PHOENIX, May 1 /PRNewswire-FirstCall/—Mesa Air Group, Inc. today announced pro forma second quarter after-tax earnings of $4.2 million on revenues of $119.6 million, or 12 cents per share on a diluted basis. Net income, including gains from investments in marketable securities, was $5.2 million or 15 cents per share on a diluted basis. This compares to pro forma after-tax earnings of $4.3 million on revenues of $128.4 million, or 14 cents per share on a diluted basis for the comparable period of 2001. The Company reported a net loss, including impairments and other charges and gains from investments in marketable securities during the second quarter of 2001, of $12.9 million, or 40 cents per share on a diluted basis.
Pro forma year-to-date after-tax earnings were $5.9 million on revenues of $230.8 million, or 18 cents per share on a diluted basis. Year-to-date net income including gains from investments in marketable securities was $8.9 million or 26 cents per share on a diluted basis. This compares to pro forma after tax earnings of $8.2 million on revenues of $261.7 million, or 25 cents per share on a diluted basis for the comparable period of 2001. During the first half of 2001, the Company reported a net loss, including impairment and other charges and gains from investments in marketable securities, of $7.2 million, or 22 cents per share on a diluted basis. There were no differences in earnings in 2002 as a result of adopting Statement of Financial Accounting Standards No. 142—“Goodwill and Other Intangible Assets,” as all goodwill was determined to be impaired and was written off in 2001.

During the second quarter, the Company continued its regional jet expansion by adding five regional jets to its fleet. Subsequently, two regional jets were delivered in April, bringing the total number of regional jets in service to 62. In February, the Company began operations in Denver with two regional jets as Frontier JetExpress, two more regional jets were added in April, and one additional regional jet is scheduled to begin operation May 1st. The Company also retired nine 19-seat BAE Jetstream turboprop aircraft, eliminating that fleet type from its operation.

“We continue to remain focused on executing our regional growth expansion plan,” said Jonathan Ornstein, Mesa`s Chairman and CEO. “For the first time in our history, Mesa now has more regional jets in service than turboprops, a reflection of our diligence in adding regional jets for our major airline partners and reducing or eliminating unprofitable turboprop flying.”

“Despite the still difficult revenue environment facing our turboprop business, our efforts in pursuing cost reductions have resulted in a significant narrowing of the loss in this sector of the business when compared to the 1st quarter of this year. We remain committed to taking whatever actions are required to return this part of our business to profitability.”

As of March 31, 2002, the Company`s cash and marketable securities were approximately $82.1 million.

Mesa currently operates 121 aircraft with 879 daily system departures to 150 cities, 36 states, Canada and Mexico. It operates in the West and Midwest as America West Express, the Midwest and East as US Airways Express, in Denver as Frontier JetExpress, in Kansas City with Midwest Express and in New Mexico as Mesa Airlines. The Company, which was founded in New Mexico in 1982, has approximately 3,000 employees. Mesa is a member of Regional Aviation Partners.

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