Mesa Air Group, Inc.

Second-quarter revenue increased 8% to approximately $571 million. GAAP net income was $31.2 million, or $0.68 per diluted share, and pretax income was $43.4 million. Excluding executive separation, merger-related items, and mark-to-market/equity investment adjustments, adjusted net income was $41.3 million, or $0.89 per diluted share; adjusted pretax income was $57.4 million and adjusted EBITDAR was $109.6 million. Completion factor was 98%, up from just under 94% in Q1, and block hour production rose nearly 7% sequentially. For 2026, management now expects block hour production of approximately 880,000 hours, revenue greater than $2.1 billion, and adjusted EBITDAR of $395 million to $405 million, with no change to capital expenditure or debt-reduction guidance.

Matt Koscal framed the quarter as both operationally strong and strategically important, emphasizing safe, reliable flying and disciplined execution of the Republic-Mesa integration. He highlighted 85 days of perfect controllable completion factor, a 99.99% controllable completion factor on nearly 120,000 completed flights, and said the integration remains ahead of schedule across all core work streams. His tone was confident and constructive, especially about the team’s ability to absorb weather disruptions and still raise full-year guidance.

Joe Allman said the stronger quarter came from higher block hours and better operating performance, with revenue up 8% to about $571 million and adjusted EBITDAR at $109.6 million. He noted $278 million of unrestricted cash at quarter-end, up from $273 million at the end of March, $21 million of capital expenditures, and $43 million of debt repaid; total debt and lease liabilities were $1.2 billion. He also said the company received about $20 million of tariff refunds, which reduced aircraft basis and did not materially affect results or guidance, and reiterated that 275 aircraft are under capacity purchase agreements, 31 are on lease to a partner, and 8 remain unallocated.

Analysts pressed on why management felt comfortable raising guidance now, with Savi Syth asking whether the confidence came from realized performance or stronger partner scheduling. Koscal said it was both: demand had remained stronger than planned and the company still sees a solid demand signal into Q3 and Q4 despite severe weather. Michael Linenberg asked about margin upside from the integration and Mesa fleet utilization; management said full benefits won’t be visible until the back half of 2027 and into 2028, and estimated Mesa fleet utilization could improve by about 10% to 15% once maintenance is fully healthy. Linenberg also asked about Eve and Cape Air ownership, and Joe Allman said Republic owns about 40% of Cape Air equity.