for pilots forces regional carriers like Mesa to offer significantly increased wages, bonuses, and benefits, thereby escalating labor costs and eroding profitability within their largely fixed-revenue contract model. This systemic issue is also prompting mainline carriers to re-evaluate their regional flying strategies, potentially leading to reduced reliance on or unfavorable adjustments to contracts with regional partners.

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Mesa Air Group's main product and service is providing regional airline operations through capacity purchase agreements (CPAs) with major carriers, predominantly United Airlines under the United Express brand. Under these agreements, Mesa Air supplies the aircraft, crew, and maintenance, while the partner airline manages scheduling, pricing, and marketing. Their services primarily cover the United States, Canada, Cuba, and Mexico.

The addressable market for these services can be identified through the regional jet market.

• Globally, the regional jet market size was valued at USD 12.62 billion in 2023 and is projected to reach USD 19.58 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 4.8% from 2024–2032. Another estimate valued the global regional jet market at USD 5.7 billion in 2022, with a projection to reach USD 10.6 billion by 2032 at a CAGR of 6.4% from 2023 to 2032.
• In North America, the regional jet market is a significant portion of this global market. North America held a 36.13% market share of the global regional jet market in 2023 and dominated the global regional jet market in 2022. The North American regional jet market grew from USD 4.28 billion in 2022 to USD 4.56 billion in 2023. Capacity purchase agreements are a prevalent business model within the regional aviation market in the United States.

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Here are 3-5 expected drivers of future revenue growth for Mesa Air (MESA) over the next 2-3 years:

1. Increased Aircraft Utilization and Fleet Optimization: Mesa Air is in the process of transitioning to an exclusive Embraer 175 (E175) fleet for its operations with United Airlines, aiming to complete this by March 2025. This consolidation to a single fleet type is expected to enhance the utilization of crew and maintenance resources. Furthermore, the company anticipates a significant increase in daily aircraft utilization, projecting an rise from 8.9 block hours per day in Q4 2024 to 9.5 in Q1 2025, and reaching 9.8 block hours by March 2025. This improved efficiency and higher utilization directly contribute to increased revenue generation.
2. Higher Contractual Rates with United Airlines: Mesa has secured increased block-hour rates from United Airlines. These higher rates are intended to cover pilot wage increases and are in effect from September 2022 through September 2025, which will positively impact revenue per flight hour.
3. Improved Pilot Availability and Retention: The ability to increase block hours and fulfill flight schedules is highly dependent on a stable and sufficient pilot workforce. Mesa's revenue growth is driven by its efforts to reduce pilot attrition, upgrade first officers, and attract direct entry captains. The company also plans to recall furloughed pilots starting in January 2025, indicating a strategy to strengthen its operational capacity and maximize flight opportunities.
4. Potential Merger with Republic Airways: Mesa Air Group has a proposed merger with Republic Airways Holdings Inc. If this merger is finalized, the combined entity is projected to achieve a twelve-month run-rate annual revenue in the range of approximately $1.8 billion to $2.0 billion, which would represent a substantial increase in Mesa's overall revenue base.

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Share Repurchases

• No significant share repurchases or authorizations were reported by Mesa Air Group within the last 3-5 years (fiscal years 2021-2025). Restrictions on stock buybacks were in place due to the CARES Act and a Treasury Loan.

Share Issuance

• In 2020, Mesa issued warrants to the U.S. Treasury to purchase 4,899,497 shares of common stock at an exercise price of $3.98 per share, in connection with the Treasury Loan.
• The number of outstanding shares for Mesa Air Group increased from 35.53 million at the end of 2020 to 41.439 million as of November 2025, with a notable increase of 12.54% in 2023.
• As part of the proposed all-stock merger with Republic Airways Holdings Inc., announced in April 2025 and expected to close in November 2025, Mesa will issue shares as the surviving corporation. Republic shares will convert into Mesa common stock at a ratio of 584.90 Mesa shares per Republic share.

Inbound Investments

• Mesa Air Group entered into a Loan and Guarantee Agreement with the United States Treasury on October 30, 2020, which has been amended to extend its maturity date to November 28, 2025.

Outbound Investments

• Mesa Air Group made investments in common stock and warrants of Archer Aviation, Inc.

Capital Expenditures

• In fiscal year 2021, Mesa invested $125.4 million in capital expenditures, primarily focused on ten aircraft, seven spare engines, and aircraft improvements.
• Capital expenditures are predominantly directed toward the aircraft fleet and flight equipment, including spare engines.
• Mesa has undertaken significant asset sales to repay debt, including 11 CRJ-900 aircraft for $21.0 million (gross proceeds) in 2023, and spare engines and airframes for $17.2 million (June 2025 quarter) and $11.7 million (subsequent to June 2025 quarter).