MESA Air Group Stock Jumps On Plans To Raise Aircraft Utilization Rates: Retail Sentiment Flies Higher

Shares of Phoenix-based airline Mesa Air Group (MESA) jumped over 3% on Thursday after the firm announced it will significantly increase daily aircraft utilization rates beginning in Jan. 2025.

Mesa said that after working closely with United’s Network Planning group, it is scheduled to increase utilization from an average of 8.9 block hours per day in the fourth quarter of 2024 to an average of 9.5 block hours per day, or a 7% increase in the first calendar quarter of 2025.

The airline expects utilization to reach 9.8 block hours per day by March 2025, a 10% increase from the fourth quarter of 2024 and sees further improvement in aircraft utilization in the second quarter of 2025.

The company attributed the increase in utilization to reduced attrition throughout all work groups, more optimal scheduling practices, and improved operational performance. Mesa has experienced only one controllable cancel in the fourth calendar quarter 2024, it added.

CEO Jonathan Ornstein said this was “an important and long-awaited step in improved financial results.”

“While the recovery took somewhat longer than anticipated, we have begun to see significant progress and are encouraged by the planned increased utilization,” he said. “The additional revenue generated from increased utilization will be instrumental in improving operating results and cash flow going forward.”

The CEO also highlighted that given the increase in flying, the company intends to commence recalling previously furloughed pilots beginning in January.

Following the announcement, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (78/100) from ‘neutral’ a week ago.

MESA’s Sentiment Meter and Message Volume as of 11:50 a.m. ET on Dec. 5, 2024 | Source: Stocktwits

Despite the rally on Thursday, shares of MESA have gained just over 5% on a year-to-date basis.

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