Mesa Air (MESA)

Risks

• We are highly dependent on our agreements with our major partners.
• Reduced utilization levels of our aircraft under our agreements would adversely impact our financial results.
• If our major partners experience events that negatively impact their financial strength or operations, our operations also may be negatively impacted.
• The supply of pilots to the airline industry is limited and may negatively affect our operations and financial condition.
• Pilot attrition may continue to negatively affect our operations and financial condition.
• Mechanic attrition, together with difficulty recruiting and retaining qualified maintenance technicians, may negatively affect our operations and financial condition.
• Increases in our labor costs, which constitute a substantial portion of our total operating costs, may adversely affect our business, results of operations and financial condition.
• Our major partners may expand their direct operation of regional jets or seek other independent airlines to service their regional aircraft needs, thus limiting the expansion of our relationships with them.
• We may be limited from expanding our flying within our major partners' flight systems and there are constraints on our ability to provide services to airlines other than American and United.
• The residual value of our owned aircraft may be less than estimated in our depreciation policies.
• The amounts we receive under our agreements may be less than the corresponding costs we incur.
• Strikes, labor disputes and increased unionization of our workforces may adversely affect our ability to conduct our business and reduce our profitability.
• We face tail risk in that we have aircraft lease commitments that extend beyond our existing contractual terms on certain aircraft.
• We may incur substantial maintenance costs as part of our leased aircraft return obligations.
• We may become involved in litigation that may materially adversely affect us.
• Disagreements regarding the interpretation of our agreements with our major partners could have an adverse effect on our operating results and financial condition.
• We rely on third-party suppliers as the sole manufacturers of our aircraft and aircraft engines.
• Maintenance costs will likely increase as the age of our jet fleet increases.
• If we face problems with any of our third-party service providers, our operations could be adversely affected.
• Regulatory changes or tariffs could negatively impact our business and financial condition.
• The issuance of operating restrictions applicable to one of the fleet types we operate could negatively impact our business and financial condition.
• If we have a failure in our technology or security breaches of our information technology infrastructure our business and financial condition may be adversely affected.
• We are subject to various environmental and noise laws and regulations, which could have a material adverse effect on our business, results of operations and financial condition.
• Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.
• We may not be able to successfully implement our growth strategy.
• Our ability to obtain financing or access capital markets may be limited.
• Negative publicity regarding our customer service could have a material adverse effect on our business, results of operations and financial condition.
• Risks associated with our presence in international emerging markets, including political or economic instability, and failure to adequately comply with existing legal requirements, may materially adversely affect us.
• The airline industry is highly competitive and has undergone a period of consolidation and transition leaving fewer potential major partners.
• Airlines are often affected by factors beyond their control, including: air traffic congestion at airports; air traffic control inefficiencies; adverse weather conditions, such as hurricanes or blizzards; increased security measures; new travel-related taxes; or the outbreak of disease; any of which could have a material adverse effect on our business, results of operations, and financial condition.
• Terrorist activities or warnings have dramatically impacted the airline industry and will likely continue to do so.
• The market price of our common stock may be volatile, which could cause the value of an investment in our stock to decline.
• Our corporate charter includes provisions limiting ownership by non-U.S. citizens.
• We currently do not intend to pay dividends on our common stock and, consequently, your only opportunity to achieve a return on your investment is if the price of our common stock appreciates.
• We are an "emerging growth company," and the reduced disclosure and regulatory requirements applicable to "emerging growth companies" may make our common stock less attractive to investors.
• The requirements of being a public company may strain our resources, increase our operating costs, divert management's attention, and affect our ability to attract and retain qualified board members or executive officers.
• We are required to assess our internal control over financial reporting on an annual basis, and any future adverse findings from such assessment could result in a loss of investor confidence in our financial reports, result in significant expenses to remediate any internal control deficiencies and have a material adverse effect on our business, results of operations and financial condition.