Mesa Air Group, Inc. (NASDAQ:MESA) shares are rocketing today after the company reported first-quarter FY24 results.

Operating revenues fell 19.3% Y/Y to $118.8 million, missing the consensus of $126.0 million.

Contract revenue decreased 21.3% Y/Y owing to a reduction in CRJ-900 block hours and fewer aircraft under contract.

Adjusted EBITDAR of $6.3 million came below $25.9 million in the prior year quarter. Adjusted EPS loss of $(0.53), missed the consensus of $(0.32).

Block hours stood at 46,658, an approximate 5% increase Q/Q in the quarter.

Jonathan Ornstein, Chairman and CEO, said, "In addition to the progress we have made on debt reduction and the block-hour rate increase we negotiated with United, another significant reason for our optimism moving forward is the substantial reduction in attrition across our work groups, especially pilots."

"Pilot attrition has improved sequentially over the past several months, and our attrition for May 2024 is less than half of what it was a year ago. Combined with increased monthly pilot training output, we expect to see lower training expenses and better utilization of our fleet, which should lead to improved operational performance and financial results."

"For the second fiscal quarter of 2024, we expect to report an adjusted net profit for the first time in ten quarters. We also expect to generate breakeven cash flow for the remainder of the fiscal year."

In January, the company announced agreements with United Airlines Holdings, Inc. (NASDAQ:UAL) to amend its capacity purchase agreement and certain credit agreements between the companies.

Price Action: MESA shares are up 26.4% at $1.10 at the last check Monday.

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