Regional carrier Mesa Airlines said Thursday that its merger with Republic Airways is on track to close on Nov. 25 after Mesa shareholders approved all related proposals this month. The update was included in the company’s financial results for the three and nine months that ended on Sept. 30.
Mesa reported third-quarter operating revenues of $90.7 million, compared to $128.9 million during the same period last year. The company posted a net loss of $14.1 million, compared to net income of $6.6 million a year earlier.
Contract revenue in the quarter declined year over year, and Mesa noted increases in maintenance, materials, and repair expenses tied to its fleet programs. From January to September, Mesa reported operating revenues of $277.4 million and a net loss of $51.9 million, versus net income of $6.7 million during the same period last year.
Republic’s results were also included in the filing. The company reported operating revenues of $482.3 million for the quarter and $1.35 billion for the nine months. Republic recorded net income of $24.3 million for the third quarter and $71.5 million for the nine months.
‘Finish Line’
“We are pleased to be at the finish line for closing of the merger of Mesa with Republic,” said Jonathan Ornstein, Mesa chairman and CEO, in a news release. “I want to thank all of the people and partners that have supported Mesa for the past four decades as well as helped us reach this outcome today. Our recent results have demonstrated a stabilized operating and financial position, driven by our efforts to enhance utilization and block-hour production, sell surplus assets, and repay over two-thirds of our debt principal over the past year.”
The company said the shareholder vote satisfied the final major hurdle for the merger, allowing the parties to move toward completing the transaction on the previously outlined timeline. Upon closing, Mesa stated that its common stock is expected to begin trading under a new ticker symbol associated with the combined carrier.
Mesa added that integration planning continues ahead of the expected Nov. 25 close, with financial and operational transition work underway as it prepares to join with Republic.
